Are There Tax Implications On A Quitclaim Deed? - YouTube

Welcome back. I'm Ted Thomas and in this episode,  I'm going to answer the question: are there tax  

implications on a quit claim deed? Well folks, if  you make money, there's going to be implications.

We'll get into that. Okay, I'm also going to  cover some insider tips on how to make money  

not only with tax lien certificates and  tax deeds, but what to be cautious of on  

implications of these quitclaim deeds and we'll  also talk when I get very close to the end about  

what mistakes I want you to avoid. I want you  to avoid these when you go to a tax auction  

and you're a newcomer and people make the mistake  all the time so I'll be right back. Stay tuned.

Are there implications on a quit claim deed? Well  folks, there's a lot of those and there's going  

to be lots of implications out there and there's  going to be a lot of hype out there. So, I've been  

involved in teaching tax liens and tax deeds for  over 25 years, I've been investing for 30 years  

and this is a huge business of abundance. There's a  ton of money to be made but there's certain steps

that you're going to have to follow. So, tax deeds  come from properties that are in default. They're  

people that don't pay their taxes. That means the  property has some problems and when properties

have problems, very few people know how to clear  the problem. So, when they don't know how to do that, 

they're going to try to cover all their assets  simply by saying they're going to give a quit  

claim deed. Now, a quit claim deed is a disclaimer  and that means whoever's handing that quit claim  

deed to you is disclaiming all responsibilities.  So, many counties will issue a tax deed to you  

with a quit claim deed and when they do that, they  have now disclaimed any responsibility for the  

title report or any mortgages or any liens. You  have now just bought a big pot full of problems  

that will probably have to be cleared with a quiet  title. So, let's talk about the implications of a  

quit claim date, the tax implications. If you make  a profit, that means you have to pay taxes. If you  

have a loss, you probably should claim it on your  taxes. Just think of those implications. I'm not  

an attorney, I'm not a CPA, I'm just a street smart  guy that learned how to do this over 30 years of  

experience. So, I've taught thousands of people how  to do this and seen quite a few problems so let's  

give you the steps to make sure that you avoid the  problems. Again, I'm not an attorney, I'm not a CPA  

so I'm just going to teach you from the standpoint  of a guy that's doing this. And for the last  

25 years, I've been an investor, I make my money  investing. I'm going to teach you how to do this.

So, this is a business of abundance so issuing of  a quit claim deed does not require an attorney. If  

you want to know the exact definitions and I'll  give you a couple of those go to Wikipedia and  

they'll give you the exact, but let me give you  some samples, okay. A quit claim deed is a legal  

instrument, I'm reading from a screen, that is  used to transfer the interest in real property.  

All right so, one person or one entity to another  entity. It's as simple as that. But when they do  

that, the quit claim means they're disclaiming any  responsibility. That doesn't mean that the title to  

the property is clear, that doesn't mean anything  is clear. It means you have simply a quit claim  

deed that someone else is disclaiming everything.  So, the title paperwork might have been completely

mismanaged by the previous owner or by the  county or anybody involved. And so, that property  

is unmanaged, the title is unmanaged, you'll have  to get it under control. Does that sound simple?

Well, it is simple if you do it the right way and  the right way is you're going to hire an attorney.

You're not going to hire a Ted Thomas, you're not  going to hire a street-smart guy, you're not going  

to hire an injury attorney, you're not going  to hire someone that does personal lawsuits.  

You're going to hire a real estate attorney that's  going to tell you all the steps to the quit claim.

Everyone else has disclaimed responsibility. You  can't sell the property with a quit claim, you can  

and tell someone else to do that but  understand when you're selling it that way

that you're passing on whatever problems there are  on the property. So, my suggestion is let's get the  

right answers, buy the right information  and you buy that from an attorney that  

knows what's going on. All right, what's this all  about? All we have to do when we buy a property  

from the county is know that the title might not  be clear. We know that it's a problem we're getting  

a bargain on so we might have to spend a little  time and a little effort getting the proper title  

and the proper insurance on that property. Is it a  headache? No. Cost you 3 or 4 thousand bucks,

it could take you 2 or 3 months for the  attorney to do all that. It could take you a whole  

year, but the point is you need to do it right so  that you don't have problems later. So, a quit claim  

deed means the seller, whoever sold it to you,  is saying, "I have no responsibility. I don't know  

what's wrong. I don't know if the title is good. I  don't know if anything is good." And if they don't  

