nasvhille, TN · Member since 2010 · 26 posts · 1 vote
Researching a property for sale by owner. And notice while checking the GIS for comps that the property taxes hasnt been paid the past few years for the property for sale, another property, and few cars. Does this mean? Will there be possible tax liens involved?
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
16y
I respectfully disagree with Uwe. You could lose the deal. Many owners behind in their mortgage and/or taxes will not trust (and therefore won't do business) with someone who approaches them with a "I know you're in trouble" approach. I would approach them instead with a simple interest in buying the property. Their tax delinquent status may come up later but not a good idea to introduce it in the beginning unless a foreclosure is iminent. IMHO
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
16y
Yes :).
This is of my own making. In Cleveland, OH, 8 unit asking was $119k then $95k with $12k tax lien on it. But propertie was fulled rented.
After price change to $95k I contacted owners broker and told him I have interest but ... .
Deal closed in April 2010, so you can try it. You have nothing to lose.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
16y
I respectfully disagree with Uwe. You could lose the deal. Many owners behind in their mortgage and/or taxes will not trust (and therefore won't do business) with someone who approaches them with a "I know you're in trouble" approach. I would approach them instead with a simple interest in buying the property. Their tax delinquent status may come up later but not a good idea to introduce it in the beginning unless a foreclosure is iminent. IMHO
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
16y
Originally posted by Ibrahim S:
Many owners behind in their mortgage and/or taxes will not trust (and therefore won't do business) with someone who approaches them with a "I know you're in trouble" approach. I would approach them instead with a simple interest in buying the property. Their tax delinquent status may come up later but not a good idea to introduce it in the beginning unless a foreclosure is iminent. IMHO
Well, in the Midwest if you don't address the white elephant in the room it can bother some people. They know that you know that they know...etc...and if you pretend it's not there the thoughts go to, "What's your game buddy?" It's a Midwest thing. Just be straightforward. Someone asked me once how to make bandit signs for Midwest motivated sellers and I told him to have the sign say, "You're screwed. Admit it. Call me."
Real Estate Investor · Portage, MI · Member since 2010 · 470 posts · 315 votes
16y
As long as you buy it before a tax sale, all you need to do is pay the back taxes at closing. It is just one more thing to figure in when structuring your offer.
Residential Real Estate Agent · Orange County, CA · Member since 2009 · 289 posts · 95 votes
16y
Don't most states have a redemption period after the tax sale? Even if David buys the property after the tax sale, can't he still pay the back taxes and fees to bring it current (as long as it is within the redemption period)?
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
16y
Originally posted by Tim Wieneke:
Well, in the Midwest if you don't address the white elephant in the room it can bother some people. They know that you know that they know...etc...and if you pretend it's not there the thoughts go to, "What's your game buddy?" It's a Midwest thing. Just be straightforward. Someone asked me once how to make bandit signs for Midwest motivated sellers and I told him to have the sign say, "You're screwed. Admit it. Call me."
LOL. you know that's funny because I learned that there's DEFINITELY a difference between the manner in which we uppity Northeasterners deal with foreclosure and the straight talking midwesterner or even the straight talkin 'downsouther'. Up/out here, people's self-esteem and value sysrtem are tied to their homes (among other material possessions - no disrespect to my fellow northeasterners. Just calling it how I see it). A 'you're in foreclosure' postcard would embarrass the hell out of us. I'm always amazed how folks in other parts of the country are ok with those postcards.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
16y
Originally posted by Christopher W.:
Don't most states have a redemption period after the tax sale? Even if David buys the property after the tax sale, can't he still pay the back taxes and fees to bring it current (as long as it is within the redemption period)?
Depends on the state. A state is either a 'tax deed', 'tax lien' or some sort of hybrid of the two. Furthermore, some states have a redemption period and others don't. Here in NJ we are a tax lien state (no auction - only a strict foreclosure filed by the tax lien holder w/ no chaqnce of a 3rd party intervening without a court order). There's a 2 year redemption after the lien is placed on your property but NO redemption after the property is foreclosed.
