Welcome to the Tax Sale Podcast, where tax sale investing is made easy.
I’m Casey Denman, a tax sale veteran, the author of the tax sale playbook, founder of the tax sale academy, the leading tax sale expert and trainer and your host right here on the tax sale podcast.
Thanks for joining me on today’s podcast. This podcast is provided completely free to help teach you about tax sale investing and is made possible through The Tax Sale Academy. If you’re looking to learn about tax defaulted real estate, in a comprehensive, step by step basis then head to TaxSaleAacdemy.com and click on join. Again, taxsaleacademy.com and click join.
In the past I’ve talked about beating your competition – checkout episode 57, beating deep pocketed tax sale buyers for one of my most popular episodes to overcome competition. I’m going to add a few more tactics in today’s podcast because this is such a common issue amongst beginners. I want you to understand that if you’re having a problem with properties selling for too much, it’s important that you understand how to properly approach the problem. I’ve had people argue with me previously that properties sell for too much money – my response: Of course, sometimes properties sell for too much money, but if you utilize the correct tactics, then there are ways around this. Always.
Now if you’re dead set in your beliefs that properties sell for too much money, then get out of this business. That’s a scarcity mindset and won’t take you far as a tax sale investor. The reality is that there are 3,000 properties sold daily. Yes, some of these sell for too much money. But a large number sell for far below market value. You just have to approach it correctly. More on that in a future episode.
But let’s go over 5 ways to beat your competition:
The first one is to out work them. Simply put, people are lazy. Extremely lazy. They want properties to fall into their laps. And this actually describes a good percentage of tax sale investors. They stumble upon a property here or there and that’s it. This is a business that takes effort to be profitable and grow. Obviously, there are many different techniques, strategies and tactics that contribute to your success in this business. But, it takes work. Let me give you a little glimpse into what I have seen over and over. I’ve created an incredible academy that lays out the step by step process. It’s detailed and comprehensive, but actionable and easy to follow. On the technology side, I get a glimpse into member activities – number of logins, pages viewed, how many minutes that spent there, all that kind of stuff. Now, I receive success stories on a near daily basis. The one thing that 99% of these success stories have in common: they come to me from members that have put lots of effort into learning. And I know that the same effort they put into learning is the same effort that they’ll put into their tax sales business, and that same effort is what will make them money. This isn’t a business where you can browse the internet for a few minutes and make millions. This is a real business that requires real effort. Effort matters. Always.
Next one . . . go to more auctions. The single biggest reason for my tax sale success is because of the numbers of properties I’ve seen auctioned off. I couldn’t even begin to guess how many properties I’ve seen get sold – billions of dollars worth. I’ll put it to you this way – if you attend an auction every single day of the week, you will be successful. You will find properties that are extremely cheap. You’ll win those needle in a haystack properties. You’ll get those homerun deals. And you’ll get as many of those in quote, solid deals that you can afford. Now, of course we can’t all do this. But if you get your head around that fact that it’s a numbers game, you’re a step ahead of everyone else. Make it a point to see as many properties get auctioned off as possible. Go to every single auction you can. Be there as much as you can. If you’ve attended less than say five or ten auctions and are complaining about not getting good deals, then you’ve completely looked over this step. Be there and be ready to watch as many properties to get sold as possible. Of course, this one goes back to the first step. Yes, it requires effort. No way around that.
Next one . . . go where it’s difficult. Easy usually isn’t profitable. The absolute hardest place to invest might just be the most profitable. The reason is that it beats your competition out. A lot of people will start their tax sale careers by choosing an area that’s large and incredibly easy to invest in. One of the areas where you can get 85 property photos, where you can register, bid and pay online, where you have title information, comparable sales data, and every single that at your fingertips within seconds. That’s what people want. But, that’s easy. So just as you can get your hands on that information without any effort, so can every single other investor in that area, that state, the United States and even beyond. On the extreme opposite end of things, if you must drive to a town, walk inside the county office to get a tax sale list, then go down and actually review paper documents inside the courthouse, then be in person to bid and pay in cash then your competition is going to be minimal. You can get easy or you can limit your competition. But you can’t do both.
Another one – change strategies. Your strategy of buying the typical single family home with a white picket fence is not all that out of the ordinary. In fact, it’s what every single person wants. If you can do that, then more power to you. But it’s often beneficial to take another angle. I’m not saying you have to go crazy, but perhaps you should think outside the box a little bit here. The most successful tax sale investors that I know all do it a little bit different. They do it their way. Perhaps they buy rundown properties and are slum lords. Maybe they buy lots and work out a deal with a builder or mobile home dealer. Maybe their investing borrowed funds and are taking the spread. Perhaps they buy with the intention to make their profits when they resell with high percentage owner financing. There are so many different approaches you can take with this business that will prove much more beneficial that your typical approach and will allow you to dominate your compeititon.
The last one . . . patience. I know, this is probably one you don’t want to hear. Neither do I. But, it’s necessary for new investors and the vets. I’ve been in this business 17 years and I routinely have times where I must remind myself to be patient. If you’re new to this business, understand it’s just that. It’s a business. If one of your friends decides to open a restaurant and comes to you after a week complaining because they are making thousands of dollars every night, you’d probably tell them to relax and be patient. Its ridiculous to think that you can walk into this business and hit immediate success. I have been contact by some people after a week in this business complaining about not making money yet. One week. That’s ludicrous. And it shows a lack of maturity and understanding of the process. Be patient and wait for your opportunity – now obviously as you’re being patient and waiting for the right opportunity, you’re learning, researching, growing and developing as a tax sale investor. It’s not wasted time in the least bit, but understand that patience is such a virtue in this business.
Hopefully these five ways to work around your competition has helped. Again, they are outworking them, go to more auctions, go where its difficult, change strategies, and be patient.
As we’ve discussed, these are just a few of the things that factor into beating your competition while becoming a profitable, efficient tax sale investor with a growing business. We’ve got other episode on this podcast that can certainly help with that, but if you’d like the comprehensive step by step training that we offer, just head to taxsaleacdemy.com and click on join. Again, there’s a link in the show notes, but it’s taxsaleacademy.com and click on join.
That’s it for today, if you enjoyed this podcast episode please take just a few moments out of your day to leave us a positive feedback rating on whatever platform your currently listening on. We read every single comment, notice every single 5 star review and are so thankful for each one of them.
Have a wonderful day. Take care, bye bye.