motivated sellers have property for sale owes back taxes should i try and do a deal asking $70k arv $129
We need more information in order to help you analyze your deal.
What is your plan? Are you going to rent it out until the market gets better or re-sell it now?
What are rents?
What are other houses going for?
How much will it cost to fix up that house?
How much are the back taxes?
Why didn’t he pay them?
Furnishedowner
spoke to owner he just didnt pay taxes, taxes he owe is in the ballpark of $20k for property and about $6k for IRS he do not have the money to pay the taxes that is why he is trying to sell he owes nothing on the property he inherited the property. He is selling the lot also it is a large lot. My plans was to wholesale. If he don’t pay they will foreclose on this property.Most homes in that area sold for $90k.Repairs look to be about $5k they did a total rehad about 5yrs ago. What happens if it goes into foreclosure?
It sounds to me like you need to do some more homework. You say the ARV is around 129K, but then you say houses in the area are selling for 90k. If its similar to those properties nearby selling for 90k, then that is what you should count on, not the 129k. If he owes nothing on the property, ask him what he will take for it. With the back taxes, personal tax obligations, and the slow market, you might be able to get a good deal. Also, you mentioned something about a lot? Its not a mobile home is it? If you are buying anything like that it really needs to be on a permanent foundation before even considering spending that kind of money on it.
If it is a stick built home, it sounds like what you should do is make an offer to buy it. Offer enough down to pay the back taxes, and ask him to carry the financing at a favorable rate.
Try to buy it at the tax sale for $25K. Or, after the tax sale, contact the property owner and purchase his redemption rights for $100 and have him quit claim the property to you.
Then redeem the property to clear title.
spoke to him he wants $70k for everything house and lot there is nothing on the other lot to carry the financing at a favorable rate can you expalin pls or purchase his redemption right and quit claim the property then redeem the property to clear title