
J Darrin Gross If you're willing, I'd like to ask you, Brian Seidensticker, what is the BIGGEST RISK? Brian Seidensticker I guess, you know, as far as buying tax deeds or the fund itself, it's for you to to, for me to interpret. Well, I think it's, it's from a tax, just tax sale properties, taxes and taxes in general, the biggest risk is the underlying property value, right? That That alone addresses the you know, is this, is this lien going to am I going to be able to make a return on this lien or this deed at the end of the day, or not? And that that is your number one risk? Right is, is assuming that you can, can make sure that your underwriting process addresses that right, and that you can't eliminate it, because things can happen right? I've certainly seen and been and been involved in a property that was purchased and then, for whatever reason, gets demoed, or, you know, has a fire break out, or whatever, what you thought that property value was right is no longer there, right? And so, you know, either your model has to address that loss, right, or you have to, you know, accommodate for that loss in value. And so, you know, for example, tax lien folks try to ensure that okay, the loss in value from things that could happen like that, ultimately, still, you know, if I'm willing to that property less than 5% a lot of things can happen and you're still okay. Right? In the worst case scenario, on the tax deed side, it's not that easy, right? A lot of things can happen, and all of a sudden you thought you're in a great position, and all of a sudden you're upside down. But managing that asset value, underlying asset value, is the number one risk by far. https://www.taxsaleresources.com/
From "Commercial Real Estate Pro Network"
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