We are live with the investor Thrive nation podcast with the Payneless Wholesaling Podcast and we have the Jackie Jackson, Miss Jackie, how are you?
I am fantastic, Nathan.
Glad to have you on here. So everybody, if you’re tuning in, you’ve never heard our podcast before. What I talk about is real estate investing, and I try to make it painless. My last name is David Payne. So I try to make the journey for you painless, so you can learn from other experts. That’s why I have awesome people like Jackie on here so she can teach you about her experience. So we’re gonna dive into tax deeds, she’s going to show you six different ways and what she’s been doing to be successful as a real estate investor. So let’s just dive right into it. So Jackie, tell me a little bit about your start and how you got everything going in real estate.
Absolutely. So I know everyone can see me in my uniform. So I’m in my alter ego right now. Let’s Captain Jackson. I’m a military professional. I am an officer in the United States Army Reserves, and I’m out of my army training, but they exceed your service. Thank you. The interesting thing about being a warrior, as they call it right here, is I actually joined the military because of real estate. And I’ll tell you how that happened. I know I know. I know. I know. So my first deal that I did in 2006 went horribly wrong, right? I didn’t know anything about anything. And I ended up with $120,000 loss. I call it my most expensive PhD on what not to do, right? Our first deal and my first deal was $120,000 in the deficit, it cost me a lot of a lot of money. But it also taught me a lot of things Nathan, right. So here I am single mom working, trying to figure things out. And now I got this big looming debt. So I already started off with debt. And now I have even more debt than when I started in the first place. And then one day, I see a commercial from the military saying do you can be in the army, right? And then we’re offering a a bonus. And with that bonus, I use that bonus to hire a mentor and a real estate coach. And that’s basically how it all started. So I joined the military only because I wanted to be able to afford my mentor. Learn some creative real estate investing techniques to help me get out of debt. So that’s the story.
Oh, my gosh, was the mentor worth it? Absolutely. I got out. Wow, that’s amazing. Who was it? If you don’t mind me asking.
Yeah, absolutely. So I joined my local real estate investors Association. And I’m a graduate alumni from the pact organization. So my shout out to Augie bilat. That was my first official investment in myself. It was one year of coaching. And I learned creative real estate investing. So I learned wholesaling, I learned short sales, I learned let’s see what else a subject to. I learned option agreements, performing notes, my performing notes, I learned a lot of things. And in that time, I literally tried them all I was I didn’t know anything about anything. So I was literally fearless. Right? So we’ll talk to someone I did it you said hey, goes have this conversation with this seller, I did it, you know, it really didn’t matter. So throughout that entire period of time, being fearless taught me a lot of things because I learned the ins and outs of a lot of different creative strategies and how to structure deals. And in one day, I came across tax liens and tax deeds. And I was like, wait a minute, there’s this is something that I didn’t know about. What do you mean, I can buy properties for their delinquent real estate taxes? You lie in? The streets, right?
So I investigated a little bit more and just for funsies. I said, Okay, let me learn a lot more, you know, just learn more in depth on how this process works. And I studied a little study a lot actually. I like to read so reading kids, make sure you read right reading is so important. It’s so important. So I purchased my first tax deed property Oh, pharmacy was maybe about 2014 or 15 ish, because I was already investing in flipping and all of that stuff to get myself out of debt. And I was really successful at it. So I started you know, in a new strategy and I was hooked. Okay, the first time you can go to an auction and buy a whole single family home, not for the appraised value, not for the assessed value, not for the market value, not for any of those values, but just for the delinquent taxes, trust me, you will never go back. Okay. And I’ve made it my primary goal to strategy and I teach others how to do so in my educational business at the Jackie jackson.com which is where I created a tax deed genius, which is an educational program to teach individuals how to find how to analyze how to do the research, how to buy, and also how to sell right how to dispose of the property in the event that you want to sell it. Or maybe you want to keep it in cash flow, it’s up to you. But that’s where all that education is.
Wow. So let’s, let’s take some of what you do. Can you for people that come in Listen, this, I’d like them to be able to implement what they hear, right? So tell it for someone who’s just listening, that’s probably not ready to join a program at the moment. What can information can you give them so they can take action?
Absolutely. So every single real estate property regardless of the property type, regardless of the usage type, every single property, the tax collector, or the tax assessor, or revenue collector, whatever, you name it in all 50 States, the United States, this is applicable, there’s 3141 counties and county equivalents across the United States. And they all collect real estate taxes, and why do they all collect real estate taxes, because real estate taxes is what is used to support our communities. That’s our libraries. That’s our schools. That’s our roads. That’s our EMS. That’s our police. That’s all of our emergency services. So we all benefit from real estate taxes. So when a property owner is delinquent on their real estate taxes, it’s a really, really big deal. That’s why all 50 states has a collection procedure written in their laws, right. So if you are a new individual, the first thing you have to do is identify what states you want to invest in, right. So identify the state that you want to invest in, and then determine if that state offers either tax liens opportunities, or if they offer tax deeds, opportunities, and I’ll tell you the distinction between the two, if they offer tax lien opportunities, what that means to you is that written in their law, if you Mr. or Miss investor chooses to help property owner paying their real estate taxes for them, there is a statutory interest rate fixed interest rate that is going to be assessed to that amount of dollars, that you pay that one individual’s real estate taxes form, and that lien now becomes a primary lien against that person’s property, that lien is a primary above their mortgages. And primary is like a priority lien, right.
