Unlocking Real Estate Gems: The Tax Deed Edition
Yo, we’re diving deep into the world of tax deeds with Jackie Jackson, and trust me, you don't wanna miss this! Jackie’s got the 411 on how to snag properties for just the delinquent taxes—yup, you heard that right! She’s sharing her wild journey from losing $120k in her first real estate deal to flipping the script and crushing it in the investing game. We’re talking about six killer ways to make bank in real estate, and how you can hop on board too! So, if you’re ready to learn some dope strategies and maybe even become a tax deed whiz, stick around, ‘cause Jackie’s about to drop some serious knowledge!
Tax deed Genius 6 different ways to get deals with Jackie Jackson - Payneless Wholesaling Podcast
Visit https://www.paynelessflipping.com to learn how to do real estate deals the payneless way!
Straight up, we had Jackie Jackson swing by the Investor Thrive Nation podcast, and let me tell you, it was a blast! Jackie, who's also a military officer (how cool is that?), kicked off with her wild ride into the world of real estate. She got real about her first deal that went south and turned into a whopping $120,000 loss. Yup, you heard that right! She called it her 'most expensive PhD' because, honestly, we learn best from our flops, right? But don't worry, she didn't stay down for long. With a military bonus, she snagged a mentor and dove headfirst into learning the ropes of creative real estate investing. Now, she's all about tax deeds and how to score properties for just the delinquent taxes. Talk about a steal!
Jackie's journey is all about resilience and finding opportunities in the mess. She shared her insights on tax liens and tax deeds—basically how you can flip properties without breaking the bank. If you're tuning in for some real talk on investing, she's got the goods. She broke down how to identify which states and counties are the best to invest in, and trust me, it’s not rocket science. Just pick a few counties, do your homework, and dive into those auctions! She's even got a program called Tax Deed Genius that teaches you everything from finding to flipping these properties. So whether you're a newbie or a seasoned pro, there's a nugget of wisdom in there for everyone!
In short, Jackie Jackson is not just teaching us about real estate; she's showing us that sometimes you gotta take the leap and learn from the falls. She’s turned her past mistakes into a toolkit for success, and you can do it too. If you missed this episode, you seriously need to check it out—Jackie's got the keys to making real estate investing feel less like a headache and more like a fun adventure!
Takeaways:
- Jackie Jackson's journey in real estate started with a $120,000 loss, which she hilariously calls her 'most expensive PhD'.
- Investing in tax deeds can let you snag properties for just the amount owed in delinquent taxes, making it a savvy strategy.
- Understanding the difference between tax liens and tax deeds is crucial for new investors looking to dive into real estate.
- Jackie emphasizes the importance of reading and studying to succeed in real estate; knowledge is key, folks!
- You can buy properties at tax deed auctions and potentially clear the title in just a few years, which is a game changer.
- Jackie’s educational program simplifies tax deed investing, making it accessible for anyone wanting to learn.
Links referenced in this episode:
Companies mentioned in this episode:
- Investor Thrive Nation
- Painless Wholesaling
- United States Army Reserves
- PACT
- Augie Violet
- Tax Title Services
- Tax Deed Genius
- Jackie Jackson
Transcript
We are live with the Investor Thrive Nation podcast, the Painless wholesaling podcast.
Speaker A:And we have the Jackie Jackson.
Speaker A:Ms. Jackie, how are you?
Speaker B:I am fantastic, Nathan.
Speaker B:It's so good to be here.
Speaker A:I'm glad to have you on here.
Speaker A:So, everybody, if.
Speaker A:If you're tuning in, you've never heard our podcast before.
Speaker A:What I talk about is real estate investing, and I try to make it painless.
Speaker A:My last name is Nathan Pain, so I try to make the journey for you, Pain, so you can learn from other experts.
Speaker A:That's why I have awesome people like Jackie on here, so she can teach you about her experience.
Speaker A:So we're going to dive into tax deeds.
Speaker A:She's going to show you six different ways and what she's been doing to be successful as a real estate investor.
