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Updated over 7 years ago on . Most recent reply

User Stats

9
Posts
3
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Joey Rivera
  • Houston, TX
3
Votes |
9
Posts

First deal..need help

Joey Rivera
  • Houston, TX
Posted

I was recently contacted by a motivated seller.  Seller's mom passed away in 2013. The property was probated and he is currently the executive of estate. The property has no mortgage. There is a tax lien on the property for $137,000 because that is the amount Medicaid covered for Social Security. 

The Seller's lawyer made an arrangement with the IRS that whatever they sell the property for, the IRS gets 50% (No specified amount) and the other 50% would go to the Seller's brother. The seller only wants the last 3 yrs. of property tax he paid to keep the property current. The tax assessment for the property is $54,000. I had an agent pull the comps for the area and it came in at $145,000.

The property is a 3bd/2b 1 car garage. 1,350 sqft. From what the Seller is telling me the property is pretty distressed. There is currently a squatter in the property. Has been there since 2011. I don't think there is a contract in place. Seller hasn't been able to evict him, but says he is willing to leave once the property is under contract.

This is my first time doing an actual real estate deal. I want to make sure I don't miss a step. The Seller is highly motivated and is willing to do a fast cash offer. What would my best course of action be here? I don't want to low ball the Seller but I don't want to buy a property that needs too much work. I'm going to ask a few questions here as I am brand new to this industry. So any little bit of information is definitely appreciated.

1. When making a cash offer, do you go with the tax assessment value or do you go with the comps?

2. Once the deal is under contract, I know you have to record a memo. Where do I record a memo.? I would imagine the Seller has to be with me to get it notarized?

3. If the squatter puts up a big deal in the process, what actions can I take with a contract in place? Would I put in a contingency clause for that specific matter? 

4. When it comes to contracts, how do you make changes if needed? Are they done digitally or by pen, or does it matter? I just don't want to do anything illegal?

If any other details are needed, I will try to communicate as soon as possible.

I know a lot of this is basic but I would really appreciate any help I can get. Thank you

Most Popular Reply

User Stats

234
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144
Votes
Shahriar Khan
  • Investor
  • Houston, TX
144
Votes |
234
Posts
Shahriar Khan
  • Investor
  • Houston, TX
Replied

@Joey Rivera First off nice work. This is what i would do 

1) Find someone who can pull comps for you (happy to help if you needed , IM me ) 

2) Get a Single Family TREC contract (google it) and fill it out 

3) Figure out investor price and put that on the contract (mkt value minus all cost and discounted by 70% )

4) Let the owner know that will handle all probate paper work + find a customer and it till take you 60 days + offer him 100 dollars for earnest money 

5) Go to title company and clear up the title (this will take you a month or so)  

6) Once title clear ... market it here and it should be it.

Sounds like a lot but its really simple Find a partner/mentor who could help you go through the process and help you sell as well 

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