Coach Krystal

In this tax lien and deed investing Q&A session, Coach Krystal answers several questions posed by students.

Krystal is a natural born teacher, very caring, insightful, and a true leader. She gives comprehensive answers to questions and has ample experience in tax lien and deed investing.

Coach Krystal has been working with Ted since 2002, and she has taught hundreds of successful students.

In this coaching session, she answers a wide range of questions, including some questions that you may have wondered about yourself.

TAX LIEN AND DEED INVESTING

Narrator:
Much of what you are reading was selected from Ted Thomas’ Wednesday night coaching calls. Where Ted’s coaches, not only answer all of your questions live, but will give you their insight and tips in areas you may not have thought of or encountered in your tax lien and deed investing experience.

Coach Krystal:
Hello, everyone. This is Coach Krystal. I’ll answer your questions on tax lien and deed investing, from beginning to end. I want to remind you. Awareness, it’s so important because by habit we do so many things unconsciously.

How many of you actually remember taking a shower in the morning? You know you took a shower, but were you really thinking about taking a shower and when you were doing it, or getting dressed? Things that we do every day.

So you need to be aware of what’s going on around you. Don’t forget to stop and breathe. Take a deep breath. If you’re stressed and hurried, take a deep breath.

People say, well, of course I’m breathing. Yeah, but have you actually stopped and taken a deep breath, or do you just breathe without even thinking about it? Be in the moment, enjoy what you’re doing.

If you decided that this day is the day I’m going to do something I really enjoy, even though you have other things you should be doing, that’s what you’ve decided to do.

You’ve blocked your time out to do that. You spend time here with your family, whatever. Be in the moment, take guilt free time off, enjoy yourself. It’s okay. That’s the point of life.

Live your life on purpose. Not just let it pass you by and then go what happened?

TAX LIEN AND DEED INVESTING QUESTION 1

Can You Assign Your Position to Someone Else Before the Deed Is Issued?

Question:
Well, we went to the Sonoma County tax auction today, and I was very successful. I came away with two pieces of land.

Coach Krystal:
Yes, yes, yes, yes. Today was a good day for my coaching client.

Question:
Yeah. Excellent, excellent coaching all the way through. When you talk about minimum bids, we had researched a lot of properties and we came up with minimum bids. I did not go over the bid margin.

There were people that were bidding up to 75% of the homes, and some of the homes have been sitting. So it could be estimated anywhere from $20,000 to $30,000 that they would have to fix on the inside. They were already at minimum profit margin. I mean, minimum. It was crazy bidding.

So I really appreciate you and Ted, your coaching, your coaching techniques. The bid that I was awarded, it was just for the minimum bid, even though all through the auction, I was bidding up to my maximum, and I didn’t get anything until the end of the auction.

Then, once I acquired one piece of property, there was a person who ran late from the bank. They missed it, and I bought it. So we’re in a little bit of negotiations right now.

Coach Krystal:
Yeah. That’s pretty good. When you can sell something right away to someone else that wanted it because they weren’t ready. You’ve got to be ready. That’s what I drill in all you, right.

  1. Be ready.
  2. Get your information.
  3. Know what you’re bidding on.
  4. Have that maximum bid.
  5. Know what you can do with the property.

Look at everything in the sale. I think we talked about this last time. What I do is kind of backwards compared to what everybody else does.

Everybody else, I think looks at the list and picks out the ones they want. I look at the list, and I leave everything on until they prove that it’s a bad investment. Then I’ll take it off.

Question:
We took your advice this time because I think that’s how I missed out last time. We left everything on the list to see what was profitable for our profit margin. If it wasn’t profit for my profit margin, then we took it off of the list.

It still left us with plenty of options. Normally, I was going for the homes. This time I added a bunch of land parcels, and that’s what I was rewarded with.

Coach Krystal:
That is so good to hear.

Question:
Thank you, and that’s because I told the lady, well, we can’t really do anything until I get the title in 30 days. Then that way we could sell. So that’s correct. Right? I have to wait until I receive my deed.

