馃攳
Wholesaling Real Estate with delinquent taxes - YouTube
Channel: Max Maxwell
[0]
hey what's up guys sorry for the messy
[2]
office here we're getting things done in
[3]
our brand new office but you know
[5]
yesterday I did a live and I want I got
[7]
this repeated question over and over
[8]
again and I get it on Instagram and I
[11]
get it on you know Facebook my facebook
[13]
group wholesaling houses elite I just
[15]
wanted to address it one time so here's
[18]
we go the question mainly is can i
[20]
wholesale a house that has a tax lien on
[23]
it for example a owner has tax in
[26]
arrears they have not paid their taxes
[28]
for a few years and let's just give you
[32]
an example this is gonna be the same
[35]
with any mortgage as well so if a house
[37]
has a mortgage on it now essentially
[39]
what you have to look at it as as an
[44]
encumbrance right so when your attorney
[46]
or a title company does the title search
[48]
they're gonna see that this property is
[50]
not owned free and clear because it has
[53]
some liens on it which could be a tax
[54]
lien could be a mortgage lien on it but
[57]
it has some type of encumbrance on the
[59]
title that will not make it
[61]
transfer free and clear unless those
[63]
encumbrances are paid so I'm gonna keep
[65]
this real simple and J ROCs just gonna
[67]
put some numbers on this side so you
[68]
guys will be able to follow along right
[71]
so let's just say that ARV for this
[73]
property is a hundred thousand dollars
[75]
okay all right so ARV is a hundred
[78]
thousand dollars and there's a tax bill
[81]
on the property for twenty thousand
[83]
dollars
[83]
now this tax cut bill could also be
[85]
interchanged with the word mortgage okay
[88]
because they work exactly the same right
[91]
so let's just say you go to a house you
[93]
get a phone call you get a phone call
[95]
you go to a house and a house you start
[98]
talking with the owner and you find out
[100]
that they owe $20,000 in back taxes on
[102]
the house well you're just gonna treat
[104]
it just like anything else you're gonna
[106]
start with your wholesaling calculator
[108]
whatever your market in your market it
[110]
is so you're essentially going to take
[112]
away and I'm gonna pull out my
[113]
calculator here cuz I'm not that smart
[115]
but I'm keeping the numbers around just
[116]
for you a hundred thousand dollar house
[119]
and we're gonna - thirty percent thirty
[121]
percent is what you're gonna - an
[124]
average market now it might change in
[126]
your market some wholesalers might do it
[128]
different but taking away - thirty
[130]
percent is what makes the house an
[132]
actual deal to begin with
[133]
house is worth a hundred thousand fixed
[136]
up we're gonna remove 30% that leaves us
[138]
with 70 grand let's just say the repairs
[141]
on the house or twenty thousand you're
[143]
gonna - the repairs
[145]
okay so seventy thousand - twenty
[149]
thousand in repairs least 50 grand and
[152]
let's just say you as a wholesaler you
[154]
want to make ten thousand dollars Simon
[157]
fee right so you're gonna - ten thousand
[159]
dollars and that's gonna leave your
[162]
maximum allowable offer at forty
[165]
thousand dollars now right
[167]
but what we're gonna do is we're not
[169]
gonna offer forty our first offer is
[170]
gonna be - fifteen percent so your first
[173]
offer is gonna be around thirty four
[175]
thousand dollars okay now keep this in
[178]
mind the person told you that they
[180]
already have a mortgage balance of
[182]
$20,000 or delinquent taxes of twenty
[186]
thousand dollars
[187]
they're both interchangeable they work
[189]
the same that's what I'm just gonna do
[190]
this one video so now you start your
[193]
negotiation and let's just say you offer
[198]
nineteen thousand dollars well the
[201]
reality is you could offer whatever you
[202]
want but knowing this situation if you
[205]
offer nineteen thousand dollars and the
[207]
seller accepts the seller has to bring
[210]
one thousand dollars to closing in order
[213]
to wipe the encumbrances off of the
[215]
actual property so they can be
[217]
transferred to the new buyer now most
[219]
sellers are not going to do that not
[221]
unless they're in a very very sticky wet
[222]
sticky situation it has happened but
[225]
it's not likely so let's let's go back
[229]
let's just say the repairs on this
[232]
property were forty thousand and
[233]
everything goes twenty thousand less and
[236]
your maximum allowable offer probably
[238]
could only be fifteen thousand dollars
[240]
that means the seller is gonna have to
[243]
make up the difference between fifteen
[245]
and five but in reality this property
[247]
with the numbers were working with
[249]
$100,000 ARV - 30 percent ease to
[253]
seventy thousand - the repairs of twenty
[256]
thousand dollars least fifty thousand -
[259]
your simon feet leaves forty thousand
[262]
dollars okay so with that being said
[265]
your maximum allowable off
[267]
forty-thousand there's an encumbrance on
[269]
the title which in this situation is
[272]
back taxes which is 20 so let's just say
[274]
you end the seller agree on forty
[276]
thousand at the closing your seller will
[279]
walk away with roughly twenty grand and
[281]
the other twenty grand will go to the
[283]
back taxes or the back mortgage or the
[286]
mortgage balance that is old on the
[287]
property so it's pretty simple
[290]
so the correct answer to the question is
[291]
yes you can
[293]
wholesale a house that has delinquent
[296]
taxes or a mortgage but your offer
[300]
usually or always has to be above what
[303]
the balance is owed and if you can't
[306]
agree to that term then you're probably
[307]
not gonna have a deal now I want to
[310]
break down the same scenario with my
[312]
cell phone for example new iPhone 10
[315]
walks out I walk into AT&T and I get the
[319]
phone on a payment plan let's just say
[322]
it's a thousand dollars divided over
[324]
twenty payments okay so let's just say
[327]
I'm halfway through my payment plan and
[330]
I decide to get a new phone okay on
[333]
Android phone I don't know why I would
[334]
ever do that
[335]
makes no sense but let's just say I
[337]
decide to get an Android phone the
[339]
balance on my phone is five hundred and
[342]
let's just say j-roc wants to buy my
[345]
iPhone and he wants to buy it for me for
[349]
four hundred dollars well the reality is
[352]
I owe AT&T five hundred dollars for this
[355]
phone so I will have to pay the
[357]
difference of a hundred dollars in order
[360]
for me to sell this phone to j-roc so
[363]
j-roc can put his own service in this
[366]
phone if I don't pay that then AT&T will
[370]
not clear the phone or unlock it and
[373]
allow j-roc to put his service on it but
[376]
if j-roc offers me $600 for the phone
[379]
five hundred of it would go to AT&T to
[382]
pay them when I offer the phone and $100
[384]
will go in my pocket it's exactly the
[387]
same when you're wholesaling a house
[388]
that has a mortgage or a tax delinquent
[392]
situation on it alright guys so that
[395]
pretty much is the answer to KI
[397]
wholesale a house with a mortgage or a
[400]
tax
[401]
delinquent situation keep in mind if
[403]
you're watching this video this far and
[405]
you've learned something please give it
[407]
a like a thumbs up share it with a
[409]
friend that has this question and I'm
[411]
glad I was able to answer it subscribe
[413]
to my youtube channel and I'll see you
[414]
guys later peace
[423]
you
Most Recent Videos:
You can go back to the homepage right here: Homepage