I just purchased my first house hack! It's a lovely duplex on street where every 1/3rd house is being remodeled/updated.
Just a few houses down from my duplex is an abandoned, dilapidated vacant home. On the door, there's a notice that the home will be going to Tax Resale Auction in June for unpaid taxes.
My questions: HOW DO I PREPARE FOR AUCTION? IS THERE A WAY TO GET THE CITY TO SELL IT TO ME BEFORE THE AUCTION? ANY TIPS ON CONTACTING THE OWNER AND CONVINCING HIM TO SELL?
I've done my investigating and found out that the owner owns a TON of houses in our city and has over 160 civil law suits filed against him for stealing people's deposits, not fixing properties that are falling apart, etc. It even got to the point where a local news crew chased him down a street with a camera crew trying to get answers.
I'm going to keep trying to contacting him before the auction, but how do I put myself in the best position to get this property at auction? Will the city consider selling it to me before then? I'm worried that with this being in such a great location for flips and BRRRRs, investors will be all over it if it actually gets to auction.
I have funds lined up for the downpayment and a BRRRR loan, as well as my team in place to get the house back in pristine condition.
I'm a newbie but willing to learn and research, would be very grateful for any advice/suggestions.
I don't know the rules of OK, so these may be general, but wanted to respond since no one else has stepped forward.
I would think the owner could still sell it to you before the auction....so that might be a good course of action, to contact them and find out what they want for it and see if they will sell to you before the auction. Of course closing at a title company so they can ensure that taxes and any other liens are cleared for you to take title. If you need a loan to purchase, this may be your only option.
I'm thinking typically at the sale itself you need cash and no loans. You might want to contact the people running the auction to see what payment terms are. Often you can't buy from the city or tax authority before the sale since they don't own it, unless they already own it and it is a resale property. If they already own it, then potentially you could buy directly from them, but typically not with a loan.