My First Deal
I found a home that appears to be abandoned. When I did a search in the real estate records witht he city, the taxes are behind about $4000.00 How should I approach the owner? Should I ask for a lease option since I would like to do this with out money. My thoughts are to lease option. its assessed value is 42,000 3 bedroom 1 bath small house it has central air. I'm new at this and would like some feed back on my first deal.
Wow, congrats on diving in to investing. Sounds like you have found one with $$ potential, but problem potential also. I am from Florida so I don't know how things work in VA. Taxes in FL run about 2%/yr less homestead deduction, so your figure would mean no taxes have been paid in several years. In FL the Gov. wants their $$ now, every year, so they sell the tax liability to investors in the form of tax certificates which get interest compounded on them for the investor. The $4,000 you speak of may already have that factored in, but you or the property owner will have to pay off those old taxes as well as current uncollected taxes if you are taxed in arrears like FL. Do your homework and also check with your county about any municiple liens and code violations, these can add up fast and the municiple lien search is usually less than $100. I would definately use a title company, they will do that search and others, also get title insurance on anything abandoned that long. Good luck, and don't let the complications disuade you just let them be your guide.
It would be best to contact the owner and strike a deal. Are their any mortgages? Have you done a title search?
You can likely do a title search right from your computer. Just go to the county recorder's site. Of course if you buy anything make sure you have a title company verify your findings but it is great to know if the property is free and clear or how much of a mortgage.
If you can't find the seller on your own, consider using www.deadleads.com to track the seller down for you. This is such a great service!
You can't do a deal with a homeowner that has their property listed with a realtor unless 1) they cancel or let their listing agreement expire, or 2) you let the realtor make their 6% commission(or customary amount in your area).
If you think you're interested in a property that is listed, you should find a realtor that will work for you. Get together with a realtor that works for a competing company in the area. They can tell you what they really think of a property, while an agent that works for the selling agent's office can only give you comps and tell you what a nice place and good deal it is.
If you're looking for something no money down, you will probably find it easier to look for a house with a motivated seller that's not listed with an agent.
Where do i find a motivated sellers :-? im lost. Thats kind of whats holding me back, do i look in the paper for ads that say (house for sale by owner) or what.
[ Edited by RIEAN on Date 08/18/2004 ][ Edited by RIEAN on Date 08/18/2004 ]
There are lots of ways to get into REI. Without cash you need lots of creativity and resourcefulness. Consider hooking up with an established investor--call the "I Buy Houses" ad numbers to find them--who will pay you just to find you some leads. Stay involved with the process as much as possible and learn.
Despite some of the stories you hear, a good deal probably won't bite you on the nose. Walk/drive around your neighborhood with your senses wide open. Look for abandoned houses (esp. where the other houses look nice). Go to the courthouse (or their assessor's website) and get the lowdown. Send off a few cards/letters. Expect that you won't be the only one doing this, so make a good pitch and make it count.
While at the courthouse, talk to the assessor or auditor about seeing a list of properties that are delinquent in paying their taxes, but not yet tax forfeit. Narrow it down to those at least, say, three years behind. Narrow it further by looking only for out of town owners. Do some quick web searching to see if the address is still valid. If you're lucky you'll find lots of weird names that may help you find their new address. Send out some cards/letters. Or sell this list your your mentor. There are a milliion other ways to get started. You'll find most of them discussed here.
What i really need is a mentor, but have no clue on how to get one. I really want to get started now in REI, but i feel like i need more info. im still confused on where to start, im disappointed in myself. :-x
Loon,
In order to be a bird dog, how do approach 'I-BUY-HOUSE' investors in order to present your self and your fee.
I understand you need to find their criteria, locations of interest etc.. In CA or I guess it applies in most states, how do charge the fee, and how much to start so investors will work with you.
Thanks :-?