All Forum Posts by: Scott Matthew C.

After reading your post, it is essential to know the basic steps. Below is a bird's eye view.

1) The county or municipality identifies properties that have delinquent property taxes and are eligible for the tax sale.

2) A list of these properties is compiled and made available to the public, usually through the county's website or through a public notice in the local newspaper.

3) Prospective buyers are required to register for the tax auction and provide a deposit, which is usually a percentage of the expected winning bid.

4) At the auction, the properties are sold to the highest bidder. The winning bidder is required to pay the full amount of the winning bid, plus any other fees or costs associated with the sale, at the time of the auction.

5) The winning bidder will receive a tax sale certificate, which gives them a lien on the property. The certificate holder will earn interest on their investment at a predetermined rate and has the right to foreclose on the property if the property owner does not pay the taxes owed within a certain period of time.

6) If the property owner does not redeem the property within the redemption period, the certificate holder can take ownership of the property.

**Do your due diligence !!!

@Andres Felipe Aristizabal Are you asking for someone to be a part of a deal? Or, do you want a mentor?  If you want a mentor I would advise you to create some kind of incentive. 

Best of luck!

Section 469 of the U.S. Internal Revenue Code is a complex set of rules that govern the taxation of passive activity losses. While there may be some strategies or techniques that taxpayers can use to minimize the impact of these rules, it is important to note that the IRS is vigilant in identifying and disallowing any abusive tax shelters or transactions that are designed to circumvent the rules.

Therefore, it is generally not advisable to look for "loopholes" or ways to get around the rules of Section 469. Instead, you should focus on ensuring that they are in compliance with the law and that you are accurately reporting your income and deductions. If you have specific questions or concerns about how Section 469 may impact your tax situation, it is recommended that you consult with a qualified tax professional.

I am not a tax professional. I know enough to be dangerous. Do the right thing and listen to your CPA. If not get a second opinion. 

@John Lee After reading your post, I assume the note is performing? Please clarify the status of the note.

If the note is performing, then the Seller will most likely not sell at a deep discount if, in fact, the borrowers are paying on time and every time, regardless if there is no proof of insurance. However, if there are tangible signs of the borrower failing to perform on other terms, such as not getting property insurance, it might be something to leverage since it is a performance issue and a breach of the agreement. The borrowers must abide by the agreed note terms regarding property insurance. 

I'm unsure what the note terms are; therefore, I would make an indicatvie bid and then ask for all of the docs, especially the document outlining the borrower's responsibilities and what you can do if the borrower doesn't perform. In your case, "force-placed insurance." 

@Chris Seveney brings up some good questions that need clarification as well. 

I would advise offering some kind of incentive. Make it worth their while to whoever is helping you. 

Would anyone be willing to refer me a broker within the zip code for a BPO? I just starting on another note and need a BPO. Obviously, I would be willing to compensate them for their service. Thank you in advance! 

If you're interested in working with me, let me know. I am doing my due diligence on an opportunity in the state of Illinois that borders Missouri. I would be happy to compensate for a BPO/CMA. I would prefer a BPO.

@Mora Clark

Offer your tenants an option to buy in 1 year. Get an up front non-refundable option consideration. Offer Seller Finance, agree on terms and condition, and collect a monthly mortgage payment, you will still technically control the property without a property management, and taxes, insurance, toilets will be the responsibility of the tenant/Buyer. Play with a mortgage amortization schedule and you’ll find out you will most likely make more money in the long run.

Or

Cash out now and do a 1031 exchange and keep the money moving forward.

Best of luck!

@Zach Carner

Cash out!

Hi @Gary Dezoysa, I agree not to contact the homeowner. Leave that to professionals such as service providers. Your service provider will help facilitate communication with the homeowner. I would advise bringing on a real estate attorney to draft the new terms and conditions once there is an agreement. I would recommend getting on a mentor and compensating them for helping you through this process if you have never purchased a note. Especially an NPN or 2nd. Best of luck!

Description:

Looking for someone to provide a BPO for one single-family residence in Niles, Michigan. Access inside the property is not allowed. Your BPO doesn't need to be fancy. I'm really easy to work with. 

- Provide broker price opinion regarding the subject property.
- Provide a detailed analysis of the market around the subject property