Transcript:
Hey guys, it’s Casey Denman here from Tax Sale Academy.com
Thanks so much for joining me on today’s livestream here on Facebook.
Let’s get right to it . . .
Today we’ll be discussing the best properties to start off with. So, you’ve learned the process, you have some capital, you’ve learned how to do the research, but which property type is best for you?
You will see every single type of property at a tax sale at some point – lots of vacant land and single family homes. You’ll also see multifamily properties, retail properties, restaurants, commercial properties, acreage tracts, I’ve even seen properties as crazy as schools, lighthouses, nursing homes, islands, and all sort of other weird stuff.
But, which is best for the beginner?
If you’ve ever watched HGTV and the flipping shows, you’ve probably seen these dilapidated homes that they’ll go into, remodel into a showpiece, and then they’ll sell them and make loads of money. Sounds like fun, right?
Well, maybe not for the beginner.
You need to take a strong look at your skillset to determine which types of properties you should start off with. You don’t need to be an expert investor or builder or anything like that, but you might have to skill that are related to tax sale investing that could help you. Those skills can help your decision on what to buy.
If you have no real estate or construction experience, you probably don’t want to buy a 200-acre tract of land with the intention to subdivide it and build spec homes everywhere. Doesn’t make much sense, right?
Here are two property types I recommend for the beginners.
If you have absolutely no experience when it comes to construction or remodels, including personal projects and or you have no experience in real estate at all, the best property for you to start off with will be a vacant property. Preferably, this would be a vacant lot with some sort of construction activity in the general vicinity.
I’m not talking about a 50-acre tract of land, or 37 lots combined, or anything unusual like that. I’m talking about a standard lot for your area, whether it’s a tenth of an acre, a quarter or half acre, or whatever it is.
These types of properties are usually much cheaper to get into and out of compared to others. You’ll be able to pick up these properties for far less than a home in a comparable area. They’ll also usually be much easier properties to manage. While there are still many things to look into when you do your research, you will have less responsibility then if you were to purchase a structure of some sort. You won’t need to worry about remodeling, structural maintenance or insurance, vandalism, code violations, that kind of stuff.
It’ll also be a much easier purchase for you throughout the life of the investment. There won’t or shouldn’t be too many unknowns or issues that pop up. Land is land – you won’t remove a wall land have to repair the unexpected termite damage or any surprises like that. Now, with that said, your dollar on dollar return just might not be as good as some other property types. In fact, it’ll usually take a few vacant land transactions to make up for the profit you’d receive from one single family or commercial flip.
But that’s ok. In addition to it being a much easier investment to manage, it’ll also allow you to learn as you go in the process and begin working up from there.
Now, that’s brings us to our second option. If you have a little more experience, then you can begin with something a little more challenging. Maybe you have some real estate experience or you have some construction experience. In that case, you can start with either a vacant property like we discussed or a single family home needing as minor improvements as possible.
You don’t want to have to gut and remodel something. That is a nightmare project for most investors, especially beginners. It’s time consuming, costly and very challenging.
I’m talking about the property that is in decent condition. The property you want is the property that might need some carpet, paint, and a few other small repairs. You want the easy one. Because, the truth is, that the easy one will often become challenging and you’ll certainly come across a few things you weren’t expecting.
Now, of course, everyone wants the easy one. Everyone wants the one where you can get in, do a quick fixup and cash out. And you just have to understand that going into to. Be patient with your search and the properties you buy. Don’t bit of more than you can chew, otherwise it’ll cost you a lot of time, money and effort.
So as a new tax sale investor, my suggestions are either the simple vacant lot OR the simple single family home. You can obviously buy anything you please, but from my experience both of these are very safe stepping things towards seeing long term tax sale success.
I hope you’ve enjoyed today’s livestream. As always, if you’re enjoying our free training, be sure to subscribe and like this video to let us know you’re finding it useful.
And if you’re enjoying our free trainings, you’d really love the The Tax Sale Academy, which you can find at TaxSaleAcademy.com. Again, that’s TaxSaleAcademy.com
Have a great day folks. Take care, bye bye!