How To Do Tax Liens In Real Estate Investing

How To Do Tax Liens In Real Estate Investing

Welcome back. Kris Krohn here. And today,
we’re talking about how to make lots and lots of money in the game of real estate
investing with properties that have problems with liens. Could be a tax lien
and involuntary lien. A mechanic’s lien or something different. If you’re interested in making the most
amount of money and saving the most amount of time, there’s a software that
you need to know about. We live in a high-tech world. Real estate is a
low-tech game. And in house, I’ve got my friend Burton. He’s in from PropStream.
He’s joining me from California. He’s out there rocking and real estate out there
but his company that he works with has created a national data source. All
across the United States of the very best deals. And their software, I’ve
negotiated a deal where they’re making it free to you. What we’re going to do today
is actually show you how to do a search in your area to find someone that has a
lien, make it forced into foreclosure if they don’t get taken care of. Has equity
in the home and needs someone to come in and buy that property. We’re going to show
you how to actually work that deal. So, let’s make it happen Burton. -Alright. So
let’s take a look at Salt Lake City here. And when we search Salt Lake City in
general, we have over 2400 involuntary liens recorded. But we’re going to siphon
through them. -Yeah, because I don’t… I don’t know about you but in your area,
when you actually log in and you use your free account that you can get right
after this video, it’s in the link below. You’re going to actually follow this exact
same search. It’s going to automatically pull up your area. And if we got 2400
liens, it’s helpful to actually know that. But I want to call 2400 people. So how do
we take 2400 and turn it to like the best 20 people or the best 5 people that
we could call. -Absolutely. And I’m going to give you some pointers. So, we might want
to write this down. So the first thing we’re going to do is we’re going to start off
by determining whether we want a property that’s owned or occupied or not.
For me, I like owner-occupied. It prevents me from having to chase where the owner
may potentially be. List type. So we’re going to filter through all of our liens
and then for property type, we’re going to do single-family. Anything between 3 to 5
bedrooms. -That’s kind of my normal search. As I like to be in that 3 bedroom to 5
bedroom range. And then maybe like 1 bath to 2 bathroom range. -And we’re
going to do that. One to two bathroom range. Now, the next step is MLS status. Now, this
is important for me. What I like to do is I like to look for liens and voluntary
liens that are not yet on the market. So I’m going to specify that I want results
that are not on market. Reason for that is I want to make sure that the property
owner hasn’t reached out to a broker yet. So guys, we know that someone… This is
what Burton’s saying. We got someone that has a problem. They’ve got a property.
We’re going to find out that they have equity and they need to solve that in a
very short period of time and we know that because it’s not listed on the
market yet that they don’t have a solution. Which means, they’re waiting for
someone to come into their life and say, “Okay, I get it. You owe this money. I can
help you fix that, here’s how we’re going to do it.” -Absolutely. So once we specify
that it’s off market. The next thing I like to do is specify ownership info. I
usually like to hunt down individuals, right? And again, a lot of them don’t know
the solutions or don’t know their options. So, I look for individuals. The
next step I can do is I can specify the lien amount. So, I can specify the type of
lien I’m looking for or the minimum lien amount reported against the property. So,
I like to start off at a minimum of 5,000. -Because that’ll crypt. I’ll get
someone motivated. -Correct and then I can search for either tax liens, H-O-A
mechanicals and utilities. So for me, I like to do the tax liens. -Tax liens have
to be solved depending on where you live in a certain time frame in a lot of
areas. If you have a tax lien and you don’t clean it up in ninety days for
example. Then it starts to… A pre foreclosure process on the property
which means this person that lives there is going to lose their home if they
don’t find a solution. -Absolutely. Next step is we can do an
estimated value of the property. So in this situation, I’m looking for
properties that are up to a quarter million dollars and the most important
but last step, I like to look forward is equity percentage. And so Kris, what
percentage you think you start with today? You know, um, you know I always look
for a minimum of 20% to make a deal work but you know for fun, let’s have some
geeks and kegels… Kicks and Giggles. Giggles and Kicks. We’re going to go for
some giggles and kicks and let’s go for 30%. -Alright. So, now we’re going to
apply. And what we’ve done ladies and gentlemen is we’ve now isolated 7
properties of the 2,400 in volunteers. That are single-family, not on the market.
They had 30% in equity and they owe at least a minimum of six… By six thousand
or more… So check it out. I want you to understand
what’s happening right now. It literally in a matter of a couple minutes with the
free software that you can have. This is so incredible. Burton has just taken this
down from 2,496 people with liens. And he said,
I’m looking for homes with equity, I’m looking for homes with at least a 30
percent equity position. They have a lien, they got to get that satisfied. It’s not
on the market yet, they haven’t actually listed it with a realtor, with a broker.
And they know… We know that they need a solution. So let’s actually take a look
because we’ve narrowed it down to 7 which is actually freaking amazing. And
let’s say… Let’s see what we find here with these 7. -Alright. -And this one
is actually a really good one. It has a photo on there. So let’s take a look at
8:22 bus wash. So, what we know here, it’s a three bedroom one and a half bath. We
know Brice owns the property. We seized property characteristics. Each way
information, site informing, last sale information. Including his mortgage information.
-You know everything. Everything that you can possibly pull. And what is he… Oh! -So
right now, based on the mortgage information we have, we’ve been able to
reverse calculate his minimum payments. So he’s sitting on a balance of $132,000. with a $13,000 lien. So, if we were to add
that together, he owes roughly about a $150,000.
However, here’s the good thing. The average comps right now… We have 10 comps
within a half-mile radius that our system has identified. And they’re saying
that the average comp price is 237. There’s a lot of margin. -So
basically, that’s this top right number that $87,000. It’s basically saying, if
you were to buy this house for what he owes and what his lien is, there would
still be about $87,000 dollars of equity on this property. You
could go to him and say, “Hey, I see you got that going on. Do you have a solution?”
“No, I went to the bank and I couldn’t this and I couldn’t that. You know, I
think I might have to sell my property.” Hey, what if I came in and actually
purchased that property? I could actually buy your property for you know, $200,000. And he’s going to save… He might… He might think his
property is worth 180, he might think it’s worth 240 but you’re
basically coming in saying, “You don’t have to pay realtor fees, you don’t have
to pay those normal selling fees.” You’re buying this home guys. $37,000 potentially below market. You’re getting a great deal on it.
You’re solving a problem for him. He’s walking away with the pile of equity. His
problem solved. And there’s so many other ways
that you could actually solve problems on this property. This is just one of
them. In fact, this system is so versatile. It has ways of finding deals in so many
different ways. This is just one of them right now. And it’s hot. And it’s pretty
amazing. So um… We basically narrowed it down. I can take the next hour. I can call
these seven people. and I’m probably dealing collectively with over a half a
million dollars of potential profit. So guys, that’s that’s doing real estate in
a super profitable way. I’ve actually worked to deal with that with prop
stream. I said hey, I want to get this to my clients for less than anyone else on
the market can get it for. And I want a free trial. I want them to go ahead and
test drive this. I know that I’m going to be using my PropStream account for life on
all of my deals. Because hey, the moment you sign up with the realtor, you’ve
signed up. And that doesn’t mean that Realtors are bad or shouldn’t work with
them, I’m just letting you know that you’ve signed up for something. It’s an
expensive tax that unknowledgeable people have to pay. You don’t have to pay
that tax when you have access to this information because that’s what you’re
really utilizing an agent for. Now, you can get access to the very best deals at
the click of a finger. There’s just one more thing I want to show today. Yes, you
can go to the link, yes you can actually go and start your free trial version of
it right now. But I want to ask if I like my search and I want to know is there a
way that without doing more work, I can now just get an email notification every
time a new deal like this comes on the market? -Kris, you’ve read my mind and
absolutely. In our system, once you applied a filter, we have a saved search
button located at the top right and what this will allow you to do is name it. So
we can call this the “Kris Tax Nameless.” Alright and we can right below that
add our details to remind us what we were looking for. So off market. You know,
minimum 6,000 against the property. We even have the ability to
replace any of these boxes. So, if you don’t use the MLS box for example, you
can now replace it with your own criteria.
-Oh, that’s awesome. That’s sweet. -But most importantly the last step here is the
notification process. So our system can email you immediately at the end of the
day or at the end of the week if your results change. So today, after I
saved my search, we had seven results. If tomorrow
next two days, three more results populate. I don’t even have to be on the
system to get an email notification. -Guys this is what this means. You can utilize the system to
basically find motivated buyers. You don’t have to go down the taxes and
approach. It could be new properties that hit the market, could be pre market, it
could be foreclosures, it could be auctions. You basically just set a search
and then that active search will give you leads that you can do to make a pile
of money with. But you also have the ability to save it and be done and just
say, “Hey, you know what? Set it and forget it. Just send me my emails from my 3
different property search types.” And when you find a property with 50% equity and
they’re going to list it for a way under market or this is going to happen. You know,
notify me and then guess what? You have now this machine going to work for you.
And all you have to do is just wait for the lead to come in and freaking rock it.
Once it does. Friends, it doesn’t get better, doesn’t get easier than this.
Listen, you got to go back to the owners and just let them know again how much I
love them. I love this system. This is the coolest solution in the whole real
estate arena. And we’ve negotiated something free for you guys. Take
advantage of it. If you’re serious about the game of real estate and winning in
life, this is the way to do it.

