So the big question is this, how do you become financially free in today’s world where you can do what you love doing, spend time with the ones you love and provide for your family without being chained and selling your soul to a nine to five corporate America job without having to sacrifice going out to eat.
So you can pay off debt faster. The question isn’t, how do you save more? The question is, how do you make more without spending more time? That is the question and this podcast has the answers. My name is Ryan and this is Cash Flow Dad Life.
Hey, what’s up everybody? This is Ryan with cashflow dad life. And I’m really excited about this episode because one of the things you hear me talk about all the time is that one domino, the one domino that knocks down all the other dominoes. And in real estate, if you’re looking to be a real estate investor, that domino is your ability to find the deals.
So I’m really excited in today’s episode because we’re going to talk about a really killer strategy, uh, as a way to find some real estate deals…
We’re here with Corey Taylor from IWealth.
Tax lien sales are an extremely high yielding investment if done correctly.
He’s been in real estate for about 18 years, 15 years of that has been full time. He’s done a few hundred deals. He’s been through the ups and downs, obviously he’s been through the, uh, the crash of [inaudible] eight and he’s got a lot of experience, so is a huge privilege and pleasure to have him on the show today. Corey, are you there?
I’m here. Awesome. Awesome. Well, Corey, you’ve got kind of a story on how you got into the, the tax, the tax sales. Can you tell us a little bit about your backstory and how you arrived at that as a great source of deals?
Yeah, I’m excited to let me get right into that. Like most that start. Um, I went through a ton of training, a ton of awesome courses and just worked them all until we’ve made money and, uh, got a great experience with that. And the first few years of doing real estate, it was about the marketing, right? The signs and the flyers and we’re brokers can you meet and what ads can you do?
And we even did, we were the first guys that are to do the richards group, you know, circle around the classified and getting calls from that and just anything we could do to get the calls a little big in the Internet leads back then I tried to lock in your area and there were some big name.
I’m real estate Internet, I’m sorry, it will sit on that leads at the time…
And so we had this flow of leads and it was great. And uh, but at the same time, more and more competition for those same leads kept happening as the market grew and got better. And then it’s in the papers and how hot the market is. And you got everybody. So no matter, it doesn’t matter what leads flow.
A Louis Horse gave us a lead, I would show up and the homeowner a would really need a quick solution…
But instead of just me and others for other guys, uh, and really no matter which way you turned, you could, you could, you could provide good options, you can provide good scenarios, you can be likable. That’s, that’s fine. And then you can certainly get deals that way and we did fine, but the competition just kept getting worse and worse.
It seemed like. Yeah, that’s what we call red ocean where it’s…
So it’s a it Kinda. But then then things cooled a little bit. You’re like, well, okay, we, we, we figured out some exit strategies. We didn’t have a very good one. As it was declining, we were, we became, we went from flippers, really lease option guys at the time when a declining market, it was like, wait a second, this guy’s got to get loans, going to be hard to get loans with subprime going away.
And so the, you know, our model had issues with the decline, but with you, with all that. I really was just looking at myself. I’m like, well, I don’t really want to turn back around again to get kinda get back on the business. I just want to do the same thing. I didn’t want to do the same ads and the same because now it just seemed like everybody was back in again.
And you’re always, you’re always feel like you’re forced to pay too much staunch as you are. Right? We all been in the business as long time. You could be staunchly, I’m not paying more than x percent of value and I’m gonna that’s fine. But now you need 10, 15 times the amount of offers used to make to get those deals than you did before.
It just seemed like a lot more work to get those…
And so for all those years I had ignored…
It came across my desk a few times, but I didn’t know a word is this thing called tax sales and tax liens because I was like, I’m a guy, I like to own property, I don’t like paper. And all I knew about tax sales at the time was that it was paper, you buy a tax lien, you wait a while and you make some interests.
That’s not really what I was about. And so I’d ignore it for a few years and years and years. But as this whole thing was kind of coming back around, I had um, like a guy met Tom D’agostino. Well, my partner now was like, Hey, you know, I’ve been doing these liens.
I can house us. I’m like, you get houses, what do you mean you get houses? So we had this conversation about, yeah, you know, tax sales are a lot more than just the certificate done correctly. It’s an ocean of leads every year that these counties are begging to sell and the interest is the worst case, the worst case, you should make double digits on your money. And I’m like, you know, well, uh, I’m, I’m intrigued by that.
