Why don’t investers, who rent homes, pay their property taxes?

[Robert Goldman]

I am noticing quite a few homes that are 2-3 years past due on their property taxes and none of them are mortgaged. They are up for a tax deed auction because they have 2-4 years of tax liens and some are rented out too. Why wouldn’t the invester(s) pay their property taxes?

[Jerry K.]

@Robert Goldman When you were in grade school did you ever trade a part of your lunch that you really didn't care for because someone offered you something you liked a lot better? Like you had a small bag of peanuts and the other kid had a candy bar you loved. You couldn't believe the other kid offered his candy bar for the peanuts. He had to make you the offer because you didn't think he would ever consider that a fair trade. But what you didn't know was that he hated that type of candy bar you loved and he loved peanuts.

You have stopped a potential great deal because "you think" they won't accept your offer. But you don't know that. They may want out of the tax debt and the burden of owning the property. Your offer of paying the taxes and a little bit more - whatever that amount is - could be the answer they would accept. 

Many people don't want to list with a broker to sell because they don't want the hassle. A broker will tell them they have to clean up and repair the place. They'll use words they don't understand like "listing fee, contingencies, subject to inspection," etc.

You walk in and say, I want to help your situation. Tell me what scares you about your position. Then listen. You may find they just want the tax burden off and they want out with no other money out of their pocket. If you offer the amount of the taxes and anything extra to help them move - you could be the answer that gets this burden off their shoulders.

To paraphrase the Gretzky family - You miss 100% of the shots you don't take.