Speaker A:So let's just dive right into it.
Speaker A:So, Jackie, tell me a little bit about your start and how you got everything going in real estate.
Speaker B:Absolutely.
Speaker B:So I know everyone can see me in my uniform, so I'm in.
Speaker B:My alter ego right now is Captain Jackson.
Speaker B:I'm a military professional.
Speaker B:I am a officer in the United States Army Reserves, and I'm out of my army training.
Speaker B:But the interesting service.
Speaker B:Thank you.
Speaker B:The interesting thing about being a warrior, as they call it right here, is I actually joined the military because of real estate.
Speaker B:And I'll tell you how that happened.
Speaker B:I know, I know, I know, I know.
Speaker B: o my first deal that I did in: Speaker B:Right.
Speaker B:I didn't know anything about anything, and I ended up with $120,000 loss.
Speaker B:I call it my most expensive PhD on what not to do.
Speaker B:Right.
Speaker A:Oh, my gosh.
Speaker B:My first deal.
Speaker B:And my first deal was $120,000 in the deficit.
Speaker B:It cost me a lot of.
Speaker B:A lot of money, but it also taught me a lot of things, Nathan.
Speaker B:Right?
Speaker B:So here I am, single mom, working, trying to figure things out, and now I got this big looming debt.
Speaker B:So I already started off with debt, and now I have even more debt than when I started off in the first place.
Speaker B:And then one day I see a commercial from the military.
Speaker B:Be all you can be in the army, right?
Speaker B:And they were offering a bonus.
Speaker B:And with that bonus, I use that bonus to hire a mentor and a real estate coach.
Speaker B:And that's basically how it all started.
Speaker B:So I joined the military only because I wanted to be able to afford my mentor so that I learned some creative real estate investing techniques to help me get out of debt.
Speaker B:So that's the story.
Speaker A:Oh, my gosh.
Speaker A:Was the Mentor.
Speaker A:Worth it?
Speaker B:Absolutely.
Speaker B:I got out of debt.
Speaker A:Wow.
Speaker A:Wow, wow, wow.
Speaker A:That's amazing.
Speaker A:Who was it?
Speaker A:If you don't mind me asking?
Speaker B:Yeah, absolutely.
Speaker B:So I joined my local real estate investors association and I'm a graduate alumni from the PACT organization.
Speaker B:So my shout out to Augie Violet, that was my first official investment in myself.
Speaker B:It was one year of coaching and I learned creative real estate investment.
Speaker B:So I learned wholesaling, I learned short selling, sales, I learned, let's see, what else subject to.
Speaker B:I learned option agreements, performing notes, non performing notes.
Speaker B:I learned a lot of things, and in that time I literally tried them all.
Speaker B:I was.
Speaker B:I didn't know anything about anything, so I was literally fearless.
Speaker B:Right?
Speaker B:So talk to someone.
Speaker B:I did it.
Speaker B:You said, hey, go have this conversation with this seller.
Speaker B:I did it.
Speaker B:You know, it really didn't matter.
Speaker B:So throughout that entire period of time, being fearless taught me a lot of things because I. I learned the ins and outs of a lot of different creative strategies, how to structure deals.
Speaker B:And then one day I came across tax liens and tax deans, and I was like, wait a minute, there's.
Speaker B:This is something that I didn't know about.
Speaker B:What do you mean?
Speaker B:I can buy properties for their delinquent real estate taxes.
Speaker B:You lying.
Speaker B:Lying out in these streets, right?
Speaker A:Exactly.
Speaker B:So I investigated a little bit more and just for funsies, I said, okay, let me learn a lot more.
Speaker B:You know, just learn more in depth and how this process works.
Speaker B:And I studied a little.
Speaker B:Studied a lot, actually.
Speaker B:I like to read.
Speaker B:So reading is.
Speaker B:Kids, make sure you read all right?
Speaker A:No, reading is so important.
Speaker B:It's so important.
Speaker B:So I purchased my first tax deed property.
Speaker B: obably say it was maybe about: Speaker B:And I was really successful at it.
