Hey guys, not too long ago we did a very well-received training call with one of our newer advisors, Corey Taylor, who’s expertise is killing it using tax deeds and liens. This guy’s knowledge in this arena is second to none. If you didn’t catch that awesome training call, you’re missing out, so make sure you check it out.
Not only is Corey a real estate entrepreneur with a specialized focus on investing in tax sale properties, he's also an investment trainer with a highly successful investing course of his own. Through his genius problem-solving skills, Corey has figured out how tax sales provide both discounted property as well as huge interest returns on capital
Going forward, Corey’s gonna be a regular contributor (yay for us!) covering and following up on a lot of stuff he discussed in the training call and laying out how you can also make a killing through tax liens and deeds.
So, sound the alarm as this is his first official lesson. Enjoy!
Without further ado… take it away Corey…
From Corey Taylor
Hey Moguls, Corey Taylor here…
This is going to be great, so please read carefully.
If you’re like I was a few years ago, you may not know you can get fantastic deals from an amazing source of continual leads. I was totally in the dark on this thing called Tax Sales.
The problem was that I had heard about tax liens but had never heard about tax deeds. So I went through several years of my investment life thinking tax liens were all about earning interest and had nothing really to do with buying properties. I wanted to OWN property to flip or hold, etc… and thought tax liens weren’t a fit for that goal.
I wouldn’t have been more WRONG, and I’ll explain why
First let me catch you up on what the deal is with Tax Sales, so I can point out the “hidden” part you need to know so you can take advantage of this information today. As in – right now.
Property taxes are handled in 2 different ways in the U.S.
Way #1: One way is to hold an auction where investors come pay the late property taxes and get a tax LIEN on the property. They don’t own it; the Lien is a piece of paper that says they will earn $XX amount of interest from the homeowner when the taxes are brought current.
There is a limited amount of time for the homeowner to pay, called a REDEMPTION PERIOD. If the lien is not paid, the investor can pursue ownership of the property. Usually it’s 1 year of late taxes to have this auction, then 1-3 years redemption period.
Way #2: The second way is to hold an auction where investors come BUY the property at the auction for the highest bid, which pays the taxes; and the homeowner or lender (yes it happens) gets the remainder of the funds. This usually happens after 2-3 years of late property taxes. They skip the lien process and go right for the deed sale.
About half the county does Tax Deed sales, and half do Lien sales. A couple of states are somewhere in the middle. So in practicality, the process is about the same in that 2-3 years of unpaid taxes accrue before a homeowner loses a property.
My aha moment from tax sales that blew open my REI business
For years I didn’t know this structure of how taxes worked, so I had no idea how I could get deals from the sales. I wanted to own real estate – not just get interest on it.
So let me reveal the golden nuggets I stumbled onto when I finally explored this animal called Tax Sales.
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There are a TON of tax liens to be had for pennies on the dollar that are NOT likely to redeem. You know why? Because they are owned by a dead person whose heirs don’t care about a property needing rehab 5 states away, and they just let it go. And many times these liens can be bought directly from the county without even bidding.
I look for properties that have a dead owner, no bankruptcy, no probate issue, vacant property (and I love the grass to be really high!).If there’s a ‘yes’ to all these items, it’s usually a given that I’m highly likely to own it at the end of redemption.
I invest in states where I pay $1,000 to $3,000 for a lien, and pick up a $50,000 property.In some states I pay more because values are higher, but the point here is that you’d be amazed how many properties can be had for JUST THE BACK TAXES. These back taxes are typically a small fraction of the property’s value.
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The properties going to Deed auction are an amazing opportunity. I contact owners before the auction and get properties handed to us, sometimes for FREE. Remember these are heirs who really don’t care… oftentimes, they simply want to feel like they responsibly sold the old house instead of just letting it go. (And yes, some are living in the house, and they need to sell too. It’s a great distressed list!)
If I end up attending the auction, you’d still be shocked at the number of people who are actually buying anything. The deals that can be had are astounding.
More great tax info to come, including this stuff
There are multiple strategies I’ll cover here at Mogul, but you can start getting leads NOW by going after tax liens that likely won’t redeem, and marketing to properties going to tax deed auction.
Let me tell you the best part about this…
Counties produce a list of these types of auctions and properties FOR YOU, right in the paper or on their website. You just have to look through these lists and find the gold. These lists are far less competitive than all the other lists being talked about in the marketplace. I keep track of all of these auctions and lists inside my members’ area so I can stay on top of them 24/7 and crank out deals.
Millions and millions of liens and deeds are available every year. Really.
I even bought a 58 lot pre-approved subdivision last year. An awesome find! All it took was simply looking at a list of property on a leftover list of available tax liens.
I’ve done about everything there is to do in residential real estate investing over my 14-year career… I buy 95% of my deals through Tax Sales now. I love its consistency, the large flow of leads and the fact that this has been around hundreds of years (and probably hundreds more).
This isn’t a flavor of the week strategy – it’s a reliable investment process to repeat over and over. That’s a great way to build a solid investment portfolio, and it’s the way to create what I call “Generational Wealth” – enough equity and income for you to not only enjoy now, but to pass down to children and grandchildren so they can reap rewards as well.
So please don’t put it off like I did, I’m begging you to check out tax sales and make some great money this year!
Lemme hear from you
As a newbie advisor, I’d love to hear your thoughts or questions about what I’ve covered here. Lemme hear from you in the comments section below
Learn what a tax lien is and what a tax deed is. (Knowledge is power.)
Understand the 2 ways tax sales are handled at auctions.
Go after tax liens at auctions and pick up props on the cheap – over and over again.
Corey Taylor
is an active Real Estate Entrepreneur with a specialized focus on investing in tax sale properties. He's also an investment trainer with a highly successful Investing Course called Elite Tax Sale Training.
After graduating from the US Naval Academy in 1997, Corey accepted a US Marine Corps commission as 2nd Lieutenant. Corey began real estate investing around 2001 between deployments. He bought every real estate course under the sun and took action. Having built an investment company part-time, he got out of the Marine Corps in late 2004 and became a full time investor. Within a few years he had over 200 transactions worth of experience in rehabs, wholesales, short sales, lease options, owner financing, note selling, self directed IRAs, and managing millions in private money.
Corey admits his first taste of failure during the Real Estate downturn. He got back up by problem-solving in a down market and discovered how Tax Sales provide both discounted property as well as huge interest returns on capital and that’s where he has focused his efforts ever since.
In addition to working his Tax Sale Investment Strategies full time and speaking around the country, Corey also voluntarily leads hundreds of people through Dave Ramsey’s Financial Peace University every year and advocates true financial wisdom. Corey and his beautiful wife Andrea have 2 young children.