Owner owe 12k in taxes looking to wholesale

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Owner owe 12k in taxes looking to wholesale

Lemont Williams
Columbus, OH · Member since 2016 · 45 posts · 17 votes
So I'm in a situation where I recently just talk to a property owner i'm in Columbus Ohio and the property is about three beds one bath has potential for spare room downstairs but the real question is she told me she owes 12,000 in property taxes she inherited property from her dad he paid cash on the property, he recently just passed away and she called me about selling and she let me know that she owes taxes she's looking to get 40 K out the property I was doing some of my research and I was noticing the properties are selling for about 50-80k then I went to the Franklin County clerks of courts and it says that she has a pending case open with a pre-foreclosure so I'm wondering will I still be able to wholesale the property and if anybody knows some general prices of remodeling a kitchen for a house in that price range, also remodeling bathrooms change indoors and refinishing floors house is about 925sqft because I'm still trying to figure out the estimated repair cost to make an offer ?
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Paul AmegatcherPro Member
Rental Property Investor · Brookville, OH · Member since 2016 · 488 posts · 363 votes
9y
Originally posted by @Lemont Williams:

So I'm in a situation where I recently just talk to a property owner i'm in Columbus Ohio and the property is about three beds one bath has potential for spare room downstairs but the real question is she told me she owes 12,000 in property taxes she inherited property from her dad he paid cash on the property, he recently just passed away and she called me about selling and she let me know that she owes taxes she's looking to get 40 K out the property I was doing some of my research and I was noticing the properties are selling for about 50-80k then I went to the Franklin County clerks of courts and it says that she has a pending case open with a pre-foreclosure so I'm wondering will I still be able to wholesale the property and if anybody knows some general prices of remodeling a kitchen for a house in that price range, also remodeling bathrooms change indoors and refinishing floors house is about 925sqft because I'm still trying to figure out the estimated repair cost to make an offer ?

 Your seller is in no position to demand $40k considering the property is in preforeclosure.  Lets assume the property is worth $70k fixed up. Lets also assume the properry needs $20k in rehab. Using the 70% rule the most you could offer without your wholesale fee will be $29k.  Now if you add a $5k wholesale fee then your max offer will be $24k. 

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  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    9y

    You can still wholesale the property, but you need to add the taxes on top of whatever amount the seller has to clear as the taxes will have to be paid at closing. As far as remodeling a kitchen goes, it really depends on how big the kitchen is, how much is being done and what kind of materials you are using. There is a substantial difference between vinyl, formica and standard appliances and granite, tile and stainless steel among other things.

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  • Lemont Williams
    OP
    Columbus, OH · Member since 2016 · 45 posts · 17 votes
    9y
    Thank you Andrew Syrios well I was thinking on the price range/area of the property I wouldn't recommend granite I think I would just got with the Lil higher basics
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  • Paul AmegatcherPro Member
    Rental Property Investor · Brookville, OH · Member since 2016 · 488 posts · 363 votes
    9y
    Originally posted by @Lemont Williams:

    So I'm in a situation where I recently just talk to a property owner i'm in Columbus Ohio and the property is about three beds one bath has potential for spare room downstairs but the real question is she told me she owes 12,000 in property taxes she inherited property from her dad he paid cash on the property, he recently just passed away and she called me about selling and she let me know that she owes taxes she's looking to get 40 K out the property I was doing some of my research and I was noticing the properties are selling for about 50-80k then I went to the Franklin County clerks of courts and it says that she has a pending case open with a pre-foreclosure so I'm wondering will I still be able to wholesale the property and if anybody knows some general prices of remodeling a kitchen for a house in that price range, also remodeling bathrooms change indoors and refinishing floors house is about 925sqft because I'm still trying to figure out the estimated repair cost to make an offer ?

     Your seller is in no position to demand $40k considering the property is in preforeclosure.  Lets assume the property is worth $70k fixed up. Lets also assume the properry needs $20k in rehab. Using the 70% rule the most you could offer without your wholesale fee will be $29k.  Now if you add a $5k wholesale fee then your max offer will be $24k. 

    3Reply
  • Lemont Williams
    OP
    Columbus, OH · Member since 2016 · 45 posts · 17 votes
    9y
    Thank you Paul Amegatcher thats what I was thinking she so far behind and has a open case I'm just going to have to make that offer when I go back to the house on Friday plus she don't live at the property.
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  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    9y
    Originally posted by @Lemont Williams:

    So I'm in a situation where I recently just talk to a property owner i'm in Columbus Ohio and the property is about three beds one bath has potential for spare room downstairs but the real question is she told me she owes 12,000 in property taxes she inherited property from her dad he paid cash on the property, he recently just passed away and she called me about selling and she let me know that she owes taxes she's looking to get 40 K out the property I was doing some of my research and I was noticing the properties are selling for about 50-80k then I went to the Franklin County clerks of courts and it says that she has a pending case open with a pre-foreclosure so I'm wondering will I still be able to wholesale the property and if anybody knows some general prices of remodeling a kitchen for a house in that price range, also remodeling bathrooms change indoors and refinishing floors house is about 925sqft because I'm still trying to figure out the estimated repair cost to make an offer ?

     what area of columbus

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  • Lemont Williams
    OP
    Columbus, OH · Member since 2016 · 45 posts · 17 votes
    9y
    Robert Ellis 43232
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  • Ken Hasty
    Real Estate Investor · Columbus, OH · Member since 2016 · 2 posts · 0 votes
    9y

    We have wholesaled a number of properties in Columbus. I always tell the owner that any back taxes, liens, etc. will come out of their check at closing. Make sure you use a good title company (we use PM Title) and they will make sure it is processed correctly. Also, it is a good idea to run a preliminary HUD statement so you know what the closing costs will likely be. We try to have the owner pay the closing costs as well. Good luck!

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  • Joshua Bacon
    Wholesaler · Phoenixville, PA · Member since 2010 · 8 posts · 6 votes
    9y
    Lemont Williams I completely agree with Paul Amegatcher your seller is not in a position to demand anything. You also have to remember as a wholesaler you are selling service and solutions. If I were in your shoes I'd tell the seller "I understand you would like x$ however, based on what I do and the number of repairs needed for the property I can offer x$. I can pay cash, close in 2 weeks but the biggest thing selling to me it will stop the foreclosure process salvage your credit, and we can help you find a place to move into." As to the cost of repairs J. Scott has a great book on estimating repairs I would recommend picking that up if you can, for my market it's about 25%-30% higher than his numbers. But nonetheless it gets you in the ballpark.
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  • Joshua Bacon
    Wholesaler · Phoenixville, PA · Member since 2010 · 8 posts · 6 votes
    9y
    Lemont Williams also when you say pending case, are you referring to a Lis Pendens? I've dealt with one recently and it literally took months to get through. Not impossible but definitely difficult to sort out.
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