Real Estate Investor · Walled Lake, MI · Member since 2010 · 121 posts · 66 votes
16y
Rather than stereotype people in different parts of the country isn't it a better tactic to get a feeling of who they are in. You need to have a conversation and truly listen to what they have to say. If you go in with a script you're going to sound like a salesman and nobody is going to listen to you...Just go in and have a conversation, build a little trust, and just keep in mind the key questions you need answered and work them into the conversation. You will stand a much better chance of getting the information from them, and many times you will not even have to ask the direct question...they will just tell you...
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
16y
Originally posted by Ibrahim S:
I respectfully disagree with Uwe.
I can handle this ;).
Otherwise I be expected to write "Basically yes :).".
Thats a hard business and no one had to give away anything, but in these situations (tax liens, outstanding taxes) most investors run off. This is a very good situation I guess, there you can get big opportunitys.
If you can buy with cash you need no trust, whatever for? He will sell his insecurity and you will buy it that´s all.
Do your DD and it´s only a question of your strategy. Each people is different, check it out and you will find a way.
I blurt something out when I call/email owner or his agent/broker, I do not beat around the bush. In eight of 9 cases by now the other side was open to talks.
This single one was on craigslist in Cleveland, he wanted to sell an commercial building for only $15k with possible owner financing. I wrote email with my interest, he came back with "I know you from BP". After my second email, he wasn´t heard from again. It happens.
Real Estate Investor · Verona, MO · Member since 2008 · 36 posts · 6 votes
16y
in MO, SUPPOSIDLY the only ones who can redeem the tax sale are those who have interest in the property. Note the difference between " having interest in" and " being interested in"
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
16y
Originally posted by Ibrahim S:
Originally posted by Tim Wieneke:
Well, in the Midwest if you don't address the white elephant in the room it can bother some people. They know that you know that they know...etc...and if you pretend it's not there the thoughts go to, "What's your game buddy?" It's a Midwest thing. Just be straightforward. Someone asked me once how to make bandit signs for Midwest motivated sellers and I told him to have the sign say, "You're screwed. Admit it. Call me."
LOL. you know that's funny because I learned that there's DEFINITELY a difference between the manner in which we uppity Northeasterners deal with foreclosure and the straight talking midwesterner or even the straight talkin 'downsouther'. Up/out here, people's self-esteem and value sysrtem are tied to their homes (among other material possessions - no disrespect to my fellow northeasterners. Just calling it how I see it). A 'you're in foreclosure' postcard would embarrass the hell out of us. I'm always amazed how folks in other parts of the country are ok with those postcards.
Lol. Yeah I lived in Boston for two years and my "frankness" didn't go over too well. :lol: It's one of those lessons learned in business etiquette and knowing what is etiquette for your market and region. My gf's from the middle east and etiquette is I have to extend an invitation or offer a gift 3 times before it can be accepted.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
16y
Originally posted by Tim Wieneke:
Originally posted by Ibrahim S:
Originally posted by Tim Wieneke:
Well, in the Midwest if you don't address the white elephant in the room it can bother some people. They know that you know that they know...etc...and if you pretend it's not there the thoughts go to, "What's your game buddy?" It's a Midwest thing. Just be straightforward. Someone asked me once how to make bandit signs for Midwest motivated sellers and I told him to have the sign say, "You're screwed. Admit it. Call me."
Yep. That's one of those 'cultural norms' that can extend to geographical locations AND ethnic groups.
@ Todd. Don't confuse 'stereotypes' with 'cultural norms'. Sure you don't want to stereotype and paint a broad stroke over an individual. But if you haven't yet met the person you'd better take cultural norms into consideration before approaching them or you can kill the deal before it even has a chance.
LOL. you know that's funny because I learned that there's DEFINITELY a difference between the manner in which we uppity Northeasterners deal with foreclosure and the straight talking midwesterner or even the straight talkin 'downsouther'. Up/out here, people's self-esteem and value sysrtem are tied to their homes (among other material possessions - no disrespect to my fellow northeasterners. Just calling it how I see it). A 'you're in foreclosure' postcard would embarrass the hell out of us. I'm always amazed how folks in other parts of the country are ok with those postcards.
Lol. Yeah I lived in Boston for two years and my "frankness" didn't go over too well. :lol: It's one of those lessons learned in business etiquette and knowing what is etiquette for your market and region. My gf's from the middle east and etiquette is I have to extend an invitation or offer a gift 3 times before it can be accepted.