First Wholesale Deal! Back Taxes??
Hello BP,
I have my first wholesale deal under contract in South Jersey for 19k. Repairs are in the 35-45k range. ARV estimate is in the 110-125k range. The issue is that the current owner of the property has 13k in back taxes on the property. I guess you could say I am a believer in the "ready, fire, aim" philosophy but was quite excited to come across what looks my first qualified lead. The property was inherited, owned free and clear, but current owner is unable to pay the back taxes on the property.
How should I address the back taxes issue? Is title unable to transfer until back taxes are paid up? or should I have calculated the back taxes into my 19k offer price presuming that back taxes would be paid up by the end buyer?
Also, when should i open up title search on this? before or after i have an end buyer?
Nick