DeedGrabber Mini Course Day 1
"Buying at Tax Sale Doesn't Work!"
Thanks for subscribing to my "Go Ahead, Be a DeedGrabber!" Mini-Course. You're about to learn about one of the least known, but most profitable niches in real estate - DeedGrabbing.
Over the next 5 days I'm going to debunk many of the myths about tax sale investing, and show you the "loophole" that allows anyone to profit from tax sale properties, without investing a bunch of money or waiting.
I really get a diverse group of people who subscribe to this email course.
Some of you are just getting started and have heard that tax sales are the best opportunity to get real estate for pennies on the dollar - even free and clear properties for under $1000.
If I'm talking to YOU now, I'm about to save you a lot of time, frustration, and money.
Others of you are modestly successful, own some properties already, and maybe even have done some creative or pre-foreclosure deals. You're looking for another, more profitable niche to pursue.
And I get people now and then who are experienced tax sale investors. If you've invested at a tax sale before, what I'm about to tell you is not news.
Whatever the case is, I'm sure you'd like to make money in the tax sale arena, and you recognize that now is the time to get bargain purchases. And you're looking for a way to do it.
Here's the central point I want to make to each and every one of you:
Direct tax sale investing is not a good way to acquire bargain property unless you have hundreds of thousands of dollars to invest, and are willing to wait months and months, or years, to acquire your properties.
This is because you will have to face other bidders at a tax deed auction or buy dozens of tax liens and wait to get one that results in a property acquisition - most tax liens pay you off and leave you with no property...though you do usually earn a nice rate of return.
Tax Sale Basics
A tax sale usually happens in one of two formats - tax lien sale or tax deed sale. If you're completely new to tax sales you can read my article, "Tax Sale Basics", to catch up. But here's a little more information about both:
TAX LIEN SALE - The county allows investors to "purchase" unpaid taxes. An investor pays the taxes owed, on behalf of a delinqent owner, and is given a first-priority lien on the property. The investor earns a high percentage return on his investment if the owner pays him off (quite often, it's 10-20%+ per year).
A deadline is set for the owner to pay off the lien. If the owner fails to pay this amount by the deadline, in most states the property is deeded to the investor free and clear.
TAX DEED SALE - A sale date is set for all properties with delinquent taxes. Anyone who has not paid by that date has their property sold to the highest bidder.
Each state's law is different, but your state should be similar to one of the two formats.
On the face of it, it appears that bargains would be everywhere. Simply pay off someone's taxes, wait a while, then acquire their property for just the tax amount. Or bid on their property at the tax deed sale and get it for the amount of taxes owed.
The Realities of Tax Lien Investing
1. Many states have a bidding system for tax liens as well, so tax liens for valuable properties will be bid far past the minimum amount.
2. If you manage to buy a bargain tax lien, you will be paid off by the owner 95%+ of the time.
3. You will have to wait many months or years to acquire the property and there are legal pitfalls throughout the process.
The Realities of Tax Deed Investing
1. Tax deed auctions are well known, and well attended by investors. They will bid up the price on valuable properties to near retail value, or certainly to 70-90% of value.
2. You need all cash in hand at the sale.
3. Enough said.
Tax lien investing is great for people who want to park large sums of money making double digit returns, and end up with a bargain property once in a while.
In fact, large institutions come in and spend millions of dollars on tax liens at one sale, in my county alone.
"OK, I'm Convinced...What About the Loophole?"
Sorry if I've burst your bubble about making money at tax auctions. But here's the good news: there's a loophole that gets us around all the downsides of attending tax sales to buy liens or deeds.
We're going to get $200 properties like those folks on TV (though the properties might not be as pretty as the phony pictures shown on the infomercial).
We're going to get them now, and use the loophole: we're going to buy directly from the owner who is about to lose the property.
Tomorrow's lesson is called:
"The Real Source of Tax Sale Bargains - The At-Risk Owner"Sincerely,
Everything You Need to Know to Profit From
Tax Property Before the Sale -
Yes, I'd like to get the DeedGrabber information NOW!
Choose your version (click one):
Ebook Digital Download: "Go Ahead, Be a DeedGrabber" in digital format for immediate download. Takes you step-by-step through the process of DeedGrabbing, from getting your list of owners, to contacting the owners, what to say to them, and how to research the property for value and title issues before you buy. Then, how to sell the properties you get for big paydays.
DeedGrabber Study Course: Immediate download of the ebook PLUS the ebook in written format shipped to you free by UPS. Additional materials include Legal Forms CD which itself can save you thousands of dollars developing your paperwork. Also includes seminar DVD, Quick Start CD, and Introduction to DeedGrabbing CD with Jackie Lange of CREWealth.com.