How to Buy Property with Delinquent Taxes (& Where to Find Them!)

Knowing how to buy property with delinquent taxes can open you up to a slew of new deals. Maybe while driving for dollars, you stumble across a property with back taxes on it. What do you do? Contact the owner about your interest? Check with the courthouse first? Of course, you don’t want to make a real estate faux pas and miss out on a great deal! Fortunately, Ashley and Tony are here to help you navigate the situation.
Welcome back to another Rookie Reply! Today, we’re addressing properties with tax liens and how to potentially get them below market value. We also talk about buying property as a real estate agent and putting your commission towards a down payment. If home renovations are on your radar, you’ll want to tune in to our discussion on estimating rehab costs and pulling permits. Lastly, you’ll learn about tax strategies for flippers, and why hiring a tax planner is a must, even if you’ve yet to buy your first property!
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE)
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A Step-by-Step Guide to Estimating Rehab Costs w/ Master Flipper & Investor James Dainard (Part 1) (Episode #165):
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Finding Contractors, Renovation Red Flags, and Estimating Rehab Costs (Part 2) w/ James Dainard (Episode #166):
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How to Legally Avoid Taxes by Investing in Real Estate (Episode #255):
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From Restaurant Waiter to 100+ Deals in Only 4 Years w/ Derrick Acuff (Episode #103):
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Episode #272
Show notes at: www.biggerpockets.com/blog/ro...
00:00 Intro
04:04 Buying Properties With Back Taxes
06:57 Putting Commission Towards a Down Payment
10:16 How to Estimate Rehab Costs
20:51 Tax Strategies for Flippers
27:24 Building Closing Costs into an FHA Loan
31:40 Pulling Permits for Renovations

[@Zuddybuddy]

*** Ashley good to also mention a contingency amount (10%?) to add to rehab estimate, for unforseen items!!

[@maxicanamerican2023]

To estimate a property breakdown; 1st!!!!!!!!!
(On all jobs )average in the most costly & save/earn cost effective method of how much of the work can the ENTREPRENEUR do themselves; if that (entrepreneur) person can cut the cost of labor and get 40/50/60 % of a major portion of the profits returned back in their pocket… is always a WIN every time

[@sKRAZED206]

I love this channel. Thank you for sharing!!

[@TJ-th9hw]

Great content as always! I learn a lot from the answers to the questions asked by the community. Thanks Ashley & Tony!

[@DianeDesignGifts.]

Great information!! Thanks for the community questions.

[@skysthelimit.podcast]

This is gold. Sharing it with my friends!

[@lawrencebriggs]

Amazing episode! I love the answering of questions too 🤗

[@colleenfuller9236]

Thank you for all this valuable & important info!

[@dhowto3005]

Thanks. Very good information.

[@carolbrownell950]

Love that emd music too ,Ashley. Lol😂😂

[@aubreyolney183]

Great episode 👏 👌 👍

[@liquidtilt1157]

Majority of lenders will not allow you to use the commissions as down payment. They will allow you to use it to buy down the rate and pay for closing cost etc...
Also wholesaling to yourself is not realistic at all, lenders today wont even accept an assignment of contract nor will they allow a wholesalers fee to be included on the final CD. They will only accept assignment of contract if no fee is included on the contract ( wholesaler fee must be paid outsaid of closing ). If you find a lender who will accept it, they are most likely a hard money lender and they are charging you so much in origination cost that they don't care to lump in the wholesalers fee.
I work in secondary cap markets for NON-QM mortgages and we see people attempting this all the time, does not work.

[@shumatsuopost]

It seems like a great opportunity for investment, but also requires a lot of due diligence and research. Thanks for sharing these tips and resources!

[@margaretranalli6553]

Hey Girl, you're definately an INTJ -like me! I hate the nightclub scene!

[@u2b608]

Thanks for sharing. What about homestead penalty fees? How do you bundle that in the price of the house?

[@amarieoninski]

I am just now learning how to invest in delinquent tax properties. I have watched tons of youtube videos wasting hours of time that showed me nothing on how to find these. I hope you can help me??

[@lorenazaragoza6411]

Great info. I just bought my primary home, gonna check on permits! I’m also going to ask my lender about the 2nd home loan. I’m in the process of building an ADU on my property, gonna look at Zillow pics for finishes. Thanks!

[@leonaking1865]

I want to build an ADU, how can I finance this? Part time employee, own home free and clear.

[@janetvasquez610]

Ifyour notan agent you can not say commissionn

[@williejohnson2586]

Begin with full time employment!

[@DAMON409]

the challenge here is that the bids could go close to market prices, so the chance of winning one is slim. I figured over the counter sales was a better chance, but when I asked about it, they didn't have any clue what I was talking about.

[@kramkram2]

Not if you approach the owner before auction.

[@DAMON409]

@@kramkram2 but they cannot sell if there are liens against it

[@DAMON409]

@@kramkram2so you mean pay the liens for the owner, then ask to buy the house.

[@Michaelwentsomewhere]

I “wholesaled to myself” when I got started

[@streetbikerchef7022]

what if the owner is dead and no immediate family?

[@sarahgrillo9915]

EMD 😂

[@embededfabrication4482]

Where can we find the IRS liens?

[@Zuddybuddy]

Registry of deeds (in NH, may be the county in your state.....)

[@embededfabrication4482]

@@Zuddybuddy I don't think IRS lien shows up immediately does it.
I heard it's possible to check with the county but still not find IRS that could be impending.

[@Labputter]

We used my husbands commission for our down payment.

[@fernRes7495]

Real estate commission as down payment??? How? I’m interested…

[@thewordrealestate6212]

Great Advice! I'm an agent in Georgia. Contact me if you want to network.

[@cynthiamartinez56]

Listings > buyers