so welcome back i'm ted thomas for the
past 30 years i've been involved in tax
lien certificates
and tax defaulted property so tax liens
and tax needs now i've been involved in
this business because it evolved that i
started buying tax properties at
auctions and getting great deals and
then next thing you know i was teaching
people how to do it and i became a
mentor and then a coach and then i
started a whole business of helping
other people do all this okay so this
episode is going to discuss and answer
your questions
how to sell vacant land and do it fast
the easiest way to do that is buy it
right and then sell it right so i call
that buy low sell low so i like to buy
at these auctions and there's not a lot
of competition for land everybody at tax
deed auction wants to make a deal
they're there because they think the
auction is the deal and and they think
it's a great deal and sometimes it is
sometimes it isn't but one thing's for
sure most people that grew up in a house
well actually many of them were
conceived in the house and they grew up
in the house and then what do they do
they live in a house so they're going to
go bid on houses that's what they think
they know well i like to go to the
auction and yes i do buy houses however
if i can look at residential land and
it's in a residential neighborhood i
know i can buy it low and sell it low
because everybody else is looking at the
houses so it's a little bit on the
contrarian side so i want to sell
vacantly and fast and that's what we're
going to talk about today so i'm going
to try and buy it low i'm going to try
and sell it low and i'm going to do a
lot of things to make it happen quickly
and the first thing i do is make sure
it's got plenty of signs on it okay so
on paper this business sounds like it's
a piece of cake and i'm going to tell
you when you watch someone else talk
about it it's really easy when you have
to start doing it yourself it's not
quite so easy so let's use a good
example of that and that's late night
television so in about 28 minutes
they'll show you a fixer-upper property
might be a marginal property and they
basically in 28 minutes turn it into a
mansion they don't talk to you how much
money that costs but they say buy it fix
it and get it back in the marketplace
it's not an easy thing to do and you'll
notice they always have a pretty girl
and maybe her her partner is uh a
knowledgeable real estate person and
they go blah blah blah and all of a
sudden people are tearing it down fixing
it up costing you thousands and
thousands of dollars that is not an easy
business i don't care what anybody tells
you it's not easy it's a tough business
and who knows what they paid and how
much money went in so what we want to do
is we want to learn how to buy a
property uh a vacant property if
possible buy a vacant land and then
resell it fast okay i'm not going to
teach you how to knock down the walls
i'm not going to teach you how to build
fireplaces i don't want to do any of
that
what i want to do is i want to buy it
and i want to quickly sell it so i'm
really the other side of the business a
little bit on the contrarian side but
this property doesn't cause any
headaches i don't have to worry about
squatters i don't have to worry about it
burning down i don't have to worry about
drug dealers getting inside the house i
don't i have no worries my insurance is
liability insurance on the land all
right so i like to buy at low prices and
i like to be in a the least competitive
market possible so in the real estate
market you're gonna have massive
foreclosures depending upon what the
economy's doing you're gonna have
builders in the market you're gonna have
real estate people in the market there's
a lot of competition and lots of
rehabbers and people want to flip okay
i've gone to another part of the market
and that's involved in tax deeds and tax
liens now i don't get to pick as many i
don't get to see 30 000 hot houses or 10
000 veterans at department houses or
agricultural i get to see the leftovers
of people that walked away but what do i
want to do i want to buy it at the right
price so if you can buy it at the right
price guaranteed you can sell it at the
right price buy it right you can sell it
right so i've been involved in this
thing for a long long time and i found
out if i can buy it at the right price
then i'm going to make my money when i
buy so you need to write that down you
make your money when you buy and you're
going to see how this will create
security for you and it'll take care of
you for the rest of your life you'll
notice just by doing the few things that
i'm going to show you on this video and
i'm going to buy the property right then
i'm going to sell it right i might even
sell it using installments so i can get
more money from it but i want to buy it
low and i want to sell it low so start
putting that in the back of your mind
thinking ted's a little bit different
everybody else wants to buy a rehab fix
it up and sell it into the retail market
when i'm when you're selling into the
retail market you have hundreds of
people are looking you have hundreds of
brokers and you're going to have people
going to zillow to compare it they're
going to go to realtor.com compare it
they're going to have the multiple
listing system what i want to do is i
want to buy it low and then i want to
get rid of it quickly and i'm going to
do that and i'm going to make my money
at the auction i'm going to make the
money the day i buy it okay so it's not
about what everybody thinks about what
you need to think about is not
fixer-uppers it's how to sell fast so if
you know what the selling price is
before you buy
know what it is you can figure that out
then you're going to be able to buy it
at the right price then you're not going
to get in the situation where you have
high risk all right this has been going
on for thousands of years everybody has
a different strategy someone say to me
ted why would you buy low and then not
make all your profit because i want to
do multiple deals i like to do it every
month or every couple of months and
that's going to be available to me
because i'm going to buy it in a
different market the most important
words for me
are selling the property so step one
number one is know what you're going to
sell it for no other real estate company
is going to tell you they're going to
say buy it rehab it do all it i'm
telling you
sell it know what the selling price is
going to be before you go any further
than that now how did i learn all that
well i've got 30 years experience at
doing the same thing buy low and sell
low where do i want to do that well i
want to be where bargain orders want to
be i want to be at the tax deed auction
why
because the local government is selling
the property and they're selling it
for somewhere very close to the back
taxes at least that's the starting bid
so if it's a 300 000 property it might
be starting out at 25 000 in back taxes
well that's a lot different than
starting out at a foreclosure auction
the 300 000 house starting out at 150.
