Ted Thomas is in the tax lien business, which is a fascinating business. Most people fit into one of two categories — extremely conservative types who are worried about investments, or entrepreneur types who want to buy properties. As someone who has been in the business for over 20 years, Ted has a wealth of information to share about tax liens and how they can be turned into a profitable business, regardless of whether you’re more conservative, or an entrepreneur. Tune in to this episode to find out more about what tax liens are, some of the risks associated with being in this business, and how you can turn a profit by educating yourself about tax liens.

 

Key Takeaways:

[20] John introduces his guest for this episode — Ted Thomas.

[1:10] Ted gives his elevator pitch, and explains a little about what he does.

[1:56] What is a tax certificate, and what can you do with it?

[3:15] In states that don’t sell tax certificates, if the property owner owes taxes, the property gets seized and sold at an auction.

[5:13] The business is not new, but it hasn’t reached the public because auctions are only announced in the county that they’re happening in. Ted’s business is teaching people about this business.

[7:49] John summarizes the concepts that Ted has shared.

[9:48] It’s all about the education, and understanding exactly what happens during the process. Ted illustrates with an example.

[12:59] What are some of the risks involved in the business of tax liens?

[15:30] Ted gives us some numbers to help break it down, and shares more examples of regulations in specific counties that make this a profitable business.

[20:10] What are some things that can be a downside in this business, and how can that risk be negated?

[25:25] The tax lien business is not a difficult business to be in, but you do need to know the rules and regulations of each county that you buy in, because each county is different, and it is a business.

[30:25] The lesson is there’s no easy business, and it takes work. The nuances of the business will come later, with experience.

[32:27] How are tax liens taxed?

[33:47] It’s important to do the math of owning real estate, rather than getting sucked into the emotional aspect of it.

[39:10] On the flipside, Ted’s business is much simpler and much more profitable. The math works out!

[41:25] Ted is a current practitioner of the business too, so he has real, up-to-date information on the industry and regulations in each county.

[44:36] Check out Ted’s website for some free videos to learn more about this business!

[46:09] What apps or technology does Ted use on a daily basis?

 

Mentioned in This Episode:

Ted Thomas

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