Dean Graziosi - Deal Of The Month #4

Hey, this is Dean. Welcome to another deal of the month. Well, here we are on top of this incredible hill. Now, this isn't a great time of year here. Leaves are just starting to bud. It's springtime. But you see that in the area over here? That's the Hudson river, the same river that Statue of Liberty is on and runs up through Manhattan, New York, but we're about 60 miles north of Manhattan. Anyway, I'm standing on this hill because I want to show you. Today we want to talk about tax hill sales, this piece of property. You see this gorgeous view? I bought this entire piece of property, nine acres, for $7,000. Of course, I handed the camera off to my friend who's filming me now on this piece of property. But today I'm here because this deal of the month. I want to talk about tax sales. You know, let me just tell you how simple it really was for me to buy this prior to buying this piece of property. This was my first tax sale I ever bought. You know, it's one of those things you heard, can tax sales really happen? How does it work? Well, there's a whole bunch of different formats for tax sales, and you can get all that information through our courses and kits and in my books. That's why you're watching this, because you most likely already have that to define what a tax sale is. But at the end of the day, the definition of one is not as exciting of what the benefits it can be to you. And let me just tell you the benefit with this piece of property here. What I found out was this had gone up for taxes, and it went to an auction over and over, trying to auction off this piece of property so the county could. Could recoup the money that was owed on the property tax on this piece of property, which ended up being years and years of taxes, and it was 40 or $50,000. Well, what I didn't realize at the time was they were trying to auction off the property for 40 or $50,000 to recoup all their money. Well, it had gone for three years without being paid. And the county actually foreclosed on this property and took ownership of it. Every year, every six months when there was a tax auction, this property would come up for sale. No one would bid on it and it would just go back on the books. Well, let me tell you why nobody bid on it. The reason is, is because this gorgeous piece of property that I showed you in the beginning, this nice nine acres on top of a hill, didn't have a Great access. In fact, it was very steep to get up here. But what I realized is, with just a little bulldozing, a little moving earth around, you could put a nice driveway here. But most people drove up, saw this property going off for taxes, looked at the steep hill, got in their car, and left. I didn't. So I went to the county treasurer's office. I found out that there was 45, or, you know, again, it's been years, so I don't know the exact number, but it was around 45 or $50,000 due. What I realized is that I could make an offer on it. And since it had not sold in the tax Sales, I offered $5,000 for this property. Now, you think that's crazy. I offered 10% of what was owed, but I said what could hurt. No one else is buying it. They came back and said no to $5,000, and. And they took $6,000. I paid $6,000 for this incredible property. This is one of my favorite properties. I'm not selling it. In fact, let me tell you the true story about this property. It's big enough for two gorgeous lots, for two big homes with this gorgeous Hudson river view, right? I sold the lot right behind me, and I'll show you in a minute. I'll point the camera towards it. But I sold that lot for over $100,000. And it was to someone I knew, and they got a great deal on it because it was worth much more than that. But then I decided that I wanted to keep this piece of property, and I wanted to put my own summer house here someday. Not ready for it yet, but someday I want to put pool, tennis court, bocce, the whole nine yards. And when I come to this area of the country, I want to be able to come here. So I literally bought the property back from. I asked them if I could buy it back. So now I own it. But this property is probably worth 3 to $400,000 because I stepped out of the box, made a crazy offer of five grand, bought it for six, spent some money. I probably spent 50, $60,000. I'm putting a road in here. But at the end of the day, 50 or $60,000 to have a piece of property worth 3, 400 in a low market, more in a high market is an incredible thing. So here's what I'd love for you to encourage you to do. If a tax sale is something you just want to see. Go online, search your county treasury's office and find out the properties that are going off for Tax sales. You can go in my tax manual. It tells you all the steps, explains the different states on how tax liens work. You know, in some properties, you're actually buying the lien and you get paid interest on the money because you paid the taxes off. And if it's not paid over a certain time, then you have the ability to buy the property. Here in New York, where I bought this, the county that this is, in this property, if you pay the taxes off, you have the ability to get a deed on the property. And then there's some rules and regulations. The ex owner has a certain amount of time to pay it off and they could get it back. But in this one, I literally bought this from the county because they already foreclosed. When I paid 6,000 bucks, I owned it. And you know, it was an incredible thing. So I urge you, go online, Google your county treasurer's office, see if you can find the information online. If you can't get in your car and drive to your county building, the county seat, the town building that you live in, the town court, and just say, hey, there's tax sales. Where does the list come in? You can literally print or have someone hand you a list with properties on it and says, this property, this address, this is how much owed. You can jump in your car and go look at it and see if you have the ability to buy a property for pennies on the dollar through a tax sale. I'll see you.