How can you profit from distressed property? Learn the safest way for newcomers to invest in tax lien certificates and tax deeds when investing in distressed property.
Transcription – What is Distressed Property?
What is a distressed property? It’s a property with overdue taxes or other debts. For most investors the safest and predictable way to invest in distressed properties is either by purchasing a tax lien certificate sold at about half the states or by purchasing a tax deed sold in the other states. Newcomers find it hard to believe that there are so many opportunities to profit when investing in distressed properties. They can’t believe the property owners risk losing their property for just the back taxes or they think buying a property for pennies on the dollar sounds too good to be true.
In a recent workshop held in Alberta Canada I describe how Los Angeles, California a state that sells tax deeds had an auction where there were more than 7,000 properties on the list to be sold to highest bidder.
So what I have in my hand, everybody pay attention closely, this is the next auction in Los Angeles. Where? Great. And this book is going to give us a ton of information. So let me tell you what we have to start out with. What we have to start out with is we have a list of all the properties that are currently scheduled to be auctioned at the Los Angeles auction, okay. Every property that’s in here is scheduled it shows the back taxes and a brief property description. So I want you to know how many properties are in this book just so you can get a good idea.
Now we’re talking about one county, I’m not talking about California I’m talking about Los Angeles County. Does everybody understand that? So I’m talking about how many counties? Okay, excellent. All right, it got one county. So I’m going to tell you property number 1 is starting on page 1. One page 1 all the previous information I’m going to give you in just a minute.
So I’m going to go all the way to the back of the book we’ll find out how many properties are scheduled for auction in Los Angeles County. I’m now on page 685 and, let me make sure I get the last property, no I didn’t so I didn’t do that now let me do this correctly. Now you guys could all call and get this axillar book if you want yourself. You could call Los Angeles County. You already have directories with Los Angeles number and you’ve called them so you want this list of all the properties that are available in that county.
They will send you this they’ll charge you 12 bucks or 20 bucks whatever they do for it. Okay, so on the last page which I told you was 685, it’s 687 pages they have total properties in this auction 7,113. Seven thousand one hundred and thirteen. Will you very if that number is correct? Okay, now about 4,000 of these will actually come in and pay the tax. So you’re going to get an updated version of this as often as you can. So what you guys would do is you probably update online so you get it and then you have it.
You should get one of these and you probably should get a Los Angeles County map and so on. Although there is a map on the book *0:03:01 one but it’s not adequate. So what I’m going to do with you now and I just want to give you the sense for this whole thing is every county will have some kind of list. Sometimes it’s just a little newspaper.