Let’s talk a little more…
I’d also learned my lesson from my flip days if I just held a few more. Passive income is a beautiful thing.
No cash flow is cash flow and I want to come up with a thing called like coma income. I want to be passed out in bed if I have to be, but I’m still making a check. Cash flow is important, right? Passive income, right? You just have to get there. So it’s great to get those big checks, but at some point you have to just not want to work or be able to work in, but you’re still making great money in real estate.
Has Been Awesome vehicle for that. And so he said, yeah, so you know, you, you double digit interest feels a lot like rent to income as a worst case, but you can’t get these houses. So we talked more about it and so you know, long story made shorter as we delved into this in detail. There are parts of the country that they will sell you a house outright at a normal auction.
Well you know, the highest bidder kind of winds, the winds, the house. And I realized a lot of guys don’t even know those existed. They would go to the mortgage options, wouldn’t go to these things called tax auctions because they’re different and they know anything about these. And so even the auction environment was much less competitive than your standard a mortgage foreclosure auction environment.
And I realized, Hey, you know what a, these tax lists these counties published that gives you a list with thousands on their, uh, these people are pretty motivated. I should be mailing these people. And so we realized, Hey, we can mail people before the auction, we can go to the auction after the auction, they sell stuff, we can go after the auction.
That became about four or five touch points in this universe of tax sales to actually get the property.
So. So yes, sometimes you get it right away. Sometimes you get a piece of paper called the lean, you knew wait a while, but once you prime the pump, you don’t really feel like you’re waiting awhile.
By the time this, this certificate, you know, either pays you or becomes a house. And so it just became this amazing source of deals that we got to the point, whether it was about a year or two, we just kind of phased out all of the marketing. Frankly. We just said, you don’t want it.
I got all the, all the leaves I could ever want just going through these tax sale lists. I only had to have one critical piece of information besides getting the list. I had to get comfortable with doing some business, uh, out out of my backyard, the state next to me, a couple of dates next to me outside of my county just because the rules kind of different how states handle tech sales.
So I have to be okay calling the same professional I would in my own town. I’m calling that, that real estate professional in the other town, the realtor or the contractor.
So I had to kind of get familiar with doing that because I just kind of felt like we all kind of feel like close to home matters and it doesn’t a lot of ways.
But when you get comfortable doing things in the best markets because you know how to get ahold of good professionals and manage them well, then there is no lead flow problem because you’ve got more leads you could ever sort through.
So that’s was kind of the genesis of our, Hey, let’s go do this business instead. And as we did it for a few years, people wanted to know and they kept begging us for information and we kind of by default became trainers just because we felt like enough people are asking, we’d will fulfill and do that too.
We would really love sharing this whole thing with people. Um, so yeah, that’s, that’s my, that’s my kind of nutshell version of how we got into that and what sort of forces into it. But man, I’m glad it did.
Yeah. And so from my listeners that don’t really know what a tax lien is for you guys that don’t really know what it is, it’s basically when a homeowner doesn’t pay their taxes and the county or parish, I’m still has like a deficit, so they still need that money for the taxes to pay for their stuff.
So they’ll have what’s called a tax sale. Um, and so other people can pay the property taxes of those who are not paying them so that the county can have that money to operate. And at the same time they offer, it’s different in every county. There’s, I mean, you really need to kind of take out the, uh, the flow behind the counter for lunch and asked her how it works, you know, but it’s, it’s different in every single county and how it works is as far as the interest in what you negotiate.
Now what you’re talking about is, and correct me if I’m wrong, you’re talking about not just getting the interest on buying people’s property taxes, but you’re talking about also, hey, these people, for whatever reason, they’re not paying their property taxes. So there might be a motivation there to sell, correct?
It is still. Let me, let me expand on some of those two.
You covered the basics perfectly. Um, about half the country said, hey, we’re gonna wait a couple of years of late taxes that we’re going to have an auction, just sell the property.
And so you go to what we call them a deed auction because you’re, you’re bidding on the property and you get the property and that’s get it. But half the country does that.
The other half of the country does this thing called a tax lien tax certificate, where you’re right, that did, that’s very typically counties are or are following general guidelines of a state role. So thankfully you’re learning a few state rules and the counties just have a few modifications so it’s not a totally different.
Thankfully you’ll per county and in most states, but um, it wasn’t called a certificate and you can get the certificate and there’s different wait periods of how long you can actually acquire the property.
