All Forum Posts by: Tom MacDonald

A few questions about tax foreclosures that I'm hoping the BP community can help answer.  I'll be bidding in Texas but I suspect these are general questions: 

1. If the minimum bid is $5000, does this mean that the homeowner owes exactly $5000 in back taxes?
2. If the winning bid on this property ends up being $11250, who keeps the additional $6250?
3. If the answer to #2 is the homeowner (let's call him George), does this mean that George will likely just turn around and use the $6250 ($5000 taxes plus 25% redemption premium) to redeem the property from the winner of the auction?
4. If George has $100,000 left on his mortgage when the property is sold at the tax auction for $11250, who is responsible for that mortgage payment?

Thanks ya'll!
Tom

An investor friend of mine found a great deal on a 6-unit property in Houston, Texas but was not able to secure financing.  I would like to take advantage of this opportunity through a partnership.    I have some of my own money but not enough.  I think this property can be purchased for <$500k, and after minor renovations ($15-25k) will appraise for over $600k.  It is in the most desirable area of downtown Houston and will achieve consistent, high rents.

Please pm if interested.  Serious investors only.

My buyers agent represents a renter who has just been informed that the owner is going into foreclosure.  The house is in one of the most desirable neighborhoods in Houston.  What are the best ways to take advantage of this situation?  Can I wholesale this?

Tom

Thank you @Kami S. and @Russell Brazil for those comments, they probably just saved me time and money.

I hear many times on the podcast that it is good to focus on a single niche, however my partner and I are considering a different tact.  He will develop a list of tax delinquent properties, I will focus on probate and high-equity absentee owners.  Our plan is to send out 200-500 letters by the end of the week targeting these three groups in our 1-zip code farm.  In order to advertise our services to the whole neighborhood we will put out bandit signs at the subdivision's entry/exit streets.

I have also been looking into buying a high-speed laser printer and ordering bulk mailing materials from China through Alibaba.  Perhaps that's overkill at this stage...

There is a specific neighborhood with about 1300 houses that I would like to find motivated sellers in.  Would it be effective to conduct a mailing campaign that just mails to every house in this neighborhood, instead of attempting to target a specific type of seller (i.e. absentee landlords/preforeclosures/etc.) ?

Thanks BP,
Tom

@Account Closed pms sent

@Marty Johnston pm sent

Hi BP, a friend and investor of mine has found a great deal on a multi-unit / multi-family property in Houston, and he's interested in finding a private lender to work with. He's an experienced investor / rehabber but has always used conventional loans.  He has already been approved for a hard money loan but he's hoping to get a better deal through a private lender.  Can anyone offer suggestions or refer us to anyone in the Houston area with  a good private lender network?

Thanks!
Tom

Thanks @John Walker, great info!

Hi BP,

My partner and I have found a motivated seller off market, and want to make him an offer.  When my partner meets with this seller to make the offer, what sort of paperwork should he bring to 'seal the deal'?

Also, what kinds of documentation is useful to bring in order to explain to the seller how you came up with the offer?  We plan to print out our Bigger Pockets flip analysis, comps of the area, the flood zone map (the house is in a flood zone - any comments on this would be helpful).  Anything other suggestions?

Cheers,
Tom