This module introduces us to two investors named Tom and Ray who have come across a GREAT way of buying TLCs that are more likely to be foreclosed on. They call it a “Secret Secondary Market”.
All right. Let’s get this started. Welcome to the new My Open Path course. Today, we are going to talk about buying tax liens on the secondary market, or also called a reassignment of tax lien certificates. This is a backdoor strategy to huge profits without competition, where you effectively go and buy existing tax liens that have already sold at the auction, and you buy them from people that already bought them on the secondary market from long-time tax lien investors that don’t want to own the property, who just want to get the interest rate, but have been holding onto those tax liens for quite a while. You buy it from them directly.
In many cases, what you can do next is go straight to the courthouse, straight to the county treasurer’s office, and start the foreclosure on these properties. So I’m excited to share that with you. My name is Jack Bosch. I’m the co-founder and a contributor also to Myopenpath.com. Today’s guests are . . . Our guest experts are Tom Brain and Ray Marcus. All right. So here we are. You see me on the left side. Tom and Ray, you’re on the right side. How are you guys doing?
Tom: Oh, doing great. Thanks, Jack.
Jack: Wonderful. Wonderful. Glad to have you here on this program. You guys are doing something really, really cool. You’re not just . . . You’re house-flippers. You’re real estate investors, and you actually came out of our, basically, from our training. You learned, through My Open Path and from us, about tax lien-controlled real estate, about tax liens, tax deeds, how to buy and sell tax-delinquent properties. But now, you’ve taken it to a different twist, and that’s why I want to interview you today for this course for the My Open Path membership site, on that particular twist that not many people even know exists.
So let’s get started. I’m obviously the sideshow today. You are the main show. So let’s get started with, perhaps, you guys introducing yourself with just a few words and telling us a little bit about your history, and then we jump right into it.
Tom: Okay. Thanks, Jack. Again, my name is Tom Brain, and we’re both managing a company called Peak Realty Solutions. We started a company about four years ago and got ourselves very heavily into the tax-delinquent market to find distressed sellers. We also found deals through probate, vacant land, and through a program called “Bandit Signs on Wheels” – we have cars that are out there marketing for us, our business. So that’s what we’re going for with our business, is to try to find distressed sellers, put offers to them, and put cash back in their pocket and own a property and having various exit strategies. We do wholesaling and also our financing for a lot of our deals. We’ll have Ray introduce himself too.
Ray: Hello. I’m Ray Marquez [SP]. A lot of what I bring to the table is . . . I start off as sort of the contractor for other investors, flipping houses for them. So throughout these few years, I’ve done well over 120 flips now. So a lot of my experience comes on being able to rehab the properties, properly assess what the estimates are gonna be. With my wife bringing in a lot of her design ideas, it’s really just a complete package of being able to get the properties and then fix them, flip them, put them on the market, and get it sold in a really timely manner.
Jack: Wonderful. So just like many professional real estate investors, you don’t just use one technique. So basically you’re finding property leads. You’re finding tax-delinquent leads. You’re finding . . . You have people having stickers on their car, “We buy houses,” or something along the line. You have a really neat compensation model for that, which we might cover in a different interview. You wholesale. You rehab, and you seem like a really good combination of the two of you coming together, in that you find the deals, you rehab the deals, and your wife has very good taste. So she helps with the design. That’s very typical in the real estate world, that really you pull from all angles that you can and make . . . and, therefore, get deals in from multiple angles.
So now, what we want to talk about today, and let’s jump right into it, is, as I already eluded to before, there’s a little extra tweak that you have done, that is really, really exciting because it allows you to go get properties that you otherwise couldn’t get a hold of, but that you know that the sellers have pretty much abandoned the properties, pretty much gotten a, “Don’t want those anymore,” but now you have an in to those properties by, actually . . . It has to do with the tax lien process. That’s the subject of the call, as I said, buying these tax liens on the secondary market, and then going right away, buying them from the existing tax lien holder, and then going and foreclosing on them.
