Marketing To A Tax Delinquent List

6 Replies

I just grabbed the tax delinquent property list for my county and I am considering doing a direct mailing campaign to the property owners. However, I have a couple questions about due diligence. 

First, if an owner gets back to me, do I reach out to a title company (or someone else) to learn about the liens, mortgages, and potential amount owed on the property? 


Secondly, could any experienced investors let me in on some of the criteria they use to value a property? Is it just the amount owed and then some? 

Thanks in advance :) 

I wouldn't want to pay for a title search until I have a deal in place. Once that is done and I am moving forward then the title search will happen and if it comes back different from what the owner says it will you back out. Otherwise you could end up spending a lot cash running searches on properties when a deal can't be made anyway. 

Comps aka Comparable properties. Is it a three bedroom two bath? Look for a recently sold property (6 months or less) that's generally the same and see what its sale price is. You should look for the same number of bedrooms, bathrooms, garage space, lot size, square footage. Similar amenities like central air, pool, location etc. Look at as many of these as you can find. That will give you an idea of what the property should be worth after all repairs. Then you need to figure out repair costs. A standard formula is .75 * After Repair Value (ARV) - repair cost= maximum purchase price.

Originally posted by @Jonathan Holmes :

I wouldn't want to pay for a title search until I have a deal in place. Once that is done and I am moving forward then the title search will happen and if it comes back different from what the owner says it will you back out. Otherwise you could end up spending a lot cash running searches on properties when a deal can't be made anyway. 

Thanks for the info! Do you work with a real estate attorney to have a contract typed up for each deal or should I go about having one typed up that can be used for every deal going forward? 

I have never purchased with my own contract. There are usually state specific contracts to be found online. The purchase agreement is probably one of the simpler real estate forms. If you have the cash an attorney is always the safe bet.

Assuming you are planning on assigning the contract you need to make sure there is a mechanism for that in the sales agreement. You should also be sure this type of sale is legal for you to perform in your state otherwise you may need to do a double close.

@Sydney Chamberlain -  One issue with a list from the county is that you don't get to narrow the list down for properties that you want to buy. You could waste a lot in postage mailing to condo's if you only want single family homes.

You might consider getting a list of homeowners with Low Financial Stability Scores (FSS). You can include absentee & owner occupied, specify home value, property type and even equity or length of ownership.

@ Ryan Dosenberry, I'll respond to you privately (no self-promotion allowed)

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