All Forum Posts by: Michael Garson

I am assuming the owner will not comprehend any of this being in 80s, and never having paid any taxes on it (40 years!). So I would propose paying $1 and taking ownerhip, but talking with tax lien lawyer to work a reduction first. Not sure if that will fly. My friend doesn't want to pay 8k but will pay something for it. It also takes a $500 bond i think to push it to sherriff sale, with no guarantee of results.

I'm trying to help a friend buy the empty lot behind his house. I'm taking it as good practice for other deals in the future. Anyway here are the details....

Lot purchased in 1974. It is basically the middle of a city block with driveway access, no real reason to build on it (no one is building in that area). Owner never paid taxes, currently owes about 8K. I managed to locate him, he's in his 80's, living across the river in NJ. Trying to figure out the best next step. I haven't dealt with the city before about taxes, but they are dying for revenue.

Should I:

A. Get him to transfer deed for agreement to pay back taxes? Then negotiate with the city on tax bill (maybe offer to pay principal?) Am I (or my friend) liable for all taxes after deed is transferred?

B. Get owner to negotiate with city first, or represent him, and I pay the taxes through him, then we transfer the deed.

C. Push it to Sherriff sale, it seems like they start the bidding at $1K but then I am competing with others for it. A slight risk there.

Or

D. Or something I hadn't thought of yet?

Thanks for all advice!

Question for Steve about transfer to LLC:

I am close to purchasing a property in Philly, and was wondering if I set up an LLC first, does the transfer tax apply to that if ownership goes directly to the LLC?

I am using conventional financing, so would a bank lend to me if I used an LLC for an owner occupier, or would I have to start as personal property?

If I do locate them, what is the best way to approach? The properite I'm targeting have been vacant a long time, but whomever is paying their taxes at least is doing that, they must have at least a minimal interest in them.

One approach is generic:

I'd like to buy your house, I know taxes are going up (they might double in Philly), let me take it off your hands, I'm an investor , etc...

The other approach I'm not sure if good or bad is:

Hi, I really like your father's house, I'd like to buy it and fix it up for myself, I've been looking for something like this.

What I don't know is appealing to their sense of someone nice will be living in their Paren't/Grandparents house, or I am just buying it to make money. Which typically will get me a better deal?

I'm looking for lenders who offer the "My Community Mortgage" in PA (Pennsylvania).

Please let me know if you know of any.

It's offered by Fannie May, but they don't have a list of lenders! It offers an alternative to FHA for owner occupier, allows up to 4 units with 5% down, and standard PMI. I'm planning to do a multi-unit, and this is way better terms than FHA with their PMI now being permanent. I believe I can move out after 1 year.

There are a few properties I'm interested in, but the owners appear to be deceased, and no one is living in the property.

Someone is also paying the taxes and the address listed with the city is the same as the house. (no other address listed)

Since someone is still paying taxes, the city doesn't care or seem to notice that the owner is deceased, so property still in name of deceased.

The city also says that if they haven't died in the city, they won't have any more information.

Is there anther way of locating the deceased or their heirs? I have been to the register of wills, searched tax records, and city death certificates.

Thanks for any help!

I'm looking to network, considering wholesaling to get started, but ultimately want to buy and hold.

I am wondering how to locate estates of deceased owners? At least it seems they might be deceased.

I am in Philadelphia, and noticed a few properties in a developing area, taxes are paid, but address goes to the same unoccupied property. Both properties I am looking at were last transferred in the 50's. One is currently a shell, another just unoccupied.

Who does the multiifamily with less than 20%? That's the basic thing I'm trying to find out. I'm okay with PMI if I can get rid of it later.

I won't have something by June 1st, so FHA is getting less attractive. The strategy might be get in with FHA and refinance after 20% equity. Which might be easy if I'm rehabbing.

I'm looking at multi-family owner occupied, 4 units or less. In the city of Philadelphia. I've looked at the rural loans, but they don't seem to qualify.

I thought FHA was an extra 1.5-2% in fees, plus higher PMI?

All the conventional I know about have said 20% down.