Tuesday, September 26, 2006

Five Things to Look for in a Tax Lien Investing Coach

No doubt you've heard the saying "buyer beware." You've probably heard me apply it in one of my teleseminars, articles, or e-books to buying tax liens or tax deeds. Well it also applies to buying information and coaching for tax lien investing. I just heard from one of my subscribers who was looking for information online on how to get started with tax lien and tax deed investing. She came across a company that was supposedly had a 12 week coaching program on how to buy tax deeds. They wouldn't give her any details about the program until she gave them a credit card number and paid the $4000.00 up front for the course.

Fortunately she didn't have her credit card with her and when she got off the phone with them she sent me an e-mail. After some e-mailing back and forth I asked for her phone number and gave her a call. On further investigation of this companies web site, it was evident to her that they really do not teach you how to buy properties at tax sales. Instead they coach you on how to approach owners of properties that are in the tax sale and try to get them to "sell" their property to you at a discount. In some states, this could be illegal! Though the tax sale list is published in the local paper and is public information, in many states it is published with a caveat that says that the list is not to be used for solicitation. Many states are trying to stop loan sharks from taking advantage of the delinquent tax payers.

I happened to get her e-mail right after doing a teleseminar/interview with Steve Waters, a well known tax lien investor and coach. He has a great coaching program for tax lien investing and tax deed investing. His program delivers results. I know because I am one of his former students. His program is also very affordable ($197.00). The value that his program delivers is worth more than 10 times the price!

Please don't pay thousands of dollars for information on how to invest in tax lien certificates and tax deeds unless the coach that your working with is actually going to take that money and invest it for you! This is money that you can use to invest. I've interviewed some of the best tax lien and tax deed coaches in the country. They have great home study programs that come with coaching and they're always available to help you and answer your questions. Here are five things that you should know before hiring a tax lien or tax deed investing coach.

5 Things You Should Know Before You Buy a Coaching Program
  • Identify who you will be working with and what their experience is

Every state is very different in the way that tax sales are held. some states sell tax liens and some sell deeds and some sell redeemable deeds. Each of these are completely different. Lien States have different bidding procedures. There are at least 5 different bidding procedures with variations on each. It is important that you have a coach or mentor that is familiar with the bidding procedures in your state. Deed states differ in how the deed is conveyed and in what liens survive a tax sale. This is important information that could be the difference between buying a profitable deed and loosing money on your investment. Make sure that your coach has experience in the state that you are investing in.

  • Know what you are paying for - Will you get ongoing support?

Just one coaching session is not likely to be enough to get you started purchasing tax lien and/or tax deeds. How many sessions will you get? Will you get any support materials such as access to a web site with resources that will help you with due diligence, or an e-book, or audios? You should. In my experience phone in teleseminars where anyone can call in and ask a question is not enough to give you the information that you need to get going and take some action. You either need some one-on-one consultation or some type of intruction (like a course or e-book) in addition to the opportunity to ask questions.

  • Will your coach or mentor be available to answer your questions?

Once you have enough information to get out there and start doing it, your going to come accross situations that bring up questions that you haven't thought of before. You want someone who will be available to answer your questions as they come up. Make sure that your coach or mentor will be available to you, either by phone or by e-mail, and that they will get back to you in a reasonable amount of time. I think that within 24 hours is reasonable.

  • Beware of guarantees that promise you will make a certain amount of money in a short time.

Nothing in life is guaranteed, especially high yeilding investments. There has to be some risk involved or the return wouldn't be as good. Completely safe investments do not deliver high returns, and they are not as safe as we think they are either. Your mentor might be able to guarantee that the information that they give you is good information, but they cannot guarantee that you will make a profit on your investment. So much of that is up to you, the one who is doing the investing! I to suspect high priced coaching programs with outrageous claims - for instance, that gaurantee that you will make $10,000 in a few months or they'll return your money. Make sure you get that in writing!

Tax liens and tax deeds are not a get rich quick type of investment. You may have to wait a few months before you see any return at all, and in some states you may have to wait two or three years to see a return on your investment.

  • Does your coaches reputation depend on your success?

If it does then you have a better chance of succeeding. Someone who works for a large organizatiton may not have their reputation at stake. When you work with someone who has a reputation to protect as a tax lien or tax deed investing coach that gets results, they will work harder to insure your success. But ultimately it's up to you. Are you really ready to put in the time and money necessary to succeed at tax lien investing. If not, don't hire a coach or mentor because that would just be a waist of both of your time. To find out if you're ready read my article Tax Lien Investing: Are You Ready to Get Started?

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