Issue #55 - Brandon Cobb, The House Buyin Guys | Page 60

Property tax debt is one of the best ways to acquire property at deep discounts at any time , regardless of the market cycle . As long as you carefully evaluate the properties in question before you bid and understand the auction system in your market , you will be able to identify and acquire properties that you can hold for the long­term that permit that “ wiggle room ” and be attractive in the event that the local population has to downsize . And that thought leads us to the second factor …
Will the property attract a resident or tenant in a down market ?
Contrary to what you might expect , Class A , high­end commercial buildings and top­tier , luxury residential real estate typically do not do well in a down market . While both of these types of properties can be acquired using tax lien and tax deed investing techniques , they are
not predominantly the properties that smart investors buy as insulation against a downturn .
Instead , look for properties that will attract tenants and residents when budgets get tight . Class A properties are the first to experience rising vacancies when things get rocky economically . That is when you want a large portfolio of solid , attractive , B­ and C­Class properties ready to welcome downsizing residents home .
Preparation vs . Panic
The important thing for real estate investors at present is to get prepared . This means you need to be planning your strategies , solidifying your access to capital , and evaluating multiple exit plans for investments that will not serve you during an economic downturn .
Now is not the time for panic . Now is the time for preparation . Your portfolio and your legacy will show the fruits of this for a lifetime .
Image by Andrew Lloyd Gordon from Pixabay
Charles Sells is the founder of The PIP Group , a highly successful turn­key service provider that focuses on investments in distressed real estate assets including tax liens , tax deeds , traditional foreclosures , fix / flips and long­term cash flow acquisitions . Through steady , calculated growth and conservative moves over the past 18 years , Charles has transformed The PIP Group from just $ 4,000 , one man and four potential investors into one of the largest agencies of its kind with nearly 1,000 institutional and individual investors worldwide . Charles emphasizes the importance of education and customer service for clients and believes that an informed and welleducated investor is a profitable investor . The PIP Group allows investors to retain 100 % control and ownership of their investments while PIP provides up­to­date reports on the status of their accounts . Charles has a passion for what he does and believes that by providing reliable , trustworthy information , The PIP Group has gained a steady growth of successful and satisfied clients .