Direct Mail to Tax Delinquent Properties

Direct Mail to Tax Delinquent Properties

Real Estate Investor · Burlington, MA · Member since 2010 · 12 posts · 7 votes

I have a question about getting a list of tax delinquent properties. I am from the Boston area and I would like to do a direct mail campaign to people that are behind on their tax payments. Are there any list service companies that can provide this or do I need to go City Hall? Any suggestions would be appreciated!

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Investor · Los Angeles, CA · Member since 2014 · 180 posts · 72 votes
10y

It's all county-dependent, but I had success filing a FOIA request. I paid a $20 fee and was able to receive 140,000+ properties in excel files. From there, narrow down to areas you want to focus on and hit 'em with that direct mail.

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  • Real Estate Professional · Falls Church, VA · Member since 2012 · 238 posts · 83 votes
    14y

    Hi John,

    In our area the lists are usually posted on the county web sites or in the newspaper when a tax sale is coming up. I would scour your county web site and make a call to the tax department to find out more about when the sale is and whether the info is posted.

    This can be some good leads.

    Alison

  • Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    14y

    I am not aware of a national company who supplies this information.

  • Real Estate Investor · Burlington, MA · Member since 2010 · 12 posts · 7 votes
    14y

    Thanks Alison and Michael. I was actually hoping to find people that are just a little behind on their tax payment but not yet at the point where there is a tax sale. I figured they would be good potential motivated sellers that I could send my direct mail to. Do you know if this is a list you can gain access to?

  • Real Estate Professional · Falls Church, VA · Member since 2012 · 238 posts · 83 votes
    14y

    I think you're going to have to make your own list John. A lot depends on how your counties of interest store their records and whether you can figure out a way to access them.

  • Real Estate Investor · NY · Member since 2008 · 313 posts · 87 votes
    14y

    Where im at you can search property by property on the county website and see what payments have been made. It can take alot of time. I find the most motivated people are the ones who are a year plus behind in the taxes.

  • Real Estate Investor · Baltimore, MD · Member since 2008 · 1k+ posts · 268 votes
    14y

    You gotta study the subject before committing your money and efforts to it. 99% of delinquent tax liens get redeemed before the tax lien/tax deed owner gets the property. This means the owners intend to keep the property.

  • Real Estate Investor · Member since 2009 · 88 posts · 48 votes
    14y

    Just my opinion, but I think this would be a hard targeted group of prospects to justify spending direct mail money on.

    The reason is that most high equity homes will probably be caught up on their taxes. It is a possiblity that they may have back taxes, but I would think, if they were able to make payments on their home over a 10+ year span or greater that taxes would not be an issue or if they have a free and clear home then the chances that they are behind on taxes would be slim.

    Not saying you won't find some gems, but you may be sending out a ton of direct mail just to get a small segment of homes.

    I think it is more likely that these prospects will have little equity and the homes may be good candidates for short sales.

    If you are equiped to work short sales and wholesale, this would probably be an ok area to spend marketing money.

    I am not aware of how to get the info in my area. I know all tax sales are posted, but getting to the info pre tax sale could be challenging. However, challenging leads usually mean it is probably an untapped market!!!

    Just my thoughts.

  • Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
    14y

    Delinquent taxes are a good target because most of the time the owners don't live in the property or the property is for a deceased relative. They are motivated to get rid of the property and make a little money before the county forecloses and they get nothing. I sent out letters and got a good response rate.

  • Commercial Real Estate Lender / Syndicator · Dallas, TX · Member since 2011 · 888 posts · 309 votes
    14y
    Originally posted by Shanequa J.:
    Delinquent taxes are a good target because most of the time the owners don't live in the property or the property is for a deceased relative. They are motivated to get rid of the property and make a little money before the county forecloses and they get nothing. I sent out letters and got a good response rate.

    How many houses have you put under contract marketing specifically to tax delinquencies?

  • Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
    14y
    Originally posted by Carlos F.:
    Originally posted by Shanequa J.:
    Delinquent taxes are a good target because most of the time the owners don't live in the property or the property is for a deceased relative. They are motivated to get rid of the property and make a little money before the county forecloses and they get nothing. I sent out letters and got a good response rate.

    How many houses have you put under contract marketing specifically to tax delinquencies?

    This is my first time and second week dealing with late taxes. I have not closed on any deals yet, but I do believe I'm close. The calls I have received are from out of town heirs.

  • Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
    14y
    Originally posted by Brian Adamson:
    Hey Shanequa,

    Curious as to what percentage of a response you get.

    thanks,

    Brian

    I don't have the exact numbers right now because I'm not on my computer, but 144 letters sent, about 14 returned due to address, and about 10 calls.

  • Commercial Real Estate Lender / Syndicator · Dallas, TX · Member since 2011 · 888 posts · 309 votes
    14y

    7.7% disregarding the returned mail. 7% including the returns. Not a bad response rate either way.

  • Real Estate Investor · Member since 2009 · 88 posts · 48 votes
    14y

    Shanequa, where did you get your mailing list from?

  • Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
    14y
    Originally posted by Dan Koch:
    Shanequa, where did you get your mailing list from?

    My county publishes the list yearly. I was surfing the county website and saw it. It took me 4 months to look up all of the names. It was very tedious and time consuming.

  • Developer · Philadelphia, PA · Member since 2013 · 23 posts · 4 votes
    12y

    This is an old thread but I wanted to see if anyone had any good verbiage for these letters?

  • Real Estate Professional · Falls Church, VA · Member since 2012 · 238 posts · 83 votes
    12y

    Hi Aaron. I have learned over time NOT to say anything specific on a postcard about owing taxes. People feel exposed if postcards are floating around saying they are behind. Either send something in an envelope, or just include back taxes in the list of problems you're willing to help them solve on your postcard verbiage.

  • Wholesaler · Saint Louis, MO · Member since 2013 · 336 posts · 54 votes
    12y

    @Alison Miller Addressing back taxes on postcards is a very good ideal... I am going to have to add that on my next direct mail project.

    @Aaron Osgood & @Dan Koch Listed to BP Podcast #38 and it will address some of your issues...

  • Charleston, SC · Member since 2013 · 4 posts · 2 votes
    12y

    Hello everyone, I know Im late but I just joined BP today. Can anyone tell me what exactly is in the letter to get the owner to want or even consider to tranfer their deed?

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    12y

    An offer of a cash purchase of the property.

  • Charleston, SC · Member since 2013 · 4 posts · 2 votes
    12y

    Thanks Wayne! I meant does anyone have a sample letter or template for a convincing letter to the owners?

  • Real Estate Agent · Amesbury, MA · Member since 2012 · 65 posts · 32 votes
    12y

    Ya, I'd love to see a sample letter too.

    I'm from No Shore of Mass and just called my Tax collector and she sent emailed me a list! I'm definitely going to do a mailing, so if anybody has a sample letter or some more do's and don'ts that's be great. I'm gonna work on something and post it for your criticisms.

    An issue I'm facing with the list is which owners to write letters to. I'm going to do vacant or properties in disrepair first (which I'd have to find on a drive-by).

    But then after that maybe use the amount of back taxes owed and how long ago the home was purchased to try to target high equity properties?

  • Real Estate Agent · Amesbury, MA · Member since 2012 · 65 posts · 32 votes
    12y

    Also, has anybody purchased a house with delinquent taxes and then been able to negotiate with the county to settle only for a portion of the taxes owed?

  • Real Estate Professional · Falls Church, VA · Member since 2012 · 238 posts · 83 votes
    12y

    David, I have been able to do that in DC but it's not an automatic thing. Be sure your contract includes a contingency that you can negotiate the taxes down as a condition of closing.

  • Real Estate Investor · Greenbelt, MD · Member since 2012 · 6 posts · 2 votes
    12y

    Old thread however I have a question about the verbage in the contract. If you plan on wholesaling and assigning the contract should/do you still need the contingency that you can negotiate the taxes down?

  • Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
    12y

    For anyone reading this old thread:

    @David Briley , it is the rare circumstance in MA where the municipality will accept less than the owed balance. Including fees and interest. They will, however, set up payment plans with the taxpayer. And some towns sell the liens. Notably, Worcester sells them by public auction.

    And for others from other jurisdictions: MA taxes are assessed by towns, not by counties, so there is no such thing as a county list of taxes. The county has no idea because they are not the taxing entity.

    I actually read a tax lien book where the author listed the tax lien process and how to buy the actual tax lien by state. For MA, he listed that he spoke to the county and they informed him they don't sell tax liens. He therefore concluded that you could not buy tax liens in MA. He was asking the wrong question of the wrong authority.

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