Taxes owed on vacant property

4 Replies

Hello, I'm a new investor from Rochester, New York. I just got a call from a motivated seller. He owns a vacant home free and clear, but owes about $28,000 in taxes. My offer will need to be below that. What, if anything, can I do to make this deal work?

Property taxes or IRS taxes?  If its property taxes, you are pretty much out of luck.... they will be paid at closing or it won't close (at least not with title insurance, but whey would you want to buy a property with a tax lien?)

If it's IRS taxes, if you are buying the house for less than what they owe, you can get a partial release... they will still owe the taxes, but you can buy the house.

Thanks for the response Daniel. It is actually property taxes that are owed. 

Hey Eric,

We get calls on these properties all the time. Unfortunately the back taxes are so great that when you combine the rehab cost there is no margin for profit. What were your intentions with the property and where is it located? I have figured out many creative solutions to deals that don't seem to make sense. Hopefully I can help. 

Hello Mark, 

My intention was to wholesale the property. I looked at the property from the outside this morning and didn't even bother going inside because it looked too dangerous. In my opinion the property needs to be completely torn down. It is located in the town of Greece, off of stone road. I would be interested to hear about some of your strategies for dealing with these deals.

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