Podcast Summary: The Hidden Gem of Tax Lien Investing with 33-Year Expert | Tony Martinez

Podcast Information:

• Title: The Science of Flipping
• Host: Justin Colby, Bleav
• Guest: Tony Martinez, Founder of the United States Tax Lien Association (USTLA)
• Episode Release Date: February 7, 2025
• Description: In this episode, Justin Colby interviews Tony Martinez, a seasoned expert with over 33 years of experience in tax lien investing. Tony shares invaluable insights into the underutilized strategy of tax lien investing, distinguishing it from traditional real estate methods, and provides actionable advice for aspiring real estate investors aiming to build a profitable portfolio.

Introduction to Tax Lien Investing

Justin Colby (Host) welcomes Tony Martinez (Guest) to the show, highlighting Tony’s extensive experience and his pivotal role in founding the United States Tax Lien Association. Tony introduces himself and underscores the credibility of his methods, emphasizing his systematic approach to tax lien investing.

Tony Martinez [00:00]: “We have a saying here at USTLA. It’s called price solves all issues. Right? If we can get them at the right price, we can solve just about anything that would pop up.”

Tony elaborates on how acquiring properties at favorable prices, typically ranging from $4,000 to $20,000, forms the cornerstone of successful tax lien investing. He stresses the importance of thorough research and accurate rehab estimates prior to acquisition to ensure profitability.

Understanding Tax Lien Certificates vs. Traditional Foreclosures

Justin seeks to differentiate tax lien investments from traditional bank trustee foreclosures, probing Tony to explain the nuances and advantages of the tax lien approach.

Tony Martinez [03:03]: “There’s a very, very big difference between any other type of real estate investing, including bank foreclosures, and the strategies that we employ here at USTLA.”

Tony introduces the concept of over-the-counter (OTC) tax deed property acquisitions, explaining how counties accumulate excess inventories of properties that fail to sell at tax sales. Instead of competing at auctions, Tony’s strategy involves purchasing these properties directly from county or state entities, bypassing the highly competitive and often inflated auction environment.

The Acquisition Process and Market Selection

Tony outlines the process of acquiring tax lien certificates, detailing how properties transition from delinquent tax statuses to officially becoming deeds available for purchase.

Tony Martinez [05:19]: “You're paying someone else's back taxes for them. In return, you receive what's called the tax lien certificate.”

He explains the significance of redemption periods, during which property owners can pay off their back taxes, and how properties that remain unsold within these periods revert to the county’s inventory. Tony emphasizes the necessity of targeting specific counties and conducting meticulous research to identify profitable opportunities.

Justin compares typical markets favored in traditional real estate investing with those optimal for tax lien investing, to which Tony responds by highlighting the importance of understanding state-specific laws and property inventories.

Tony Martinez [09:49]: “Ironically, some of the very same markets you just mentioned, but ours are really based upon how the law.”

Tony discusses current active markets, including Ohio, Missouri, Alabama, Mississippi, and potential expansions into Michigan, illustrating the dynamic nature of market selection based on legal frameworks and property availability.

Challenges in Tax Lien Investing

Both Justin and Tony acknowledge the overwhelming nature of large property lists, which can contain thousands of properties, many of which may be undesirable.

Tony Martinez [16:45]: “More than 50%, you're not going to want to buy them. They're burned out. Right. They're industrial properties. They're raw land in the middle of nowhere.”

Tony highlights the critical need for systems and processes to effectively filter and analyze these lists, ensuring that only viable properties are pursued. He reiterates that success in tax lien investing does not come from bulk purchasing but from strategic acquisitions backed by thorough research.

Success Stories and Real-World Applications

Tony shares tangible success stories from his clients to demonstrate the profitability and feasibility of tax lien investing.

Tony Martinez [25:31]: “He bought one, flipped it for 30, bought one, flipped it for 22, bought one, flipped it for 30... he made about a hundred grand.”

These examples underscore the potential for significant returns when properties are acquired at low costs and subsequently sold or rehabilitated for higher values. Tony emphasizes the importance of transparency and verifiable documentation to validate success claims, distinguishing genuine strategies from questionable “gurus” in the market.

