Buying a $50,000 property for $5,000?
Buying a $50,000 property for $5,000... Too good to be true? I have obtained a list of properties and the amount of property taxes that are over due by the homeowners.
These homeowners have not yet lost their property to tax foreclosure but are soon to be, and will be sold at a tax lien auction or tax deed action. So ultimately, the homeowners will be left with with a ridiculous interest rate or empty handed all together.
I'm planning on contacting the homeowners on the delinquent tax list and explain to them; they are about to lose their home to auction within the next couple of months. I will then offer to pay off the property taxes, in exchange for "free and clear" ownership of their property through a warranty deed and I would also offer them a piece of equity after I wholesale the property.
You would think a lot of people in this situation would jump at the opportunity to sell they're home for as low as 10% of the market value right? Because it's much better than losing their home to auction for nothing at all correct?
I'm familiar with the fact that a lot of these homeowners are still hostile at the fact that I would have the audacity to even offer such a low price.
For the investors that are familiar with this strategy, could you share your most successful way of approaching these specific homeowners?