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Dave Debeau sits with tax deed investing expert Matthew McCarthy in this exciting episode. McCarthy embarks on a journey, taking listeners through the intricacies of securing a tax deed deal. The conversation begins as McCarthy shares valuable insights on his first experience and what led him down the path of tax deed investing.
Matthew McCarthy begins by explaining the circumstances that attracted him to the world of tax deed investing. He expresses that the ability to secure properties at significantly lower prices initially caught his interest. Tax deed investing presented an opportunity that McCarthy found compelling and potential-filled, offering a varied and robust investment portfolio.
McCarthy admits that, like any first-time venture, there was a bit of trepidation and a steep learning curve to overcome. The lack of knowledge can be intimidating; however, McCarthy emphasizes that dedication and a willingness to learn are vital in maneuvering through the complexities of tax deed deals.
Here, McCarthy mentions how he found a mentor in the form of our host, Dave Debeau. With his extensive experience in real estate investing, Debeau played a crucial role in helping McCarthy understand the nuances and strategies within tax deed investing.
Matthew then delves deeper into his first tax deed deal. Brushing away the technical jargon, he explains how he obtained his first property through a tax deed auction, the excitement of that initial success, and how it further fueled his interest in exploring more tax deed investments.
But first, if you want financing for your next investment and want to know what type of collateral may be involved, click the link below for a free strategy call with our mortgage team at LendCity to discuss your specific situation.
Meet Matthew McCarthy, The Expert on Tax Deed Deals
Matthew McCarthy is not just an expert in tax deed deals but is also a proponent of sharing his insights and successes with others. His journey began with his first foray into real estate investment, where he quickly recognized the potential of tax deed investing. With years of experience, Matthew is now an established authority in this specific investment niche.
Matthew McCarthy’s Journey into Tax Deed Investing
McCarthy sought it calculatedly, unlike many others who stumbled into real estate as an alternative career path. He identified tax deed investing as a lucrative arena when it was still an under-tapped market. His keen sense of business and understanding of the property market have led him to succeed in this venture.
His journey, however, was not always smooth sailing. Like all successful entrepreneurs, Matthew had his fair share of challenges. But he was always prepared, knowing that any investment always has risks. Matthew’s story is about determination, grit, and an unwavering belief in his abilities. “There will be setbacks,” he says, but he adds, “The key is to keep moving forward.”
The Impact of Matthew McCarthy on Tax Deed Investing
Matthew McCarthy has significantly contributed to the field of tax deed investing. Not only has he championed the potential monetary gains from this type of real estate investing, but he has also worked diligently to demystify the process for newcomers. He firmly believes that everyone should have access to the knowledge needed to benefit from tax deed deals.
Matthew’s mission is clear: to help others successfully navigate the world of tax deed investing. He encourages people to remember this: “While it may not be easy, it’s worth it.”
The Basics of Tax Deed Investing
Dave Debeau initiated the discussion by asking Matthew McCarthy about the foundational concepts of tax deed investing. McCarthy explained that tax deed investing is acquiring real estate properties. When homeowners do not pay property taxes, the government puts a lien on the property. Over time, if the taxes remain unpaid, the lien might convert into a tax deed, allowing investors like McCarthy to purchase these deeds and gain control of the property.
Benefit of Tax Deed Investing: The Investor’s Perspective
Matthew McCarthy highlighted the attractive aspects of tax deed investing. McCarthy elucidated that one significant advantage of this investing strategy is the possibility of acquiring properties for much less than their market value since they are sold at tax sales that aim to recover unpaid taxes rather than the property’s total value.
Acquiring Tax Deeds: The Process
Matthew McCarthy outlined the process of acquiring tax deeds. He stated that this usually starts with researching and identifying potential properties with tax liens that might convert into tax deeds. After identifying a potential property, the next step is conducting due diligence to ensure the investment is a good deal. The final step is the auction, where the investor bids on the property. If the investor has the winning bid, they receive the tax deed and inevitably acquire the property.
Risks Involved in Tax Deed Investing
Not overlooking that every investment comes with risks, Matthew McCarthy underscored that tax deed investing is no exception. Investors could face challenges such as problems with property conditions, disputes over the title, or resistance from the previous owner. As such, McCarthy stresses the importance of thorough research and due diligence to mitigate these risks.
Matthew McCarthy’s Advice for Newbies
In response to Dave Debeau’s query about advice for beginners in tax deed investing, Matthew McCarthy suggested starting small. He advised beginners not to rush but to take their time learning the ropes, start with a modest investment, and gradually work their way up as they gain more experience and confidence in this investment niche.
