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. 

[Anissa Hernandez]

@hank 

@Hank Oyler Are you buying these homes with normal FHA funding? Or how are you funding these deals if you don't mind me asking?

It sounds like your buying the homes before the tax lien certificate holder can collect the property from default? 

[Hank Oyler]

Originally posted by @Anissa Hernandez:

@hank 

@Hank Oyler Are you buying these homes with normal FHA funding? Or how are you funding these deals if you don't mind me asking?

It sounds like your buying the homes before the tax lien certificate holder can collect the property from default? 

 Hey Anissa. These are cash deals. 

[Anissa Hernandez]

@Hank Oyler Thank you for sharing. 

[Account Closed]

Thanks for you quick response @Hank Oyler

So I better understand: Get tax default list, show only last 2-3 years, mail them, if viable-get them under contract with it known that taxes are paid by the seller NTE, and proceed with wholesale process--right?

Are people on the tax delinquent list not at auctions yet correct? Which is what I want yea?

Side question: How do you like oncarrot? How many leads do you see per month them? Of those leads, how many deals do you acquire? 

SORRY for all the questions but I find this tremendously helpful especially since I have not found any other posts on tax default wholesaling.   

[Hank Oyler]

yes you got it. There is no magic formula so follow your gut. The key is taking action and actually getting some mailers going.  The people on list are not usually at Auction. In my State they are people who have paid taxes late or tax cerficates have been sold. Oncarrot is great. I don't get a lot of leads from online. I hope to improve there down the road.  For me mailers are where it's at. Hope that helps. 

[Account Closed]

Thank you so much for your help!!! I seriously appreciate it. Working on starting a directmail campaign.

[Hank Oyler]

Sweet keep us posted. 

[Ed Shalda]

Thank for the great info Hank. One question for you, where do you source your tax delinquent list from?

[Frank O'Harroll]

Thank you all for sharing your questions and responses, they have helped a lot. I am a new wholesaler in Lakeland, FL, and I am working on tax delinquent and probate properties as I learn the ropes. Any an all resources and connections are helpful. Any tips on the best skip tracing software to use? I need to build capital before I can send out letters.