I’m currently a part-time newbie investor from Texas that’s interested in wholesaling homes before they get sold at tax sale auctions. I wholesaled a home last May in San Antonio that had about $18000 in back taxes/code violations, however, I didn’t have to concern myself with an impending auction. My question is, would I have to worry about any other “legal” matters that would stop me from wholesaling a deal if I’m able to convince the owner to accept a deal?
I’m currently in College Station finishing up my first year of medical school, so I want to spend as much time as possible in San Antonio and Austin finding deals. I don’t want to waste any time with the stategy I’m considering if I can wholesale a home fast or I have to pay TOO much for legal assistance. Anyway, I’d appreciate any help with this question. Thanks!
The only real legal problem is the chain of title. Make sure they own it and what is owed against the property.
You could also find an owner who is desperate but could turn on you if they find out you are making a big profit on their misfortune. They may not want to sign and would just as soon loose out all together as see you make a dime.
Thanks for the reply. I generally use Hollerbach & Assoc to get a title seach done as soon I get the house under contract (contract signed, warranty deed recorded, limited power of attorney docs, etc.). I also us the following contingency in my contract, " This agreement is subject to the final inspection and approval of the property and all documents…"
If I find out that there are other problems (mech. leins, excessive damage, other owner, etc.), then I would deed the house back to the seller. Is my logic flawed?
Again, thanks for your help. By the way, I miss living in the Austin area ( lived there six years). I’ve been all over the state and there certainly is no place like Austin.
Austin is great as well. San Antonio is nice too and Corpus if you like it hot and humid in the spring and even hotter in the summer. Really friendly folks too.