To start with I’m a newby. Having said that I have located two small properties with the same owner here in MA. They look great! Grown over and neglected all in an outstanding location. I checked out the property at the town hall and it shows the property was sold to the current owner for one dollar, a relative I assume. There are two and a half years back taxes owed and I also checked out where this individual lives and it is a mess as well. This tells me I may have a motivated seller. The combined assesment value for these 2 bed and 1 bed homes is 176,400. My question is how should I approach a deal with this guy? I’m sure given his state he would love to get some cash and I would love to get started in my new career. All your wisdom will be greatly appreciated.
I guess the real question would be where should I start with an offer. I’m hoping he has no idea what he has. I will save his butt from losing the property outright but should I go lowball on an offer? I’ll pay the taxes, closing costs and all the fees involved to it is as atractive as possible so he can pocket some “party” money if you know what I mean.
Keep in mind … the homeowner may still be in denial and thinks he still has time. let they know what their options are including their option to sell to you for a favorable price or equity split in return for paying their back taxes before it goes to the tax sale. A lot of homeowners will not sell to you because they think you’re taking advantage of them because they can’t pay their taxes instead of realzing you’re actually helping the out.
Perhaps you are right about him being in denail. He owes $8,693.89 in taxes and utilities already and judging by the where he lives all cannot be good in his life. The offer of an equity split would mean that by paying his back taxes and saving his property I will take, require, charge him (what’s a good nonhostile term?) a split on the equity and I walk away?
You need to find out how motivated he is to fix the situation, this will determine how you would structure a deal. He may only want moving money, but on the other hand he might want all the equity. You’ll never know until you find out what his plans are for the future. ( I would ask about his plans first! ) don’t bring up equity unless he mentions it because that may not be a priority to him. It could be as simple as providing him with cash now!!