Tax Default/Delinquent Wholesaling

[Account Closed]

Hey guys, 

A somewhat noob here. I am Arizona looking to wholesale tax default/delinquent properties. I understand the basic concept wholesaling but how does it work with tax default/delinquent cases. 

Does the Cash buyer deal with property taxes?

Does anyone have a general step by step run down on how one would go about this?

Thank you for those that can assist!  

[Hank Oyler]

So here my take. Tax Default list can be garage so be careful. I'll get a tax default list and then sort in excel to show defaults for last 2-3 years only. Then I mail those addresses. That way you don't get tax defaults from previous owner. I have got many deals this way. All of my tax deals were closed the same way. I made offer to buy house:

I.e.

Contract                      100,000.00

Deposit.                           1,000.00

Pay back taxes NTE       3,000.00

Total due at closing     $ 96,000

I list tax amount as not to exceed. Reason for this is if title search comes back with other issues such as code violations or Seller owes money to clerk of court for other things then closing can take 60-90 days to clear all that up. Taxes will go up each month. So you need to protect yourself. Anything more then my NTE amount comes out of sellers funds at closing.  We pay the back taxes at time of closing. Usually via laptop at closing table. Or sometimes is really behind the day before via money order / cashier check  at courthouse downtown.    You can call tax collector and give them address and they will talk to you np. They will give you specifics. 

Hope this helps.