But if you look at the right one’s vacant, for example, um, maybe the owner was deceased of the errors out of town. Um, there’s these, there’s these factors that the as nine feet high needs work, there’s these factors that say, you know what, this owner is less likely to redeem this house than they would a house with a mortgage on it.
The grass is mowed, they live in, it was those redeem at about 97 percent redemption, but it’s about 80 percent redemption of these other certificates. That’s, I’m the one redeeming.
You would get the house. So it’s pretty cool to get the house for taxes or for some amount that’s 10, 20 percent of value. Then you are paying this retail price.
Certainly paying a homeowner for the houses is max retail, but we’re often in 40, fifty cents or lower with repair. Uh, by the time we get in and we call it the lowest barrier to entry to get into buying real estate is buying these certificates.
We call them chances at houses. You’re buying these chances at houses when you go to this auction. But if even if you didn’t want to do that and say, well, I don’t want to wait and it’s a redemption period. You have to wait a year or two. I don’t want to do that.
Then yes, these tax sale lists are still motivated seller lists because they would like to either get money because they need the money or it’s an error that was really going to let it go…
And if they get any money, great. Well it’s in Utah and grandma died and you went on what to do with that?
That house is a wreck. You want to pay me? Sure. How about, you know, you pay the taxes and give me a few dollars, like it’s a whole different conversation than someone that’s got three investors in front of them trying to get Max, you know, Max value in that arrogance.
It’s a whole different discussion. They don’t, they don’t live there that it’s a problem to them. Uh, so it’s a very motivated list.
Even if you just mailed the auction list, you’re doing really let alone learning some of the auction rules and going getting really, really good stuff, you know, at an auction. Right. So what is it, what didn’t you, is your main strategy to actually approach these people? Go and knock on their doors, Europe strategy to mail the list. We fail. The biggest hurdle when we started the business was, you know, the county is ultimately are the government, right?
The government are, they don’t have the best websites, they don’t have the best up really processed that doing what they want to do. So while they, they want investors to combine things, oftentimes they’ll give you this big list of property and they won’t even have address.
And so you’re looking at a list of have a thing called parcel number and I always knew what parcel number was but never really had to care about it because it’s partially because about that I want to address, right. I just such a stupid thing, but they love item number and they love parcel number and they love these other numbers that matter to a treasurer at the county doesn’t matter to us.
And so they would create this, this hurdle where you could have a list of 5,000 properties going to sail and you wouldn’t know if it’s a house or commercial or a sliver of land by the highway. Nobody will ever buy you just, you didn’t really know what it was and you had to do all this labor or pay a bunch of money to have these lists converted from a what you don’t know into an address.
And now I can go do some research and. But then you’re still doing kind of one by one. Imagine, you know, when you make offers in a week like an mls, you’re looking at, I don’t know, five, 10, 15 years, you kind of handle that, but what, what would you do if I told you, hey, you need to look at these 5,000 properties and see which ones you want to buy, you’d be like, um, okay, I’ll get back to you in four or five months and let you know kind of how it played out.
Or You’d hire an army of labor to do it. And so we eventually developed some software that takes each of these, each of these parcel numbers and goes and brings back and address and once we have address, we find it. We built it to go out and go get google images and all the data the county has to offer like bed bath, square feet, you know, all those things.
It is a house, it’s commercial, it’s land. And we finally got a list. Now the list becomes much bigger. So we get all the data. Once we get all the data, it becomes spreadsheet work, which isn’t the most fun thing at first, but once you learn a couple of sorts and filters, you’re like, okay great.
I can get a list of 5,000 down to 500 houses pretty quickly and by the time I’m mousing over, if you google images I can kind of throw away the ones that don’t really want to look at in the ones I like. But you’re dealing with, you know, bulk data, there’s so many leads. You’re your problem becomes not, do I have enough leads, it’s how do I, how do I make the lead count small enough to actually handle, which is a much better problem to have but not enough.
Right? You probably become so, so they. So it’s been interesting that we develop that and we’d go to the counter, we get it all and then it becomes looking at a lot of data on the line and if we really like it online then we will go take a look on the ground. This is the Google image.
Did it burn down since the Google took the shot? Is it still there? What assessments can I make of it? And you’re gonna make her determinations on a bunch of them. Uh, we’ve made an APP, Ryan that’s, that helps us go get the data on the street and take a photo and it loads it back into the software and keeps track of it for us and all this cool stuff to actually. Because our new problem became revealing a ton of properties in this little amount of time as possible because there’s just so many things to buy.
