Tax Lien Investing Exposed!

all right all right shut up and invest fam what's going on we're at the livewire conference in beautiful South Beach Miami j-money what's going on my brother I'm doing the man I'm loving and joined the Sun the water we got behind this amazing amazing women have been coming through telling us a story it was all about ladies first is we got miss Daniel and the house was about to drop that knowledge not only is she doing a version of virtual investing because she's in Texas right I am in Texas I really I've been there about a year and a half but that's not your market actually no not yet no yes no yeah that's the next you going that's the next target yes next Milan tell us I introduce yourself tell us your market and we'll get started chef Danielle piers creative woman wealth and real estate and a few other companies as well I'm a full-time real estate entrepreneur I've been doing this for 13 years haven't been a successful Oh 13 years however I'm very successful now yeah but I'm a tax lien investor and also work and property preservation which is repairing and maintaining bank owned properties got it so how did you get into reservation he was preservation great question so I got into it because I could not get into the listing side of selling the REO properties for those of you who don't know it's it always has been still is largely kind of a exclusive good own voice Network kind of deal so politics yeah yeah I think once you get in there you're in there that's how are you getting have no sleep yeah yeah because I mean but then I get that cuz if I'm on the other side and I'm getting 700 listings the year that I just get aside to me I'm probably not gonna be one to let that either I work I worked for an Oreo broker my first eight nine years in real estate right so in oh seven the crash happened it so I was right there doing all the Oreos and it was a good time but there's very very few of them that can do them and you know it's a small small network yes can you try to get list even Illinois yeah thanks yes could not it and they give it out you know to a few brokers here and there but nothing like the volume base for you trying to get where you trying to get in with Oh Fannie Freddie is of course those companies and then was a big one HUD pretty much any of them well I just wasn't able to make that happen they're cracked me up because you wouldn't know the people who and guys if you say guys I don't know there were all guys write you and know the guys who had the REO listings and he would see like this one agent you never heard before I have one or your listing and then have no idea what to do with it have no idea about when you get those utilities turn off and turn on you're gonna pay that you know like no idea so yeah I mean I think it's looking back it's I'm glad that it went the way that it did there's obviously a lot of money that's spent upfront bonkers and I guess I probably just ate it over that initially but maybe I would have been able to handle having so much many thousands of dollars out on the street in Chicago people catalyze properties [Music] you know that you don't mean Kevin has no idea of minimisation means closed door preservation work and I would say they were like what is that cuz thanks it's a little bit cold got the actually the house that I sold to move to Miami I get because the Bing didn't winterize the house right so this was like a beautiful house the main thing when right now is that this is a Michigan grant mission I was there before I moved on okay so I'm like you guys don't do most myself of Michigan Battle of Miami yeah the bank the bank then where's the house the pipes froze said that we played two months before you found out Wow Wow you you ended up running into this hurdle so you said let me try to come in from a different angle yes I did a pivot which as an entrepreneur you guys will know you have to pivot quite frequently or you should right when things happen you either listen to wanting to see why let's between you two anyway he said basically why create problems you need to have to accept a situation or deal with it and it sounds really really simple so profound it's so true so yeah the except that you deal with it you created a company that now is gonna work with the good ol boys yes yeah you're gonna provide a service that they needed yes absolutely so all the stuff that he we'll do two properties in the process of waiting for it to be so like people go and they steal copper and cut the lines they still the furnace the water heater sometime they still have cabinets sometimes they just go in and if there's a tenant who was living there and they had to be evicted they'll just trash the property just because so all of that stuff we correct so you have a preservation company yes and they're doing work in different states just Illinois a little bit of Illinois still primarily in Texas now Texas such a large area stock cover uh San Angelo County and Tarrant County which is Dallas okay how does that lead into the investing side of the business tax lien investing so a lot of brokers I'm a licensed real estate broker have been for because we're dagger first before you start the preservation company or employ spinner Procrustes all six okay um like a lot of people I got my real estate license thinking I'm gonna learn all this stuff about real estate they don't teach you don't know how to make money and a lot of Ages are our kind of date they struggle initially unless they find someone to kind of help them up or they ever learn the language yes so I just was on the more proactive side so yeah I got my license and I've always wanted to be a real estate investor and I found out about tax liens years ago and like a lot of people I just kind of wrote it off like Cortes some BS more to it because I assumed that because I didn't know how to do something that nobody else did and then I found out about it it came across my radar again I said okay that's what I'm gonna do and it really is a great way to acquire properties for you know for pennies on can you explain tax lien sure for those who don't know yes so tax lien investing is essentially going down to an auction and a lot not a lot a few of them are actually online now and you are acquiring properties that are delinquent in property taxes and so it can be convoluted depending upon the state and what you're trying to