Are you ready to unlock the secrets to successful tax deed investing? In today’s video, Cory breaks down the critical Tax Deed Investing Formula every investor needs to know. Whether you’re a beginner or a seasoned investor, understanding how to calculate your maximum bid can be the difference between a profitable deal and a costly mistake.

The Tax Deed Investing Formula Core

Tax deed investing requires a calculated approach to ensure profitability. Here’s the formula Cory shared in today’s video:

1. Determine the After Repair Value (ARV):
   • The ARV is what the property will be worth after repairs. Use online tools like Zillow, Redfin, or the county assessor’s website to find comparable properties and estimate this value.
   • For extra accuracy, consult a local real estate agent for a professional opinion.
2. Calculate 65% of the ARV:
   • To leave room for profit, start with 65% of the ARV. For example, if a property’s ARV is $100,000, your maximum base bid is $65,000.
3. Deduct Estimated Costs:
   • Rehab Costs: Subtract the cost of necessary repairs. If repairs are estimated at $20,000, your new maximum bid is $45,000.
   • Tax Title Services: Budget for clearing the title, typically around $2,000. Your maximum bid drops to $43,000.
   • Incidentals: Account for utility bills, liens, or other unexpected costs. Deduct $5,000, bringing your bid down to $38,000.
4. Leave Room for Others:
   • Always leave a margin for the next buyer to make a profit. A margin of 30–35% is ideal for quick resale.

Pro Tips for Successful Investing

• Overestimate Rehab Costs: If you can’t inspect the interior, assume higher repair costs to avoid surprises.
• Account for Liens: Check for outstanding liens or title defects, and adjust your bid accordingly.
• Stay Disciplined: Don’t overpay just to win. A bad deal can drain your profits quickly.

Why This Formula Matters?

Following this formula ensures you’re making informed bids that protect your investment. It might take longer to find the right deal, but patience pays off in the tax deed world.

Watch the full video for detailed examples and insights from Cory, including real-life scenarios that illustrate the power of this formula.

P.S. Don’t forget to subscribe to our YouTube channel for weekly tips and strategies to improve your tax lien and deed investing game!

-Dustin