HELP! I want to wholesale a tax lien property!!!

[Ty Hines]

Hello all,

The other day I ran across a property that sits in a very nice neighborhood.The house is abandoned and in need of repair. I did my research and after a few calls got in contact with the owner. He informed me that the house was sold in the tax auction back in May. In Georgia once a house is sold at the tax auction the owner has the option of regaining control of the property for up to 12 months before the title changes owners.This is done by repaying the debt to the buyer plus 20% interest.

In order to protect my interest and prevent the owner from speaking with any other investors about the property I drew up a contract that basically said that my company represents him on all matters concerning this property, and that we would receive first right of refusal when it comes to purchasing the property. He signed the contract.

The debt owned is $14,000 with interest $16,800. He wants $10k which Im thinking more around $4k-5k. In the contract I stated that I would need 10 business days to gather all information and make a final offer.
The recent comps (last 3 months) show $85k-$110k. From what I can SEE the house needs no more than about $7-$8k in repairs. I will have one of my contractors look at it once I do more research.

I spoke with someone at the tax office but they were of little help.

Any suggestions or comments would be helpful. I have been to several tax auctions but never purchased anything neither been involved with any tax auction deal.

Thanks in advance for all comments.

[Shannon Feol]

Sounds like there are a lot of "ifs" in this situation. As Steve said, there may be other liens on the property, as well.

Also, most tax lien experts will tell you NOT to make any repairs/alterations of any sort or place a tenant until AFTER the 12 month redemption period is over, so you will be holding the property as-is until next May.