Tony Martinez Shares Another Exit Strategy
Tony Martinez is the Founder and Chairman of the US Tax Lien Association, which is an organization that is committed and dedicated to helping others achieve total financial freedom through the power of investing in Tax Lien Certificates. With over 30 years of expert experience, Tony is the world's #1 authority on the subject of creating enduring wealth through the little know strategy of investing in Tax Lien Certificates, which gives anyone the opportunity to earn guaranteed fixed rates of returns of 18% – 36% interest per year, and acquire valuable real estate for approximately 10% of market value.
For those who don’t want to spend the time or money to rehab a tax deed property…maybe wholesaling the property for a quick turn around is the exit strategy for you. Wholesaling is when you sell the property below market value to another real estate investor for a quick profit. The advantages of wholesaling are speed and little to no labor input. Of course your return on investment won’t be as generous as if you did renovate the property and sell for market value, but many of our students are short on time and money. Wholesaling is still a viable exit strategy and one to keep in your back pocket.
As a property wholesaler, you sell a property without making any improvements or updates to it. You can potentially work your deal in a matter of weeks. This is a great way to build investment capital in a relatively short period of time. You also don’t have to deal with any potential headaches related to contractors or tenants.
This means of course you need buyers, so you will need to expand your network to include other investors in the area. You can start by tracking down which investors have bought properties in and around the neighborhood you are working in. To determine which properties these are look for rental listings online. Call the phone number provided and ask to speak with the owner and present your offer.
You can also look at nearby sales on websites such as Zillow and find properties that were sold for below market value, but since then have clearly been improved and are ready to go back on the market. Even a local realtor can provide you with their investor contacts.
Perform your due diligence so that if an investor expresses interest in your property, you are ready to present them with a title search, estimate of repairs needed, and a comparative market analysis. The more information you have ready for them, the faster you will close the deal. So when you buy a tax deed property, don’t think you have to flip it. Consider wholesaling as an alternative with many benefits.