do it but just for the most part the people are delinquent and you're either paying the full amount of back taxes that they owe or a portion of it and then waiting for redemption to pass redemption is the timeframe they have to come back and pay everything fix it and if that doesn't happen and then you can become the owner of the property if they redeem it you get you get what you paid back you get what you pay back plus your history that's plus improvement and some states like Texas which is like the wild wild west yeah you can actually buy a text link on property in Texas if it's vacant you can move into it or you can print it one month to month start collecting rental income during that two-year time frame because there's a two-year Redemption there and then if it doesn't redeem then you get the property for does 4db get 25% on what you paid so in Texas you can buy the lien yes vacant yeah you don't the way for me there's a period to move in there or anything right now that's illegal in most places every space an attesting stake down correct correct you have lanes deeds liens days and what we call redeemable deeds Texas is redeemable deeds day okay are you just doing this in Texas or Texas Tennessee and Louisiana is on my list a recent being Louisiana sells deeds they have an online sale once a month the property stung with title insurance which is practically unheard of in tax lien investing and it's still relatively affordable versus a place like a Miami or like California or in New York or things that is ridiculous the difference between when you buy a tax lien and then when you're in where did you say Tennessee or the Tennessee and you're buying a tax deed well in most places if you buy the tax deed you're buying the property outright it's a done deal there's no recourse is no redemption some places that you buy the deed and the owner still has a right to redeem so that's what I mean by redeemable deed state so yeah lien deed redeemable deed and I was Iowa for the ruin theme of those weird amphilocite now I wouldn't I'm gonna invest into I'm going to invest in Texas it just it just depends on your comfort level your your level of risk that you're willing to take on and of course that much money you got what's the worst case scenario if you buy a tax deed that's redeemable you think you own the property how what's the time period it could be up to two years okay this is all a bunch of things to the property well you shouldn't so you can do things that are necessary and reasonable but you shouldn't go in and do like this mega rehab with like you because if they come back in within those two years right then you gonna have a hard time explaining why you did so much to the property trying to recoup that that's tax lien which I'm alright cuz thanks baby but we're talking about taxes even believe we're gonna yeah yeah when it's just buying the lien you're essentially now the debt holder versus the county yes and now that I pay you plus in some states up to twenty five percent of your money yes correct that's a nice little return it is per year it's right here it's per year when someone doesn't pay and I know different states are a little bit different but in the states that you're in when someone does not pay their property taxes how long before it goes to auction it could be as fast as a few months or it could be a year so Chicago went from they have a scavenger sale which is people who've been to Lincoln for up to three years and then they have an annual sale which is just people who have been delinquent for one year I'm obviously the more they've been delinquent the higher the amount of money that they'll owe all the way to three years without being auctioned off after year one that's a um well you have just like with I kind of equate it to rental properties so you have what I like to call professional tenants there are those people who know the law sometimes better than the landlord's do and so they just extend the process you know buy it by any means necessary they'll go to court they'll make up stories they say oh ok I'm a stick somebody died you know I'm on bed rest and and so it plays out that way when out in preservation I've seen people who have not paid a mortgage in four years yeah yeah cement some real thing and then still did everything so you're from Illinois I am from Chicago I am okay so I thought about that yeah oh you ever sauna yes a lot yeah um so what got you in real estate like what gets you into one so a few years back Mitchell nice in those six yeah got a license man I've had I went to a workshop and actually my very first mentor was presenting who was the complete jerk by the way and he was showing checks from flipping and I said oh I'm gonna do that I want I want those checks we what is this that was those six Oh sir and that's that's what sparked it and then I had this thing about humping my own boss I'm gonna be you know an entrepreneur and make my own schedule and I got all of that for all when it happen you know what I'm saying I thought it was gonna be like all glamorous in this month I'm gonna make money and just chill out all day you kind of gotta build up to that that was my the part I was missing yeah definitely so you got it you got your license in Chicago I did did you start off working with investors right away where you were going the retail bars what was your like when you got into specializing anybody that was also problematic to like not specializing I always didn't have the same message and it really does come down to focus so I was working with you know if people wanted to run a property people want to you know invest and then people who wanted to I was trying to do short sales you first start out you're just trying to find any way to make the money or the desire or at the same time to buy a house so you know go outside of my network I was in the brand-new town had been here for pray about six months you know and they say write down everybody you know from church I'm late list I've been over six months you know no one nobody says you remember your first investment deal yes I do I remember my first investment downs doing a flip cuz I was watching a TV we all were oh my god this is it and I made 26900 $8.00 oh your first one yeah yeah and then I spent it okay well I tell you I thought I was gonna be like that on the money yeah like it literally never heard to me to like oh do