Educational Resources and Learning Opportunities

Tony promotes his Free Crash Course, designed to educate aspiring investors on the intricacies of tax lien investing. He highlights the course's comprehensive modules that cover:

• Legitimate Strategies: Differentiating authentic methods from misleading information presented by fake gurus.
• Case Studies and Documentation: Providing real-life examples and supporting documents to showcase successful transactions.
• Research Techniques: Teaching investors how to effectively sift through extensive property lists and identify profitable opportunities.

Tony Martinez [19:07]: “If they go to freecrashcourse.com, that’s freecrashcourse.com. There’s a three-module training that I put together and I promise you if they watch one module, the first module, they will learn more valid information in that one module.”

Justin reinforces the value of these educational resources, encouraging listeners to engage with Tony's materials to gain a deeper understanding of tax lien investing.

Practical Advice for Aspiring Investors

Tony offers actionable advice for those interested in entering the tax lien market:

1. Thorough Research: Understanding the legal nuances and property-specific details in targeted markets.
2. Strategic Acquisition: Focusing on properties with clear potential rather than indiscriminate bulk purchases.
3. Developing Systems: Implementing robust processes to efficiently manage and analyze large property lists.
4. Leveraging Educational Resources: Utilizing courses and live training sessions to build competence and confidence in tax lien investing.

Tony Martinez [22:53]: “We’ll do a live training like this, the Zoom training. And we actually walk people through the... we walk them through the actual research process.”

Regulatory Considerations and Best Practices

The discussion delves into the regulatory aspects of tax lien investing, addressing concerns about redeeming properties and the practicalities of funding acquisitions.

Tony Martinez [35:44]: “You are paying someone else's back taxes for them. In return, you receive what's called the tax lien certificate.”

Tony advises against relying solely on third-party lists from providers like Propstream or Batch Leaks, emphasizing the importance of obtaining lists directly from county sources to ensure accuracy and relevance.

Tony Martinez [30:59]: “If you’re not getting them directly from the county, I’d be concerned.”

He cautions against speculative investments based on incomplete information, advocating for a methodical approach to minimize risks and maximize returns.

Conclusion and Next Steps

Justin wraps up the episode by reiterating the unique value proposition of tax lien investing as presented by Tony. He encourages listeners to take advantage of Tony’s Free Crash Course and explore the detailed strategies discussed to embark on a successful tax lien investing journey.

Justin Colby [39:10]: “And that's really important. It's one thing for us to do it. It's another thing for our members to be able to do what we're able to do and find a path to do that.”

Tony and Justin emphasize the importance of education, due diligence, and strategic planning in achieving success in the tax lien market. They invite listeners to connect with Tony through his online resources and community forums to further their investment aspirations.

Key Takeaways:

• Tax Lien Investing offers a lucrative, albeit complex, alternative to traditional real estate investing.
• Over-the-Counter Acquisitions provide a less competitive pathway to acquiring properties directly from counties.
• Thorough Research and Systems are essential to navigate large property lists and identify profitable investments.
• Educational Resources, such as Tony’s Free Crash Course, are invaluable for building competence and confidence in this niche.
• Regulatory Awareness and strategic market selection significantly impact the success of tax lien investments.

Notable Quotes:

• Tony Martinez [00:00]: “Price solves all issues. Right? If we can get them at the right price, we can solve just about anything that would pop up.”
• Tony Martinez [03:03]: “There’s a very, very big difference between any other type of real estate investing, including bank foreclosures, and the strategies that we employ here at USTLA.”
• Tony Martinez [16:45]: “More than 50%, you're not going to want to buy them. They're burned out. Right. They're industrial properties. They're raw land in the middle of nowhere.”
• Tony Martinez [19:07]: “If they go to freecrashcourse.com, that’s freecrashcourse.com. There’s a three-module training that I put together...”

For more detailed insights and to begin your journey in tax lien investing, visit freecrashcourse.com and explore the resources offered by the United States Tax Lien Association at ustab.com.