When I first started my research on the purchase of tax documents and tax liens; I found many resources that could teach me different ways of making money in this area. Some were very valuable, while others were not. After reading all that I could take into my own hands, I felt that I had sufficient knowledge in the area, and I was going to collect data at the upcoming auction.
My background; I am a technical technician and I have developed systems for the mortgage industry that help streamline the process. A few years ago, I built a system that would extract the current status of property taxes and provide paid and / or overdue status to lenders throughout the country. While I was doing this, I was amazed at the number of pledges and the deeds that were collected at the auction. Every year on the table are billions of dollars. This is what led me to start researching in search of a better way to acquire collateral and business throughout the country.
First I needed to find an auction in my area. If I was going to explore the property and bid personally, I would not want to travel too far. I found that in some areas auctions were held annually, and in my specific area the next auction was not held for several months. This extra time has allowed me to further study this process and begin developing a system that will save me time and, in turn, money.
I started with a simple database and through my other systems that I had previously developed, I was able to find an auction, collect information (usually only the parcel number and minimum bid), and then add the data provided by the district.
Here I see great benefits. Here are the steps in the process for a typical person who wants to buy a tax law or tax act.
1. Find a county and determine the date of the next auction.
2. On the county website, find the list of properties to be included in the upcoming auction. They are represented by a parcel number, sometimes called an APN.
3. Extract this data and move it to an Excel spreadsheet.
4. Return to the county certification office and use the parcel number, extract the cost and any other information that may help in determining what type of property it has. I hope you can determine if this is a plot of land, a condominium, one family house, etc. But, as I learned very quickly, this is not always the case.
5. This process, even after I do it someday, will take 5 to 10 minutes for each package.
Here I think that most potential investors cease to exist. If it takes 5 minutes to get the necessary data to start researching a certain property, and you have to do it on the entire package in any auction, the investor simply does not have enough time and patience.
For example:
1. If each package takes 5 minutes to copy and paste data into excel (this may take longer than 5 minutes).
2. A typical auction may contain 400 properties in one auction only.
3. 5 minutes x 400 = 2000 minutes
4. 2000 minutes divided by 60 (number of minutes per hour) = 33 hours
5. It’s only 33 hours that you’d spend just getting the data into an Excel spreadsheet.
6. Let me say that you can devote 4 hours a day to this process (late at night) because they do not like the fact that most of us have work too.
7. This is a total of 33 hours divided by 4 hours a day = 8 days just to retrieve data.
8. Now add to another district that holds an auction at about the same time, double the work or lose the opportunity
It just didn't work for me. Therefore, as part of my group, I developed a process for providing these data presented at the taxation auction in a format that allows the investor not only to view the data in minutes, but also to sort, track, add photos, comments, etc. I wanted process.
Over the course of several years, a system and process has been developed for the purchase of tax liens and tax documents, they are patented and unique.
Now the system is ready and ready for a tax specialist or a new investor. Again, you still need to know what you are doing, but this system allows you to view more auctions and save countless hours in the process.
Please check it out at https://formalytx.com/