this again it was like oh you did it and and that was it and then all the money you know was spent that when I said hmm what should I do now it wasn't hard to find another one after that that experience it was at my next one I in my I've only done two flips because that wasn't it flippin is stressful we all agree a lot of money and yeah excited the second one only made like $15,000 but no I wasn't hard to find they just took me longer because I spend all our money and then you said after this I need to go into something else yes that is my head wasn't your I mean it's funny because you made money so why the pivot I didn't like the the flipping process contractors and I really need to give keeping contracts abandoning even though they blow things are well deserved it's funny because everybody got no husband and real estate as long as I am there always still looking for contracts always always there always still looking for contractors which is really really weird yeah but yeah I hate to keep giving them a bad rap but that's the reason why I got it flippin yeah yeah that's right start applying wasn't your vibe started to find good ones that are always reliable and I might give it to cuz they're always looking for jobs too and unless you're doing it unless you're flipping full time where they know that you know they can have constant yeah yeah they're not gonna be that no trust really just to you so what are some of the challenges now in the tax lien and the tax deep business because I mean like everything right people's sometimes only focus on the good especially if they want you to sign up for their course and their training programs was the real pros and cons in the hustle that you're in right now let's see sometimes you run into situations that are very very difficult where you may end up having to evict someone from a property that's that's not even for preservation or for this not my favorite thing to do so you have to be mindful of that another issue is mm money for funding like as far as the property needs to rehab and renovation that sometimes is an issue access to credit sometimes as an issue for for new investors knowing where to invest a lot of people want to invest all over and it's really really challenging to learn the rules of so many different places because they they're very little operations like even Illinois in Indiana which are right next to each other Cook County you know their Redemption is like two two and a half years 18% interest rate per year Indiana has in one County has a four month Redemption and so people will learn one process and think that it applies across the board and it doesn't and then the last challenge is that folks think that it automatically goes from lane to deed if you buy tax lien certificate and it does not and you can lose all your money if you do nothing so so different counties are different even in the counties in the same state yes we'll have different different areas or different laws yep and how's the process when you do buy a tax lien because you just expressed that it doesn't automatically turn into oh I own this property I own this deeds what's that look like in the market that Turon that's actually very straightforward and easy like I love that process because I pay an attorney to do all that and the attorneys will charge you between 850 to $1500 per property and you guys some people were like um I do this myself I'm not paying an attorney but that's kind of that's the person who I look forward to blaming if things don't know--this ago I'm the law is very complex but all the steps and the notifications and talking and finding out the the title search that's what the attorney does and so yeah you don't ever have to go to any court dates you gonna have to do it you just kind of sit back and wait pay them their money let them work their magic let them do what they do best yeah and how long is that process usually um so let's say the redemption is a year and after the year expires you're probably looking at another three to six weeks to actually get the deed to the property now you pick up this deed and this property now needs major rehab and to be able to flip and that part you don't like so what are you usually doing those situations I've wholesale that's right yeah I did and I've never so outside of that I'm not a wholesaler I know that everybody here is in the wholesaling but yeah it's a great way you don't make as much money obviously but you get in and you get out and you don't have to deal with that headache of finding the contractor in the renovation so is the majority with the liens that you're buying you you're holding on to some obviously I've sold all the rooms so far said I am going to renovate and rent the two that I'm waiting to pass ready to be a landlord yeah short term where you could be you know you have to look to seller finance those those tax liens to then use the bank you know so they made a landlord you know that's such a beautiful thing about being at conferences like this and talking to other real estate entrepreneurs because you pick up other strategies I tend to be like one-track minded but I just never thought I'm selling financing yeah I know what it is but I never thought to do it it's like oh you become the bank right now I'm ask you a question when you pick up these properties if they still have a mortgage on this property how does that work the mortgages are extinguished during that phase of waiting for the redemption to lapse and then with the attorney sending out all the notifications to every lien holder that hasn't you know every anyone who has an interest in that property so the mortgages are typically extinguished if they are not that means the more the bank wants that property and typically if it's in a you know a lower cost area that's not as big of an issue if it's a $700,000 house Bank of America's probably gonna show up at a court day like hey house that is not an issue so most of the time or a hundred percent of time when it comes back to you and now it's your property it doesn't even have a mortgage on me right the property only it's only folks you got to worry about is if you get one with that you kind of just never trained when I see those on them because you'll see those indeed sometimes I almost like no yeah and you see that during your research yes oh yeah it literally says federal tax lien yeah when you're buying these