Tax Lien & Deed Property Research

Tax Lien & Deed Property Research



hi it's Dustin here welcome to this week's video so what I want to do this week is talk about something that also comes up quite a bit and that is property research so you have to excuse me I'm going to be referring to my notes a little bit every now and then so let's go ahead and talk about some property research when you're getting into tax lien or tax deed investing so I want to talk about kind of your foolproof plan in this okay so you know especially when it comes to tax lien so let's talk about tax lien investing research right now so let's say for example you're looking at a tax lien on a hundred thousand dollar property and let's say the tax lien is like a thousand dollars or $2,000 on that property okay so you're going to go you're going to research the taxed mean you're going to make sure that the house is pretty decent hopefully you can see the property physically if not you know you can have somebody go there and take pictures of the property for you so you can see that it's livable and in good conditions so what we want to do is make sure our butts covered okay and here's how that looks like especially with tax lien investing you always want to make sure that the worst case scenario so here's the two scenarios of tax lens scenario number one that happens like ninety five percent of the time is the tax lien certificate redeemed and you get your interest rate so that's why it's one of the most proven safe and secure investments in North America because ninety five percent of the time they come and pay you back with your interest rate now the other five percent is really where people get the massive homeruns is because you want a tax lien for one or two thousand dollars maybe on a hundred thousand dollar home and what happens is they don't pay you so you go ahead and you foreclose so let's say you're into this thing four thousand bucks so you hire a foreclosing attorney to send out all the notifications go through at the foreclosure process and you now own the property free and clear because the mortgage gets wiped out now remember the mortgage company is often who redeems most of the tax lien certificates and that's because obviously they have a mortgage on it and they're going to get wiped out so what you're going to do you're now into this property assuming the tax lien didn't redeem your foreclosing so you're now into this property for about 2,500 bucks let's just say three thousand bucks at the end of the day what happens with most people so they're able to go ahead and flip this thing super fast you know the market value is 100 you can easily sell it for you know sixty five thousand tomorrow or even seventy thousand dollars thirty thousand below market value that thing will move super quickly now remember I'm always a big fan of selling these things quickly because when you sell it a deep discount you are dealing with investors people that know what they're doing they buy fast they close fast and they have cash now a lot of people get greedy and want to put these things on the market for full market value so what happens is all of a sudden you're competing with every other mom-and-pop that are wanting to sell their house and move into a bigger house and you're now competing with every other house on the market so that's why it's best to sell it fast and flip a whole bunch of these things so back to what we were discussing before now let's talk about the absolute worst case scenario and how you can still come out of this thing ahead of the game okay so let's say the worst case scenario is you buy it and you foreclose and you get it and then maybe that thing burns down or something happens during the redemption period where this thing has to be demolished right maybe there's a flood or something like that and you always want to make sure that the land value is going to cover all of your expenses so on a hundred thousand dollar house the worst-case scenario which rarely happens this I don't even really know anybody that this has happened to you but if you're like me you always want to know the worst-case scenario okay so the worst-case scenario is this you buy it you foreclose on it and during some time in this it burns down and you have to have a demolition crew come in and clean it up so you know the property you're now into it for maybe six thousand dollars so the worst-case scenario is you always want to make sure the land value is going to cover your butt okay so worst case scenario on the tax lien you sell the land you recoup all of your money and then you move on to the next and talk up the lessons and you're going to get some massive lessons through this stuff so this is why I always say to people why it's so important you know even if you're just buying like a twenty or thirty dollar tax lien so important to get that experience and get comfortable with this stuff because it's not really a matter of when you're going to get something that hits maybe makes you a lot of money it's I mean it's not really a question of if it's always when that's what I always say to people because so many people go to their first sale and think oh you know I didn't I didn't get a property this business doesn't work and it's not like that you know I obviously have a lot of stories of people getting massive success at the first sale like buying five or six tax deeds or getting a bunch of tax liens and then foreclosing and getting the house on their first one sometimes you're going to go to sale you won't get anything and you know you need this experience um obviously this business I love this business because I really think tax liens and deeds are the best barrier to entry into real estate because there's no wildcard variables I call it there's no buyer's or seller's the county deals with everything for you you show up you bid it's done you don't have a buyer or a crazy seller to go and blow the deal on you so that's why I really like this business okay but too many people just give up too easily they think they go to one sale and they didn't make a million bucks and then they say this stuff doesn't work well you need to get experience and get comfortable with this and start to understand and you know feel familiar with this you know you wouldn't hop in an airplane with a pilot that's only flown in a plane once right so that is very very important to stick to this stuff get some sales under your belt that's why in the last video I talked about going to the local County sales and you know even if you're not willing to want to buy just getting used to the environment getting used to doing some research and understanding this stuff so if you stick to that you are going to be in great shape so on that note to recap you know these your action plans once again try to find a sale just go to it get comfortable or even research a sale take any sort of action after this video and you know you're going to be moving forward to getting a lien or deed and then selling it and profiting so to recap just always make sure the land value is going to cover your but if the worst case scenario happens and you know I have thousands and thousands of customers all over the world mostly North America and I've yet to hear a story of this worst case scenario happening however I just wanted to make sure you're covered in case it ever does happen you'll still come out of the stand so thanks for watching and I'll see you the next video