Newbie - delinquent tax sales OHIO
Member since 2008 · 2 posts · 0 votes
Hello Experts!
The area I live in has been struck hard by foreclosures and delinquent taxes.
In today's paper there are 140 properties forfeited to the state for non-payment of taxes and a sale is scheduled later this month.
Can anyone give me a quick step-by-step list of what YOU would do if you were going to flip one of these properties?
I know I'd have to do a title search... what else?
What makes a property favorable to you?
What makes a property say heck no?
Please don't refer me to somebody's product - I'd like to hear from REAL people with real results.
Best, dp
1. Pick a county you want to focus on (try to pick the one that has the highest property values as possible if at all possible).
2. Print out a list of all the properties for that specific sale.
3. Figure out which properties have houses on them. In the beginning focus on sfr's (single family residences) because they're the easiest to liquidate.
4. Find out what is going to be the minimum bid on each property that you find appealing (sfr's). Find out what the fmv (fair market value) is for those homes so you know how much you stand to make on each deal.
5. Figure out how much you have to spend and set a maximum price for each property that you're willing to pay before you go to the auction and stick w/it. So you don't get caught up in the auction fever.
6. You need to create a buyer's list. There are many posts on this forum of how to do that. Also you could find someone on this forum that has been in real estate for many years and offer them a finder's fee for hooking you up with a buyer as well if you don't want to create you're own buyer's list.
7. After you purchase the property from the auction your goal should be to make as much as you can on the property, while selling it in the shortest amount of time. So you need to sell the property to another investor preferably @ 70% or below ARV (After Repair Value).
8. Enjoy the fruits of your labors!!!
Your Questions:
I know I'd have to do a title search...what else? The title search handles a lot of due diligence for you. But you can also compare the property description from the county to the county assessor's map to make sure the match because if they don't you have a problem.
What make a property favorable to you?
I like properties with the biggest profit potential personally. But I would definitely focus on sfr's because like I said earlier they are easiest to liquidate. It doesn't really matter the condition of the property as long as you know you can sell it for a lot more than you paid for it. Also like I said earlier try to purchase in neighborhoods that still have some type of value. For example some homes in Detroit are only worth $4,000. Probably not the area you want to focus on!!!!
What makes a property say heck no?
A property that doesn't have a good profit potential. Properties that are polluted with hazardous materials on them. Believe or not they're out there and costs a lot of $$$ to get them cleaned up.
If you have anymore questions don't hesitate to ask me. My list of steps are just as you said a quick step by step list that should definitely help you get started and point you in the right direction. But it is in no way all the steps in the process and is just my opinion. Sorry, just had to add my little DISCLAIMER!!!