Liens in my way wholesale deal

[Garth Collins]

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

[Wendell De Guzman]

Thanks @Brie Schmidt for the mention.

Garth,

1) renegotiate the deal - get it for $3K instead and mention the liens as leverage (mention $2K as starting point and then go no more than $3K)

2) once you have it under contract, get Power of Attorney from seller so you can negotiate with the lien holders in his behalf

3) negotiate with the lien holders (the 8 liens totaling $3K). See if you can make them agree to 1/4th of the lien amounts.

By this time, all the liens + your purchase price will be...

$3K (purchase)+ $750 (8 liens) + $2K (unpaid taxes) = $5,750

4) wholesale the deal for $12K and viola - you get a $6K wholesale fee