Ted Thomas

Friday, February 21, 2014

Advice from Donald Trump on How to Make Money Buying Tax Liens: Officially Tax Lien Certificates

He’s had his ups and downs over the years, but every time he’s been down, he’s found a way to get back up. Donald Trump is a survivor. He’s tenacious and determined—two qualities all investors must possess in order to be most successful.

Trump is a good businessman, and yet the best advice he ever gave has nothing to do with business; on the surface, anyway. It has three parts, which I’ll illustrate throughout this article.

Trump starts this quote out by saying, “Experience has taught me a few things. One is to listen to your gut, no matter how something sounds on paper.”

As an investor in tax defaulted properties, if you stopped right here and forgot the rest of what Trump said, it would have been worth your time to read this article. In fact, you can apply this advice to any area of your life.

Listen to your gut. Said another way; follow your intuition.

I teach courses on tax defaulted property investing and my students are confident they have the tools to make wise investments. This one is the most important. If you’ve done your homework and have followed every step to prepare for a tax defaulted property sale, or tax sale as it’s sometimes called, and something still doesn’t feel right, don’t do it. I’ll say it again, if it doesn’t feel right, don’t move forward with a bid. Trust your instincts, even if you aren’t sure why you feel the way you do.


The next part of Trump’s quote reads like this, “The second [thing] is that you’re generally better off sticking with what you know.”

You can interpret this piece of advice in a few ways. Let’s apply it to buying tax lien certificates online. The Internet has opened a whole new world to tax defaulted property investors. Not only can you attend virtual tax lien certificate auctions—and even tax deed auctions, or tax defaulted property auctions—in your pajamas, but you also have access to markets in other counties and states. Investment opportunities have increased tremendously. You can also research specific information on properties online. 

Hold on—Red Flag!

Although successful investing can be accomplished by attending online auctions, be careful. It’s always a little riskier to invest in communities you’re unfamiliar with, even when you perform due diligence. Especially if you’ve just begun investing in tax defaulted properties, it’s best to invest in areas you’re acquainted with. Know the people, know the lifestyles, the neighborhoods and the idiosyncrasies and you’ll be most successful. As Donald Trump says, “stick with what you know.”

The last part of Trump’s advice is this: “…sometimes the best investments are the ones you don’t make.”

A simple statement, yet quite profound: sometimes the best decision is to walk away. I’ve done this myself. To support you in learning, I offer free access to my educational video library so you can pick up tips from other investors. It’s the best way to absorb the information you need to be a successful tax defaulted property investor.

Learn the truth about investing in tax defaulted property in this short tutorial video:  http://www.tedthomas.com/truth-about-tax-lien-certificates/

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