By Arnie Abramson-Tax Deed Expert- 5/14/21- Bidding wars at the tax sale auctions -even in the smaller counties. When supply is low and demand is high, of course we are going to see real estate prices hitting record highs.
So, what should we do? Sit back and wait for prices to stabilize? Wait for the “inevitable” crash like we saw 10-12 years ago? Should we shift our strategies and speculate on raw land, mineral rights, acreage, etc? Maybe so. Maybe not.
Years ago, in another lifetime, a published author of stock market analysis once told me “I never try and buy in the first 20% of a price rise nor sell in the last 20% of the move. I will be satisfied with the middle 60% every time”.
The wisdom of that transfers to real estate and tax sales as well. Don’t try to outguess what is going to happen and buy before everyone else does and sell after they all do so as well.
Astute investors in tax deed sales in Texas generally buy for the long term. They buy for cash flow. After all it is pretty tough to flip properties without a title policy-sure there are those out there that will buy them that way, but is that what you want to build a career and wealth on?
Our main thrust has been for our investors to buy properties at the Texas tax sales for cash flow. When the big players discovered the tax sales here and drove prices up -particularly in the bigger counties-a few years ago, we adjusted our emphasis and expanded our focus to the smaller counties where there was less competition.
More recently, since the bigger counties were MIA during most of the last year due to the Covid-19 pandemic, the attendance grew considerably in the smaller counties as well. Now, even though the bigger counties are coming back (many of them online), there is a mass exodus to the smaller counties from the big cities for numerous reasons, such as:
More people working from home – need bigger housing
More home schooling – need bigger housing
Need to get out of crowded living- need to move to more rural area
Commuting making more sense that fighting daily traffic
Land costs are less outside of the big cities
Better and healthier lifestyle for families to grow outside of big cities
So, what should we do now? What is the outlook? Will we have a crash in real estate again? Will we have hyper-inflation again? Will real estate prices continue soar? Will crypto-currency replace our dollars? A whole bunch of unknowns!
Here is what we know or what we think we know:
Record material costs pushing building prices higher
Low mortgage rates encouraging more purchasing and borrowing
Foreclosures on the horizon with pent up rents and house payments owed
Money flowing out of Washington DC usually leading to inflation
Population in Texas soaring
20 days of inventory of houses in Dallas area and 45 days in whole state where 6 months is considered ideal
Residents selling their homes in the city, buying lots in more rural areas and building what they want with low interest rate loans
Californians coming here and buying bigger and better homes with more land than they had before for half of what they sold their homes for….
We could keep going on but what we really need to do is decide on what should we do and HOW BEST TO DO IT!
You know I am going to say we need to buy at the tax sales in Texas.
What you may not know is all the things we have been working on to make that possible, probable, easier and SENSIBLE.
STAY TUNED TO FIND OUT MORE. BETTER YET. EXPLORE OUR WEBSITE AND CONTACT US TO LEARN MORE.
