Jills #staymotivated Group for Women
Transcript:
Jack Butala: Jack and Jill here!
Jill DeWit: Hi!
Jack Butala: Hey, welcome to the show. In this episode, Jill and I talk about Jill's #staymotivated group for women. Before we get into it, let's take a question posted by one of our members on landinvestors.com, online community it's free.
Jill DeWit: Okay. Sophie asks, "I'm thinking about starting to invest in back tax properties." Sorry I-
Jack Butala: Red flag.
Jill DeWit: ... had to giggle there. Trouble. "And it seems to make sense." No it doesn't ... Just kidding. "To start at my hometown of Colorado." I'll explain why Sophie, I don't mean to pick on you.
Jack Butala: No it's not you ... nothing ... It's not you personally.
Jill DeWit: You've been fed something, Sophie, and it's not correct and we're gonna save you here in just a minute, so let me finish this question, "It seemed to make sense to start in my home state of Colorado. However, it's kind of hard to find information specifically for Colorado. I did read in my research that the state's policy is to bid up with the premium sales price, but you cannot see any other bids in their system. This all seems weird and daunting to me." Sophie, you're correct. "Do you have any experience in buying properties online?" Yes, we do. "Do you have any advice, or is there something I should stay away from?"
Okay, Sophie, fantastic question and I love that you are already ... You just answered it yourself. You and your stomach is not feeling right 'cause you said, "Is this something I should stay away from?" You would not say that if you didn't have a little something in your ... gurgling.
Jack Butala: I'm gonna go out on a limb here and say she's probably really new.
Jill DeWit: Yeah.
Jack Butala: Here's the good news. You're asking the exact correct question, if you're new.
Jill DeWit: Yes. I'm not meaning to tease you or pick on you. This is right, like Jack said. Here's the deal, Sophie, there are people out there that think that this can be a good property option, but you don't want to only look for those 'cause you're missing so much good stuff. There are a lot of reasons why properties are in these back tax situations. Often it's because they're the problem ones. There's something going on. It's tied up in [inaudible 00:02:18], people have passed on, there's reasons that it couldn't be transferred easily.
If you're seeking out only back tax properties, you're seeking out, potentially, all the awful ones that are gonna take a lot of time, and a lot of money, and a lot of energy, and you might not even be able to close some of these deals. I can't tell you how many people have said, "I went down that path, I wasted a week, and oh my gosh, that was stupid, I couldn't do it ... "
Jack Butala: Or a decade.
Jill DeWit: Yeah. "By the time I got into it, I thought I found a goldmine and then I realized there was a reason why it was sitting there with unpaid taxes for six years, it couldn't be done." There's times too that it sure happens where these back tax properties, they build up so much back taxes that the asset's not worth it anymore. It's just not worth doing it. Do you wanna ...
Jack Butala: Yeah. There's this concept and it's not specific to real estate, where if it's cheap, there must be something wrong with it. If that house is falling down, it's gonna be cheaper than the one that's right next to it that looks perfect. I could move right into that one. I want the cheaper one. I'm gonna fix it up, I'm gonna do some stuff to it and I'm gonna charge money for it.