It’s about getting the data in there quickly and then you just go buy the ones that look like it’s the best shot of not becoming a redemption.
Meaning I want to go buy the certificate and go by 40 certificates for example. And I know if I go to buy 40, I’m probably going to get six, eight, nine houses out of that by the time the redemptions over. And so I’m going to go.
The taxes will vary like some parts of the country or you’re going to pay more for those 40 search than you are somewhere else. But you get the idea here that the counties they want you to buy in, but it becomes kind of a data problem, but we have solutions for that which are in this whole ocean of of leads. The counties want you to come by and all of these are chances of houses.
It’s only what you said before, it’s only learning about, okay, how does this county want me to get their lists? How does this county want me to go buy the things they have for sale? How do I kind of know what I’m paying and then how long do I have to wait to actually get this property if I’m going to get the property. Those are.
There’s about five or six rules you have to know, but when you get fluent with those rules at last. One thing I’ll say about this, Ryan, let you’d cut back in, is that what we love about it is it’s a barrier to entry to most people. Most people are like, oh, I got to get some data and oh, I gotta go do this. And even though it’s an ocean of leads, it just.
There’s a couple of hurdles are just not willing to do and so those that are willing to kind of figure out a couple of rules and go into ics are just, again, you’re just.
They’re just swamped with leads and about, okay, what are choosing what you want to buy becomes the hard part of the evaluation. Skill becomes the real skill, not how well you can talk to a homeowner to get a cheap price.
They’re all cheap is just your evaluation skill now becomes the important part was what we all thought we wanted to get good at it. Real estate, right? Which is evaluating the deal. That does become the primary skill because you’re not really talking to anybody or doing anything. There’s no good negotiates distribution skill.
You’re just evaluating properties in a bulk rate to go actually get these pieces of paper bought and know what you end up with and give yourself the best chance of owning the property. Does that make sense?
Yeah, so, so correct me if I’m wrong, there’s more ways to own the property than just buying their tax lien. If they’re motivated, you could actually make some sort of cash offer on the property and that absolutely would have to include paying off whatever.
That’s right. Even if someone else has that lean. I’m sorry, I cut you off. Go ahead.
Even if someone else had paid for that lien previously.
That’s exactly right. When we talk about multiple touch points, even if you found out after an auction, there’s a list of who got their shirts, who got lean, if we call it, who got their lien on the property, even to them and say, Hey, I notice you got a certificate and we help out. Any way I can help you, please give me a call.
You know, we buy some real estate. Um, everybody’s looking to do something. And so again, with, with any male percentage, we found the mailing a response rate is also higher than most mailings because they’re curious.
They’re going, oh, well, can I help you offer? Well, I mean, what are you hoping to do here? And just ask questions like you would any other conversation.
But it’s a great source for that because it’s another big list that nobody really knows about to go find a people that really should sell the property distress that they’re going to try to maybe find aunt Martha to pay.
They’re going to. Others will look for other solutions first, but when it comes down to it closer and closer to the end of that redemption period, that’s the time to mail them when they really should have found a solution by now. But they did. They didn’t pay it with their tax return refund. And Martha said no several times. They’re just not going to save it a absolutely. You can buy that, buy that house before it redeems.
All you do is pay the taxes and whatever price, you know, whatever. On top of that they wanted…
If there’s a mortgage, you do your dental, the mortgage at that point, if there was a mortgage, what do they, oh, we call it normal real estate and that you ask all the normal questions like he would have like you would have got a call off of your ad. It’s the same kind of thing. There’s nothing been wiped clean when you go through a tax sale process, it’s a different scenario because mortgages are usually wiped off.
You’re in first position with their certificate, but if you’re buying before this auction event or before the end of the redemption, a yeah, you’re having a great conversation about what you can do with them on price and what’s owed and you just paid that lien holder off and then you’re on the property like you would anywhere else. That’s awesome.
Now, when, when you’re, when you’re messaging these people via, you know whether or not you get a contact for them or you’re able to get them, you know, their address and send them a mailer.
I’m sorry, a mail piece. Um, what, what is your, what is the message that you’re sending to them?
Hey, you know, I understand that your properties owner tax lien. I mean, what, what do you mean?
