Knocking It Out of the Park, with Drew and Recia

Episode 5: Knocking It Out of the Park

Guest Biography:

Drew and Recia Davis are Real Estate Investors, based in Phoenix, AZ. They have done many different types of Real estate transactions, and Tax Lien Certificates and Tax Defaulted Properties are one of their favorite Investments. They have mastered automating their real estate business to increase the time they have for their 3 young children. Their professional accomplishments include:

Education:

  • Rich Dad / Elite Advanced Training
  • Ted Thomas Advanced Education & Mastermind Members
  • REI Blackbook Fast Track Mastermind Members

Investing History:

  • 10+ Years Investing in Real Estate, Specializing in Wholesale, Rehabs, Rental Properties and Tax Liens & Deeds.
  • Masters of Creative Acquisition Strategies
  • Over 100 Real Estate Transactions

Awards, Titles, and Designations:

  • Inducted into 2018 REI Blackbook Hall of Fame

Introduction:

The business of investing in tax lien certificates and tax defaulted properties is typically one of slow, steady, consistent profits with no risk. However, under certain circumstances, you can see a massive payday…if the tax-defaulted owners neglect to pay up. Later in this episode, you’ll meet Drew and Recia, a husband-and-wife investor team who have twice purchased tax certificates that resulted in taking possession of the property. These two deals by themselves resulted in Drew and Recia profiting by almost $200,000. While these monster paydays are rare, they are incredible when they happen!

What You Will Learn:

In the first section of the episode, Ted discusses “redeemable tax deeds” available in Georgia, Texas, and a small list of other states. Ted explains how a redeemable deed allows a property owner to redeem their deed within one year of your purchase, at a steep 20% penalty plus 10% per year after the first paid to you in addition to your purchase price. Ted outlines the process of purchasing a redeemable deed. Ted describes the unusual situation of treasurers failing to auction properties, resulting in huge numbers of properties being sold at pennies on the dollar.

In part two of the episode, Ted introduces Krystal, one of the experienced coaches from his organization who operates multi-day “Buying Tours”. Krystal details how the Buying Tours help clients better learn the ins and outs of tax-defaulted properties. Krystal details how she came to become a coach after she lost her career in accounting. She shares how she encourages her students and keeps them learning. She shares the story of a client who already knew how to purchase tax liens and deeds but didn’t know how to sell, and she discusses how she tailors her curriculum to each client’s needs.

In the third segment of the episode, Ted brings on husband-and-wife team Drew and Recia. They have had remarkable success in tax lien certificates, including purchasing a tax certificate for $11,000 on a property worth $180,000, and taking possession of the property when the tax-defaulted owners did not redeem the certificate, meaning they invested just $11,000 and profited in equity by more than fifteen times their investment. In this portion of the episode, you will learn:

  • How Drew and Recia got started investing with no previous experience, and how they got their big win and took ownership of a luxury condominium for minimal money
  • What steps had to be taken to do their first investment, and how they have scaled their tax lien certificate business
  • Why tax liens were a great opportunity for Drew and Recia to get started in real estate with no prior experience
  • What steps Drew and Recia took, and how they recommend you do your research on properties before you invest
  • How you can often get inside information by understanding the codes your county uses to list your property
  • How your ongoing investments can grow by reinvesting your profits for more and bigger deals over time
  • Why it is important to understand the differences in counties and avoid places where you can potentially overbid and lose money on the deal
  • Recia shares details of a second property they obtained through an $11,000 investment, and she shares how they quickly sold the property for a $24,000 profit
  • Drew shares the early fears they experienced getting into investing, and he shares the importance of taking action

Resources from Ted Thomas:

Resources from Drew and Recia:

 

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