Realtor · Cincinnati, OH · Member since 2016 · 23 posts · 1 vote
Hey BP Family. I was presented with a situation by a seller and need advice on how to go about this. A seller wants me to wholesale their property which has an $8K tax lien on it. The county auditor/assessment website is valuating the property at $54K. The place needs some repairs that I can see from the outside. But don't know to what extent yet.
My question is how should I go about this situation?
Property Manager · Griffith, IN · Member since 2015 · 1k+ posts · 913 votes
10y
It's really no different than any other property- you need to get a really good comp on the house and not just an assessed value. You also need a really good rehab estimate. From there you'll have your Max allowable offer. If that amount is enough to pay off any existing mortgages, taxes, liens, and judgements- it's a deal. If not- start negotiating with the liens and judgements. I'd start with everything else before hitting the tax. Make sure the individual in the lien is a titled owner. A house I looked at today has a $146K tax lien on the dude who lives there. He's not a title owner but only lives there. No worry about that lien.
Property Manager · Griffith, IN · Member since 2015 · 1k+ posts · 913 votes
10y
It's really no different than any other property- you need to get a really good comp on the house and not just an assessed value. You also need a really good rehab estimate. From there you'll have your Max allowable offer. If that amount is enough to pay off any existing mortgages, taxes, liens, and judgements- it's a deal. If not- start negotiating with the liens and judgements. I'd start with everything else before hitting the tax. Make sure the individual in the lien is a titled owner. A house I looked at today has a $146K tax lien on the dude who lives there. He's not a title owner but only lives there. No worry about that lien.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
10y
@Sundiata Anadhani Like @Adrien C. it is not really any different than any other deal. The tax lien simply gets paid off at settlement out of the sellers proceeds. With a tax lien you may have a deadline however. If a foreclosure has started on the lien then you have to get the deal done before the tax lien foreclosure is done.
I think what Adrien is referring to is an IRS lien as opposed to a property tax lien which is what I assume you are talking about.
I get the sense you are new and don't know how to proceed regardless of the lien. so in simple terms
Evaluate the property, how much is it worth in it's current condition? you are going to have to get access to the property and have some one help you estimate the repairs.
Part of evaluating the property is knowing your market. That means looking at and evaluating lots of deals.
Negotiate a price with the owner and get it under contract
Since you are in Ohio, market your contract not the property to find an end buyer for the deal.
Maybe you already know the above but it might help someone else.