i'd much rather start out to 25 can the
price go up yes but i know i'm gonna
make my money when i buy if someone out
bids me so what i don't have any risk my
risk was going to the auction all right
so i'm not going to take on all those
people that got lots of money if they're
going to beat them up they haven't got
it sold yet so we don't know how much
money they're going to make all right to
sell a property that's
priced incorrectly for the market is a
long tedious process meanwhile you're
going to be making payments you're going
to be paying taxes you're gonna have
people maintaining lawns you're gonna
have water bills you're gonna have
electrical bills or try it in places
like new york where the with a heating
bill can be 800 or a thousand dollars a
month all right just go through a few
internships doing that and you'll say
wait a minute i don't know if this rehab
business is so hot all right so there's
tons of fixer-upper houses but you got
to look at your selling if you're always
thinking about selling you're going to
be okay i know my opinions are contrary
but i've talked thousands of people the
same thing i want to try to get them for
10 and 20 cents on the dollar am i
always successful no
sometimes it's a 400 000 house i might
pay 30 cents on the dollar for that but
i'm not paying 50 or 60 because when i
get done fixing it up i want to have
some room left so let's think about tax
defaulted property okay they're sold for
60
70 80 discounts from the property value
and they don't have a mortgage let me
say it again 60 70 80
discounts
and they don't have a mortgage that's
where i want to be and i don't want to
change from that if i can get it even
less than that that's what i'm after i
want margin between what i pay for it
and what the property's worth so i know
what my exit strategy is and i've got
all that margin and you'd be surprised
how quick that margin can disappear so
let's use an example so get your paper
out and i'll put one up there so you can
see it but get your paper out for now so
let's say we have a uh we have a a
vacant land that's what we're talking
about today or we have land that we want
to get sold so let's say it's worth
three thousand dollars an acre now i
don't figure that value tax assessed
value okay so the taxes that says worth
three thousand dollars
for each acre so if we have 10 acres
that means it's worth 30 000
according to the tax collector now the
market's going to really determine what
it is however it's coming up for tax
auction it's just coming up for a few
thousand dollars well what if i pay
say 4 000 at the auction it was worth
30. i bought it for four all right did i
buy it right i think i did because i
have a lot of margin okay that's what
i'm after i'm after margin all right do
i have to sell it for the 30 thousand no
but in my ad i can say tax assessed
value thirty thousand
must sell for twelve thousand well now
i'm fifty percent of value do you
suppose that would get some attraction
on craigslist
on zillow with the realtors with signs
well if i'm 50 percent less than the
assessed value i'm gonna create traffic
if i have traffic i can sell the
property the point is the margin that
i'm working with allows me to do that
now did i get top dollar everybody's
gonna say ted you didn't get talked all
you could have retired you could have
made yourself 25 000 on that no that is
what the market is i want to sell the
property quickly i don't want to wait
four years i want to buy the property
and i want to sell it quickly and that's
what our session is about today how to
sell fast when you sell fast when you
take an assessed value that you know
what it is and you can sell it for half
of that you're going to get a lot of
traffic believe me good markets and bad
traffic will come when you're at 50
percent of value they don't know where i
bought it they don't know how long i now
if they want to do the research they
could find out but how many people do we
know go out and research the county
records they don't even know where they
are so let's say i i purchased this
property for three or four thousand
dollars it's worth thirty thousand
dollars and i can put it up for twelve
well am i gonna get rich in that one
deal no but if i had four thousand
invested and i sold it for 12 000
well what kind of profit is that 200
where can i make 200 of my money can i
do that in the stock market can i do in
the bond market uh well the bitcoins on
the way up great but i can have a go
down on saturday and lose it all so
what's the point the point is buy low
sell low and do it fast
buy low sell low and do it fast where am
i buying i'm buying a tax defaulted
auctions why because the bidding is
going to start somewhere close to the
back taxes all right now is this a
perfect system no but it's a heck of a
lot better than what you're going to
find
by watching people say buy it and fix it
up where are you going to get the money
to fix it up think about that what if
you have to put a new kitchen what if
you have to put a new roof what if you
have to put a new concrete driveway all
that's a cost all right that's going to
be out of your pocket and you better
have the money or that thing is going
right back on the auction block all
right you've got to have money too so
nationwide we have 5 000 tax default
auctions 5 000 that's a hundred every
week across america okay now think about
that how many do you have to go to to
make a deal well if you got a little
money together i don't know if you're
going to get a great property or no
property but if you want to buy vacant
land or you want to buy
fixer-upper houses you can buy
everything you want but you better know
what you're going to sell it for and
most people are very good at buying and
not too good at selling so the most
people prefer homes because they grew up
in a home or they were conceived in the
home they know about homes well we're
not talking about homes we're talking
homes we're talking about residential
land we're talking about vacant land if
you can buy it right there's a buyer out
there there's always a buyer if you got
a good idea and you got a good quality
property about all right now this could
go on for a long time the reasons why i
like the land why i don't have any
squatters
i don't have any building that's going
to get burned down there's not going to
be any flooding going to
take place what's going to happen is
i've just got a piece of residential
land probably has some grass on it if
i'm in california for sure i'll have to
cut the grass other than that i don't
have to do anything so buy it low
sell it low and let's get this job done
quickly if you get it done quickly
you're going to be okay all right so you
got the math but let's do it again just
to make sure all right so the value was
established by the assessor all right so
i don't know what the market value is
but if i know i'm going to assess value
to work from i can advertise assessed
value is this okay i'll sell it for this
so look at my assessed value on the
slide and lord i'm selling it for
quickly wow that's a nice profit for me
that'll pay a lot of bills around my
house how about around your house now
right below me is a free gift for you
i'll see you on the next video