So there’s nothing that that property owner can do. Like even if they try to refinance or they try to sell that property, they must pay you back. And in the event that they don’t pay you back. Now you have an opportunity to enforce a collection action all the way up to and forcing a sale or foreclosure tax foreclosure sale on that property in the event that the State offers tax deeds, then what that means to use that when you are communicating with your local tax collector, real estate tax collector, what they’re saying is if a property owner is delinquent for specific amount of time, if they do not pay their real estate taxes in this specific amount of time, you literally can buy their property for the delinquent taxes, which is different between a tax lien and deed because a tax lien, you’re getting a rate of return and interest. And that’s cool, because it’s digits, right double digit returns, it’s very high returns compared to like what you would have in your traditional savings now, money markets, IRAs and things like that. As a matter of fact, there’s so many people that love to invest in tax liens in their like self directed IRA or in any other retirement accounts, because there’s double digit returns on those. And for those of us that are interested in buying properties, then I would recommend that you look for the states that offer tax deeds. And the states that offer tax deed opportunities is like 31 states out of the 50 will sell properties for their delinquent taxes. And then about 24 Out of the 50 states will offer tax lien opportunities.
Do you have people that are living in these homes that have tax liens?
Sometimes they do, but more oftentimes, they actually vacant? So people will say, Well, how in the world does a property become delinquent all the way to the fact that now the county is going to sell the property to collect the delinquent taxes? Well, what really happens and I know you know, Nathan, as an expert, like you are, sometimes you find that homeowners pass away, you know, their heirs don’t take care of the property or you know, sometimes people fall into hardships, financial hardships, things like that. And then they’re not paying their real estate taxes, and it just kind of like snowballs and, you know, builds up to a point where they don’t have the total sum. Well, all of those monies are not deferrable It still has to be paid. As a matter of fact, we’re coming out of the pandemic, right for the last three years, we’re in the pandemic. And then property owners had the opportunity to take advantage of enrolling into like a mortgage forbearance program, right, where basically they’re like pushing their payments down down the road and they get to pay them at a later date. Well, most people have their mortgage, their insurance and like their taxes, you know, So the principal interest, taxes and insurance all wrapped up into that single payment. So if you’re not paying that payment, if a property owner is not paying that payment, that means they’re more than likely they weren’t paying their taxes either for their properties, right? So although they were eligible for the forbearance, their real estate taxes, insurance still had to be paid. And a lot of property owners are facing that right now. So this is not like ugly properties or torn down properties. This is literally like pretty properties, right? So any property can be subject to this to this situation.
So my question would be, why are like hedge funds or big company like companies with deep pockets? Like buying these up? I wouldn’t, I don’t understand why they wouldn’t. It sounds like you’re gonna make good deals.
Yeah, I would, I mean, at the end of the day, yours always gonna be somebody that has more money. You don’t even have to be a hedge fund, right? You don’t. Any other time, there’s gonna be somebody that is willing to, you know, spend more than you invest more than you all of that cool stuff. I get it, right. But that’s not the perspective that you should be looking at this opportunity from, like I said, there’s 3141 counties and county equivalents. And these auctions are happening, like every day, throughout the year, right. So some auctions are going to be annually, others are monthly, others are weekly, every two weeks, and so on like that. So the frequency is there. Plus, there’s also a post auction, meaning like after the auction, so there’s properties that are remaining after that do not get purchased. So that’s another opportunity right there as well. So there’s many different methods to take advantage of, and everyone whether you’re a hedge fund or institutional investor, or Mom and Pop investor, you can be everywhere all the time. There’s still a lot of opportunity out there that’s literally left. As a matter of fact, I wanted to share something to his properties, Nathan ended up going back to the county, and there’s something a process called as cheat there’s a legal term called as cheat and as it sounds, it means to cheat, to cheat property owner out of their property, right, equity is not purchased, and it is delinquent long enough, then the property eventually becomes as cheated, which means that it’s taken over by the state and the state then retitled that property from the previous owner to themselves.
And what do they do with it? They just keep it sometimes it ends up like on the land. A land bank, which is a different type of process will relist it, no, they don’t realistic, because guess what our government are not investors intent. Right now, just like banks are not you know, property managers, they’re in the business of collecting interest, right banks in the business of collecting interest. Governments are in the business of enforcing policy and enforcing laws. So you know, they’re in uncharted territory when it comes on to real estate. That’s why they have this process in place to invite the public. And that’s a really good word to use. They’re inviting the public to participate in tax liens and tax deeds, auctions, because at the end of the day, all they really want is the some of the delinquent taxes to be paid so that they can take those funds, and then reinvest it back into the community. As far as the fiscal budget is concerned, they really don’t have much desire to maintain property because it costs them that to do that SIRs are such a vital contribution to communities, regardless of what anybody says we do a really great job of supporting communities by buying properties or rehabbing them, we create jobs, we create all of this value in the economy that most people don’t realize what we do.
