BiggerPockets

The Art of The Tax Foreclosure Deal

Wednesday, November 18

I've been getting a ton of questions lately regarding the level of difficulty of finding highly profitable tax foreclosure deals so I want to (hopefully) provide some clarity now and how these deals are basically your own private land profit generator.

If you've never done any type of real estate deal before and basically have no clue about anything related to investing, the learning curve will obviously be a little steeper than if you have a foreclosure deal or two (or many) under your belt.

That said, I like to view the whole process as basically a combination of both art and science when it comes to this type of deal making. Both can easily be learned quickly by anyone of average intelligence. I'm proof of that. ;-)

Although there are a handful of intricasies... it all basically boils down to:

1. list building (thru county agency or list broker)

2. culling the list (sorting highest potential for likliehood of ease as well as profit)

3. marketing (mailing as well as picking up the phone)

4. putting the deal together (involves using a title company in most cases)

5. depositing your check

That's the Big Picture.

If you can grasp that concept and believe that there are tens of thousands of highly profitable land (and house deals) becoming available on a weekly basis around the country in the tax foreclosure arena... you're already way ahead of the 98% of "investors" who think that tax forelcosure investing involves going to auctions. 

Hopefully, that sheds a little more light on the subject. I'll post more details soon.

--Brian

Comments

1. 

   Jim Wineinger Reply
   over 2 years ago

   I have yet to see any followup on "I'll post more DETAILS soon".

   It has all been an unexplained 5 step process like above.

2. 

   Brian Wilkinson Reply
   over 2 years ago

   Not going fast enough for you, Jim?

   It's a B-L-O-G, not a book. Regardless, you don't have to read it. ;-)

   Your profile states that you're "An investor who understands that any investment will take 2 years to show any returns due to reclaimation and fix-up periods necessary before sale is possible."

   Where's your patience now? LOL

   Or is it that you don't believe that there might just be another way to work tax sales besides showing up at the auction?

3. 

   Jim Wineinger Reply
   over 2 years ago

   I know how the process works, including not promissing something to someone that may not happen. Therefore the two years when it could (and usually does) take a whole lot less.

   Yes there are several strategies, and no one knows them all.

   I just dont personally care for the GURU types that sell the information that is freely available. But your land profit generator does sound like something a little different the most guru's offer.

   Yes I am impatient in the learning process itself, but recongize that doing deals does take prudent patience.

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