What's up friend, Kris Krohn here.
Today, we're talking about buying property with delinquent taxes.
I'm going to tell you right now.
Some of the best deals I've ever done come from what I'm going to sharing with you today.
Okay, real quick catch up for those of you that are like, delinquent taxes, what does
this mean?
Dude, here's the bottom line: At least in America, you'll never ever own a property.
Like even if it's totally paid off.
Every year, you got to write a check to the government.
You got to pay your taxes.
If you don't pay your taxes, the government can seize your property.
They can put liens against your property.
And frankly, in some rare instances, people either lose the property back to the government
if they go along enough with not paying their taxes.
So, here's kind of the crazy thing about real estate: Whether the property is barely paid
off or mostly paid off or all the way paid off, it's like a little bit of lottery.
You never know exactly what you're going to find.
Check this out: Let's just say that we're talking about a home and let's say that this
home has a value of $250,000.
Let's also say that they haven't paid their taxes for the last 6 years.
And let's say that they owe $13,000.
Based on the laws and the individual counties, this could be getting very, very dangerous.
These people now can't sell this property without fixing the taxes.
They can't refinance the property without fixing their taxes.
It becomes public record.
People find out that their delinquent.
Now, they're getting bombarded and letters from people saying, "You got to fix this."
And here's the funny thing: What do they own in this property?
Let's just say that their mortgage is for $240,000.
If it has a value of 250 and it has a mortgage of 240, do you think we care about the property?
NO.
Because they're upside down.
240 plus their delinquent taxes means that combined, they owe more than the property
is even worth.
But let's just say for a moment that it didn't have a mortgage at 240.
Let's say it have a mortgage of $80,000.
Does that exist?
Yeah.
I actually use my PropStream tool and system for actually finding these deals.
But check this out: This house, they only owe 80 grand left on it.
It's worth 250 and they might lose that house if they don't clean up this 13,000-dollar
scenario.
That's why you're watching this video and that's the scenario that exist.
This person, whoever owns this home, they got some pain.
They actually feeling the pressure to fix the 13 grand but here's the problem: They
don't have $13,000.
So, how are they going to solve this scenario?
Well, that's where you step in, my friend.
I'll share with you how this can go very right.
But I also want you to understand that this can go very wrong.
This woman reached out to me.
She had found my name somewhere and said, "Hey, Kris.
I have a property and I got some delinquent taxes.
And I need to get them caught up or I'm going to lose the house."
Can you help me?
And I did the research on the home.
And the home had like, $70,000 of equity.
It was on my price range.
But the property about $5,000 of fix up and it needed about $10,000 to fix her tax problem.
So, I gave her $10,000.
I paid the $5,000 to fix up the property and then Lease the property out.
Made great money on it.
Everything was going great for a few years on it.
Until this woman came back to me and she actually said, "Hey, I want my house back.
And this is a letter from my lawyer saying that I should get it back."
Now, I'm going to tell you what happened.
I actually gave her the property back and I basically took a loss.
And it sucked hard.
But the reality is I could have fought and I could have won on this deal.
Part of me regrets that I didn't.
But the reality is I bought so many properties that I was winning so big and some other places
I said, "Fine, here you go."
I shouldn't bend over.
Especially out of principle.
I shouldn't have done that.
I don't know if I'll ever really know how that would've resulted because the reality
is maybe would fight back and actually win.
But I don't think she would've.
She signed the property over to me.
We removed her from the property.
She added me to the deed and I should've not rolled over.
But I did.
I wish I hadn't.
I hope you learn something from that.
On the other hand, I bought a fantastic property that worked out really well.
This person was only $5,000 behind and it's because they couldn't afford even the mortgage.
So, I came back.
I actually got the mortgage caught up.
I paid them on delinquent taxes.
They moved out.
I lease that home for 5 years.
I sold it, I made a tidy $50,000 profit.
I never needed to get a loan from the bank because they were the bank.
So, it was a really great seller financing deal.
These delinquent properties, you never know what you're going to find.
It might be nearly paid off.
And you get the structure deal that is fair for you and fair for them.
And I was putting myself in their shoes and I always thinking, If I had a cake to divide,
how would I slice it up so that I would be happy with other piece.
You know, some other people would go and there's like take, take, take, take.
For me, it's how do I create a win for you and how do I create a win for me.
What do you need?
For them, they want to get caught up, they want to get rid of their liabilities.
They need a certain amount of money.
And there's many deals out there that if you can get that money now, they'll give up their
property with a lot of equity in it.
And it's just a matter of struck in a balance that creates a win for you and for them.
Here's the advise that I have for you that is really important.
If you're going to get out there and do any kind of real estate but tax liens as well,
it's really important to make sure that you've got someone watching your six.
That means that if your new, my six is behind me.
I got to have someone that's actually watching my back.
Because things can go wrong.
In real estate, 9 things can look good and you pull the trigger and find out there's
one thing that wasn't good.
It's always important to have someone that can be playing the role of mentor.
I had that from my first 50 homes until I became the expert.
And I got to be the mentor for other people on thousands of homes.
I just launched the brand new tool.
It's my coaching hotline.
There's all sorts of people out there that want to charge thousands, tens of thousands
of dollars to basically give you training.
Give you advise.
On my channel here, I give it to you for free.
And I promise you, the training you find here is often probably way better than the really
expensive courses that are out there.
I got a different philosophy when it comes to business.
So, I put on together a coaching hotline that cost very little.
And it's designed so that you can watch these videos and I can give you steps of what to
do next.
And then when you have a question or you get caught or the video doesn't talk back and
give you an answer, you can actually call up the hotline say, "Hey, can I get some help?"
Or "I'm looking at this deal, can you evaluate it?"
Or "What's my first date?"
Or "I want to find the property with delinquent taxes.
How would I find that?"
And my team is on stand by to actually make that happen for you.
One of the things that I want to do is I want to invite you to click the link below and
we are making this available.
This is a 300-hundred dollar month tool that we're making available for less than $100.
Which means that if you click that tool, you have unlimited coaching.
Unlimited life help during regular business hours where you can call in and say, "Hey,
I've been watching this video.
I got a question.
Will you help me out?"
And they're going to be there to help you figure out what your next steps are so that
you can move forward.
But also make sure that you're not walking into a trap so you're doing things smart,
intelligent and ultimately the right way.
Hey, thank you so much for watching today's video.
Hopefully it helps you understand what delinquent taxes are.
Why they can make such great deals.
Some of the things to watch out for and how to do it the right way.
If you're looking for some hands on help or if you're looking exact steps of how to do
it, then click the link below, get the coaching hotline.
It comes with no contracts, no obligations.
It's month to month.
And basically, I'm doing this so that you can find help at the lowest price possible
to have confident coaching to go out there and actually make deals happen.
Besides that friend, make sure that you are a subscriber.
And I'll look forward to seeing you on tomorrow's video.