Understanding Tax Deeds: What You Need to Know
Getting a good grasp on tax deeds is not as complicated as it may seem. It starts with understanding their basic definition – a tax deed refers to a legal document granting property ownership to the government when the property owner does not pay the taxes due. The government can then sell these tax deeds to investors like Matthew McCarthy.
Learning from professionals is essential, but it’s also crucial to familiarize oneself with related terminologies for a comprehensive understanding. Listed below are a few basic terms associated with tax deed investing:
- Delinquent Taxes: When a homeowner fails to pay their property taxes, these unpaid amounts are called delinquent taxes.
- Redemption Period: This is the period in which the original property owner can pay off the back taxes and reclaim their property, even after the tax deed sale.
- Auction: The public sale where tax deeds are sold to the highest bidder. The starting bid often covers the back taxes, interest, and related fees.
Matthew McCarthy’s Exclusive Tips on Understanding Tax Deeds
As Matthew McCarthy points out, understanding the processes involved with tax deeds is crucial to successful investment. Here are a few highlights from his vast experiences:
- Learning about the laws governing tax deeds in the local area is pivotal. As these can differ significantly, it thus bears significant importance on your investment strategy.
- Understanding the rights of the original property owner is also vital. This includes being aware of any redemption periods.
- Performing thorough due diligence on any property before bidding on it at auction is a sage practice. Investors need to consider various factors such as outstanding liens, the structural integrity of the property, and more.
As Matthew emphasizes, becoming a savvy tax deed investor, like him, is about more than just learning the ropes. It requires consistent application, dedication, and in-depth knowledge of the local laws and procedures.
Matthew McCarthy’s Top Tips for Conducting Due Diligence
Conducting diligent research before moving forward with a tax deed deal is critical, and no one understands this better than Matthew McCarthy. Matthew emphasizes the importance of due diligence in making sound investment decisions.
Scrutinizing Property Details
Matthew insists that understanding the intricacies of the property under consideration is critical. Gather as much information about the property as possible: the type, exact location, the surrounding neighbourhood, and overall condition. It is also essential to scrutinize any existing structures on the land.
Understand the Tax Laws of the Region
Matthew points out that tax laws may vary from one region to another. Thus, it is vital to familiarize yourself with the specific tax laws of the region where the property is located. Having a clear grasp of these laws can significantly influence the success of your investment.
Investigate Liens and Encumbrances
Matthew McCarthy also suggests digging deeper to find any liens or encumbrances that could affect your property’s title. These could impact your property’s value and lead to additional costs.
Estimate Repair Costs and Property Value
Matthew further advises that as part of your due diligence, you should estimate the costs of any necessary property repairs. This is essential in figuring out if the investment will be profitable. Making an educated guess at the property’s worth after repairs is also critical.
In conclusion, Matthew McCarthy recommends due diligence as the most crucial step in tax deed investing. This involves carefully reviewing all the relevant information and facts about a property before purchase. Following these steps can ensure that your tax deed investment will bring the desired return.
Overcoming Challenges: Matthew McCarthy’s Insights
In the podcast, host Dave Debeau conversed with guest Matthew McCarthy about the challenges those venturing into tax deed investing faced. An experienced investor and podcast guest, McCarthy provided deep insights into his strategies for overcoming these challenges.
Persistence: A Guiding Principle
From Matthew McCarthy’s perspective, one of the biggest hurdles in tax deed investing is the propensity to give up too soon. It’s easy to get disheartened when early attempts don’t yield immediate results or when faced with unexpected obstacles. McCarthy’s advice is to remain persistent. In his own words, “Persistence is key. It requires a mindset that doesn’t get discouraged, that’s ready to face failure and move forward.”
Keeping Up with Legal Changes
McCarthy emphasizes the importance of continuously updating one’s knowledge about the frequently changing tax laws and regulations. He says, “Being aware of existing laws and staying abreast of updates can make a difference.” He suggests subscribing to relevant publications and using online resources to stay informed about these changes.
Building and Nurturing a Network
Another hurdle identified by McCarthy is the struggle of building and maintaining a robust professional network. His advice for overcoming this obstacle is to actively participate in industry events and online platforms that congregate tax deed investors and other relevant professionals. As stated by McCarthy, “Your network can very often be your net worth in this business.”
When Dave Debeau asked about managing risks, McCarthy revealed that he utilizes extensive due diligence to identify potential risks before acquiring any tax deeds. He also allocates some investment funds to handle unexpected costs or losses. “Never invest money you can’t afford to lose,” he advised.
