All Forum Posts by: Darla Holtzclaw

Hello All,

This may be an academic exercise, but I want to learn how to approach contacting heirs of deceased owners of distressed and pre-foreclosure properties.   I was researching a house that is coming up in a tax foreclosure sale.  I did a drive by and there was a gentleman cleaning up the yard named Michael.   He said the city pays him to do so.

He told me that the owner died around 2006-2007 and that she has some family in California.  My sister in law is a closer at a title company and said she would do a title search for me.  My own review of public records showed that the property has at least 43K of back taxes and charges from the city, maybe more, but the lot is probably worth about 150-200K.  

I was reading another post by @Rick Harmon. He suggested joining ancestory.com, which I plan to do.  I'm wondering if I'm lucky though and actually find an heir, would there even be enough time to do anything in Texas before a May 5 tax sale?

@Rick H. thanks for all the great information. I have viewed a few of your other posts, and I really appreciate your attitude about finding heirs and treating the deceased with respect.  I wanted to ask if anyone has experience though with adverse possession in Texas, Austin to be exact.   

I was talking with a gentleman who said he paid the back taxes (2600) on a property and was given a temporary deed, and the city let him use it to turn on utlities.  He lived there until the owner showed up.  

It made me think there may be a strategy there if the property isn't too derelict, to pay the tax bill, and lease the property for a period of time (with full disclosure of the situation), and hunt down heirs.  Is this something people do?  

Hi Dennis,

With FHA loans, they do look at the source of your down payment. There is some flexibility, but they frown on the down payment being sourced from another loan. However, I would refer to your lender to be sure. You could borrow against a 401K, typically up to 50%, for a downpayment. Though, there are pitfalls to doing it that way also, as it may be hard to pay yourself back. But my thought is better to pay yourself interest than someone else.

http://www.fha.com/fha_article?id=441

Hi Tim,

I am from Corpus Christi and my Dad is a RE broker in Calallen (Holtzclaw Hermann Real Estate).  

What you are describing seems like, 1 part realtor,  1 part home inspector (for flips/remodles), and 1 part GC. 

You could see about becoming a licensed home inspector, which would put you into contact of buyers at the point of sale, you get paid 200-400 per inspection, and could also help you get business for rehabbing.

I dont think you would want to do anything which could be contrued as real estate advice (ie comp analysis) for a fee because you could get slammed for practising real estate without a license.  Of course you could go for your RE license too.

Stephen,  

I agree that you work to have her capture that vision you have, but also gift her a gift, something romantic.   It doesn't have to be super expensive.  Maybe a night out away from kids.  Whatever is most romantic.   Your marriage is an investment also.   

I have a husband that is more of a spender than a saver, and he had some memories of his own father owning duplexes that they had to go work on and mow the yard, so he wasn't a fan at first of the idea of investing in real estate.

So when I sold the house I had purchased before we were married, and have been renting out since we moved into a rental together, in my mind, that goes straight into down payment on a new investment and paying off some consumer debt.  He of course asked how much I could give him. I settled on $500 and he was happy.  

However, instead of buying a big huge new house in an area with lots of new home construction with minimal appreciation, he is going to let us buy either buy a duplex and live in one side for a year or two, and then do it again, so we can keep using owner occupied loans, or buy a house with a lot that can be sub-divided out into condos or a duplex. 

Thanks @BillExeter.  

Hi Folks,

I'm afraid that I'm going to be paying some Cap gains this year on a property I've had rented for a few years.  I used to live there, but I have rented it for too long.  

Would it be possible to 1031 and purchase a duplex, but live in one side.   One side for tax purposes would be rental property.  Has anyone lived in one side of a duplex.  How did you treat the property on your taxes?

Thanks!