Tax sale properties – 3 steps to become a professional tax sale purchaser
Purchasing a home is a big financial commitment. Purchasing an investment property is a big step in progressing towards financial freedom. Professionals and amateurs play in the same playground, but the professionals have the competitive advantage.
Professionals have the competitive advantage simply because they understand the markets, have information readily accessible and take the emotion out of the purchasing process.
Understanding the markets:
Why to buy, where to buy, and when to buy are the three main concepts that an investor knows when committing to purchase anything. They have a deep understanding of the demographics, income levels, and what to returns to expect from a hyper-localized perspective.
Information is gold:
Professionals don’t waste their time on putting together data sets. Rather they hire data scientists to put together data for them and they spend their time actually analyzing available tax sale properties. Think about it. You hire a trainer to help get you physically fit, you hire an Uber to drive you to your destination, you hire a service to have food delivered to your home. You do these things to remove the busy work out of life so that you can focus on what’s important. Your time is valuable. Investors know this and purchase services like the tax lists we offer to remove the busy work and focus their time analyzing auction properties.
Emotions at auctions will get you in trouble:
Investors are not emotionally tied to properties. Many times at the Sacramento Tax Sale, a property will be auctioned off at ridiculous over market prices simply due to emotional reactions of amateurs wanting to win the bid. Investors understand the market using trusted information and set price points of what they are willing to bid on the properties. There is no point going to an auction to purchase a property at market rate. There are many risks tied to tax sales, so that needs to be accounted in your price points.
Go in with a prepared strategy and stick to it.
Read about how we set price points at the Sacramento tax auctions.