Episode Overview

Title: The Most Innovative Tax Deed Strategies in 2024
Host: Joe Jensen (Real Estate Investing School)
Guest: Joseph Griffin ("The Tax Deed Wolf")
Date: June 10, 2024
Episode Number: 165

This episode dives deep into the world of tax deed investing—a niche, often overlooked avenue within real estate. Joe Jensen interviews Joseph Griffin, a celebrated investor, author, and educator known for his expertise in tax deeds and creative strategies. Together, they reveal how tax deed investing works, why it's accessible in 2024, the creative ways to seize these opportunities nationwide, and actionable steps for beginners.

Key Discussion Points & Insights

1. Joseph Griffin’s Origin Story

• Military and Real Estate Beginnings
  • Joined Army National Guard at 17; nursing career as ICU manager by age 29.
  • First exposure to tax deed investing was in Afghanistan; initially skeptical, thinking it “sounds like a scam” ([03:20]).
  • Purchased first home at age 21 via VA loan—$78,000 in Florida, zero down, now worth over $300k ([03:17], [03:35]).
  • Explored tax sale properties years later, acquiring two in one month: one for $3,000, another for $1,900—“In 30 days, less than $6,000, I had three properties” ([04:37]).

2. Understanding Tax Deed Investing

• Explaining the Niche ([10:29]-[13:00])
  • Property owners failing to pay taxes become "tax delinquent." The state then holds different types of auctions:
    • Tax Lien Auction: Buy claim to property’s unpaid taxes—owner repays you with interest or you may get deed later.
    • Tax Deed Auction: You buy the property outright at auction (e.g., Florida).
    • Tax Redemption Deed Auction: Winning bidder gets deed if the owner doesn’t “redeem” (by paying up) within a set period (e.g., Georgia, Texas).
  • Griffin: “With a lien, it’s only a claim on a property...but in some states, liens mature into deeds” ([11:30]).
  • Example: Alabama’s over-the-counter list has “over 10,000 properties” where “the lien period is three years...if I go buy that, it’s already a deed” ([13:57]).

3. Winning Strategies & Creative Deals

• Why Tax Deeds?

  • Joseph prefers being “where nobody else is looking” ([17:46]), stressing the competitive advantage in less saturated markets.
  • He's personally “holding 33” properties, with “over a hundred transactions,” often through JV partnerships for scale ([18:40], [18:59]).

• Creative Acquisition Methods ([29:30], [32:07], [33:37])

  • Direct-To-Owner Approach: Use tax sale lists as leads; contact owners about to lose property, offering 20–40% of as-is value.
  • JV Partnerships: Partner with owner to rehab and sell, splitting profits.
  • Cash for Keys: Pay owner to sign over deed, streamlining title clearance.
  • Redemption Extension: Lend the money needed to pay taxes, secure deed of trust; if not repaid, you take the property ([33:37]).
    • “We would give them [the owner] that $16,000 to cover back taxes ... now you have six more months ... if you don’t pay us back, the deed’s already ours.”

• Title Company and Due Diligence

  • Always use a title company or attorney for title checks, lien clearance, and insurance:
    “They’ll make sure you own that thing free and clear ... the MVP of real estate” ([31:34]).

4. Debunking Misconceptions & Making It Accessible

• Is It Complicated?

  • “It’s the same as driving a car ... in the beginning we’re scared, but then we hit the pedal to the floor” ([16:33]).
  • Joseph teaches that learning this is no more complex than any other real estate path, but “who you hang around plays a lot into this” ([16:33]).

• Entry Steps for Beginners ([37:33])

  • With as little as $3,000, anyone can get started:
    1. Go to your county clerk of court.
    2. Find the tax sale/tax foreclosure list.
    3. Register, do due diligence, and bid at auction or approach owners directly.
    4. “In Alabama, you can get something right now for around $500 to $1,000...actual houses” (will need work!) ([39:19]).
  • “If you don’t see it, there’s a contact us section. Call them up—you can literally not know what you’re talking about and they’ll figure it out” ([38:04]).

