How to get funding to purchase a delinquent tax property?

Question

Hello,
I've found several properties that I would like to buy that are delinquent tax properties.  The problem...I don't have any money to purchase it.  I would like to use the first one as a residential, and then flip others.  How do I go about getting funding for these types of properties?

Any help would be greatly appreciated.  I live in Norfolk, VA.

:help:  :help:

Thank you,
Tiese

Tiese C. · Answer

Thanks Dan,
well, this was just one property that stuck out as an example on the list of properties.  I've spoken w/ the person who handles the delinquent properties at the law firm and she explained the process.  I still would like to purchase one, but of course one that would be more reasonable.  But, I was looking for a home for my entire family to live in.  I just think that would be a nice way to start out...if I had the money.

But thank you, Dan

Michael Madill · Answer

Sorry i didn't respond for  a couple of days, actually forgot about this post, oops. I am confused of this situation. In Florida when property taxes are delinquent over a period of time, multiple notices are mailed and hand delivered to the property address and or owners address. The notice informs the owner that the property is delinquent and will be sold at the county auction if not paid, or sold as a tax lien certificate. That's the fast version of it anyway, In Florida this process is advertized publicly in the newspapers. I have never heard of law firms holding tax delinqent properties. Hopfully some one that delt  with tax distressed properties posts here.

As for approaching the owners of the property you speak of, what are you wanting to offer them. They are not going to give up this property for 11,000. If anything i'd imagine they will either borrow the money to be compliant or if they don't sell at asking price they might get a short sale or something of that nature.

I do follow the tax sales in my area and when there is something of significant value, 99% of the time the listing is redeemed (taxes are paid).  I'm speaking of a Tax Deed sale buy the way.

Tiese C. · Answer

Good Morning Michael,
that  will be my challenge.  Because I am a 'newbie wanna be' investor...that's what I need to work on.  I don't have a problem talking w/ people, just how to put it to them when I do approach them. Here, like everywhere I'm sure, the delinquent tax listings are alot.  Here in the city of Norfolk, you must go through one of the two law firms to purchase a delinquent tax property. I'm on the email list, so I know what the properties are.  But, they won't go up for sale unless someone makes an offer on the property, as I've been told by the person who handles this at one of the law firms.  So, it seems like an untapped resource b/c the list doesn't change from month to month, only more listings are added.  There's a beautiful home...that I would love to live in.  Back taxes owed are $11,000.  The property is 4300 sq. ft, 4 bdrms, 3.5 bth, in-law suite, gourmet kitchen, cathedral ceilings, wrap around deck...and so on.  The homeowners are trying to sell it for $1.5 million.  Would this be a property that I should contact the homeowner on?  I believe the yearly taxes are about $1500-$2000.

I see an opportunity here, I just am not sure how to make it happen.  Any help/suggestions?

Michael Madill · Answer

T Colley,

How are you approaching the home owners who are in delinquent taxes?

Tiese C. · Answer

Thank you...  :-)

Tiese C. · Answer

That would be perfect to do!!! Ideally, that's how I want to get started in  real estate investing.  At the same time, trying to purchase my first  home.  I didn't think that you could wholesale a delinquent tax property.  When I approach the homewoner, what price am I using to flip the contract?  The back taxes owed or what the house is being sold for?  Some of the properties that I checked into are also for sale for a much higher price, of course.

Please...PLEASE PLEASE help me w/ this.  Any information will be a big help!!!  Also, in the city of Norfolk, VA it says that it can take 6-7 months for the entire process.

George P. · Answer

You might want to start here [[EDITED BY MODERATOR - Links to other RE forums not permitted.] (which is also a wealth of knowledge)
            Hope it helps