In this video, we discuss the cheapest real estate purchase I’ve EVER made. Watch the clip for details!
Transcript:
Hey there! Casey Denman here with TaxSaleAcademy.com. You know, I did a video a few days ago where I was talking about how you can invest in real estate for less than $500 through tax sale and tax deed investing, and I got an incredible response from that video. I got so many emails about people that had no idea you could invest in real estate for such little money. I even got a few response from some critics that say it’s not possible.
That’s why I decided to shoot this video. I invest in real estate and I’ve been doing so for over a decade through tax sale and tax deed properties. I’ve invested in a lot of properties and some I’ve gotten very, very cheap and I’ve gotten hundreds under less than $500.
Now, this video here, I’m going to show you a little clip about a purchase that I made three or four years ago. Now this is a piece of property that I bought, well, for one of these! A penny. Believe it or not, you can buy a piece of property very, very cheap. Let’s cut to this clip.
@@@
All right. So let’s talk about the deal real quick. Now this isn’t a piece of property where I made a truck full of money, and the actual property itself isn’t anything special, as you’ll soon see in these pictures.
What I’m trying to demonstrate here, however, is that you can start investing in tax sale and tax deed properties for very little money. Often, much less money than people even realize.
Now, finding the property. How did I locate this property? Well, the property is located in a state that offers both online and in-person auctions. And at some of these auctions, you’ll be bidding online against people real time that are actually attending the auctions live. So it’s a pretty cool setup.
In this particular case, I had about a month to perform my research and figure out which properties I’d be bidding on. So there’s a month between the date that they posted the auction list and the actual auction that I had participated in online.
Now, during my research, I came across quite a few properties in this county, but one in particular piqued my interest. On paper, it was a commercial structure on the main thoroughfare of a fairly rural community. I was definitely interested in this piece of property so I dug a little bit deeper. Fortunately for me, one of the few streets in this area that had Google Street View imagery, this piece of property actually happened to be on it. So what I did is I compared the plat map to Google Maps and I quickly located the building. And this is what we have.
It’s not bad. It looks like it’s an old paint shop or something. Obviously, it needs some fixing up. Obviously, it’s old. But, is it capable of being a great deal? Yes. Absolutely.
Now, with every property, especially buildings, in areas that I’m not too familiar with, what I like to do is have some additional insight on the property. Usually, this means a quick drive by to take a peek at the property just to make sure the building hasn’t burned down or been demolished or anything like that.
Unfortunately, this piece of property was a few hundred miles away from me and I didn’t want the hassle of traveling for a couple of days to take a look at a piece of property that I might or might not get. So, I used a strategy that we teach inside The Tax Sale Academy and I was able to get a few pictures from somebody local in the area of the property.
So here are the pictures that they sent me of this piece of property. Now obviously, it looks very similar to the Google Street View, which also looks like nobody’s occupied it for quite a while. Another issue that you had is this is in a small town. So trying to find somebody to purchase this piece of property in a small town might be difficult. But as you can see, it’s not too bad of a building, I guess. You can probably make some money here.
So what I did is I set my budget fairly low. I attended the online auction. I was the first bidder. And to my surprise, nobody outbid me on this piece of property. So believe it or not, I actually won this piece of property for just 1 cent.
Now I had some other fees that were tied in there. I think there was a $20 deed fee and a dollar or two miscellaneous charge. So I had like $20, $25 in this piece of property total, but the actual purchase price was just one cent. And this is a screenshot or a picture of the county clerk’s website which basically shows that this deed was recorded.
Now, what did I do with this piece of property? I sold it very, very quickly. I sold it I believe in about a week or two to somebody that was actually local to the area. I found somebody local to the area that wanted this piece of property. I’m not sure what they did with it. I don’t know if they rebuilt it or demolished it. I don’t know the whole story. But I sold it to somebody and they paid $1,195 for this piece of property. So it was a fairly good deal, if you ask me. It went from 1 cent to $1,195.
@@@
So I hope you’ve enjoyed that clip. Now, what you have to realize here is this doesn’t happen very often. I’ve been to hundreds of auctions, I’ve seen probably 200,000 or 300,000 different properties auctioned off and this is the only time I’ve ever seen a piece of property sell for just 1 cent. And fortunately, I was the lucky buyer.
Now, with that said, what this does illustrate to you however is that you can buy properties very, very cheaply if you are patient. You can buy pieces of property all the time less than $500. And on occasion, even less than $100 or even less than $50. You just have to be patient here. Go to different auctions, attend the different auctions. Take your time. Don’t rush yourself into anything. And obviously, before you consider even spending just one penny on a piece of property, you need to take the time to learn how to successfully invest in tax sale properties.
I hope you’ve enjoyed this video. If you’d like to see similar videos or if you’d like to learn how to invest in tax sale properties, head on over to my website at TaxSaleAcademy.com, which you can do by clicking the blue link at the bottom of this video.
Again, it will take you to TheTaxSaleAcademy.com. Once you get there, download your free copy of my e-book, The Tax Sale Blueprint, and you’ll be on your way to a very successful tax sale investing career.
Take care, folks! Bye-bye.