Hello Fellow Members,
I have a question for you.
My boyfriend has found a fixer upper that he's crazy about - that's how the story starts.
He saw a for sale sign in the yard and called the number and gave the owner a $12,000 down payment for him to move in.
When I found out, I did my research on the property and found out the guy who "sold" it to him isn't the owner. The home is owned by the 3 daughters of the man who used to reside there before his passing. We're in FL and the owners are in NC. The property tax for 2014 haven't been paid and will go into a tax certificate auction in May. However in FL you have to have the certificate for 2 years before you can try and buy the property.
How would you go about legally acquiring this home?
I've been considering just going to the owners and letting them know about this guy and he tried to sell the home illegally and let them know he IS interested in buying even with the $12,000 loss.
Any help would be tremendously appreciated. His reasons for wanting to buy the property is to eventually flip it so he can pay off his father's medical bills; we just found out he has cancer.
Again, thank you.
This post is screaming for the "Due Diligence" example finger waving. Aside from that, how are you looking to acquire the property? All cash offer? Seller Finance? Personal funds? PML? HML? Second, you can avoid the tax lien by bringing the taxes current before they goto sale in May. You will have to find out if the actual owner is even interested in selling first and foremost. You will need to find out what the comps are, estimate rehab cost, holding costs, profit margin, and then subtract the back taxes due to establish your offering price. But make sure you are dealing with the actual owners of the property this time.
As for the $12,000 you have been swindled out of, obviously I would put a stop payment on the check, file a fraud complaint with the bank, and get a lawyer/LEO involved. I am sure you are not the first person they have tried to cheat.
Thanks for your response William.
He and I have been friends a long time, I didn't find out about how the house was acquired until after we started dating, which is when I did the research. My thoughts were similar; contact the owner, get appraiser/comps/ etc, make an offer.
He wants to buy it with his own money.
I told him not to pay the taxes until we either get some advice and/or talk to the owners because at this point the taxes are about $1,600 and in FL paying the taxes still doesn't give you any rights to the property.
He hasn't contact the owners yet, but do you think he's okay to stay in the house, until the owners say otherwise at least?
You are trying to put socks on a rooster.
It is possible that the person he gave the 12,000 to is able to sell the property. They may have an agreement with the owners. It could be a wrap around financing, or owner financed to the other person and he is essentially flipping/ wholesaling the property. I would find out the relationship between the person he gave the money to and the actual owner because it is very possible the the person has some sort of rights or agreement to sell the property.
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing