“Why in the world did you buy that awful house?!” said the auction employee in undisguised disgust.
We didn’t have any formal real estate investing education. We didn’t study any investing course. In fact, I couldn’t even recall how we got convinced to try out our luck at the tax deed auction.
We’ve already won the bid and the auction employee, while shaking his head in dismay, was just finalizing the paperwork so he could give us the title to this “awful house”.
We were sweating peas and beans as we handed over the check for $45,000 we secured through a private lender and we both can’t help but feel we’ve just dug our own graves.
My name is Laurence Samuels and ever since that first deal, my partner Matt Merdian and I have made Tax Deed Investing our bread and butter.
It was a parcel of land we bought at the tax auction for $34,000 and which we turned around and sold for $460,000 ($100,000.00 upfront, $353,890.00 12 months later + 12% interest).
Truth is Tax Deed Investing is probably the most profitable sub-niche in real estate investing nowadays, what with the housing crisis and the recession in full swing.
And what makes this even better than other investing strategies that take advantage of the economic brouhaha is…
When a homeowner is back due on their real estate taxes, the government steps in and sells the property to recoup the taxes due at an auction.
But in fact …shortsales and REO investing are even twice more complicated than Tax Deed Investing and it can months of bank negotiations to even get a deal completed!
We’re not super smart guys either who read a book and become experts in the subject matter all at once.
But come to think of it, don’t all real estate…