How Do You Buy A Tax Lien Property In Texas - YouTube

Welcome back, I'm Ted Thomas. And on this video  we're going to answer the question "how do you buy  

a tax lien property in Texas?" So, I'll explain that  on the video, but I'll do a few other things too.  

First of all, we'll talk a little bit about  some steps to make money. I know you want to  

do that, and we'll also talk about a few mistakes  that I want you to avoid. So, I'll be right back.

Okay so, the question I'm answering today is "how  do you buy a tax lien property in Texas?" Well folks,  

you don't buy any tax liens in Texas. In Texas, the  legislature passed the law and it says, "We're going  

to sell tax deeds and it's a redeemable tax deed."  So, what the heck is that? Well, we learned that a  

tax lien, simply as someone didn't pay their tax  and they issue a piece of paper, that's a tax lien.  

But a tax deed means that the local government, if  you don't pay the tax, they're going to foreclose  

on that property. They're going to take  the property, confiscate, seize the property,  

and then they're going to resell it at auction.  Now, Texas takes it another step. The next step is  

they sell a tax deed but it's redeemable. That  simply means the property owner can come back,  

pay you whatever you paid, plus 25 percent and they get  their property back. So, Texas is a very popular  

state. Why? Because you can make 25 percent of your  money in 180 day period. So, 25 percent in 180 days  

is one chunk of money. So, if they come in in  10 days, you get 25 percent. They come in 179 days, 25 percent.

But in 181 days, you own the property. So, let's  go through this and learn a little bit about it.  

So, tax deeds, tax liens, this is a business that  everybody wants to do but it's going to take a  

little study. Now, do you have to study for 6  weeks? No. 3 or 4 weeks you could learn  

this business. If you want to become an expert, you  can easily become an expert in 1 year. Do people  

make a lot of money? Well if they don't come in  and redeem the deed, you're not only going to make  

your 25 percent, you're probably going to make 50 or 100 percent on that property. Now, is it unusual? No. There's  

going to be 250 auctions in Texas every month. At  least that's how many are authorized. Texas has  

254 counties and they're all authorized to have an  auction. So, I talked about Harris county, you could  

decide to go over to Dallas county or go down and  go to Bear county, right, which is right next to it  

to San Antonio, but the point is there's plenty of  auctions to go to. 250 of them every single month.  

So, you know on the first Tuesday of the month, you  could go to Texas and you could be buying yourself  

a deed that would make you a lot of  money because it's redeemable, make 25 percent, 

or you could end up with the property. So, what you  need to really know about this whole business is  

97, 98 percent of all the people will come in and pay their  taxes. So, what a nice deal that is for you. So, you  

invest your money, you know you're going to make a  nice profit, whether it's on tax lien certificate  

or on a tax deed. Now, anybody can buy one of these.  They're going to have some for a thousand or 2  

thousand dollars. They're going to have some that are  going to cost 50 and 100,000 dollars. So, it doesn't matter  

where you are in the spectrum, if you want to make  money and you're an investor, this is the perfect  

business for you. Just take your 3 or 4  weeks to learn it, become an expert in a year but  

you can buy properties your 1st year and make 25,  50 and 100 thousand dollars. Now, these sound  

like big numbers but they're true numbers. But, you  don't want to be doing it, teach yourself how to  

do it. If you want to teach yourself, it's going to  take you about 2 years to learn all the nuances.  

On these videos, we're going to teach you a lot.  But, the videos are only 8 or 10 minutes.  

Can I teach you everything I know in 8 or ten  10 minutes? I don't think so. So, I've been doing this  

for about 30 years. I got myself to the expert in  authority status by doing it, doing it, doing it.  

And I started as an investor, just like you want to  do, then I became a teacher and I still do it. I'm  

still an investor so, I'm a practitioner. So, I'm  not going to tell you a big bs story how you're  

going to make money, I'll tell you if you do that  you're going to get your butt kicked. And I don't  

mind telling you that because I'll save you a lot  and you'll be happy that you'll learn that, but  

it's not going to all get to you in a couple of  weeks. So, you need to subscribe to a lot of videos.  

All right, where are you going to make 25 percent on  your money? You're not going to make it anywhere,  

at least that it's legal. But you can in Texas if  you buy a tax deed, know it's redeemable and people  

can come in and pay you. Now, how big are they? Some  of these tax deeds are 100 thousand dollars,  

some of them are 50 thousand dollars but if  you're just getting started, start out at 3  

or 4 thousand dollars, buy whatever you can  buy, watch it either get redeemed or get paid, you can  

always go back to another auction. There's another  auction every month. So, they will sell thousands of  

properties this year in the state of Texas. Now, the  best way to do this is learn how from someone that  

knows how to do it. So, I have coaches that help  me. All of my coaches are 60 years old or over. And  

so, I've got 4 coaches and those 4 coaches  have purchased and resold over 200 tax defaulted  

properties. I said 200. No other group in the world  has done 200. These are 4 individuals that work  

for me for the past 10 years. They can teach you  every step of the way. We can teach in California,  

we teach in New York and Florida tech. It doesn't  matter where you are. Now, how big do you want to go?  

