The Best Strategy to Avoid Competition by Tony Martinez
Tony Martinez is the Founder and Chairman of the US Tax Lien Association, which is an organization that is committed and dedicated to helping others achieve total financial freedom through the power of investing in Tax Lien Certificates. With over 30 years of expert experience, Tony is the world's #1 authority on the subject of creating enduring wealth through the little know strategy of investing in Tax Lien Certificates, which gives anyone the opportunity to earn guaranteed fixed rates of returns of 18% – 36% interest per year, and acquire valuable real estate for approximately 10% of market value.
Getting out bid at an auction is always a let down. The problem is, the most accessible auctions to everyone are the most popular. So those participating in Florida and Texas tax deed auctions for example, are finding the competition fierce due to high attendance.
Now I can’t make sense of anyone bidding too much for a property, which you’ll often see in these circumstances, and I am not advising our students avoid Texas or Florida (both are excellent states to invest in), what I do want to discuss is that for those who shy away from the competition there is an alternative route. Below I’ll describe our strategy for finding success while avoiding the competition.
Choose a state: Ohio, Indiana, Arkansas, and Tennessee, are all states that have straight forward auction processes. For the most part the auctions are live, Indiana does have some online auctions through Zuesauction.com. So, you need to be willing to travel. The competition in these states, though not exclusively, is not nearly as competitive as the highly populated coastal states.
Exit Strategy: The homes and apartments in the states described above are less likely to be A or A+ quality. You’ll find that for the most part, the properties offered at auction are B or C level. Realistically it would not make sense to bring them up to an A level quality….so what do you do? Well, affordable, clean, and up to code housing is always in demand anywhere in the country. The best thing to do is turn an investment property in these regions into beautiful and clean rentals. Likely a minimal profit would be made if you decided to flip and sell. The markets in these regions aren’t the best for that exit strategy, long term rentals however will lead to an excellent investment with regular cash flow.
Show Up: If you take the time to research a list of properties, then show up to the auction, even if all of your properties redeem. It’s important to experience an auction, whether online or live. This will help anyone gain confidence in what they are doing so when the right property comes along, you’ll be ready.
Pays You: 15% Interest / Year
645 Church St, Bound Brook, NJ
2683 sq. ft.
14,810 sq. ft.