Probabte Wholesaling Tax Delinquency

3 Replies

Hello everyone! My name is Vanessa and  I am new to real estate investing. My business partner and I just started our own company and want to focus on Probabte Wholesaling. We have been marketing and finally got a call. We got information on the house and found out it actually has a tax delinquency since 2015. The person in charge of the estate does not know much about the house, they just inherited it. My question is, if they decided to go with us and we wholesale, how do we go about dealing with the tax delinquency? Does the owner pay that before they sign the house over to us? Or do they pay it off after they sell it to us with their profit money? 

Any advice is appreciated! I'm just trying to get as much information as I can. Thank you 

@Vanessa Gutierrez

Does the person who contacted you have legal capacity to sell the property. Was there a will? If so, does the heir (who will have to petition the court to be named PR) have Letters Testamentary. If not, does the PR have Letters of Administration?

It's the PR that you are going to have to deal with. As for the tax delinquency that's going to have to be paid unless you can negotiate a deep discount to purchase the property.

Are there any other heirs to the estate? Legally they would have an interest in the property as you would have to deal with them as well..

@Mark Pedroza

Hello Mark! Sorry for such a late response I was having issues with my Bigger Pockets Account and finally got it all worked out. 

So the person who contacted me is the actual Administrator of the estate. They went through the whole probate process and now have the authority to deal with the house. We are still in the works with them because they have not come to an agreement amongst themselves as far as what is going to happen to the house. Although the administrator wants to sell the property as is, the heir wants to try and post it on the MLS. The home needs a lot of work so as I mentioned earlier, we are still in the process of coming to a deal. There is only one heir to the estate besides the administrator.

I also had one more question and hopefully you can help me out and I would greatly appreciate it! There are about 7 cars on the property that belonged to the deceased, the administrator wants to keep 3 of them, but I'm not too sure what happens to the remaining 4 cars if they decide to sell the house to us, seeing as we are selling the contract to a rehabber. Would there be legal issues if the cars stay on the property and get sold to the rehabber? Those 4 cars do not function properly anymore and the Administrator doesn't want them.

Thank you so much Mark!

@Vanessa Gutierrez

The heir that wants to put the property on the MLS is going to have to adhere to the PR's instructions. Unless the heir files their own "Notice of Petition To Administer Estate."

If the heir does then there would be a separate probate case number competing with the primary case which could get ugly later on.

If the home needs I'm assuming major work your going to have to know what your repair costs are going to be. 

With that repair number and comp's you'll know the value of the house and then make your offer.

As for the cars (personal property) have your mechanic look over the vehicles and get a repair quote for the remaining four. Then donate the cars to charity and take the tax-deduction. 

Good luck....

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