Understanding Market Trends
The last challenge McCarthy discussed was the difficulty of accurately understanding and predicting market trends. He believes that ongoing market research and analysis are crucial to stay ahead. He considers “Having a pulse on the market and staying adaptable is pivotal.”
Closing the Deal: Matthew McCarthy’s Step-by-Step Guide
In the podcast, Matthew McCarthy outlines a clear and practical step-by-step guide on how to close a tax deed deal. The host, Dave Debeau, emphasizes that this valuable information is actionable and has been proven to work in numerous instances.
Step One: Verifying Ownership
According to Matthew McCarthy, the first step is to verify the ownership of the property in question. This means examining the county courthouse records where the property is located to ensure the owner is legitimate. “Make sure the person selling you the property is the owner. No shortcuts,” are the words of Matthew.
Step Two: Understand Your Financial Commitment
Next, you must understand the financial commitment to purchase the tax deed. That implies not only the cost of the tax deed itself but also any additional expenses, such as the renovations or upkeep of the property once it’s in your hands. McCarthy emphasizes the importance of not overlooking this crucial step.
Step Three: Prepare Necessary Legal Documents
Once you understand the financial aspects, preparing the necessary legal documents is the next logical step. This includes contracts, deeds, and other relevant paperwork. “Keeping everything above board is non-negotiable in this business,” McCarthy advises listeners.
Step Four: Close the Deal
Finally, with all the paperwork in order, it’s time to close the deal. This usually involves signing the documents, exchanging money, and receiving the keys to your new property. Despite the simplicity of this step, McCarthy warns that attention to detail is crucial, as seemingly minor oversights could lead to more significant problems down the line.
By adhering to these steps outlined by Matthew McCarthy, prospective investors can have a smooth and successful journey in tax deed investing.
The Future of Tax Deed Investing: Insights and Predictions
In this podcast section, Dave Debeau brings the conversation forward in time, inviting Matthew McCarthy to share his insights and predictions of tax deed investing.
Adapting to Change
Matthew emphasizes the critical importance of investors in tax deeds being adaptable and staying informed. “Investors need to be willing to adapt as the field changes,” McCarthy advises, “and the best way to do that is through continued education and staying updated on market trends.”
Focusing on Location
Additionally, Matthew stresses the importance of location and expects certain areas to become hotspots for tax deed investments. “Key areas to watch are those with booming economies or those recovering from substantial economic downturns.”, McCarthy suggests.
The role of technology in tax deed investing is another area where Matthew sees significant changes on the horizon. He predicts that automation will simplify the future tax deed investment process. “Platforms are being developed to streamline the tax deed search and purchase process,” he informs.
Predictions and Expectations
In summary, Matthew McCarthy predicts that the future of tax deed investing will see an increased focus on adaptability, location-based investments, and technological innovations. His central advice to investors interested in this area is to stay informed and adaptable. “The world of tax deed investing is consistently evolving,” McCarthy states, “To stay ahead, you need to be prepared and willing to learn.”
Conclusion: Matthew McCarthy’s Final Words of Wisdom
As we draw close to the conclusion of this insightful episode, Matthew McCarthy took a moment to impart some final words of wisdom for those looking to dive into or continue their journey in tax deed investing. His advice, born of experience and insightful understanding of the domain, serves as a beacon for investors navigating the often complex waters of tax deed investing.
Never Underestimate Due Diligence
One of Matthew’s most pressing advisories is the importance of due diligence. He stressed that thorough research before making any investment decision is vital in tax deed investing. He drives the point home with the maxim, “Due diligence is the difference between success and failure in tax deed investing.”
Keep Learning and Adapting
Matthew also highlighted the importance of constantly learning and adapting. The landscape of tax deed investing changes frequently, with rules and regulations varying wildly between jurisdictions. This necessitates constant evolution and learning, underscored by Matthew’s assertion, “The more you learn, the more you earn.”
Stay Patient, Persistent, and Positive
Matthew’s final piece of wisdom was around the triad of patience, Persistence, and positivity. These are fundamental virtues in investing, and tax deed investing is no different. Matthew shared, “These are foundational for success. Kick discouragement to the curb, and remember that every stumbling block can be turned into a stepping-stone.”
In wrapping up, host Dave Debeau thanked Matthew for his insightful and informative contribution. He re-emphasized the value of Matthew’s experiences and wisdom to those in the world of tax deed investing. Matthew’s final words of wisdom serve as a perfect conclusion: “Keep pushing forward, embrace growth and learning, and the world of tax deed investing can indeed become a promising avenue for success.”
If you are ready to start investing today and want more information about how your mortgage may be secured – or are looking to apply for a mortgage today – click the link below for a free strategy call with our mortgage team at LendCity today.