TED DISCUSSES HOW TO BUY PROPERTY BY PAYING BACK TAXES
Ted will show you how to buy property by paying back taxes for pennies on the dollar while avoiding the bigger mistakes that most people make.
Watch the video above or read the transcript below:
Welcome back. I’m Ted Thomas. And you’re probably wondering why I’m speaking to you today. Well, for a lot of people, I’m America’s tax lien and tax-defaulted property expert, but I’m going to give you some real insight. I’ve been doing this for about 30 years.
I started out working with tax-lien certificates, and then I kind of graduated to doing tax-defaulted properties. I’m going to give you an insight into both of those, but today’s lesson, this episode, is going to be how to buy property by paying back taxes.
So let me say that again, for the edit, how to buy property by paying back taxes. I’ll be right back.
Okay, well, I’m back. Okay, now, here’s some facts, and I’ll give you a little background about this tax-lien certificate business, and tax deed business.
There’s thousands of these properties that are auctioned nationwide every year, but it’s always done at a county, at a local level.
Now there’s a reason for these properties going to auction at such low prices. They go to auction because people haven’t paid their taxes.
HOW TO BUY PROPERTY BY PAYING BACK TAXES IN YOUR CHOICE OF OVER 3,000 COUNTIES
So there’s over 3,000 counties across America. Now half of those counties approximately, will sell tax liens; the other half of the counties will sell tax deeds.
Now tax lien simply means that you’re going to pay someone else’s taxes, tax deeds mean, you’re going to actually get a property.
Now why on earth would the county be selling these properties? They’re selling the property because someone hasn’t paid their taxes.
Now, it’s amazing, but there’s over 5,000 tax auctions every single year. Thousands of people do not pay their taxes, at least on time. And so in half of the states, they sell a tax-lien certificate. When they sell that, you go in and buy the certificate.
And when you do buy that certificate, you basically pay someone else’s taxes. That way the people stay in the property. You don’t get possession when you do that. What happens is the people stay in the property.
So it’s very benevolent. They leave the people there. But now those people owe you whatever you paid, plus maybe 16%, or 18%, or 24%, all the way up to 36% interest.
Now, that means there’s big money to be made in the tax lien, and the tax deed business.
HOW TO BUY PROPERTY BY PAYING BACK TAXES FOR PENNIES ON THE DOLLAR
Now, if you are buying tax deeds, you’d be able to buy those for sometimes 5, 10, 20 cents on the dollar. In both cases with tax liens and tax deeds, there’s no mortgage on the property when you get it.
So as I say, there’s 5,000 auctions a year. So not to worry, there’s going to be plenty of these for everyone. So it’s a huge, huge business.
Now, how are you going to find out about it? Well, I’m going to teach you a lot about it in this series, but you could, of course, go online and research them there.
You can go to the local county and research them there. And then in many cases, the local county will advertise in the newspaper. But most people don’t know what the newspaper means.
Now, I don’t know your county, and I don’t know where you are right now. But sometimes there’s only five properties at an auction. Other times, there will be as many as 2,500.
Now you can imagine when they’re trying to sell 2,500, that’s going to be a big auction, a lot of people, lots of activity. I can’t get all that done today. But in a future lesson, I can tell you a lot more about that.
HOW TO BUY PROPERTY BY PAYING BACK TAXES WITHOUT MAKING COSTLY MISTAKES
But one of the things I want to make sure you do is I want to make sure you don’t make some big mistakes. So let me tell you about the big mistakes before we go any further. Now, this is important to you, because people make these two mistakes all the time.
And then instead of the auction being something where they go home with a big check and make themselves lots of money, they end up getting their hand slapped and something goes wrong in their life.
Most Common Mistake #1
So big mistake number one is people go to an auction, they raised their hand, they want to buy an auction property. However, they haven’t looked at the property.
Now, I’m going to teach you how to do this online. So wherever you’re watching me right now, you could sit there and buy in all the different counties in the United States.
I’m also going to teach you how to do it when you actually go to the physical auction. But either way, you need to look at the property, so that you know what you’re buying. You don’t want to buy something that you don’t know what you’re getting.
Now you’re saying, “What do you mean, Ted? It’s an auction. It’s going to be a great deal.” Maybe you think there’s a picture of it. Well, it could be a picture, but how old? Towns and communities have hurricanes go on. Buildings have fires. All kinds of things happen on property.
So you want to make sure that you’ve looked at the property before you buy. You’d hate to buy a property, and then find out when you got there, it had burned down the night before.
So you always need to look at the property. Now what’s the next thing you want to do?
Most Common Mistake #2
The next thing that’s a big mistake people make is they haven’t thought about what they’re going to do to sell it. So if you’re going to sell a property, I don’t want you to assume that you know what the price is you’re going to sell it for. I don’t want you to assume that that it’s a good property or a bad property.
You need to have looked at the property. And now you can determine how that you’re going to sell the property. That’s going to determine your exit strategy.
So if you don’t have an exit strategy, you really need to think thoroughly before you go to this auction. So those are the two big mistakes.
Alright, now, I’m going to be back with a lot more information. And what I want you to do now if you heard something today that you liked, and you want to have more information, I have a gift for you.
Alright, in order to get the gift, it’s right below me, and take you right down to it.
So if you’d like to join my community and learn a little bit about this, I have a free gift for you (valued at $197). I call it a quick start. It’s a DVD, and it’s all about tax-lien certificates on the first part, and all about tax deeds on the second part.
Now we only had five or six minutes to work with you today. But that is a one-hour DVD, and just go below me and you can get that right now.
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