Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Rehabbing & House Flipping
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago,

User Stats

44
Posts
17
Votes
Robert Campbell
Pro Member
  • Real Estate Agent
  • Belleville, IL
17
Votes |
44
Posts

How do property taxes work in a small quick wholesale deal

Robert Campbell
Pro Member
  • Real Estate Agent
  • Belleville, IL
Posted

I am looking for more understanding on how Property Taxes work when you buy, and when you sell. I recently bought a property for 3150.00 at auction, put about 2.5k in it, and sold it for 10k, and in the end lost about 300.00. I sold it FSBO, agreed to 1.5k realtor commission (mistake) for the buyer agent etc etc. - I decided I didn't want to mess with it because Im starting another project with higher potential return.

Now, as an example, I look at this one:

https://www.zillow.com/homes/63-GRANVUE-DRIVE-BELL...

Its on the Auction block, if I picked it up for 2 or 3k, and sold it for 10k to someone else who wants to work with it, essentially a wholesale deal, and didn't spend any money fixing it up, and agreed to max 1k realtor fees if any, I might make some money on it.

If you go to our county tax assessor site, and search '63 Granvue', youll see that 1) the total taxes for 2018 are $2981.38, and 2) they are paid by the bank already for 2018 

http://www.co.st-clair.il.us/Pages/parcel.aspx

What I am asking is - if I bought this at auction, and sold it within a couple of months as a property someone else can rehab, how would the property taxes work / what would I end up paying?  I avoid these small wholesale deals (especially after the one I mentioned above) because the taxes could make it not worth the while.

Apologies if this is a newbie question, Im used to making more profit and expecting up to 1 year of property taxes max, getting a discount at the beginning, then playing catchup at the end, ultimately paying p. taxes for the time I hold and carry the property.

  • Robert Campbell
  • Loading replies...