In this lesson, Mark Podolsky enlightens us on how critical it is for you to check any potential back taxes owed on a property you’re looking into buying.
Listen in as Mark Podolsky explains how quickly your return on investments can diminish due to back taxes on a property.
Mike: Welcome back to the FlipNerd.com REI classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Mark: Hey, it’s Mark Podolsky, the Land Geek, with TheLandGeek.com. I’m pleased to be back on FlipNerd REI Classroom and I want to talk about a fatal land buying mistake that I see happen.
Mike: This REI Classroom real estate lesson is sponsored by UglyOpportunities.com.
Mark: And it’s such a simple thing, but people overlook it and it can dramatically reduce the return on their investment by not checking the simple, simple piece. And that is before we buy a property not only do we want to check to make sure there’s no liens or encumbrances, we want to make sure that there’s legal access, we want to make sure there’s water on the property, we want to make sure the person actually owns the property.
But do you know what we want to make sure? That taxes are current or, if they’re not current, how much they actually owe on the property. Because I’ve seen situations where new investors come in. They get all excited about a property. An owner accepts their “top dollar offer” 20, 30 cents on the dollar and they can’t wait to buy the property. They’re going to go and they’re going to close and because it’s under $5,000, they’re not going to use a title insurance company. They’re going to save the money. The next thing you know, the entire value of the property is eaten up because of the back taxes.
So you need to contact the county treasurer and if you need the county treasurer’s information, there’s a great website you can go to. It’s naco.org. You need to get all the treasurer’s information. You can even find it up online usually, but you want to find out how much back taxes are owed if any. And if you avoid that fatal land-buying mistake, you’re going to protect your return on your investment on that piece of property. So if you want to learn more about these issues, just go to TheLandGeek.com and we’ve got tons more information there. Thanks so much.
Mike: HomeVestors, the “We Buy Ugly Houses” folks, is a franchised system of hundreds of real estate investors that have purchased over 65,000 houses. If you’d like to learn more about the most powerful real estate investing system in existence, whether you’re a pro looking to take your business to the next level or whether you have no experience at all, but a burning passion to be successful in real estate investing, please visit FlipNerd.com/ugly to learn more.
Please note, the views and opinions as expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
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