5. Leveraging OPM & Credit

• Richest Man in Babylon Lessons ([23:21])

  • Griffin admits starting as a “broke millionaire” (equity-rich, cash-poor), until learning to leverage debt sensibly.
  • Used OPM (other people’s money) to raise $300k, then acquired $2M+ in assets in one year ([24:32]).
  • “You can scale a lot more. It was a mindset shift for me, man, it was scary” ([23:20]).

• More Than Just Bank Loans

  • Don't overlook business credit, credit cards, or self-directed IRAs.
  • “Some people are walking around, Joe, with 200k and they don’t know it because they have an IRA that they didn’t even know they could convert...” ([25:54]).

6. Win-Win Deals and Ethical Investing

• “What I love the most is—what a win-win ... you’re saving someone’s butt. You’re giving [the owner] a second chance ... if they don’t deliver, you have upside too” ([34:12]).
• “We always try to go through the right ... close with title ... there are some cases where we might not use a title company ... but we typically will use them to be on the safer side” ([30:04]).

Notable Quotes

• On Mindset & Networking:
  “I would have never thought that I would be retiring at 29 ... just started hanging around like minded individuals ... eventually I just became one by default.” – Joseph Griffin ([01:19])

• On Opportunity:
  “After looking into it, I was like, holy—why don’t people know about this stuff?” – Joseph Griffin ([03:20])

• On Simplicity:
  “It’s the same as driving a car, man ... what you tune into, you turn into.” – Joseph Griffin ([16:33])

• On Creative Deal Structure:
  “People wanted more time instead of money ... we give them the money, pay the back taxes, but they sign the deed over to us ... if they don’t redeem, we keep the property.” – Joseph Griffin ([33:37])

• On Action & Timing:
  “Best time to plant a tree was 10 years ago. Get started.” – Joseph Griffin ([53:13])

Important Segment Timestamps

| Timestamp | Segment / Quote / Topic | |------------|-------------------------------------------------------------------| | 00:00 | Show intro & Joseph’s bio | | 02:57 | Joseph’s first exposure to real estate and VA loan story | | 03:20 | First encounter with tax deeds in Afghanistan | | 04:37 | Acquiring three properties in one month for under $6k | | 10:29 | Explanation: How tax deed/lien/redemption auctions work | | 13:57 | Example: Alabama’s over-the-counter deeds | | 15:02 | The need to clear title and creative methods to do so | | 17:46 | Why Joseph chose tax deeds over other niches | | 18:40 | “Currently at 33”—portfolio size and transaction count | | 23:08 | Shifting mindset: from equity-rich to leveraging debt (OPM) | | 25:54 | Discussing other sources: credit cards, self-directed IRAs | | 29:30 | Direct-to-owner strategy explained | | 33:37 | Lending to delinquent owners for deed security; creative lending | | 37:33 | Step-by-step: How to get started for $3,000 | | 39:19 | “$500–$1,000 for actual houses in Alabama” | | 44:28 | Short sale vs. foreclosure vs. tax deed definitions | | 46:14 | Debts/mortgages can be wiped out in a tax deed sale | | 48:02 | Where to find Joseph: Tax Deed Wolf on all platforms | | 53:13 | Final message: “Best time to plant a tree ... get started” |

Tone & Style

• Friendly, enthusiastic, conversational
• Real-life stories and practical analogies (“It’s the same as driving a car... You’re scared at first, but then you just go.”)
• Humorous and motivational throughout (“You have to be in the sky sometimes before you can tell people you can fly.”)

Resources & Recommendations

• Book: Richest Man in Babylon ([23:21])
• Book: Fanatical Prospecting ([50:15])
• Classic Book: How to Win Friends and Influence People ([50:15])
• Networking App: Clubhouse—virtual networking for real estate and more ([51:41])
• Joseph's Book: Tax Deed Investing by Joseph Griffin

How to Connect with Joseph Griffin

• Instagram: @taxdeedwolfceo
• Website: taxdeedwolfacademy.com
• Search or Google: “Tax Deed Wolf” on any platform

Closing Takeaway

“Best time to plant a tree was 10 years ago. Get started.”
— Joseph Griffin ([53:13])

For anyone interested in tax deed investing or feeling stuck on the sidelines, this episode serves as a primer, an inspiration, and a call to action: The opportunity is wide open, and expert guidance is just a click away.