We’ve got a pulse
The latest wholesale deal is still kicking, I haven’t lost it yet. Let’s just say it moved off of life-support but it’s still in the ICU. During this week among other things, I spent some time wrapping up the details for getting this thing closed. I now have a CMA from my Realtor, plenty pictures, and a rehab cost estimate. These documents, along with a letter describing my motives for wanting to purchase this property (assign) and revitalize the neighborhood starting with this house, will be sent to the appropriate parties. The appropriate parties being the 3 parties that have liens on the property. There are a total of 4 liens on the house. One being a tax lien. The others by DHFS, the city of Champaign, and Champaign sewage.
Let me state a few facts so you can see how my deal came back to life. Originally, I was very concerned about the 65K DHFS lien. I’m not anymore.
Here are the facts:
1. The property has been vacant for about a year the two owners on title are now deceased. It will continue to be vacant as the heirs want nothing to do with the property
2. The property is tax delinquent and the taxes were sold to an investment company in October 2009.
Cover via Amazon
*Tangent* Buy the book “Profit by Investing in Real Estate Tax Liens” by Larry B. Loftis. This is the one of the most slept-on real estate hustles in existence. You can thank me later.
With the facts being what they are, let me tell you how “I have the juice”. In Illinois tax liens are by default 1st position liens. This means that all other liens are subordinate and if the property goes through a tax foreclosure ALL SUBSEQUENT LIENS ARE WIPED! Granted that it takes approximately 3 years of real estate tax delinquency to be foreclosed on, this means in the inevitable will happen in 2 more years. After which, the DHFS, City of Champaign, and Champaign Sewage will walk away with ZERO!
So, now do you see where I’m going with this? When I lay out the facts and the probabilities of events to the subsequent lien holders, it would be in their best interest to drastically reduce their note and get SOME money this today versus NO money in two years!
So the mission at hand is to develop a “no-brainer” (short-sale) package that even a 4th grader could understand. This way, I’ll hopefully post again soon about how I got the deal closed. However there are no guarantees in this crazy real estate world. I’ve heard of some just-plain dumb decisions being made by mortgagors before, so we shall see.
- Peace Out
All of this work for a measly lil check. But either way this deal goes, I’ll just consider the lack in compensation as a tuition fee. It’s coming down to the wire now, I feel like Eminem in 8-mile.