Speaker B:So I started, you know, in a new strategy and I was hooked up.
Speaker B:Hooked.
Speaker B:Okay.
Speaker B:The first time you can go to an auction and buy a whole single family home.
Speaker B:Not for the appraised value, not for the assessed value, not photo market value, not for any of those values, but just for the delinquent taxes.
Speaker B:Trust me, you will never go back.
Speaker B:Okay?
Speaker B:And I've made it my primary go to strategy and I teach others how to do so.
Speaker B:In my educational business at the Jackie Jackson.com which is where I created Tax Deed Genius, which is an educational program to teach individuals how to find, how to analyze, how to do the research, how to buy and also how to sell.
Speaker B:Right?
Speaker B:How to dispose of your property in the event that you want to sell it or maybe you want to keep it and cash flow, it's up to you.
Speaker B:But that's where all that education is.
Speaker B:Wow.
Speaker A:Wow.
Speaker A:So let's, let's take some of what you do.
Speaker A:Can you.
Speaker A:For people that come and listen to this, I'd like them to be able to implement what they hear.
Speaker A:Right?
Speaker A:So tell if for someone that's just listening, that's probably not ready to join a program at the moment, what information can you give them so they can take action?
Speaker B:Absolutely.
Speaker B:So every single real estate property, regardless of the property type, regardless of the usage type, every single property, the tax collector or the tax assessor or revenue collector, whatever you name it, in all 50 states the United States, this is applicable.
Speaker B:There's 3,141 counties and county equivalents across the United States.
Speaker B:And they all collect real estate taxes.
Speaker B:And why do they all collect real estate taxes?
Speaker B:Because real estate taxes is what is used to support our communities.
Speaker B:That's our libraries, that's our schools, that's our roads, that's our ems, that's our police, that's all of our emergency services.
Speaker B:So we all benefit from real estate taxes.
Speaker B:So when a property owner is delinquent on the real estate taxes, it's a really, really big deal.
Speaker B:That's why all 50 states has a collection procedure written in their laws, right?
Speaker B:So if you are a new individual, the first thing you have to do is identify what states you want to invest in.
Speaker B:Right?
Speaker B:So identify the state that you want to invest in and then determine if that state offers either tax liens opportunities or if they offer tax deeds opportunities.
Speaker B:And I'll tell you the distinction between the two.
Speaker B:If they offer tax lien opportunities, what that means to you is that written in their law.
Speaker B:If you Mr. Or Ms. Investor chooses to help property owner paying their real estate taxes for them, there is a statutory interest rate, fixed interest rate, that is going to be assessed to that amount of dollars that you pay that one individual's real estate taxes for.
Speaker B:And that lien now becomes a primary lien against that person's property.
Speaker B:That lien is a primary above their mortgages.
Speaker B:And primary is like a priority lien.
Speaker B:Right.
Speaker B:So there's nothing that that property owner can do.
Speaker B:Like even if they try to refinance or they try to sell that property, they must pay you back.
Speaker B:And in the event that they don't pay you back, now you have an opportunity to enforce a collect all the way up to enforcing a sale A foreclosure, tax, foreclosure sale on that property in the event that the state offers tax deeds, then what that means to you is that when you are communicating with your local tax collector, real estate tax collector, what they're saying is if a property owner is delinquent for a specific amount of time, if they do not pay their real estate taxes in that specific amount of time, you literally can buy their property for the delinquent taxes.
Speaker B:Which is different between a tax lien deed, because a tax lien is you're getting a rate of return and interest.
Speaker B:And that's cool because it's double digits, right?
Speaker B:Double digit returns, it's very high returns compared to like what you would have in your traditional savings account, money markets, IRAs and things like that.
Speaker B:As a matter of fact, there's so many people that love to invest in tax liens in their like self directed IRA or in any of their retirement accounts because there's double digit returns on those.
Speaker B:And for those of us that are interested in buying properties, then I would recommend that you look for the states that offer tax deeds and the states that offer tax deed opportunities is like 31 states out of the 50 will sell properties for their delinquent taxes and then about 24 out of the 50 states will offer tax lien opportunities.
