I’m going to start this article by saying there is nothing wrong with any piece of real estate as long as the price is right.
Now, you’ve probably heard me say this many times, but I’m going to reiterate it for you guys because I want to reinforce the message: Real estate is a long-term play. It’s going to take 5, 10, or 15 years to get you to where you really need to be. I believe that success in business is about delayed gratification. It’s about planting the seed now and reaping the harvest later.
You also need to find the right people. So forget about the stats, forget about the demographics, and start with the people first. Build trust and relationships with the right people who are truly going to have your best interest at heart.
Now that we’ve got the people factor out of the way, I have something else that I need you to do before I get into the nitty-gritty of this article. I need you to pick a few zip codes and truly become a local expert on whatever is happening in that area. I need you to understand what distressed properties are selling for, what renovated properties are selling for, who the top-performing agents in those areas are (and network with them), who the real estate investors are who are buying, selling, and flipping, and who the buy and hold landlords are. You also need to know the numbers in those particular demographics. Live it, breathe it, love it, eat it, make your whole life revolve around it.
So we spoke about the people, and we spoke about becoming a local expert and understanding the numbers in that particular area.
Should You Buy a Property That Has Back Taxes?
I don’t see why you shouldn’t buy a property with back taxes.
Let’s reference what we just spoke about. We spoke about knowing the numbers in that particular area, so if an opportunity presents itself where the property has $5,000, $10,000, or $15,000 in back taxes and you know what distressed properties go for in that area that do not have any back taxes, the calculations are quite simple. All you have to do is discount the amount of back taxes against the purchase price of that potential property.
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