Property Tax Sale - good prospects?

Real Estate Investing
1

In my area this list is pretty easy to obtain. But it feels like calling on foreclosures. Tons of competition and the most common response is
“No! Take me off your list.”

Thoughts?

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Hi Greg - that’s a reasonable assessment and in my experience completely true. That said, it is also true that many of these properties sell to investors prior to foreclosure or tax sale. Here’s what I’ve learned from watching the investors that are the most successful…

  1. Resilence matters. Commercial brokers like to hire kids out of college that were successful in sports for two reasons: 1) they are coachable, and 2) they’ll beat their head into a wall over and over to eventually get results. The folks I see that are successful in distressed real estate investing realize that buying these properties is a bit like training for the big game, endless drills for the occasional win. If you are expecting a high close ratio, I wouldn’t bother. No is the norm. Yes is the exception. But those yes’s can still provide an incredible living.
  2. You have to give to get. If the primary answer you are getting is “No! Take me off your list”, I’d suggest you may be taking the wrong approach. Pur yourself in the seller’s shoes - they are in financial distress and feeling vulnerable. Other buyers are likely approaching them asking them to sell and perhaps the bad ones are using scare tactics about what’s going to happen if they don’t. With that in mind, you need to understand there is little chance of buying their home without first earning their trust. I’ve seen a variety of ways good buyers go about this, but the general idea is that you have to give to get. Perhaps start by sharing information about others in foreclosure or tax default in their area, this may be news to them and help them feel less alone in their situation. Perhaps start with some education around their options, of which you buying their home is only one. And be truly open to the fact that selling to you may not be the best solution for them. You’ll have the most success if your spirit of giving is genuine and you really make it your mission to help.
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Thanks for the detailed thoughtful reply Sean. I’ll try some of your suggestions!