Strategy Questions (upcoming Sale)
Hello.
I thought I'd post in this forum also to see if anyone has any suggestions w/overcoming objections from an "older" owner that is about to lose a GREAT prop to back taxes. The auctions are zoo & we will surely be outbidded. We want the prop. Here goes.
As fate would have it, my partner & I went into a bar where my partner knows the owner. We stopped by to find out what he was doing w/the bar/building because it needs work (we do rehab/new construction). He stated his son is doing xyz & they were going to begin work shortly. Well, I pulled the list for the upcoming auction & the bar/building was on the list!
My questions are, how do we approach the owner in a non-threatening way to create a win-win for all involved? He is in his 70's. My partner is very soft spoken, he's a real mild mannered, calm, logical person (but construction is his forte). Thanks in advance for your guidance.
First be very clear that properties sold for back taxes are
not the same as ones sold at foreclosure or trustee's
sale for back house payments.
Tax sales give you either a tax deed or a tax certificate
depending on your state. Usually if your state uses a Deed
of Trust it is a certificate state and with mortgages a tax
deed one.
In either case in 99% of the states the owner has a
redemption period to get the property back. In short this
means you can't do anything with the property until you
fully own it.
At 70 years of age after a little research you'll probably
find that this isn't the first time this owner had back
taxes on a property.
You can use the tax angle as a weak bargaining chip, however
bottom line is if the owner isn't "desperate" or at the
point he must sell your on an uphill battle from day one.
Did you ask him if he was interested in selling the bar?
From the sound of it he already has a picture in his mind of
what he wants by relating the story of his son.
So to answer your question if the owner does not want to
sell (even though they could even eventually lose a
property) there is no way of approaching them in a non-
threatening manner about a possible deal.
Any approach to someone about something they don't want
would look threatening to a prospect.
Hope this helps.
PS You say it's a great property. Say you could get the
deal just as you want it, do you know exactly what your gong
to do with it to make a profit? Knowing the answer to this
question will determine the way you structure any type of
sales transaction.null
Thanks so much, that really helped! We'll wait it out.