Speaker A:Do you have people that are living in these homes that have tax liens?
Speaker B:Sometimes they do, but more oftentimes they actually vacant.
Speaker B:So people will say, well how in the world does a property become delinquent to all the way to the fact that now the county is going to sell the property to collect the delinquent taxes?
Speaker B:Well, what really happens?
Speaker B:And I know, you know, Nathan, as an expert like you are, sometimes you find that homeowners pass away, you know, their heirs don't take care of the property or you know, sometimes people fall into hardships, financial hardships, things like that, and then they're not paying their real estate taxes and it just kind of like snowballs and you know, builds up to a point where they don't have the total sum.
Speaker B:Well, all of those monies are not deferable.
Speaker B:It still has to be paid.
Speaker B:As a matter of fact, we're coming out of the pandemic, right?
Speaker B:For the last three years we're in the pandemic and then property owners had the opportunity to take advantage of enrolling into like a mortgage forbearance program, right?
Speaker B:Where basically they're like pushing their payments down, down the road and they get to pay them at a later Date.
Speaker B:Well, most people have their mortgage, their insurance and like their taxes, you know, so the principal, interest, taxes and insurance all wrapped up into that single payment.
Speaker B:So if you're not paying that payment, if a property owner is not paying that payment, that means that more than likely they weren't paying their taxes either for their properties.
Speaker B:Right.
Speaker B:So although they were eligible for the forbearance, their real estate taxes, insurance still had to be paid.
Speaker B:And a lot of property owners are facing that right now.
Speaker B:So this is not like ugly properties or torn down properties.
Speaker B:This is literally like pretty properties.
Speaker B:Right.
Speaker B:So any can be subject to this, to this situation.
Speaker A:So my question would be why are like hedge funds or big company like companies with deep pockets like buying these up?
Speaker A:I wouldn't, I don't understand why they wouldn't.
Speaker A:It sounds like you get them a good deals.
Speaker B:Yeah, I would.
Speaker B:I mean at the end of the day there's always going to be somebody that has more money than you don't even have to be a hedge fund.
Speaker B:Right.
Speaker B:You know, Right.
Speaker B:At any other time there's going to be somebody that is willing to, you know, spend more than you, invest more than you.
Speaker B:All of that cool stuff, I get it.
Speaker B:Right.
Speaker B:But that's not the perspective that you should be looking at this opportunity from.
Speaker B:Like I said, there's 3,141 counties and county equivalents and these auctions are happening like every day throughout the year.
Speaker B:Right.
Speaker B:So some auctions are going to be annually, others are monthly, others are weekly, every two weeks and so on like that.
Speaker B:So the frequency is there.
Speaker B:Plus there's also a post auction meaning like after the auction.
Speaker B:So there's properties that are remaining after that do not get purchased.
Speaker B:So that's another opportunity right there as well.
Speaker B:So there's many different methods to take advantage of and everyone, whether you're a hedge fund or institutional investor or mom and pop investor, you can't be everywhere all the time.
Speaker B:There's still a lot of opportunity out there that's literally left.
Speaker B:As a matter of fact, I wanted to share something.
Speaker B:Too many of these properties, Nathan ended up going back to the county and there's something, a process called escheat.
Speaker B:There's a legal term called escheat and as it sounds, it means to cheat, to cheat the property owner out of their property.
Speaker B:Right.
Speaker B:Property is not purchased and it is delinquent long enough.
Speaker B:Then the property eventually becomes excited, which means that it's taken over by the state and the state then retitles that property from the previous owner.
Speaker B:To themselves.
Speaker A:And what do they do with it?
Speaker B:They just keep it.
Speaker B:Sometimes it ends up like on the land.
Speaker B:A land bank, which is a different type of process.
Speaker A:They won't relist it.
Speaker B:No, they don't.
Speaker B:Realistic.
Speaker B:Because guess what?
Speaker B:Our government are not investors.