Coach Krystal:
I was just going to say, you know what? You might call the County and ask them that before that tax deed is issued, if you can assign your position in that to someone else.

I don’t know what the answer is going to be, but assigning it, your position would possibly allow them to create the tax deed in the other person’s name. Then that person, before that assignment was put in, would pay you what you paid for the property and whatever extra amount you negotiate.

That would possibly allow them to step in your place. You can do that on tax liens, and you can do it on tax deeds with right of redemption. You would have to check specifically if you could do it with that tax deed.

That would avoid you being on chain of title on the property, number one, which is probably not that big of a deal. But it would get you paid faster, which is a big deal. Because if you can get paid a month faster, what happens if you can roll it over again?

So what you would do is you would contact the County, ask them if it’s possible before the deed is issued that someone else steps into your place and that’s assigned to someone else, and see what they say. So it’s somebody else’s name that would be put on the deed.

But that would be something you would not want to do until you were paid.

TAX LIEN AND DEED INVESTING QUESTION 2

Do I Need a Business Plan Before I Begin Tax Lien and Deed Investing?

Question:
It seems that we could approach the opportunity that Ted has presented to us in many different ways, but you talk about it like it’s a business.

How important is it for us to have a definite sort of business plan blocked out, even if we don’t know exactly what the details are as we move forward? Could you make a few comments on that for us please?

Coach Krystal:
I’m pretty casual about things, even though I have a number of businesses. I normally don’t do formal business plans. That’s because I’ve never really needed to. So, that doesn’t mean it’s the best fit for everyone else. Okay.

Here’s the thought though. If you know what the plan is and you can put at least some of it in writing, it doesn’t have to be greatly detailed.

Is it more important then to spend more time working on the business plan or implementing it, making it happen?

Remember I’m a coach in Ted’s one-on-one coaching program. So my focus is on whenever something’s going to get in the way, that’s going to steal time and slow people down. I ask myself, “Hey, can it be done without that?”

A lot of people can get hung up on doing a business plan. I’m not talking about a plan for the year. I’m talking about a business plan that has a lot of of details.

I also find that when people start implementing what they’re learning, they might find out, oh, this is a little bit different than I thought.

So I don’t know if that’s a good answer, but that’s how I think of it because I’m always looking at avoiding the roadblocks. Avoiding the pulling over on the side track on the railroad tracks and waiting to get some more information or to do something instead of keep chugging along on the tracks.

Because when you pull over, everybody else passes you by, and you lose that momentum. So I’m all about keeping people moving and moving forward and not getting hung up about sometimes overthinking things.

What I found is if people don’t know… A confused mind says no. As a matter of fact, it usually doesn’t say no; it usually just stops. The motion stops. So I’m always looking at keeping people moving along.

A formal business plan or not, it’s for some people. If you’re going out and getting investor capital in some situations that might be necessary. I’ve never found that to be a roadblock.

Sometimes there are things that are nice to have, and there are things that you have to have. With other things it’s like, oh, it would be nice to have that, but can I make it happen without that?

That’s kind of my thoughts on a dream team too. Some people focus a lot on building your dream team.

Well, if you can build up a dream team before, when you don’t have anything you’re really working on, why can’t you do it when you need them? Because then you’ll know what you need specifically and who and where they need to be. Sometimes things like that get people stopped or stuck.

Question:
That’s a great answer. So I guess the real question is, if we’re wanting to do this to make money, then is this going to make us money sooner or later and go for the things that we’ll do it sooner?

Coach Krystal:
Yes. I’ve learned that through the years of experience. Don’t wait.

Question:
You’re a great example for us all. All the very best.

Coach Krystal:
Okay. Thanks.

TAX LIEN AND DEED INVESTING QUESTION 3

What If the Homeowner Files Bankruptcy & What’s the Minimum Bid in Ohio?

Question:
Hey Krystal. This is my first call. I’ve got a couple of questions for you.

Coach Krystal:
Okay, good.

Question:
Being Canadian, what happens if the homeowner claims bankruptcy?

