All Forum Posts by: Douglas Curtiss

Actually just heard from both offers, most they can come up with is 10% down.  So I either need to come up with the money to pay off the taxes myself now or forgo these offers and hope for another offer to come later.

I have a rather unique issue.  I have a 10 acre piece of property in Tucson that I have on the market for 37.5k.  I have had 2 offers based from purchasers wanting to use owner financing.  The issue is I obtained title from a tax lien foreclosure and there is still about $9800 in back taxes owed.  This makes owner financing difficult because the down-payment needs to completely cover the taxes.  I would pay them off myself, but don't have the cash free right now.  I reached out to a few of the hard money lenders here on BP, but was wondering if anyone here in the forum had any recommendations.

Thanks

DOM is 59 days. Not sure about rent since the current owner took possession after a tax sale and have not yet evicted the former tenants. 

Those terms are interesting. I’ll take a look at them. Thanks

A realtor I know recently brought me a prospect for a flip.  Details are this:

1900 sqft 3/2 SFR in Gila Bend, currently on market for $74k.  He came to me and said it's currently occupied and would make a great clean-up and with "only some minor fix-up and a vacant home we could resell around $100k." The CMA he attached showed:

Price by sq ft - $146, 250 ( low $34,778, high $239,598)

Price by FCV ration $96,866 ( low $46, 610, high $174,176)

Part of the issue is it is occupied and so until the tenants are out, they are unsure of the inside condition (it's also why they may have had issues selling it on the MLS).

I ran the numbers on the fix and flip calculator and came with the following:

Resale Value $100,000

Purchase closing costs -$2000

RE Agt fees for sale -$6,000

Sales closing costs -$3000

Monthly holding costs - $3000 (assumes 6mo holding at $500 per month)

Rehab -$5,000

Desired Profit $20,000

Offer Price $61,000

He then basically dismissed me (obviously too low for him to offer).  

Back-story for this property.  I am pretty sure the owner obtained it by tax lien foreclosure.  That is why the tenant is in place.  Also means the current owner has a very low cost basis for the house and should have room to come down.

@Darius Ogloza your mother in law is my idol!

@Russell Brazil thank you for these words of inspiration.

I have a rather unique situation. I have a property that I obtained through a tax lien foreclosure and I have been attempting to sell it for most of the summer. It is listed for $37,500 on the MLS but the offers we have received are all for selling financing.

The issue is that the property has about $9700 in back taxes that need to be paid off.  Most owner-financing offers are for about 10-20% down which won't pay off the back taxes.  I'd pay them off now myself but don't have that cash available in the account I am using.  

Obviously if someone came with traditional financing or all cash the taxes would be paid off, and this would be a moot point.  But the offers haven't been coming except for owner financing.

Any brilliant ideas?

Bought an Arizona Tax Lien.  Spent a total of $3,051.65.  Was able to foreclose.  Listed the property for $99k and sold it for $101k within a week.  Still looking to duplicate this homerun.

Carlos, I'm not sure if I understand your question.  Illinois is a lien state.  Meaning you usually bid at auction for the tax lien and are awarded a lien with up to 18% penalty per 6 months.  The owner has 2 1/2 years to redeem you.  If they redeem you, you get your investment plus interest.  During this time there are some noticing rules that you must follow.  Then you can file a foreclosure action and are issued a tax deed.  According to https://www.atgf.com/tools-pub... "the tax deed must be recorded within one year after the expiration of the redemption period, or else it is absolutely void with no right of reimbursement. The question of whether the statute of limitations can be tolled has not been fully resolved with the courts, and potential tax purchasers should not rely on these cases.1 When recorded, the tax deed vests in the grantee the title to the property described. All tax deeds convey merchantable title."  I agree with @Greg Scott it would make sense to have a conversation with an Illinois attorney with experience in tax sale laws.  Most tax sales expunge all other liens with the exception of local code violation laws and IRS liens, but again an attorney would be able to verify this for you.