It's going to be up to you. If you want to go on  a regular basis with us and do classes every week,  

you certainly can do that. If you just want to go  once in a while, you can do that too. Let's talk  

about money. Where are you going to make this kind  of money? Whenever the government doesn't get paid,  

they do something about it. So, it's not going to  matter what state I talk about. So, I started out  

talking about Texas, but if you want to talk about  Washington, you want to talk about Oregon, all of  

those states are tax deed states. And what they  will do is they will auction properties when the  

people haven't paid the tax. So, it doesn't matter  whether it's an apple orchard out in the middle  

of Washington, or whether it's a city property in  Portland, Oregon. It's not going to matter. Those  

people will pay the tax. The government's always  going to get paid. So, a little bit more than half  

of the states sell tax deeds. That simply means  they have confiscated the property, they've seized  

it. They've more than likely thrown the people  out of the property, they're in the process of  

reselling. Why do they want to resell? Because they  want the tax money, they need the tax money. Now,  

the other states that sell tax lien certificates,  they're very benevolent they're not trying to kick  

the people out. They're very nice to them. They give  them 1 or 2 years to get their taxes made. So,  

you can do either one. So, if you want to earn small  amounts of money like you could in Arizona or  

whether you're in Alabama or Mississippi, you can  earn money on tax lien certificate. Safe, secure  

investment. Start a thousand dollars, do as much  as you want. If you want to make the big money,  

you want to look at the counties that are big.  Later on when I tell you about places like Los  

Angeles, you'll just go into shock. But Texas is a  good place to do this. 180 days, minimum payment 25 percent.

So, you're kind of getting what I'm talking  about here. Is Texas my favorite state? Folks,  

they're all your favorite. Let me tell you why.  Texas will give you a huge return, I mean a huge,  

25 percent. Now, I've had people going  to auction in Harris county, that's  

Houston, they go to the auction, they buy a  certificate, they get paid off. The next day  

they make 25 percent. Where are you going to do that? Well, in  Georgia you could make 20 percent but you're getting the  

idea. So, those states are called penalty states but  there's so much abundance, I'm looking for the deal,  

okay. Now, if you'll stay as a subscriber, when I get  to talking about Los Angeles, you're going to shock.  

They'll have 2,500 properties in Los Angeles that  will come up for auction, and there's no way, even  

if you can snap your fingers as fast as that,  that they can sell 2,500 properties in a day  

and then I'll tell you what happens at the second  auction in Los Angeles which might be the next day.  

So, no Texas is not my favorite but, I'll tell you  the ones that are. The beauty of this business is  

you can do it all online if you want, and even  if you don't do it online, you're not going to  

do business with property owners. What you're going  to do business with is your local county. These are  

sold at the county level. Now, there are exceptions  like in Georgia, where they allow the people to  

talk back and forth if they want to. But generally  speaking, what happens with tax liens and tax deeds,  

the county either is selling you a certificate of  paper called a tax lien or they're selling you the  

deed to the property. So, you're doing business  with the government and you're not gonna have  

to talk to them. You can buy them online, they come  from lists and you just have to learn how to check  

them out. So, you don't have to do business with the  homeowner, so you don't have to worry about being  

embarrassed about it. Let me kind of switch gears  a little and tell you a little bit about what's  

going to happen if you don't do things right.  Newcomers make big mistakes. Here's the 2 big  

mistakes that you want to avoid. Avoid mistake  number 1 and that is don't just buy online.  

Make sure someone has looked at the property.  We can teach you online, we'll do that. I have  

clients in Europe doing it. I have clients in the  Pacific doing it. They're able to do it online but  

they always have someone check the property. So,  you're going to have to have someone look at the  

property. Big mistake not to look. If it's next to  an oil refinery, don't plan on selling it. People  

don't want those kind of properties. 2nd big  mistake is think about what I'm going to say now,  

don't get into bidding war. Know what the  property's worth and what it's going to sell for.  

How would you do that? Well, you're going to have  an exit strategy. If you don't figure out an exit  

strategy before you start, you're going to get  your butt kicked. I can tell you that right now  

because you'll keep bidding because you want to  win. You're aggressive, you're assertive, you want  

to win. Forget about winning. The low bidder is the  one that comes out of the auction making the most  

money. So, what you want to do is know what you're  going to sell it for. If you know what you're going  

to sell for, you won't bid too high. Okay so, I  have a 1 hour video for you guys that are  

just getting started. And gals if you want to do  this, let's call it a quick start video for now  

but it tells you a little bit about tax liens,  a little bit about tax deeds. Kind of give you  

some in-depth knowledge. If you'd like to have  that, just go as I point down. Just go right down  

there and you can subscribe to that video. It's  absolutely free. I'll see you on the next episode.