Well, what we do is we, we, we. There is a fine line. This is a nuance. I do want to make a point of. You don’t want to rub it right on their face necessarily. Be like, you got this lean, you’re a juggler in trouble, you better call me here. You’re going to die, but that just doesn’t resonate well anymore.
Now, with a lot of people, you can certainly give the reason you’re mailing how mailings did you, because they know they went through an auction. They know they’ve got the certificate so you can acknowledge it, but we very quickly say, if you’ve already solved that, then you can disregard this message.
We’re so sorry for content and you. Because some people, if they’ve already paid it and they get your mailing right, you can mention some of the older people kind of get upset about this.
I thought I paid that and they want to call and tell you that they paid. I don’t need you to do that. If you paid, you paid, it’s fine. You know? I don’t want to have. I don’t want to be so accurate that I can’t send you a piece of mail in case you paid yesterday while my mail wasn’t on the way to your house.
So you always kind of acknowledge, hey, if you’ve already paid it in installments, that’s awesome.
We’re so happy you did that and you can disregard this message, but if you haven’t, we have lots of different various solution and some people don’t know about them.
Maybe you don’t know what you can do. We just come across with a helpful, how can I help you message, not just I want to buy because we feel like people really are looking for maybe a couple of other solutions.
And I’ve found the best sort of closing conversation has been, we’ll have you tried this a yes I have. If you tried borrowing from family, yes I have. You tried this? And then they say no.
That the logical conclusion then becomes, well, you know, it sounds like a sale.
Maybe the you have left, you know, that’s what we do to. And what were you thinking about that? And then you’re, you’re kind of in that conversation. Um, anyway. But if they do have viable solutions, it’s just gonna cause problems for you.
Trying to convince them to sell to you anyway. I don’t like really convincing people out, I just kind of taking orders as they say and it’s easy to take an order when they’ve already exhausted a couple other options to get their taxes paid that they’re not going to, you know, have come to fruition.
And then I like to sail when a sale is obvious. Now we’re just talking about what does it mean and usually that’s, you know, what kind of cash do they think they want? Not, you know, what’s the market value? How low will you go off market value? We’re talking about really up from taxes, not down from retail. It’s a whole different conversation usually. Did you get the calls occasionally where somebody’s like, oh, I, it’s worth X. and I’m like, well, okay then why don’t you sell it for that for now by now you get the tax lien, you got like, what? What do you really want to do?
I get the occasional call like that. Somebody thinks they know better, but you know, that’s, that’s just the nature of the business. But most people are going to have a different dialogue than your typical male response to other lists that you might get.
Yeah. Now that’s totally understandable too. I mean, do you ever. Are you ever able to take these people and um, get a owner finance deal executed? And the reason I asked,
The sky’s the limit, one of the deals I did in Florida last year. Right? That’s a great question. It was a combination of everything. It was like he had an eye or he had an irs lien for 100,000. Oh Man. And so he, he, he didn’t want anything on the property except for that. And so we negotiated, okay, look, you’re going to get x dollars to move. We’re going to pay x dollars of taxes to keep it out of the auction.
We’re gonna to take it over, subject to the irs lien that will pay when we sell the house. You’re gonna.
Leave that on there. In the meantime, we’re going to work with the irs straddle over that number for you. Okay, great. And so it had sort of everything. We borrowed the money. Oh. And he was going to wait for his money on the back end and he subordinated to our first mortgage purchase and renovation law.
And so there was a little bit of everything you would want to in a good deal, right? There’s a little bit of subject to and subordination. He got some cash up front so we just worked out a creative deal based on the things that are pretty common. Those are going on on the call will understand. You try to figure out what does the seller need and when the seller needs some cash, you have to just deal with what does the seller need for cash.
Not necessarily total price. So absolutely it depending on what they need, depending on what’s owed and depending on how much taxes road you can work out. The best scenario you can on these deals with all those options are open.
Oh, I love that. You know, one of the, one of the coolest things I feel about this whole situation is that there there are so many barriers and a true investor looks at that and says, awesome, this is going to be less of a red ocean because you know you, you basically, you’ve got a parcel number.
You don’t necessarily have an address and then contacting the person is difficult and then if there’s existing liens, figuring out what those are and you’ve kind of taken some of those barriers and simplified that whole process, Huh?
Absolutely. We made the software that really, really, I would call it a poor man’s version. We made an excel spreadsheet that we added a bunch of macros in and a ribbon. The ribbon looks just like you would a good for Microsoft themselves and it’s got these buttons you press one button, goes and gets all the data and the next button checks.