Wow. So interesting. You know, I think this is a great strategy. So what can my viewers or anyone that’s listening to this the Payneless Wholesaling Podcast, what can they do to learn more?
Absolutely. So again, identify the states. And then of course, there’s like multiple counties within your state, right. So identify the state, I would probably say pick about six to seven different counties within your state because many states have 5067 yawns or counties or you can’t be everywhere all the time. So pick the counties that are most important to you. And it doesn’t have to even be in your backyard either. Right? Most of my students they invest virtually so it’s not even something that you have to do that’s close to you, because a lot of the auctions are online, you just have to know where you’re looking and what you’re looking for and be able to do that successfully. So once you identify the six to seven counties that you’re interested in, just like you you have a buying criteria, right, because everything looks pretty when it’s shiny. So if you’re only interested in single family homes, then okay then stick to that plan. If you’re interested in commercial properties and stick to that it’d be interested in industrial properties or whatever farmland then have a specified buying criteria and a budget right.
And then once a property that Is that meets your criteria comes up on the auction, then of course, you’re going to, you’re going to register, you’re going to do your due diligence. And then you’re going to participate, you’re going to actually bid, right once you click bidding, and you are the successful bidder, right, because that’s what it takes. When you become the successful bidder, the after auction property, once you win, then you’re going to have to clear the title for that property, right. And there’s all these misconceptions about clearing title and what that means and so on like that. It is a process in place to do so. But it’s not complicated. All right. So don’t get overwhelmed about that. There’s only four different ways that you can clear a title. So number one is going to be a quiet title action, which you need a real estate attorney to do contingent upon the state and it’s anywhere from 1500 bucks to $2,000. Right to get that done.
The second option is a title certification, and assign it to title certification can be done by a lot of different companies. One of my favorites is tax title services, tax title services, so just a plug for them. I’m not an affiliate with them or anything, but that’s the company that I use personally, to get a title certification, and they will marry your certification with like an investor friendly title company that’s going to accept that title certification so that you can get clear and marketable title and get your title insurance for your property. And then third way would be, which a lot of people I don’t see them, like taking advantage of a lot of times is to communicate with the property owner before the property goes to the auction. How cool is that? Well, go and talk to them, you know, as a for sale by owner, you know, make your offer that way their property is already scheduled to go to auction. So there is a sense of urgency because the time is ticking. If they don’t pay their real estate taxes, then they run the risk of losing their property and not getting anything out.
All right. So when you buy the property directly from the owner prior to the auction, you can always get a warranty deed, and that also secures your ability to be able to get a title insurance, and it doesn’t break the chain of title. And the last one which is afford a different way, Nathan is nothing. So a lot of people like oh, what do you mean, Jack? What do you mean do nothing? Well, time heals all wounds, as they say, right, you know, everything. So when you own tax deed property there is depending on state after a certain amount of years, if your deed is not contested, and nobody’s come and claim any ownership rights to your deed or challenge the county and how they sold the property to you, then eventually, you’re going to be able to get clear and marketable title from a title company. So for example, in the state of Florida, which is where I live, it’s four years. So I own a tax deed property. And for four years, I didn’t do a quiet title, I didn’t do a title certification, I got the deed directly from the county, I didn’t get it from the owner or anything prior to the sale. If I just wait four years, eventually, you know, I can refinance, I can do whatever I got to do with my investor friendly title company, and I’ll be able to get title insurance. Wow, you said a lot there. That was a lot, a lot. Read that. And I’ve been doing this for a long time.
For everybody, I just heard all that you love. You just need to go and hit her up because I’m like, wow, it’s a lot for me. So hit her up, go to the Jackie johnson.com. I’m sure you just use everything you just said. I’m sure you make it, you teach it. Obviously,
I do. I teach it. And I teach it in a lot of detail. And I make it really really simple too. So I did a condensed version. So I set a lot in a really short period of time. But in a tax deed genius course it breaks it down even simpler, step by step. And Each lesson builds upon the previous lessons. So you have a complete process right from Yeah, you gotta get foundation. Yeah, where everything connects with each other.
Well, look, I think it’s a great strategy. I haven’t had many people on here that do that. So that’s amazing. So everybody that’s listening that wants to get deals consistently and was looking for a great strategy. Go to the Jackie jackson.com. And how else can they reach out to you if they want to hit you up on it? Should they just go to Jackie jackson.com?
Oh, well, I mean, you can hit that anyone can communicate with me on my website at info at be Jackie Jackson, we have our student support team and our customer service there. And then you can always follow me on
Instagram. I’m on Facebook, you can actually join our public Facebook group at the Jackie Jackson and taxi genius. So all of my social media are the same. It’s Jackie Jackson because I am the only one that announces themselves on the internet before you even speak to me. So I am the only one.
Well, I love everyone here. You heard it here first. So come out. Go check her out. If you want to get into tax deeds, I recommend it. And Jackie, thank you so much for coming and we’ll catch you on the next one.
All right, outstanding. Thanks.
Thanks for having me, too. ours of course