know and you accept the deed, what you're going to  do when you accept it, just know you're going to  

have to spend a little bit more money and you're  going to have to make sure that you get it all  

right. So, a real estate attorney with a lot of gray  or white hair, probably the guy to work with. You  

want someone that knows the step-by-step process.  Okay, if you're not aware of anyone else that's  

ever done that, just use an attorney that knows  what he's doing. Now, I have students, they get a  

property at a tax auction, they don't know anything  about it but they have a chance to sell it for a

huge profit. For example, I had a couple in Phoenix,  Arizona, they spent 11 thousand dollars and  

when they... before they spent the money, they went  looked at the property. The property was on the  

water in Phoenix. Now, water property in the middle  of desert, pretty expensive. So, it turned out  

to be a condo worth almost 200 thousand.  They bought it for 11 thousand dollars. There  

was no mortgage and so they sold it. They got  Zillow to sell it. They didn't know anything about  

the price so they sold it with a quit claim deed  to the new buyer. The new buyer knew exactly that  

they want to have to do work with the title,  it didn't mind... the new buyer gave them $169 thousand

after the commissions were paid. So, they made $150  thousand on that property but now they had no liability  

because they simply said they sold it with a  quit claim deed. They claimed no responsibility so  

you're getting the idea. All right, there's nothing  secret about this. There's nothing to be  

scared of. I'm giving you this information as a lay  person, I'm not an attorney, I'm not a CPA. I can't  

explain all the little nitty gritties and have it  come out so it sounds right to you on a short  

video like this. Just understand it's something  you're not going to be scared of and it means if  

you accepted a quit claim deed, which you'll get  from the county more than likely because they  

don't want to have any responsibility for anything.  Now, it's going to be your job to get a quiet title  

and I will cover quiet title as best I can on  another video. So, I hope you're learning a lot and  

if you are learning a lot, I want you to subscribe  to what I'm doing you can become a subscriber and  

you can be part of my community. And if you do  that, I'll give you a gift. I said gift. G-I-F-T and  

it's a quick start course and it'll give you how  to do tax liens and how to do tax deeds and so all  

you have to do is go below me when I finish and  you can you can be part of my community. All right  

now, a few other questions going to answer right  now. Okay so, question is can I explain the GIS

maps? Well, first of all, GIS stands for geographical  information systems. So, it's not a lot complicated,

right. All right, all it is it's a satellite, okay.  The counties can subscribe to the satellite.

Now, the satellite's going across, it's going  around all the time. The satellite, if you want  

to pick, let's say Kansas City, when it  goes over Kansas City, it's constantly taking pictures.

So, now you tap into the satellite online, okay.  And most counties have it and it's usually  

free and you tap in. Then you can you can look at  from 30,000 to 10,000 to 5,000. You can come all the  

way down so you can see a geranium on the front  porch. Well, you're not looking for geraniums, what  

you really want to know is the house falling down?  What does the house next door look like? Is the  

street set up? What's the neighborhood? Come up a few  thousand feet, you can see the neighborhood. Come up  

a few more you can see the freeways, come up a few  more you can see the whole Kansas City. So, the GIS

mapping system is professionally done. It's from  a satellite. It's the best thing available. Google,  

let's not be here to complement or to say anything  bad about Google. What we really want to say  

is they were innovative 10 or 15 years ago  but if you're looking at properties got 10 year  

old pictures, a lot could happen on a property's 10  years old so you don't want to use those pictures

if you're buying or selling. So, you do want to use  the GIS mapping system. We have classes on that. I'm  

not here to sell you the class right now but I am  here to sell you on getting yourself a free course  

and all you have to do is check in below me. Now  before I leave, I want to give you 2 things to  

be careful of. This is really careful. You're gonna  start going to these auctions, I don't want you  

to buy a property unless you've seen it. Okay, if  you haven't seen the property, for goodness sake,

don't buy it. No boots on the ground, no eyes on the  property, don't buy it. You don't know what you're  

getting and you could be getting that 10 year old  property that you saw on Google. That might not  

be the best thing, it could have burned down. All  right, the other thing I want you to be careful of  

and don't do is don't buy any property, don't  buy any property unless you've already figured  

out what the exit strategy is. If you don't know  what you're going to sell it for, you better not  

buy it because you could easily start bidding  and bid more than the property's worth. Okay, my  

name is Ted Thomas. I'd like you to go below  me and registered be part of my community.