OfflineHello all Im a complete novice and have a question, My wife and I were driving around the Good Side of town and came across a Huge distressed home in the best side of town, So we Jotted down the address and Checked who Owned It, Well during our search we saw that the owe A ton of taxes since 1984, well homes in the area go for 180k-250k, but heres the kicked the owner owes 173k in taxes plus Penalty and need a tremendous amount of work. Id say about 50-80k, so with that it seems like a horrible deal to me, But is there any way to get it cheaper from the tax man???
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http://www.deangraziosi.com/content/southcentraltexas
South Central Texas REI Group
Hi South_tex.
The tax man has a no deal situation. You pay what is due. However, there is of course nothing stopping you from first of all contacting your city and asking if they are willing to accept an offer. Preferably you would want to negotiate with the councilperson for the district in which the property is located.
Make an appointment to introduce yourself and tell exactly what your objective is: Improving the neighborhood for his constituents.
Normally all tax deed properties have to go through an auction. Once this has been done and the property is still not sold, the property is offered to various city departments to see if they want it, then it is offered to non profit organizations and if they do not want the property, your councilperson could have the city sell it to you. You will have to have an independent appraiser do the appraisal. You will pay the appraised value.
Another approach to obtain city properties (owned by the city) is to form a non profit organization and ask the councilperson of the district to deed the property to your organization. Be aware of rules for non profit organizations.
The organization may have to pay something towards the charities support by the councilperson.
Just be prudent 173 + 80 = $253 which is more than the going value or surrounding properties.
Best regards,
Fanbot
The greatest force on Earth, compounding interest. - Albert Einstein
Call the tax collector find the person that handles the offers and make them an offer all they can say is no! Do not go to high or too low!! Good luck!
Thanks For The Advice, Unfortunately I'm away From home been gone for the better part of a month, but I will go And seek the tax collector when i can, and hope fully make some kinda deal..but i most defiantly wont pay anywhere near the amount owed..but its a offer...
http://www.deangraziosi.com/content/southcentraltexas
South Central Texas REI Group
BAREM pages 241-243, Just about finished the book, and i was pleased to see something similar to my story . Well I will do my due diligence and hopefully make something happen.
http://www.deangraziosi.com/content/southcentraltexas
South Central Texas REI Group
Like others have said, go to the town office and check it out and make sure you have all the correct info on the property if you're still interested in making a deal on it. So far though, I have to say it sounds like more trouble then it's worth given the amount the county is looking for back taxes and such. Only when the independent appraisal is done and a due diligence check list, will you be able to tell if it's flexible enough for actual cash flow when all said and done.
One last thing, 33 out of the 52 states are Tax sale certificate states where you can buy/purchase the liens to all kinds of property with interest and if not paid within the specified amount of time, you go through that counties process and end up with whatever property you bought the lien for in back taxes. These make great side investments if you get a collection of them on good properties with great loan to value ratio's (LTV) because they're secured by real property.
All the best to you on your investing for 2010!
There are only 50 states.