Get To Know Your Local Tax Collector - Posted by phil fernandez

Real Estate Investing
#1

Posted by phil fernandez on February 16, 2001 at 19:09:19:

Bill,

Certainly the exact situation that I described doesn’t happen very often. However there are people out there that not only don’t pay their property taxes, but don’t seem to pay anything else either. It’s kinda like a pattern so they can’t borrow money.

I also have ran into situations where they might be able to bail themselves out once, but they get right back into the same problem a year or so down the road. Usually their credit is shot and or they don’t have a job so borrowing even smaller amounts becomes problematic.

I am working on such a deal right now. It’s not adone deal yet and may not materialize. We’ll just have to wait and see.

#2

Get To Know Your Local Tax Collector - Posted by phil fernandez

Posted by phil fernandez on February 16, 2001 at 11:04:05:

I thought this might help. We all see the tax sale notices in the local papers. By law they have to be advertised for so many weeks prior to the tax sale.

What I like to do is contact my local delinquient tax collector and ask her for a list of the owners who are behind with their property taxes before any notice of a tax sale appears in the paper. Often this person researches to see if there are mortgages on the houses. Normally if there is a mortgage she will contact the mortgagee and the mortgagee usually steps to the plate and pays the back taxes. What if there are no mortgages. That’s what I like to look for. Maybe I can cut a deal by paying the delinquient taxes for half interest in the property with the understanding that if my new partner becomes delinquient again I get their half of the house.

My tax collector also sheds alot of light onto the situation of the delinquient tax payer from which I get clues of motivation level. This information can be invaluable in crafting a deal.

Bottom line is get to know your tax collector and start building a positive relationship with that person.

#3

Another angle… - Posted by Ben (NJ)

Posted by Ben (NJ) on February 16, 2001 at 22:29:02:

a friend of mine has made a fortune utilizing this method: He will get a copy of the county tax sale list (for a deed state, not a lien state) and do a mass mailing to thousands of delinquent property owners,(particularly out of state owners who view this property as nothing but a headache) telling them if they do not intend to redeem, he will buy their interest via quitclaim deed for $100.00. Of course his response rate is 1 or 2 percent
but this has worked enough times for him to acquire over 10,000 properties in his 30 year career! He then sells the properties ala Lonnie deal taking a small amount down and carrying paper at a high yield. He gets mostly vacant land which is not my cup of tea but
it is a proven system. He discusses it on his website
at taxsales.com.

#4

Re: Get To Know Your Local Tax Collector - Posted by BillW.

Posted by BillW. on February 16, 2001 at 16:07:37:

Phil, Have you had success with this method? Are there really prople out there that are so uninformed that they will give you 50 percent of their property for a few thousand in back taxes? Why wouldn’t they just go to the nearest bank and borrow against the equity to pay the taxes. They could easily get a couple thousand if they owned the house free and clear. Why give up 50 percent?
BillW.