Speaker B:Hint, hint.
Speaker B:Right.
Speaker B:Just like banks are not, you know, property managers.
Speaker B:They're in the business of collecting interest.
Speaker B:Right.
Speaker B:Banks in the business of collecting interest.
Speaker B:Governments are in the business of enforcing policy and enforcing laws.
Speaker B:So, you know, they're in uncharted territory when it comes on to real estate.
Speaker B:That's why they have this process in place to invite the public.
Speaker B:And that's a really good word to use.
Speaker B:They're inviting the public to participate in tax liens and tax deeds auctions because at the end of the day, all they really want is the sum of the delinquent taxes to be paid so that they can take those funds and then reinvest it back into the community.
Speaker B:As far as the fiscal budget is concerned, they really don't have much desire to maintain property because it costs them that to do that.
Speaker B:Investors are so such a vital contribution to communities.
Speaker B:Regardless of what anybody says.
Speaker B:We do a really great job of supporting communities by buying properties, rehabbing them.
Speaker B:We create jobs, we create all of this value in the economy that most people don't realize what we do.
Speaker A:Wow.
Speaker A:So interesting.
Speaker A:You know, I think this is a great strategy.
Speaker A:So what can my viewers, or anyone that's listening to this, the.
Speaker A:The Painless Wholesaling podcast, what can they do to learn more?
Speaker B:Absolutely.
Speaker B:So again, I identify the states and then of course there's like multiple counties within your state.
Speaker B:Right.
Speaker B:So identify the state.
Speaker B:I would probably say pick about six to seven different counties within your state, because many states have 50, 60, 70, 100 counties.
Speaker B:Right.
Speaker B:You can't be everywhere all the time.
Speaker B:So pick the counties that are most important to you.
Speaker B:And it doesn't have to even be in your backyard either.
Speaker B:Right.
Speaker B:Most of my students, they invest virtually, so it's not even something that you have to do that's close to you because a lot of the auctions are online.
Speaker B:You just have to know where you're looking and what you're looking for and be able to do that successfully.
Speaker B:So once you identify the six to seven counties that you're interested, just like you, you have a buying criteria.
Speaker B:Right.
Speaker B:Because everything looks pretty when it's shiny.
Speaker B:So if you're only interested in single family homes, then okay, then stick to that plan.
Speaker B:If you're interested in commercial properties and stick to that, if you're interested in industrial properties or whatever, farmland, then have a specified buying criteria and a budget, right.
Speaker B:And then once a property that is, that meets your criteria comes up on the auction, then of course you're gonna, you're gonna register, you're gonna do your due diligence and then you're going to participate.
Speaker B:You're gonna actually bid, right.
Speaker B:Once you complete bidding and you are the successful bidder, right.
Speaker B:Because that's what it takes when you become the successful bidder.
Speaker B:The after auction property, once you win, then you're gonna have to clear the title for that property.
Speaker B:Right.
Speaker B:And there's all these misconceptions about clearing title and what that means and so on like that it is a process in place to do so, but it's not complicated.
Speaker B:All right?
Speaker B:So don't get overwhelmed about that.
Speaker B:There's only four different ways that you can clear a title.
Speaker B:So number one is going to be a quiet title action, which you need a real estate attorney to do contingent upon the state.
Speaker B: And it's anywhere from: Speaker B:To get that done.
Speaker B:The second option is title certification.
Speaker B:And a side of title certification can be done by a lot of different companies.
Speaker B:One of my favorites is Tax Title Services.
Speaker B:Tax Title Services.
Speaker B:So just a plug for them.
Speaker B:I'm not an affiliate with them or anything, but that's a company that I use personally to get a title certification.
Speaker B:And they'll marry your certification with like an investor friendly title company that's going to accept that title certification so that you can get clear and marketable title and get your title insurance for your property.
Speaker B:And then third way would be, which a lot of people, I don't see them like taking advantage of, a lot of times is to communicate with the property owner before the property goes to the auction.
Speaker B:How cool is that?
