How to Buy Property By Paying Back Taxes? - YouTube

Welcome back. I'm Ted Thomas. And you're  probably wondering why I'm speaking to you today.  

Well, for a lot of people, I'm America's tax lien  and tax-defaulted property expert, but I'm going  

to give you some real insight. I've been doing  this for about 30 years. I started out working  

with tax-lien certificates, and then I kind of  graduated to doing tax-defaulted properties.  

I'm going to give you an insight into both  of those, but today's lesson, this episode,  

is going to be how to buy a property by paying  the back taxes. So let me say that again,  

for the edit, how to buy property by  paying the back taxes. I'll be right back.  

Okay, well, I'm back. Okay, now, here's some  facts, and I'll give you a little background  

about this tax-lien certificate business, and tax  deed business. There's 1,000s of these properties  

that are auctioned nationwide every year, but  it's always done at a county, at a local level.  

Now there's a reason for these properties going  to auction at such low prices. They go to auction  

because people haven't paid their taxes. So  there's over 3,000 counties across America.  

Now half of those counties approximately, will  sell tax liens; the other half of the counties  

will sell tax deeds. Now tax lien simply means  that you're going to pay someone else's taxes,  

tax deeds mean, you're going to actually  get a property. Now why on earth would the  

county be selling these properties? They're  selling the property because someone hasn't  

paid their taxes. Now, it's amazing, but there's  over 5,000 tax auctions every single year.  

1,000s of people do not pay their taxes, at  least on time. And so in half of the states,  

they sell a tax-lien certificate. When they  sell that, you go in and buy the certificate.  

And when you do buy that certificate, you  basically pay someone else's taxes. That  

way the people stay in the property. You  don't get possession when you do that.  

What happens is the people stay in the property.  So it's very benevolent. They leave the people  

there. But now those people owe you whatever  you paid, plus maybe 16%, or 18%, or 24%,  

all the way up to 36% interest. Now, that means  there's big money to be made in the tax lien,  

and the tax deed business. Now, if you are  buying tax deeds, you'd be able to buy those  

for sometimes 5, 10, 20 cents on the dollar.  In both cases with tax liens and tax deeds,  

there's no mortgage on the property when you get  it. So as I say, there's 5,000 auctions a year. So  

not to worry, there's going to be plenty of these  for everyone. So it's a huge, huge business. Now,  

how are you going to find out about it? Well, I'm  going to teach you a lot about it in this series,  

but you could, of course, go online and research  them there. You can go to the local county and  

research them there. And then in many cases, the  local county will advertise in the newspaper. But  

most people don't know what the newspaper means.  Now, I don't know your county, and I don't know  

where you are right now. But sometimes there's  only five properties at an auction. Other times,  

there will be as many as 2,500. Now you can  imagine when they're trying to sell 2,500,  

that's going to be a big auction, a lot of people,  lots of activity. I can't get all that done today.  

But in a future lesson, I can tell you a lot more  about that. But one of the things I want to make  

sure you do is I want to make sure you don't make  some big mistakes. So let me tell you about the  

big mistakes before we go any further. Now, this  is important to you, because people make these  

two mistakes all the time. And then instead  of the auction being something where they go  

home with a big check and make themselves lots of  money, they end up getting their hand slapped and  

something goes wrong in their life. So big mistake  number one is people go to an auction, they raised  

their hand, they want to buy an auction property.  However, they haven't looked at the property. Now,  

I'm going to teach you how to do this online. So  wherever you're watching me right now, you could  

sit there and buy in all the different counties  in the United States. I'm also going to teach you  

how to do it when you actually go to the physical  auction. But either way, you need to look at the  

property, so that you know what you're buying. You  don't want to buy something that you don't know  

what you're getting. Now you're saying, "What do  you mean, Ted? It's an auction. It's going to be  

a great deal." Maybe you think there's a picture  of it. Well, it could be a picture, but how old?  

Towns and communities have hurricanes go on.  Buildings have fires. All kinds of things happen  

on property. So you want to make sure that you've  looked at the property before you buy. You'd hate  

to buy a property, and then find out when you got  there, it had burned down the night before. So you  

always need to look at the property. Now what's  the next thing you want to do? The next thing  

that's a big mistake people make is they haven't  thought about what they're going to do to sell it.  

So if you're going to sell a property, I don't  want you to assume that you know what the price  

is you're going to sell it for. I don't want you  to assume that that it's a good property or a bad  

property. You need to have looked at the property.  And now you can determine how that you're going  

to sell the property. That's going to determine  your exit strategy. So if you don't have an exit  

strategy, you really need to think thoroughly  before you go to this auction. So those are the  

two big mistakes. Alright, now, I'm going to be  back with a lot more information. And what I want  

you to do now if you heard something today that  you liked, and you want to have more information,  

I have a gift for you. Alright, in order to get  the gift, it's right below me, and take you right  

down to it. So if you'd like to join my community  and learn a little bit about this, I have a free  

gift for you. I call it a quickstart. It's a DVD,  and it's all about tax-lien certificates on the  

first part, and all about tax deeds on the second  part. Now we only had five or six minutes to work  

with you today. But that is a one-hour DVD, and  just go below me and you can get that right now.