I’m new and getting ready to send out my first (small batch). Larger batch will follow from a list I’ll be purchasing. I bought a delinquency list from a county that I’m interested in… and am planning on sending a blind offer letter. However, my offer price is lower than most of the tax due for redemption. Is that normal? I’m doing 30% of market based on Redfin comps. Should I be increasing that to 40-50%? Can someone give me some guidance?
@burgerking089 do you know how far delinquent your list is? Once it hits 3 years delinquent, the back due tax amounts + fees start to exceed what my offer prices would be. Sometimes this starts happening as early as 2 years delinquent.
Sometimes higher offers can make sense around that 40-50% amount, but the lots would need to be pretty big and substantial so you can be pretty certain of their market value and still make a profit.
Maybe you could segment them out a bit by size or value. Once the value exceeds $20K, you could start going up into that 40-50% range, but keep your ceiling at 30-35% below that? I’m kinda guessing here. Hard to know for sure without seeing everything, but that might be a starting point.