Speaker B:Go and talk to them, you know, as a for sale by owner, you know, make your offer that way.
Speaker B:Their property is already scheduled to go to auction.
Speaker B:So there is a sense of urgency because the time is ticking.
Speaker B:If they don't pay their real estate taxes, then they run the risk of losing their property and not getting anything at all.
Speaker B:Right.
Speaker B:So when you buy the property directly from the owner prior to the auction, you can always get a warranty deed and that also secures your ability to be able to get title insurance and it doesn't break the chain of title.
Speaker B:And the last one, which is the fourth different way, Nathan, is to do nothing.
Speaker B:So a lot of people like, well what do you Mean, Jack?
Speaker B:What do you mean do nothing?
Speaker B:Well, time heals all wounds as they say.
Speaker B:Right?
Speaker B:You know, Right.
Speaker B:Everything.
Speaker B:So when you own a tax tax deed property there is depending on the state, after a certain amount of years, if your deed is not contested and nobody's come and claimed any ownership rights to your deed or challenged the county and how they sold the property to you, then eventually you're going to be able to get clear and marketable title from a title company.
Speaker B:So for example, in the state of Florida, which is where I live, it's four years.
Speaker B:So if I own a tax deed property for four years, I didn't do a quiet title, I didn't do a title certification.
Speaker B:I got the D directly from the county, I didn't get it from the owner or anything prior to the sale.
Speaker B:If I just wait four years, eventually, you know, I could refinance, I could do whatever I got to do with my investor friendly title company and I'll be able to get title insurance.
Speaker A:Wow, you said a lot there.
Speaker A:That was a lot.
Speaker A:That was a lot.
Speaker B:Hey, I told you, I'll be reading, I'll be studying.
Speaker B:I've been doing this for a long time.
Speaker B:Nathan.
Speaker A:Hey, for everybody that just heard all that, you look, you just need to go and hit her up because I, I, I'm like, wow, that's a lot for me.
Speaker A:So hit her up.
Speaker A:Go to the Jackie Johnson dot com.
Speaker A:I'm sure you're just everything you just said, I'm sure you make it, you teach it, obviously.
Speaker B:I do.
Speaker B:I teach it and I teach it in a lot of detail and I make it really, really simple too.
Speaker B:So I did a condensed version.
Speaker B:So I said a lot in a really short period of time, but in a taxi, genius course, it breaks it down even simpler step by step and each lesson builds upon the previous lesson.
Speaker B:So you have a complete process right from.
Speaker A:Yeah, yeah.
Speaker A:You got a good foundation.
Speaker B:Yeah.
Speaker B:Where everything connects with each other.
Speaker A:Well, look, I think it's a great strategy.
Speaker A:I haven't had many people on here that do that.
Speaker A:So that's amazing.
Speaker A:So everybody that's listening that wants to get deals consistently and was looking for a great Strategy, go to TheJackyJackson.com and how else can they reach out to you if they want to hit you up on or should they just go to thejackyjackson.com?
Speaker B:Oh well, I mean you can, anyone can communicate with me on my website at info at B. Jackie Jackson.
Speaker B:We have our students support team, our customer service there and then you can always follow me on Instagram.
Speaker B:I'm on Facebook.
Speaker B:You can actually join our public Facebook group at the Jackie Jackson and Taxi.
Speaker B:Genius.
Speaker B:So all of my social media are the same.
Speaker B:It's Jackie Jackson.
Speaker B:Because I am the only one, right?
Speaker A:That's.
Speaker B:That announces themselves on the Internet before you even speak to me.
Speaker B:So I am the only one.
Speaker A:Well, I love everyone here.
Speaker A:You heard it here first.
Speaker A:And so come out.
Speaker A:Go check her out.
Speaker A:If you want to get into tax deeds, I recommend it.
Speaker A:And, Jackie, thank you so much for coming.
Speaker A:We'll.
Speaker A:We'll catch you on the next one.
Speaker B:All right, Outstanding.
Speaker B:Thanks, Nathan, for having me.
Speaker A:Of course, of course.