You know which address is matched to show you which ones are are owner occupied versus not a one button as an export. It exports the addresses and names that you need to go put it into your mailing list to mail or vista print.
You just export the file for you. So all these things in our business, we needed to have really push button. We made literally a button and it’s an excel file that’s on your windows machine.
We updated all the time, download the new one…
We add counties all the time. We program them in there and so we’ve really made this thing do everything we wanted to do to go not only get county data but go get some of the free evaluation data.
When you’re gonna get you’re going to look at thousands of houses you’d like to go get a lot of free data first like Google images and total view and zillow and some things you can just kinda look at it quickly to get an assessment. What’s going on it?
It does. All of that would literally clicks of a button instead of a lot of heartache and we created our outsource center to say, Hey, if you’re not really techie, here’s Bob, go hire Bob. You can work the tool for you, you know, you’re very inexpensively, so we’ve even allowed for some of the non techie people to get some help to run this stuff through because we live in a data world now, Ryan, right?
It’s the real estate’s now becoming and who can get the most data and get through it the quickest is really gonna win. Um, yes, evaluation is important, but you know, guys are dealing in bulk and especially in this tax sale world, you know, the guy who can get the data of the quickest and evaluated the quickest and go right to check the quickest, you know, gets the most of. There’s still plenty for everybody.
I’m not, I’m an abundancy guy, but success usually means you need a lot of things to be looking at and sometimes people that just can’t get over the two or three offers a week comp to finally get their deal.
They can’t do 20 offers a week to get through the old attacks. Those just eliminates that whole problem. Again, this is just about about bulk data.
Yeah, that’s awesome. I mean, it’s real estate is such a numbers game and that’s, that’s a game changer if you’re able to get these leads in bulk, you have all the barriers kind of removed for you. Um, so that you kind of take out that whole process anytime you can streamline things, simplify things, get that data in front of you and basically, you know, you have this free list of potentially motivated people if you’re able to hit those numbers.
That’s, that’s where you really are in a winning situation…
Yeah. I want to say one more thing about that. We, we, we really just can’t stand administration, right? The real estate investing people can get so caught up in the administration of their llc or they’re going to maintain this and they’re gonna just alleges a lot of things you could get stuck managing and really not doing anything as far as buying and making money. Right? So we just really try to automate as much of that as possible.
So people are forced to do what call the investing work, which is evaluating is this a dealer, is this not?
So what we love about the tax sale data is that’s the entire, that’s all you’re doing. Once you get the data, anybody can do that for you. Hire somebody to get the data, run the tool, but you need to be forced to make decisions and if you’re not good at it, that’s okay.
By the time you reviewed several hundred, you’re going to be really good at it a lot faster than you would be doing five or 10 a week. You’re going to do 100 in a day. If we’re going to sit down for a Saturday and look through them and make them, it’s going to force you to get good. And so I just, I love it that you have to become an investor real fast to say I like this or don’t like it for these reasons are these reasons.
That’s what investment is. Deal evaluation. This is a deal, this one’s not right, and the quicker you can get through that process, the quicker you’re going to become from bad to good and good investors make the money.
The bad ones do not the bad ones make poor decisions or no decision and never make money and get frustrated and so the students that get into this and think, wow, I did really forced me to finally be a deal evaluator, not a get ready to get ready guy. I’m hoping to get a lead opening up my signs out, hoping to go do my.
That’s all great and you should go do it, but how about getting a bunch of leads? You can start reviewing right away and become an investor or deciding to train to go by and you’re letting a few rules about buying, not preparing to hopefully one day you can go make an offer.
Yeah. If there’s anything you could do to make it easy to increase your number of leads you have coming in to you every single week, then that’s when you need to be doing.
That’s what you have to be right all about. All about the lead flow. And I’m going to be one more example to you, Ryan. This is really cool because sometimes just rule surprise. You, Alabama for example. Um, there’s, there’s some details that are kind of close to the vest in the sense of training just because it’s, it’s really cool, but I want to give you the top.
We ignored Alabama for a couple of years because it’s technically this three year waiting period and then maybe three more years depending on what happens.
If I said, Ryan, there’s some places you can go and wait a year or two to see if you get this house or this is the place. It’s three or four years. What would you choose? Right? You choose. Well, I, why would I wait longer? Korea if I could wait a shorter period of time.
