A Tax Lien, A Medicaid Lien & Title Search..oh My?
Here's the situation, there's a 15K tax lien, a 64K medicaid lien. The owner of this distressed property is deceased, and the people it was offered to in the will are either not living, or don't want it. But it comes down to two brothers who might own it...thus the title search. I'm in contact with one of the brothers and have shown my interest. But I know someone else is interested, what can I do while waiting for the title search, and then put in my offer. Any advise for the newbie. Its gonna be a rehab flip..hopefully!
Darren B Investor--(MA)------------------
Hmmm. You don't indicate how much potential profit there is here and how much investment there is. Both in terms of money and time.
This is not a simple, clean deal. It can be done. However, it is not the type of deal that I would enthusiastically recommend to a beginner to do .
Only do it if there is a tremendous payoff for your effort.
First, the property was not "offered" to the heirs. They are in line to own it. The probate for the estate of the owner will have to be completed, with ALL of the heirs getting their respective share of the property, including the dead heirs.
That means that the share of the property willed to the dead heirs would have to go into a probate for each of the dead heirs. So those probates will have to be done before their heirs can have ownership and thus can sell their shares of the property.
So, you have to have a contract from ALL of the heirs for their shares of the property, saying they will deed this property over to you once they have their ownership interest through the probate process.
Unless you can make extreme profit, this deal will not pay off well. You will learn a lot, but you won't earn a lot. It would be better--if this property does not have too much profit potential--to wait and find a deal where you earn a lot. I guarantee that your first deal you will learn a lot, no matter which one it is. Just wait until you find one where you both learn AND earn a lot.
Good Investing************Ron Starr**********
Hey Ron,
Because there was such prelim stuff, I didn't get to profit margin. The profit marhin is 125K all day long. It is tricky, and although I'm new, I can handle this. I'm an agent as well, and this will be my second flip. I like the location of the property, and I can wait for probate. Complicated dosen't deter me. I'm the hardest worker I know, I'm rational and practical, I'm gonna make it work, because I determine to be the best at what I do. The advise is good though, and I need to be in contact with the lawyer concerning probate and the time frame therin. I will probably have many questions along the way, and that's where CRI comes in. :-D