liens are you were you pulling time I know you said some come batana work already but some don't are you pulling title work during the research of the property or I have not because the places where I've invested the recorders website has been really really up to date but I did just find actually a company in Tarrant County Texas and they charge $20 of property because they do volume and they're like really they charge 20 I was like holy crap and then also for anyone else if you don't have that resource if you make a connection with an attorney they'll give you a discount on volume then are you just coming you one little deal you got paid in 200 250 or whatever it is but outside of that I used to buy a lot of stuff at the sheriff so yeah cause I saw an horseshit through my Redemption period for that stuff into camara demon how much how many properties you see you redeemed that you're buying on these taxing for the seller the owner is a pain and off in getting property back I couldn't say a specific percentage but I will tell you a way to kind of to weed out the properties that may or may not get redeemed so the integrated largely contingent upon the area too so if you see a company or actually you'll see sometimes businesses on there too if they're behind a thousand dollars they're probably gonna pay that back yeah if they're behind ten thousand dollars or even five thousand that's a different story and it also depends on Redemption too so if they have two years come up with five thousand I say it's about 50/50 if they have two years to come up with ten thousand or hundred thousand that ain't happening right so but you're still going after some of those are you not because I have it because I'm not I mean that you you do earn interest but you know 25 percent on ten thousand is work twenty five hundred bucks oh yeah before we let you go we got a little a little segment we like to call my money life segment okay a couple questions so if you have to go back in the day and talk to your rookie self brand-new into the game but knowing what you know now where would you drop on them I would have been I would have done tax lien investing any I would have done property preservation from the beginning I won't say that regret going to college don't use anything from an accounting degree which I literally have not used and forever but I would have I would have I would have pursued an itch being an entrepreneur from the very beginning a lot of people don't do it because they're scared to bet on themselves I would bet on me beginning like pointing period and go right into an itch right beginning I show is there a specific tool right now you can't live without software Excel spreadsheets yes you know what it's ontraport I'm sure I got report right now what is that I'm Jordan CRM the email marketing landing pages text message marketing any everything you waste about $500 a month now okay I'm telling you it is it's pretty you're using that for your email blasts text glass everything right now blasts talking to people when I do webinars oh and how could I forget is like the because you can literally do a webinar and running on autopilot 24/7 Frank are you you a settlement moment or a jam webinar jam I you can together right after you're done time it's like four hundred dollars for a year and you can have a webinar running wherever a four seven twenty percent how are you using these webinars for that's for the sama online coaching platform as well okay because I don't want to do one-on-one and face to face and blah blah blah but the webinar jam software you can you run the webinars and I could I have a ad agency now who manages my Facebook ads and so they're responsible for getting traffic into the webinar and then from there that goes to online coaching platform your coaching coaching investors want you to do tax lien investing and preservation but typically a lot of them are in real estate in some capacity already and the last question of the day you did mention that you were gonna start being a landlord now but what's your number one current present-day investment my current day investment goal is it being a landlord and start collecting doors or you got one that's a little bit higher it would be a hundred unit apartment building you're gonna per that I was able to manage yeah that's it one hundred five hundred don't you basically manage right now in preservation yeah your pre managing but yeah that that's the endgame under units maybe you messed that up I feel like you just deserve to fail you think you could pick that out through the tax lien strategies I've not come across one hundred unit the most I've seen is like twenty four but if I'm not starting boy those it is very nice listen Danny I appreciate your time yes like the live wire I love live wire so dope so smart with it I'm just like oh [Laughter] we appreciate that we respect we love the fact that you guys are focusing on getting the women up in the gay and excess assets all the expectations of my goals that you guys have so we're watching and we're I got your daughter so hey I'm with you guys ladies first we have three daughters Oh three daughters daughters that dollars no you have three daughters thank you guys so much preciate it all right guys find you my youtube channel sundar Daniel Pierce also Instagram same thing and my facebook group is women wealth and real estate there you go becoming that group on this thing you can't know I got a wig the husbands and the boyfriend actually I don't know where do they try some single men looking for hey thank you once again for listen to set up a new vest if you guys are motivated I thought of fatiguing you're with us say the journey with us the visit shut up in a vest calm there you can join a community and take advantage of more free resources and don't forget please like comment and subscribe to this podcast so you're first to hear our new content every week most important get active and don't forget to shut up and invest

Channel: Shut Up And Invest

Views: 33,634

Keywords: #shutupandinvest, #smartmoneylife, #taxliens, #wholesalinghouses, #wholesalingelite, #realestatedisruptors, #flipthishouse, #sellerfinancing, #creativerealestate, #creativefinancing, #realestateinvesting, #investing, #investor, #realestateinvestor, #subjectto, #taxdeeds, #probates

Id: A4sW_0ZEVSU

Length: 26min 19sec (1579 seconds)

Published: Mon Nov 11 2019