Coach Krystal:
If they declare bankruptcy before the sale, the County has to pull that property out. Because once there’s a bankruptcy declared, it puts an automatic stay on any collection efforts. Things stay in place. Any creditors can’t continue to collect.

It’s a violation of the federal law, and it’s not good. As soon as somebody has been noticed, they should not ever make any more collection efforts while that bankruptcy is still open.

So they would pull that property, withdraw that property from the sale.

Question:
When I did look at Ohio a little bit, it appeared to me that Ohio wanted 50% minimum of 50% bid on whatever the assessed value was.

Coach Krystal:
That’s not correct, or possibly that one County was requesting that, because I know that this actually just came up a little while ago.

Their sheriff sales for lender foreclosures start at I believe two thirds of the market value. For their sheriffs tax sales, it’s whatever the amount that they had gone through the legal process with.

There’s this starting bid, and it’s different. It’s not a relationship to market value. It’s basically kind of like the judge amount that they got there. So I’d say, look at those rules again.

If you have to talk to the tax collector or whoever’s courting that sale or the sheriff and verify. And if they say that is the case, then look at something else.

The only thing that it possibly might be is if there’s a homestead exemption or something like that, maybe there’s a rule on that because that’s what it’s like in Florida. If there’s a homestead exemption, then the bidding has to start at 50% of the assessed value in Florida.

Sometimes you’ll run into something like that, but that doesn’t mean that that’s the case on all of them.

TAX LIEN AND DEED INVESTING QUESTION 4

Will They Inform You Before Closing If You’re Being Outbid on a Tax Lien?

Question:
When you’re bidding on a tax lien certificate, let’s say in Florida or Arizona, will they also keep you posted as to whether you’re being outbid? Like if you put a 16% bid down, and then someone puts in at 15%.

Coach Krystal:
Generally not, it depends on which software company is actually doing the sale. Like in Arizona, when I participated in Maricopa County’s online sale, I put in my interest rate that I would be willing to accept. It was only after that group closed, that I could see what the low interest rate was, what the the winning bid was.

That’s where it’s important to go through and do their practice. Because what I realized is that, wow, maybe I’d better reevaluate my interest rate.

I quickly looked at some research and researched the properties that had been on my list in that first group and saw what the interest rates were that were accepted. Then I decided if I wanted to change my strategy for the next round or not. In that case, no, I could not see that.

Now in places like Illinois, where it’s online, but you go use their computers. There, as the different properties come up, you can see what the lowest interest rate is. And you can choose to lower yours, but it’s a very quick process.

It’s just a good idea to go with whatever your lowest is at the time in Illinois. Because literally the certificate number kind of floats across the screen, and you have the time that it’s floating across the screen. Once it gets past there, it’s done and onto the next one.

That would be where if you’re doing a tutorial or the training, it would give you information on what it’s going to look like, and if you would see that or not.

I would not expect to be able to see other people’s interest rates that they’re bidding until that’s closed. By then, it’s too late, but you can use that strategy for future closings.

That’s why online, they do different kind of like blocks or lots. Not that you have to get them all at once, but so you know what you’ve got.

Then you can determine what you can bid. Have available funds to bid in the next group.

TAX LIEN AND DEED INVESTING QUESTION 5

How Do I Locate a Tax Defaulted Property If No Address Is Listed?

Question:
Sometimes in the newspaper, I’ll see the tax deed, and they won’t have an address. They will just have a legal description.

Is there a website where I can find the address from the legal description? Or do I have to go down to the courthouse?

Coach Krystal:
Often if there’s no address that goes with that legal description, then they’ve not assigned an address to it.

If you go to the assessor’s website, or if they’re in Florida, it’s going to be the property appraiser’s website, and you take the parcel number, the number that they have –

Question:
Oh, they don’t even put the parcel number down. They just have a case number.

Coach Krystal:
Okay. Then you would have to use that case number then to back into the parcel number, or use that legal description. So go on to the property appraiser’s website. You want to do a parcel search to get information on that particular parcel, what it is, and look at the different ways that you can search.

If you can search by legal description, then just start putting in the legal description. You don’t have to put all of it in.

