Liens in my way wholesale deal

[Garth Collins]

Hi,

My name is Garth I am a newbie wholesaler in the northern Illinois area. I have come across a property in my target area through my bandit sign marketing. The property is run down, needs a total rehab, and looks like a few squatters have been borrowing it. The owner hasn't been to the property in years and is just ready to sell as soon as possible. We agreed on a purchase price of 7k, but we haven't signed the contract yet. I am a bit hesitant because I recently found out there are 8 liens on the property totaling about 3k, also according to the county they owe 2k for unpaid taxes in 2010. I'm not sure if i can still make this deal happen. Should I come to the seller with a lower offer of 2k? Should I keep my offer the same and write the contract to state the liens will come out of their 7k? Or should I put the responsibility of the liens on the end buyer? I was planning on marketing this deal to my buyers for 13k, but these liens have my head spinning. This would be my 1st wholesale deal if I were to close. I could really use some advice from the bigger pocket community, I'm open to any and all suggestions. Thanks

[Tim G.]

Contact a local realtor or attorney... That's gonna put this deal in a spin cycle quick!

Follow Ricks advice. Seller pays liens out of price paid.

Protect yourself with inspection periods, add value by dealing w squatters and or negotiating the lien balances down.

Also, action is action. We all want our first deal but remember you are on the field and in the game. It's okay to play and not score, at least you aren't in the stands anymore being just a fan. You'll get one soon if you are hustling.