2nd lecture notes part 3

Understanding Financial Terms

• 'Buy the roll up in your head': This phrase means to mentally calculate the total cost associated with acquiring a tax certificate before actually making the purchase.

Selling Price Range

• Estimated Selling Price for Buildable Lots: The instructor estimated the selling price range for buildable lots to be between $3,500 and $8,000.

Importance of Checking Comparables

• Why Check Comparables: It is advised to check comparables when purchasing land in order to:

  • Establish a realistic sale price.

  • Understand market trends before placing a bid.

Consequences of Non-Payment of Taxes

• Properties and Back Taxes: If original owners fail to pay their back taxes, the consequence is that:

  • The properties may be auctioned off due to delinquent tax payments.

Market Value Estimation

• Instructor's Market Value Estimate: The instructor provided a conservative estimate of the market value for the properties discussed, which was $3,000.

Strategy of Purchasing Certificates

• Buying 'Every Available Certificate': This strategy indicates:

  • Aiming for maximum returns by having interests across multiple investments in the same property.

Tracking Purchases During Auctions

• Method of Tracking: The instructor recommends tracking purchases made during the property auction using:

  • An investment tracker spreadsheet to keep all purchase details organized.

Understanding Financial Terms

• 'Buy the roll up in your head': This phrase means to mentally calculate the total cost associated with acquiring a tax certificate before actually making the purchase.

Selling Price Range

• Estimated Selling Price for Buildable Lots: The instructor estimated the selling price range for buildable lots to be between $3,500 and $8,000.

Importance of Checking Comparables

• Why Check Comparables: It is advised to check comparables when purchasing land in order to:

  • Establish a realistic sale price.

  • Understand market trends before placing a bid.

Consequences of Non-Payment of Taxes

• Properties and Back Taxes: If original owners fail to pay their back taxes, the consequence is that:

  • The properties may be auctioned off due to delinquent tax payments.

Market Value Estimation

• Instructor's Market Value Estimate: The instructor provided a conservative estimate of the market value for the properties discussed, which was $3,000.

Strategy of Purchasing Certificates

• Buying 'Every Available Certificate': This strategy indicates:

  • Aiming for maximum returns by having interests across multiple investments in the same property.

Tracking Purchases During Auctions

• Method of Tracking: The instructor recommends tracking purchases made during the property auction using:

  • An investment tracker spreadsheet to keep all purchase details organized.

Additional Considerations for Property Investment

• Understanding Local Market Conditions: It’s important to be aware of local market conditions, including demand, supply, and economic indicators that can affect property values.

• Networking with Other Investors: Building relationships with other investors can provide insights and opportunities in the real estate market.

• Diversifying Investments: Diversifying your investments across different properties and markets can reduce risk and enhance returns.

Understanding Financial Terms

• 'Buy the roll up in your head': This phrase means to mentally calculate the total cost associated with acquiring a tax certificate before actually making the purchase.

Selling Price Range

• Estimated Selling Price for Buildable Lots: The instructor estimated the selling price range for buildable lots to be between $3,500 and $8,000.

Importance of Checking Comparables

• Why Check Comparables: It is advised to check comparables when purchasing land in order to:

  • Establish a realistic sale price.

  • Understand market trends before placing a bid.

  • Compare similar properties for an accurate assessment to ensure a good investment.

Consequences of Non-Payment of Taxes

• Properties and Back Taxes: If original owners fail to pay their back taxes, the consequence is that:

  • The properties may be auctioned off due to delinquent tax payments.

  • Potential investors should be aware of the risks associated with purchasing tax lien certificates.

Market Value Estimation

• Instructor's Market Value Estimate: The instructor provided a conservative estimate of the market value for the properties discussed, which was $3,000.

Strategy of Purchasing Certificates

• Buying 'Every Available Certificate': This strategy indicates:

  • Aiming for maximum returns by having interests across multiple investments in the same property.

  • Understanding the local demand and potential risks before making the purchase.

Tracking Purchases During Auctions

• Method of Tracking: The instructor recommends tracking purchases made during the property auction using:

  • An investment tracker spreadsheet to keep all purchase details organized.

  • Regular updates on market conditions to adjust investment strategies.

Additional Considerations for Property Investment

• Understanding Local Market Conditions: It’s important to be aware of local market conditions, including demand, supply, and economic indicators that can affect property values.

• Networking with Other Investors: Building relationships with other investors can provide insights and opportunities in the real estate market.

• Diversifying Investments: Diversifying your investments across different properties and markets can reduce risk and enhance returns.

• Due Diligence: Conducting thorough due diligence on potential properties is vital to avoid costly mistakes and ensure informed investment decisions.

• Legal Considerations: Understanding legal implications and requirements related to property ownership and tax liens.