First, we found this lead and tried to get in contact with the owner of the property, but when I looked them up our skip tracing software had informed me that the property owner had died. After some more digging I found out they owed like $30,000 in taxes. This was in the Houston area. The owner had died so I looked up her son and it turned out that her son had died also. He had no siblings, no wife, and no children. Her husband had died like 30 years prior.
The next step we took was hiring a genealogist. We hired a genealogist because there were no close heirs to this property. We also paid the genealogist an extra fee (our average bill with her is is $100-$150 bucks) to put a rush on the research she was doing for us, so the genealogist gives us this lady’s name to call.
I called this lady and left a voicemail. She called me right back and I had to tell her that her cousin died a few years ago. I also informed her that under Texas law she owns a legal interest in her cousin’s deceased property in Texas.
She was 1,500 to 2,000 miles away in the state of Alaska, and she had no idea how to take care of the heirship or the title issues.
To make things more interesting, we found out this house had squatters in it. We wanted a clean deal and we wanted them out by the time of closing, so we gave them $1,500 to incentivize them and get them out.
We ended up giving all the heirs $3,000 (to them it was like free money falling out of the sky).
We double closed on it (we didn’t necessarily want our buyers to see what we were making off it).
But It was a $150,000 deal and we were right under 150,000 all in and we sold it for $200,000.
This was a sweet deal, and I’m not going to say you’ll find a deal like this every month or every few weeks, but these deals are out there and if you know how to look for them you’re eventually gonna find some of them.
If you don’t give up and all the signs are there (like in this case there was a huge tax problem and no close relatives), dig a little deeper and it’s going to be risk reward at some point.
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