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4 contributions to Dirty Title Goldmine
Family Dynamics - P E T I TO situation with a Duplex co-owned
P E T I T O situation P = Property Duplex located in Carmichael, CA Only (1) ONE APN # exists for the duplex property. One side rented for $2,300 per month, the other side is VACANT and in need of work so that it can be rented. E= Equity Estimated Value $800,000 TODAY The property is FREE & CLEAR of any debt Property was acquired for around $200,000 many years ago; pre 2016. T= Title Originally was titled in the Name of a Father (now deceased) as to a 50% Interest and (1) one of his daughter (elderly daughter # 1) as to the other 50% Interest in the Duplex.She (elderly daughter # 1) lived on one side and the Father lived on the other side. She helped care for the aging Father. The Father passed away back in 2022 and his estate was probated. The OTHER Daughter (younger 2nd Daughter) prior to his passing was given a DEED by the Father subject to his Life Estate interest; Upon the Fathers passing in 2022, Younger Daughter # 2 then became the OWNER of 50% of the Duplex property along with Elderly Daughter # 1 still owning the other 50% interest. I= Interested Parties Both of the daughters each now own 50% undivided interests in the Duplex property valued around $800K which is FREE & CLEAR of any debt. Elderly Daughter # 1 has relocated but has been RENTING out her 50% portion of the duplex (for $2,300 per month) as stated above. T= Threats The relationship between Elderly Daughter # 1 and the Younger Daughter # 2 is contentious. They barely speak. It seems that Elderly daughter # 1 feel entitled to 100% of the DUPLEX property as she was the one who cared for their Father before he passed.The 50% SIDE of the DUPLEX now owned by the Younger Daughter # 2 cannot be readily rented because it’s in desperate need of many upgrades to get it rent ready (like a new HVAC system, some electrical work, new flooring, the updating of the bathrooms and the Kitchen, etc.). Thus younger daughter # 2 side of the duplex is NOT able to produce any income from rents; Yet she still must share in 50% of the expenses for Taxes, Insurance, etc.
3 likes • 23d
Where it starts vs where it ends? I would underwrite for the worse case. Can you buy it low enough to protect the worse case risk?
Any input on IRS liens as a roadblock?
I’m looking at a dirty-title file where IRS liens may be the main roadblock. Basic facts: As is value is roughly $110k IRS liens appear to be around $38k+ There are also heirs, legal/title costs, closing costs, and other deal expenses. After rough math, the deal may not have enough spread unless the IRS issue can be handled cleanly. From what I understand using AI, there are a few possible paths: 1. Certificate of Discharge — remove the IRS lien from this specific property so it can sell, while the taxpayer’s IRS debt may still remain. 2. Lien release / expiration — if the collection period expired or the IRS failed to refile before the “Last Day for Refiling.” I think they expire in 10 years unless renewed. 3. Payoff through closing — assume the IRS gets paid what its lien position is worth. 4. Offer in Compromise — possible in theory, but likely slower and taxpayer/estate-specific. My main question for people who have actually worked these: How do you handle IRS liens operationally when underwriting dirty-title deals? Do you usually: 1. treat the IRS amount as a hard payoff at closing. 2. try for a discharge from the specific property or an offer in compromise. 3. wait for expiration/self-release 4. or just kill the file unless the spread is still strong after paying the IRS? I am not assuming the IRS “settles cheap.” I’m trying to understand what the practical playbook is so I don’t waste time on files where the IRS lien kills the economics.
PETITO + how to respond to seller
Hello everyone! P - SFH in central OH E - $120-130k T - held by 7 heirs via CT, probate completed 2024 I - 7 heirs, 1 is a hold out purely out of spite. Working with 1 heir who is running the show T - a.) affidavits of interest recorded in last few years - heirs tried to sell to wholesalers several times but were stopped by the hold out. My county treats these affidavits as a valid cloud on title and we will have to negotiate with the aff holders to release b.) active tax foreclosure with payoff amount $16,500, still have months and months until auction c.) 7th heir is uncooperative, but may deal with me. If not, we would partition and walk away with 6/7 of proceeds so not a huge issue O - Purchase 6/7 interest for $12,000, pay taxes, strip affidavits, walk away with $80-90k We've emailed back and forth with the point person several times. I've explained how the process would work ($2k each in exchange for a signed deed and COA purchase agreement), and what our risk looks like. Now she is, in a very polite way, wanting to know how much money we would make if we solve the problems that have prevented them from monetizing the property. Her latest response is attached. They last tried to sell the property for $73k, so they have that expectation set. We're curious how everyone likes to respond to sellers like this one? TIA
PETITO + how to respond to seller
3 likes • Jun 6
@Bill Harmon I learned a new acronym today. thanks! Is she just negotiating for more money? No advice other than trust your gut and push through. IMO, I would tell her what it is worth when everything is cleaned up. (She is smart enough to know that already so no big news there.) The framing I would use is she has three options: do the work and fix it yourself, do nothing and roll the dice by letting it go to tax sale auction and claim excess proceeds if any, or sell it to you and get a known amount now. I liked to say I have the funds now and might have the funds later but who knows. I don't like to say what I am going to make because you really never know until it is done and not helpful to the decision. Acronym as I understood it: - P — Property: SFH (Single Family Home) in central OH. - E — Equity / Estimated Value: $120-130k (ARV or current market value). - T — Title/Probate Status: Held by 7 heirs via CT (likely "co-tenancy" or similar), probate completed in 2024. - I — Interests / Heirs: 7 heirs; 1 spiteful holdout, but working with the lead heir who’s running things. - T — Troubles / Title Issues: Affidavits of interest recorded recently (cloud on title; county treats them seriously; need releases from holders). Active tax foreclosure ($16.5k payoff; months until auction). Uncooperative 7th heir (partition possible as fallback for 6/7 proceeds). - O — Offer / Opportunity / Outcome: Buy 6/7 interest for $12k, pay taxes, clear affidavits, net $80-90k equity upside (after costs).
VA team
https://www.onlinejobs.ph/ Someone asked me at Happy Hour where I found my property lead research team. It’s not that easy to source, train & retain personnel. I was hiring from upwork & fiverr but had so much turnover & lack of loyalty until I made the financial commitment to have full time support. I’m no expert at this part of the business, but committing to a full time VA made a huge impact.
1 like • Jun 6
Thanks for the link to a valuable resource. Hiring a researcher is on my to do list for this quarter. @Francisco Avancena I wish there were a team/group where I might pay a premium but would have a guaranteed dedicated researcher every day. For example in logistics I knew i needed 1 extra driver for every 10 slots. It meant hiring 2 when I needed 1 at first and growing into the ratio. Something always happens people get sick, family drama, financial drama, people just disappear, etc, and it is nice to know the business keeps moving forward with the built in backup. I wonder what the ratio is for Pilipino researchers? There probably is a good business for someone in the Philippines to own the group and serve as the guaranteed backup while growing the business.
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Matt Matich
2
6points to level up
@matt-matich-6635
Full time land investor. Was/is a pharmacist... they ware ties. Founded/Sold a logistics company to P.E. Family=2 daughters & wife.

Active 1d ago
Joined May 29, 2026
Carmel, IN
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