Wholesaling Real Estate with a Tax Lien

[Sundiata Anadhani]

Hey BP Family. I was presented with a situation by a seller and need advice on how to go about this. A seller wants me to wholesale their property which has an $8K tax lien on it. The county auditor/assessment website is valuating the property at $54K. The place needs some repairs that I can see from the outside. But don't know to what extent yet.

My question is how should I go about this situation?

[Adrien C.]

It's really no different than any other property- you need to get a really good comp on the house and not just an assessed value. You also need a really good rehab estimate. From there you'll have your Max allowable offer. If that amount is enough to pay off any existing mortgages, taxes, liens, and judgements- it's a deal. If not- start negotiating with the liens and judgements. I'd start with everything else before hitting the tax. Make sure the individual in the lien is a titled owner. A house I looked at today has a $146K tax lien on the dude who lives there. He's not a title owner but only lives there. No worry about that lien.