Tax Sale Lists
In my area, there are tax foreclosure sales monthly in addition to
the monthly mortgage foreclosure sales. Tax foreclosures happen when
the property owner fails to pay the real estate taxes. If the taxes go
unpaid for enough time the taxing authority forecloses, sometimes
wiping out all other liens.
The list of properties to be sold is published in advance and
includes the owner name and property address. From an investor’s
standpoint, tax foreclosures are not much different from mortgage
foreclosures. There are different procedural and legal rules but the
same business rules for investors apply. Thus these investor
opportunities are handled in the same way as the mortgage foreclosure.
You would contact the owners by letter, telephone or an inperson
visit and see if you can work out a suitable deal.
Contact Divorce Attorneys
Often, people involved in divorces need to get rid of property
quickly. Sometimes the spouses are so angry at one another that they
want to make sure there is no profit just so their ex-spouse does not get
Become known in the community of divorce attorneys as
someone who will purchase a house quickly. To generate leads from
divorce attorneys, you should send letters and a business card
explaining what you do, and you should consider running an ad
constantly in the local legal newspaper or bar journal.
Advertise “I Buy Houses.”
An effective way to get a motivated seller to call you is to
place a small ad in the newspaper or on a sign posted on the side of the
road which says “I Buy Houses, Any Condition, Any Location and then
the phone number.” I have found that ads in the free newspapers that
are distributed in most communities that have lots of coupons are often
the most effective. The ads are also very inexpensive.
When a potential seller calls you, they may or may not have
some idea that you are the house dealer and are not going to pay top dollar for the property. This will generate a random selection of motivated and moderately motivated sellers.
You want to determine in advance whether the seller has anything to offer prior to going to visit the house. By having anything to “offer,” I mean that the seller is either going to sell you the house cheap enough for a profit, or at a cheap enough price that the house can be rerented at a profit or that you are interested in living in without having to
obtain outside bank financing. Find out what the seller’s motivation for selling is and ask them what the lowest price they would accept for the house is. If they are
looking for full market value or are otherwise not offering you anything,
just politely decline to visiting the home and wish them good luck. Do
not spend your valuable time visiting a house if there is nothing in it for