Why should you invest in tax deeds or tax liens? Watch our video as we discuss three prime examples of why you should invest in Tax Sales.
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.
I have a great topic today and it’s a question that I get asked fairly often.
Why tax sale investing?
That’s right, why should we invest in tax sales and other stuff instead? When it comes to real estate there is bank owned homes, wholesaling, spec homes, commercial properties and all sorts of other types of investing. Then there’s all the stuff outside of real estate like the stock market, and crypto currency and that kind of stuff.
Now, I’m not here to bash any of those investment vehicles. The deal is that you can make money with each one of those. But historically speaking, tax sale investing makes a whole heck of a lot of sense.
Let’s talk about 3 prime examples of why tax sale investing.
First, let’s talk about the strong history of tax sale investing. I’ve been in real estate for over 16 years now and I’ve see so many investment schemes come and go over the years. They are designed to take advantage of a loophole in the laws, or of the current market conditions, or are only useable for a short period of time. This means that you waste your time learning about these strategies only to find that they’ll work for just a year or two. Additionally, one of the most popular strategies that I’ve seen in the last few years that a lot of new investors like to use is being debated whether it is even legal and has become a huge target for many state regulators lately.
Well, tax sale investing is much much different. 300 BC. That’s when tax sale investing first started. It originally started in the Roman Republic as taxes were levied on land to raise funds for their army and growing government. This isn’t the next get rich quick scheme or something that is going to be gone tomorrow. It has been a very viable wealth building strategy for over 2300 years. And it will continue to exist as long as taxation on real estate does, which, let’s be honest, will probably be forever.
There just aren’t too many other investment opportunities that can even begin to compare to the longevity of tax sale investing.
Another benefit to tax sale investing is the minimal cost of entry. It’s difficult to buy real estate for as cheap as you can with many tax sale properties. The opening bid for many tax sale properties are the amount of the back due taxes, interest and fees. In most areas, these only total up to a very small percentage of the property’s value. Obviously, this figure can increase based on the amount of competition and demand for that property but that certainly varies from one are to the next and from one auction to the next. With that said, unlike a bank owned home where they’re trying to get as much money as possible, the county’s objective is to return that property to the tax rolls as an active tax revenue producing property once again. They aren’t a private party looking to appease shareholders or anything like that.
Now, I’m not saying it’ll ever happen again and I’m not even trying to give you hope that it’ll happen to you specifically, but if you haven’t listened to the podcast about the Best Day of My Tax Sale Life, go listen to it now. Or watch my YouTube videos on the $.01 property or the $20 house. These are obviously extremely rare situations, but it just gives you an idea that, yes, you can actually get into properties incredibly cheap.
Another reason is for the repeatability. If you’ve ever spent any time searching for bank owned properties, you probably know that there could be one tomorrow that you’re interested in or it might take six months. In many areas, there are tax sale auctions monthly or twice monthly. In the other areas where they’re held only once a year, there might be 200 or 300 properties – I’ve seen more than 1,000 properties offered at some auctions. And if you’re willing to invest in areas outside of your hometown, you can attend an auction nearly every day of the week somewhere across the country. There are a significant number of properties sold on a very regular basis at tax sale auctions. So, it’s not like you need to sit around waiting for the next opportunity.
Opportunity abounds. In my hometown, everytime I go to tax sale auctions I see very familiar faces. In fact, some of the investors I see at auctions now are the sons of investors I saw 15 years ago at auctions. It’s an investment strategy that works and can be repeated over and over again if you’re willing to put in the work.
Guys, there are loads of other benefits as well. Selection of properties, the fact the you don’t have to be an insider, that you have no one to deal with, that the barrier to entry is you’re taking to time to learn. There are so many benefits to tax sale investing it’s unreal.
Is it the most popular strategy? Is it the newest strategy? Is it the coolest strategy? Is is the only strategy? The answer to all of these is absolutely not. But, that’s the reason I like it so much.
So, if you’re looking for an incredible investment opportunity, go ahead and turn to tax sale investing.
That’s it for today folks. If you are enjoying my life streams, be sure to subscribe to our channel and go ahead and click on that like button for us so we know you enjoy them and are finding them useful.
If you’re looking to learn more about investing in tax defaulted real estate, be sure to check out my new book The Tax Sale Playbook – which is the ultimate guide to buying and selling tax defaulted real estate and it can be yours for free at Tax Sale Academy.com. That’s taxsaleacademy.com, we bought the book for you, all we ask is that you help with shipping.
That’s it for today guys. Make it a successful day.
Take care. Bye bye!