If you can search by owner name, if you can search by that case number, then that will bring up the information, which you’re more than likely going to find, there is no street address for that property.

Once you have what you need, then often from there, it’s linked to a parcel viewer or a G I S system, Geographical Information System. Then to find out where the property is located, often you can get information on adjoining parcels.

You could use their information or ‘identify’ button, often they’ll have that, or you can double click on the parcels around it. If there’s a house or structure there, then it will have a house number.

You might find that it’s between 101 Main Street, 105 Main Street, and it’s across the street from 102 Main Street. That would give you enough information to be able to find that property.

They usually do not, it’s very common, that street addresses are not issued until they make improvements, or until they’re building.

Usually if there’s no street address, that means that usually is a lot or a piece of land, but it’s a good idea to check because sometimes something has been built on it and they haven’t updated their records.

TAX LIEN AND DEED INVESTING QUESTION 6

When Should You Foreclose on a Property in Georgia to Get the Highest Interest?

Question:
Hi, I’m from New York, how are you?

Coach Krystal:
Hi, I’m fantastic. How are you doing?

Question:
Fabulous. Thank you for asking. I have a couple of questions for you today. Hopefully you’ll shed some light on it.

I keep hearing Ted say in his program about tax deeds in Georgia, how it’s the penalty phase that pays 20% your first year. However, if you’re a little bit over to next year, it’s pays 30% and then the following year 40%.

He says that he strongly recommends you not to foreclose the first year. Right? So you can receive higher percentage the second year.

Coach Krystal:
Let me tell you a little bit about that. Number one, you have to wait a year. If you start the process after that first year is up, then if they pay during that process before the foreclosing, they have to pay 30%.

If I remember right, you might be able to start that process a little bit before the 12 month mark. But, if you wait until past the 12 month mark, then you can start that foreclosing on the right to redeem. Then when they’re paying during that, after that 12 month mark, then it’s 30%. So the penalty would be 30% on it.

Question:
Ah, I see. Because my question was, if somebody did not redeem their property in the year, what makes you think they’re going to redeem it on a second year?

Coach Krystal:
Well, they might. They might redeem once you start the foreclosure process, and then they have to pay you what you paid for the property, plus the cost of the foreclosure process. Then they have to pay the penalty on that.

Question:
See that definitely shed some light on it. Thank you so much.

Speaker 4:
I hope enjoyed this episode. Check out the free webinar training in tax lien and deed investing, or you can schedule a consultation with Paul Castillo.

TAKEAWAY

In this tax lien and deed investing Q&A session, Coach Krystal answers several questions from Ted Thomas students.

  • If you find a buyer for a property you won at an auction before the deed is even issued, can you assign your position on the deed before closing?
  • Do you need a business plan before you begin tax lien and deed investing?
  • What happens if the homeowner files bankruptcy?
  • What is the minimum bid in Ohio?
  • Is there a way to know if you’re being outbid on a tax lien?
  • How do you find a tax defaulted property if no address is listed?
  • When is the best time to foreclose on a property in Georgia to get the highest interest rate?

Coach Krystal answers these questions about tax lien and deed investing on one of the live coaching calls, which are held regularly to support students.

If you want to know more about tax lien and deed investing, there’s no one better to learn from than Ted Thomas, America’s Leading Authority on Tax Lien Certificates and Tax Deeds.

Ted has been teaching others how to successfully invest in tax liens and tax defaulted property for over 25 years. His hands-on approach, and team of experienced coaches, like Coach Krystal, are there to guide students through every step of the process.

To earn excellent returns or acquire deep discount property safely, securely, and predictably from your tax lien and deed investing, you need to know the rules and do your homework, and Ted can show you how.

If you’d like to know more about tax lien and deed investing, Ted has a FREE gift for you, the Safe Haven master course (valued at $197).

Safe Haven is 2 streaming videos and a 100-page illustrated manual, that teaches you how to invest in tax liens and deeds.  To learn more about tax lien and deed investing, act now and get your FREE Safe Haven course today.


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