Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 10 years ago on . Most recent reply

User Stats

104
Posts
47
Votes
Bill Tyler
  • Investor
  • Arlington, TX
47
Votes |
104
Posts

Structuring a deal with back taxes

Bill Tyler
  • Investor
  • Arlington, TX
Posted

While wrapping up some business on a house in Detroit last week, I came across a SFH in a B neighborhood that interests me. It has fallen victim to a few of the typical things in the area (windows broken, damaged door, etc.) The back taxes are about $4k and are showing as delinquent but not yet subject to foreclosures. I found the owner information on Property Shark and want to see about picking it up as cheaply as possible ( hopefully just the back taxes). What would be the best way to structure the deal? The property owner is in Houston, TX and I am in Dallas/Fort Worth, TX. Would Texas law be used in the offer/contract or Michigan law? Thanks for the help! As for the numbers, the owner paid just over $12k in 2012. Rehab costs would be about $40k and ARV would $90k-$120k based on comps.

Most Popular Reply

User Stats

13,453
Posts
8,355
Votes
Steve Babiak
  • Real Estate Investor
  • Audubon, PA
8,355
Votes |
13,453
Posts
Steve Babiak
  • Real Estate Investor
  • Audubon, PA
Replied
Originally posted by @Joshua Woolls:
Originally posted by @Bill Tyler:

Thanks Kyle. I guess I was wondering whether to try to do the deal as a "subject to" with the back taxes or if there might be a different way that BP users might recommend?

 Subject to would require a loan to be on the property. ...

 Ah, a misconception. The most common item taken "subject to" is an existing mortgage - but that is not the only thing. A deal can be subject to easements, code violations, mechanic liens plus other matters. In fact, "subject to" wording can even be found within contingencies. 

Loading replies...