OfflineHi everyone!
My name is Nicole and I thnk I might have stumbled on to something. I ordered Dean's book a week ago, and STILL haven't received it yet (tears), but that's ok.
Here are the details with this property in Philadelphia I'm looking at:
3 bedroom, 1 bath home. $10K?????
Had to dig...Home was purchased on 6/2/10 for $5777.00, but taxes haven't been paid on this house since 1996??? Oh boy..
Total taxes due to the City of Philadelphia are $4,942.45.
The owner lives right outside of Philadelphia in Cheltenham Township.
The total for this house is basically the taxes and the market value, roughly.
Seems like they just want to get rid of this property, it may have been inherited or something of the sort because with 10K, nobody is really making a profit.
Should I approach this DG family??
Please advise,
Nicole
Nicole,
Welcome to the DG family! The books will arrive soon enough and you will be pleased with them, I am sure. Now on to your question.
I would absolutely look into this just a little further as Tax Liens are superior to all other liens, and you might just be looking at a sweet deal here. Who is selling the property for $10k....the owner on record or the County Tax Office?? If you are negotiating with the owner on record, you will still have to bring the taxes current. However if the County Tax Office is selling it for only $10k, it sounds like they just want it back on the tax rolls (and not at a loss).
Taxes should be due to the County, not the City (or at least in my state it is done that way). Sounds like you might be getting this for less than the lot value.....usually a GREAT deal if that is the case.
Good luck; keep at it.
--Walter
Walter!!
OMG!! Thanks soooo much for responding so quickly!
The owner on record, using her business entity, is selling the property. Philadelphia, PA is considered to be Philadelphia county as well, so they treat it as such. The City doesn't get involved until the taxes have reached $25K.
My idea was ( and please yell at me if I'm wrong, I won't cry), was to negotiate. Since they're just trying to get some money back and not really make a huge profit, I did this calculation
$5900 market value + $4942.45 for taxes = $10,842.45
Multiply this by 75%, my offer was $8131.84. This would still take care of the taxes and put some money in their pocket.
The key with this property is it's right near Temple University, and from what I learned through research, homes in this area are going for 90K +. Temple is actually trying to get people, long time residents, to move so they can purchase their homes for the students.
I'm trying to follow Dean and Matt's notes I took off of the new TV show link.
How does this sound to you?
Thanks so much and you're a blessing!!
Nicole
Here is another approach on your deal. First of all make sure you know what the proeprty would be worth after it is repaired and could be sold to a retail buyer, that will make sure you are getting a good deal if you had to sell it quickly.
What I would offer is I would pay their back taxes and make them whole with the county. I would then ask them to seller finance the 5900 for 3-5 years. You can then make payments to them plus a small amount of interest that will then gross more than the 5900. Let some renters you put in the property pay for the purchase of the home.
Wow what a great deal. I would pursue it for sure
Great job finding it
Mikessler
Advisor
I always say Keep Moving Forward! Never Give Up On Your Dreams!
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