Pick apart my strategy!

[Eric Reimer]

Please pick apart my incredibly amateur strategy! I am planning on starting an aggressive strategy of researching all the properties with unpaid taxes that are on the verge of falling into the foreclosure process and offering to pay the taxes along with some cash in hand to the seller. What should I be looking out for when making an offer on this type of property? Anything specific red flags? Also, what would be a good negotiation foothold for me to make this sound like an appealing offer to the seller? Any and all help is greatly appreciated!

[James Alderman]

@Eric Reimer this is a good way to get leads and learn how to speak with potential sellers. Make sure you're okay with being rejected until you find the diamond in the rough.

Distressed properties with unpaid taxes may not be occupied. Do some internet research, see if the owner lives in another house in the county, etc.

Distressed properties are going to need a lot of work. You may not have the experience to estimate rehab costs to make an offer if the owner wants a price nearer market value.

These properties may also have a mortgage. You can purchase the home and take over the existing mortgage with a "subject-to" deal. A seller behind on taxes may also be behind on their mortgage. If you purchase subject to the existing mortgage, you'll need to bring the mortgage payments up to date along with the taxes.

In this market, most homeowners will be able to pay off their taxes and mortgage by selling with a realtor. You'll need to find value you bring to a potential seller that they won't find by simply selling in the open market. Sometimes this can simply be a friendly face, but keep your ears open, let the seller talk, and find that extra value that you can bring to the table.