Help! Getting compensated for finding tax deeds for buyers.

7 Replies

Hello everyone. I have found some really nice vacant tax deed properties in Birmingham and need some recommendations on how to get, I guess, a finders fee. I don't have the money to purchase them so how do I make sure that if I show them the properties they don't go around me and purchase them? 

Thanks in advance!!

Have potential buyers sign a buyers contract.

i have been looking at tax deeds myself and i am new to this and just did not no how it works 

@Tasha Pams , You cannot charge a finder's fee for finding properties unless you have an active Alabama real estate license.  You can probably fly under the radar, but some people do get turned in and prosecuted. Other people find themselves doing a lot of work for someone, only to get stiffed on the finder's fee. When the person in your position threatens to sue because they have a written contract for the finder's fee, the other person says, "You can't sue me. You don't have a real estate license. The contract is not enforceable because it is illegal, and you will be thrown out of court." That person would be absolutely correct.

You can, of course, put properties under contract and then flip the contract, but that's all.  If you get a price quote from the State of Alabama, that is considered a unilateral contract to sell you a piece of real estate at a particular price. You can basically flip that contract, but the State requires that their tax certificate be issued to whoever asked for the price quote.  So, you will have to pay to get the property in your name, and then flip it to your ultimate buyer.

Thanks guys!

Originally posted by @Tasha Pams :

Hello everyone. I have found some really nice vacant tax deed properties in Birmingham and need some recommendations on how to get, I guess, a finders fee. I don't have the money to purchase them so how do I make sure that if I show them the properties they don't go around me and purchase them? 

Thanks in advance!!

There is an attorney in Birmingham that gets the quote from the state then tries to find a buyer. He then negotiates a price for the deed/lien, signs a contract with them and takes a down payment that will cover the price of the lien/deed from the state. Once deed/lien is in hand they close on the deal and he reassigns the deed/lien to the buyer. None of your money is used.  

@Tasha Pams I'm actively buying in Birmingham so please hit me up with any properties you're looking to sell. 

@Denise Evans , what @Robert Kennedy described in this thread sounds like "wholesaling" or assigning a price quote received from the state for a tax certificate/deed. Do you know of folks doing what Robert has described?

Thanks!

Johnathan

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