Need Help! Got The House From Tax Lien
Hi, we bought tax lien in indiana and the seller never redeemed and we got the tax deed through the attorney. We have not seen this house. Not that we didn't do due dilligence, but we were outbid for all the houses we want. And so we got this one for $2k, but it says it's worth $30k.
Now we want to sell the house asap, we dno't know anyone in that area, so i called up some brokers. however, they walked through and said the house probably worth about $5k, which we'll take a loss with all costs involved. we're very upset. Now i'm working with one broker who is trying to see if the house has any code violation. But we waited and waited, it has been more than a month and he said he is still waiting. but I have the sense that he himself is interested and want to take advanatage of us coz we're out of state. I don't feel comfortable with him, but he claimed he has a pool of investors and find someone to buy it. So now I'm very frustrated..
have you had properties out of state? how do you get them sold quickly?
I think your best bet is to get the property appraised by an appraiser. As far as the code violations, call the county where the property is and they should be able to tell you if any exists.
Good Luck
It would likely be worth a trip to see what you are dealing with. I cant imagine a house worth only $5k but I'm sure that they exist in some parts of the country. Sorry I'm not more help but I really think you should go there and see the property.
GOOD LUCK
Thank you for your suggestions. I think I'll find an appraisor to get the house appraised.
I'm with Frogger. If you don't se the house for yourself you are asking to get screwed. I also can't imagine a house worth only 5k. the cheapest I ever see here is 40k and those have hardly any land. How much will it cost to drive or fly to see it? less that an appraisal? at least that way you know what it's like and can make your own estimations on value. Maybe it needs a little work and will then be worth 30k that would be well worth the investment.
Josh
Yeah, I am planning to make a trip to see the house myself. But I'm afraid I don't have the expertise to tell how much it worths, do you suggest an inspector or an appraisor in this situation? thanks!
Ok, so, you got 2k invested in this house, right? You go start paying inspectors, taking trips out there, you're gonna burn thru another 2k mighty fast. Look in the phone book for that area, find some that does odd job pretty cheap, and get them to go buy a disposable camera, go take pictures of EVERYTHING, and send'em to you. If it looks like you've had your leg pulled, and it should be worth more than than 2k, find another realtor, and go for it. If it's all falling in, needs rebuilding, donate it to a local church, take the 2k in tax breaks, and write it off as an education. Just my .02...
I actually had 2 agent take photos forme. From the photos, we can see it needs clean up and some dry wall is messed up. But the broker said the wood is also rotten, that's why he said it only worths 5k, he said he is surprised the city hasn't tored it down.
I have made plan to go down and see it myself and also have an inspector to do the inspection for me.
But gurus, what is the best way to sell it once I get the good estimate? I need to find investor who want to do major rehab, where can I find them?
OverAnalyzer--(OH)----------------
I think you are making the right decision to go see it. I recommend you try to find an experienced general contractor to do your inspection, with you there so s/he can explain to what the issues are. If you can find an older, semi-retired, slowing-down person, you are likely to get somebody who has seen everything.
For buyers? I'd wait until I've seen it and have a notion of what to resell for. Then I'd advertise in the newspaper and with a sign on the property.
If you were to donate the property, you can get a better tax write-off if you wait until you have owned it for over one year. You can then donate it and deduct from your taxes fair market value, not purchase price. If you value it at less than $5K, you don't even need an appraisal, just some justification, such as comparable sales, assessor's valuation, or the opinions of some real estate agents.
Good Investing***********Ron Starr***********
Thank you Ronn and all, I've never thought about the donation to charity route, but it seems it's a good last resort.
Quote:
On 2004-06-25 21:29, OverAnalyzer wrote:
Thank you Ronn and all, I've never thought about the donation to charity route, but it seems it's a good last resort.
Hi OverAnalyzer,
You may want to try the following ad in a newspaper that serves the area where the house is located:
Handyman Special
Cheap, Cash
(123) 555-1212
Make sure you replace the number by your actual phone number, or you may not maximize the number of phone calls you could get. I never tried that ad, but it's taught by SDI/Ron LeGrand
If what they say is true, that ad should attract rehabbers, who will offer you MAO, where
MAO = 0.7 * ARV - fixup expenses
ARV = After Repair Value, most likely more than the assessed value.
[addsig]