New Member Intro - Cleveland, OH and ?? about delinquent taxes

6 Replies

Hello BPers!  I am new to BP and ready to get serious about investing in real estate.  I live in Cleveland, OH.  I've always been interested in RE and I'm finally at a point where I'm ready to put some money, effort and know-how to work.  Too bad it's not a few years prior, however I do believe there are still some deals to be had out there, even with the run-up in prices. I'm ok with doubles instead of home runs right now. Just need to be diligent and make prudent decisions. I am mostly interested in small multi-family and perhaps single family as buy and hold rental properties. Cleveland (mainly west-side) and Akron area is where I have been looking, but somewhat open to other areas. 

I do have a question that I am looking for some guidance on.  There is a multi-fam property that I am looking at and the owner is backed up on taxes.  They owe about $12,000 total and I think the annual tax bill is around $2000.  How does that work if you want to buy a property with delinquent taxes?  Do I pay for it? Do they?  Is this a big bargaining tool I should be using to negotiate a lower price? (seems like I should).  Any guidance you guys can offer is much appreciated!

I look forward to getting more involved on BP and developing relationships with many of you, and more importantly start building my RE portfolio! 

Thanks, all!  

Paul

Originally posted by @Paul Shepherd :

Hello BPers!  I am new to BP and ready to get serious about investing in real estate.  I live in Cleveland, OH.  I've always been interested in RE and I'm finally at a point where I'm ready to put some money, effort and know-how to work.  Too bad it's not a few years prior, however I do believe there are still some deals to be had out there, even with the run-up in prices. I'm ok with doubles instead of home runs right now. Just need to be diligent and make prudent decisions. I am mostly interested in small multi-family and perhaps single family as buy and hold rental properties. Cleveland (mainly west-side) and Akron area is where I have been looking, but somewhat open to other areas. 

I do have a question that I am looking for some guidance on.  There is a multi-fam property that I am looking at and the owner is backed up on taxes.  They owe about $12,000 total and I think the annual tax bill is around $2000.  How does that work if you want to buy a property with delinquent taxes?  Do I pay for it? Do they?  Is this a big bargaining tool I should be using to negotiate a lower price? (seems like I should).  Any guidance you guys can offer is much appreciated!

I look forward to getting more involved on BP and developing relationships with many of you, and more importantly start building my RE portfolio! 

Thanks, all!  

Paul

 Unless you agree to assume the delinquent taxes they are paid by the seller out of their gross proceeds of the sale.

Ok, thanks!  I figured they would be responsible for paying all taxes owed up to the date of the sale, but wanted to be sure. 

Do you find that when a seller owes a few years of taxes, that it gives the buyer more leverage in the price negotiations? Or, knowing they will immediately have to take that money out of their total proceeds, maybe they are less willing to come down.  

It sounds like they will lose the house soon unless they pay their delinquent taxes. A seller who is that far behind in paying their taxes is behind on all their bills and is a motivated seller. If you write an offer, make sure you reserve enough to pay off the water bill too or that could be your problem after title transfers. If there is any equity in the house and you can close quickly, it could be a win-win situation. Good luck

Welcome, always nice to see a fellow Clevelander. Both gentleman gave you great info. You can check the county website for exact dollar amount and time of delinquency as well as any liens. Best of luck  

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