You kind of avoid these longer periods of time, right? We figured out calling the right people, getting going. As you get in the business, you learn more things. Right? Isn’t that funny how that works? We learned some more and we’ve got a couple of attorneys and they’re like, hey guys, you should be doing this thing called adverse possession.
These houses vacant. There are certainly a good enough shape to repair and do things, but you can get those right away if you file this, this, and this. I said, really?
They’re like, yeah, you can. The day after you get the certificate, which is a couple weeks after the auction, you could literally go file the possession, get the possession, make some repairs to get it occupiable. Throw your renter in there and you collect all that rent. Even if somebody wants to redeem you, they owe you repair money back.
Now they owe your certificate money. They still owe you a 12 percent, but you keep all the rent in the meantime, so yeah, yeah, it’s three years, but you’re making money right away the whole time and every time you put a dime in the property, they have to pay you that much more. So even the…
Even the money they have to pay to it is now increasing, not just the taxes. It’s become more than that now because you did some of the properties so that. Holy cow, so even a location.
We had thought we were ignoring him because it took too long…
We found out that’s actually a great place to go now because we can do certain legal filings and get a property nobody else wanted and to make it an income generator right away in the meantime, which is, which makes it now a desirable place to go much more than I was before.
And again, that’s just learning a few rules, being a professional, learning what’s going on there and turn that into a huge win.
So they, there’s just hundreds and hundreds there to go do that for. It’s really just a capital problem to go by there not a is there enough leads or am I good enough for all those things. It’s just, it’s other problems. Like can I get enough money to go do it? Because those leads are just, there’s this fruit, you know, right on the treatment is amazing stuff and that. Cool.
So not only are you getting the interest from the holding the tax lien, you’re getting rental income at the same time. That is,
Yeah. Yeah. You’re gonna you’re gonna yeah. And you’re either going to keep the house at the end when you keep the rent and get the house and never moves on, or you kept all the rent and they paid you 12 percent for the whole time.
They get their house back if they pay you, but you’ve got all your money back plus all that rent plus whatever. And so you basically just got use of the property the whole time for a couple grand.
You put it in or maybe five to eight if you’ve got some renovation in there, but you got very little money to control a property to make a lot more too, which is just so there’s so at every state kind of has its, it’s staying in some states are not very many by the way.
A handful of states were like, well we don’t clear the mortgage or they’ve, they’ve just made it more difficult for investors.
So you wouldn’t choose the more difficult ones. But how many spots do you need? Two or three spots of the rules. You’ve got a few wells to go, uh, you know, turn the, pumping up some water come out. I tell people, yeah, it takes a while to kind of get the pump in there and know what’s going on.
The the limit new language sometimes, but once you speak in the language fluently, you just can’t believe I’ll usually to walk over it is and and turn the pump on and water comes out in the form of houses. It’s just a matter of learning it and doing it and almost nobody wants to do which is why we love and like you said, the barrier, just everybody’s path of least resistance. But if they’ll just be a pro and go be a pro investor and do what professionals do they.
That’s a whole different problem. It’s how much capital can I get to go by? Not by have a flow problem to kick it off the ground.
That is some next level stuff right there. That’s awesome. Well that, that is brilliant corey. Thank you so much for sharing that to our listeners that cashflow dad life. Uh, guys, I wouldn’t hesitate to use this as a source. We’re going to go ahead and put up on a cashflow dad life.com on our resource page.
Um, we’re going to have some information about what exactly about what cory was talking about here and uh, you know, give you the opportunity to check out his software and, and uh, and what in what he’s able to do to get this huge, tremendous source of leads coming in, uh, that you can be incredibly creative with.
Like we were just talking about. I mean, you could actually get rental income at the same time.
Get interest on the tax lien. There’s a lot at the same time. You could get a property for pennies on the dollar. So, um, this is a great, great low hanging fruit of leads that you can get. Corey, thank you so much for joining us today. I really appreciate that. And, uh, and sharing your wisdom with all of our listeners.
Some had a great time. Hopefully. Enjoy it. All right. Thanks man. Appreciate it.
Thanks for listening. Please remember to rate and subscribe. You’re going to want to listen to every episode because each episode will have an idea or a strategy that changed my life. It could change your. Say it only takes one for more information and for some great passive income investing resources. Check out my website, cashflowdadlife.com. Until next time, my name is Ryan Enk and this is Cash Flow Dad Life.