St Louis City Tax Lien

11 Replies

I have purchased a few properties at the St Louis City Tax Auction.  I have noticed that in certain areas the bidding tends to get very high.  Has anyone ever tried reaching out to homeowners for a cash offer and paying the taxes to avoid the headache of high bidding?

@Katina Stewart Definitely! I have found owners that didn't plan on redeeming their property and had them give me their property before they lost it. I gave them a couple hundred for their time to sign it over to me and then I went and paid the back taxes. It is work to find these owners but the rewards are huge.

Don't offer to buy before you listen to find out that they don't want it.

Another question...what's the safest way to do this?  Special Sales Contract and close at a Title Company? I'm looking for the quickest, safest way to complete that type of deal.

I personally type up my own deed and meet them at a bank to get the deed notarized. You would need to learn how to do this or get an attorney to do it for you. It isn't rocket sceince but you need to know what you are doing.

Another question...what's the safest way to do this? Special Sales Contract and close at a Title Company?

@Katina Stewart I don't know what you mean by a "Special" sales contract but yes, write up a contract and settle at a title company. 

If you don't go to a title company you have no idea what you are buying. The owner may have mortgages or other liens against the property or judgments against himself personally. You want to know if you have good title. 

John is a very sophisticated investor. What he does, write up a deed and get it notarized, is not recommended for new investors. Hence his caution "but you need to know what you are doing."

The special sales contract is the one agents use in St Louis usually for AS IS properties. @Katrina Stewart, I would recommend getting ahold of a simple purchase agreement that many wholesalers use if you don't intent to act as an agent on the deal. They are 1 page and way less intimidating than our Realtor contracts.

@Katina Stewart I call this the pre-tax strategy.  You can have them sign over a quit claim deed.  I like @Ned Carey 's idea that you could  have it notarized at a title company with their input so there are no surprises.  It could be that paying off the mortgage debt can be worth it providing it's not too much. The title company can facilitate the payment to clear the title.  If the equity is good and your bottom dollar is low then it could be something you still make a decent profit with.  You can always put out some feelers for potential buyers and see what the market is in the area prior to the deal being finalized.  Just some thoughts. 

Originally posted by @Katina Stewart :

I have purchased a few properties at the St Louis City Tax Auction.  I have noticed that in certain areas the bidding tends to get very high.  Has anyone ever tried reaching out to homeowners for a cash offer and paying the taxes to avoid the headache of high bidding?   

@Katina Stewart: How’s it going with your investing?  I’m curious because I live in Saint Louis and am currently investing in Saint Louis County.