09 Jun Deal or no Deal?
In the Tax Delinquent Investment Business, you might want to start investing in a diversified market. When you find a property you are interested and when you already have the time to talk with the seller of a property, one thing that you should need to ask them is: If the property is free and clear. This is important because in here you will have the idea if there are current mortgages owed or none. You might just get to know how much taxes are owed or mortgage balance left in the property. Sometimes, they tell you the amount right up front.
In a case where a seller tells you that they owe $60,000 on to a mortgage, you will know if that property will work towards your financial goals in your tax delinquent investment business or not. In most cases, it might just be too big of an amount to make an offer to the tax delinquent owner. Basically, you need to scratch that property off from your list. But, you can still research on that property. There is always the possibility that prices have exploded in a certain area. In some cases what you have paid $60,000 for, two years ago is now worth $200,000 in which case a $60,000 mortgage would have still made you profit. Nevertheless, we are in the business of buying low and selling fast to make a profit, so a lengthy wait would not work towards our financial goals.
Generally speaking, knowing what kind of debt a certain property has, during your research and conversation with the seller, tells you if you have a deal or no deal. Usually in the price range that you are looking to invest in your Tax Delinquent Investment business, most properties that you deal with, will be owned free and clear. If they are not, there are ways of dealing with the escrow of that specific property.
If a property does have a mortgage and you still determine it to be a great deal, remember to get an authorization from the seller to talk to the mortgage company to verify the exact mortgage amount outstanding. That is a one page form, a very simple form which you can use to verify what they are telling you. The next thing to do is fax it to the mortgage company. They are now obliged to tell you how much the mortgage is because you have the authorization letter now. However, you do not need to do this until you have the property under contract.
To know if a certain transaction is a Deal or No Deal, you have to know all dimensions that are related to that property. Not only do you have to know certain physical details regarding the property, you also need to find out the financial standing of your prospective Tax Delinquent Investment.
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