Power of Tax Delinquent Lists

Mike Hambright: Hey, it’s Mike Hambright from flipnerd.com and we have a quick VIP tip to share with you from Jack Bosch, who’s going to share a tip on the power of tax delinquent lists.

Jack Bosch: All right. Well, thank you very much, Mike. Yes, it sounds like a weird subject but everyone is always on the search for the motivated sellers, right? Everyone in real estate is looking for that guy who is willing to give that property away for almost nothing. Well, everyone is going after the mortgage delinquent people, after people with equity and so no, but there is one list that almost nobody uses that literally has people, it’s full of people that basically have a white sign in their hand, virtually saying, ‘Hey, I want to sell this property really badly.’ Yes, they’re not listed on the MLS. They’re not on any kind of foreclosure list and so on. And that’s the list that I call the tax delinquent list. Basically, it’s a list of all the people who have stopped paying their property taxes.
Now in the U.S., very simply, if somebody doesn’t pay their property taxes, their property goes to a tax lien sale, or to a tax deed sale, depending on which state you’re located in. And what everyone else does, if they already understood that the tax defaulted properties are good, property tax defaulted properties are good market to go after, well they’re going to these auctions and competing at these auctions. However, you can actually go to the county and get from the county a list of all the properties with back taxes, and that includes the ones that are coming up for auction, but it also includes the ones that just stopped paying their property taxes. So it’s completely all the people who have stopped paying their property taxes. Now it’s not the easiest list to get, but it’s a very, very powerful list to get, because when you get that list you have virtually everyone in there that hasn’t paid their property taxes.
Now why is that so interesting? It’s because the only people who have power over paying their own property taxes is people without a mortgage, because mostly with a mortgage, when you have a mortgage you pay your mortgage with your monthly payment, and the bank automatically pays your property taxes for you. Your property taxes are escrowed into your payment. So the only people who are in charge of paying their own property taxes are the people who own their properties free and clear. The tax delinquent list lists the free and clear properties and because they have stopped paying their property taxes it indicates they either don’t want the property any more, they have financial troubles, or both, and they are great, great opportunities and a great, great market to find to get high equity, motivated sellers.

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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.