Found something while driving for dollars. Now what?

Question

I have been able to locate a property here in San Diego county that I want to do some homework on. All I know about the property is what I can see from the street: The fence is falling over, the yard has not been maintained, the pool is a swamp, there are several garbage cans in the driveway, and a toilet in the yard. The neighbor seemed happy to talk about the house and gave me all this: "It's an eye sore" "The husband passed away a while back and the wife isn't (or wasn't) healthy." "It doesn't look like anyone's living there." "Only see people taking out trash." "The city is coming out to clean the pool." "If its not already in probate it probably will be soon."

I kinda felt like a vulture as I was looking at the property but I realize this is what I'm looking for.

Now what?

What would your next steps be?

I kinda felt like a vulture as I was looking at the property but I realize this is what I'm looking for.

Now what?

What would your next steps be?

Tim G. · Answer

Couple options. Reach out to a title rep and get access to their software that allows you to research ownership and transaction history online. Try and track down the owner once you know their name etc... On homes where an owner died, its usually trying to locate relatives through searching public record.

Another option is ask an investor with access to this software to look it up for you. I am happy to look up the info on this home if you would like. Send me a PM.

Ironically, I've noticed that the super beat up homes are often the hardest to buy. They're in disrepair for a reason, there's dysfunction, drama, death, probate etc going on. The owners have put off many tasks and decisions for a long time and that is likely to continue. That and certain types of probate require a court administrator who will require the home is listed.

Not that you shouldn't pursue this deal, but I find it interesting to take note that most deals I get in San Diego look like normal homes from the street. Just outdated or a little trashed but I wouldn't have stopped and sent a letter based on the exterior appearance....

Nathan Gesner · Answer

Review the county records to find the owner. Send them a personal letter explaining that you are an investor that specializes in buying homes and fixing them up. You drove by and noticed their home and wonder if they are interested in selling. Let them know what you bring to the table and how you may be able to help them. Do they want hard cash to cover expenses? Do they want to owner-finance so they can avoid taxes and produce steady income?

Don't over-think it. Just do something and you'll eventually get some deals or figure out what works.

Katie L. · Answer

@Michael Lambert

Definitely do some research as to the ownership and see what you can find out. In San Diego, you might be able to determine the owner by looking as the property tax bill online. Whether the property taxes have been paid might tell you a lot too. If it is in probate, that is a long and drawn out process and it might be tied up while going through the process. There might be several reasons why the family is holding on to it— in California given the parent-child exclusion for property tax reassessment and prop 13, if a property was bought years ago, the property taxes on an inherited property could be incredibly low that a lot of families choose to keep inherited real property within the family instead of selling, especially if it’s paid off. If the owner is close to dying but hasn’t yet, heirs may also be waiting for a basis step up before selling. I’m not a saying this is what is happening but I’m just saying there’s more than meets the eye to a dilapidated property and I go through this tax analysis with clients often. You certainly can try sending a letter to the property address or the registered owner if different.  But doing your research ahead of time to know if they are current on their tax bills, the date of last purchase, and whether there is a deed of trust will help tailor your letter.

*this post does not create an attorney-client or CPA-client relationship. Readers are advised to seek professional advice.

Found something while driving for dollars. Now what?

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