18 thoughts on “How To Do Tax Liens In Real Estate Investing

  1. first

  2. Oh wow, this is a helpful tool to wholesale.

  3. Awesomeness! Is there a mobile app version? Would you suggest this tool for a beginner?

  4. Noice!! Don’t forget to build credit at a young age guys!!

  5. These videos 🌠

  6. does what day the lien was listed

  7. Kris are you going to make any videos from gym when you workout

  8. So what’s the price after the trial?

  9. And I read the reviews that it’s not that accurate. Most of the homes are sold so you spend a lot of time calling and home was sold a year ago. 🙁

  10. Is there a propstream system I can use for Australia

  11. Hey Kris, I am 15, I have some years till i can put into practice all this knowledge. If you see this, and could message me back (probably won't happen) and just give me some tips so I can go straight on this path the day I turn 18 would be amazing. Again, I know the probability of this is slim, but possible.

    Thanks for the consideration,
    Tate Wilson

  12. What is lien?

  13. As i am 16 years old i'm still looking at job options and i think i might be a little ahead of the game since i'm already looking into this stuff. I was wondering if you would still be mentoring in 2 or 3 years?

  14. Thanks very much for the advice bro 👍

  15. Very informative stuff Kris.

    Also how do you go about approaching these people by phone?

  16. This program looks a lot like repropfinder. What's the difference?

  17. Hey, is there an Australian version or something similar of propstream?

  18. great im being sold something..came for information :/

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