Case Study: Wholesaling 3 Deals from a Single Tax Delinquent List

Wholesaling tax delinquent properties is one of the fastest paths to real estate profits — if you have the right data. No rehab, no tenants, no long-term capital commitment. Just finding motivated sellers, getting properties under contract, and assigning those contracts to end buyers for a fee.

In this scenario, we follow an investor who downloads Harris County's tax delinquent property list from LienSuite, applies targeted filters to find the best opportunities, and closes three wholesale deals in 60 days for a combined $47,000 in assignment fees.

The Opportunity

Harris County has over 60,000 properties on the tax delinquent roll — making it one of the richest hunting grounds for wholesale deals in the country. But volume creates noise. The key to successful wholesaling from a tax delinquent list is filtering aggressively to find the most motivated sellers.

The investor downloads the Harris County list from LienSuite and applies these filters:

• Delinquency: 5+ years (highly motivated or abandoned)
• Heir/deceased signals: Flagged (highest probability of below-market acquisition)
• Property value: $100,000 - $350,000 (the "sweet spot" for end buyers)
• Property type: Single-family residential
• Location: Inside Beltway 8 (higher demand from buyers/builders)

After filtering, the list shrinks from 60,000+ properties to 847 highly targeted prospects. The investor selects the top 200 based on LienSuite's scoring algorithm and begins outreach.

The Numbers

Marketing and Outreach Summary

Metric	Count
Properties in filtered list	847
Properties selected for outreach	200
Direct mail letters sent	200
Skip traces run	200
Phone calls made (cold)	142
Conversations with owners/heirs	31
Property visits	8
Contracts signed	4
Deals assigned (closed)	3
Deals fallen through	1

Cost Breakdown

Expense	Amount
LienSuite subscription	$49/month
Skip traces (200 x $0.50)	$100
Direct mail (200 letters)	$242
Phone / tracking number	$30
Gas for property visits	$65
Earnest money deposits (refundable)	$300
Total Marketing Cost	$486

The Process

Step 1: List Download and Filtering (Day 1)

The entire process starts with data. The investor logs into LienSuite, navigates to Harris County, and downloads the tax delinquent property list. The download includes owner names, property addresses, mailing addresses, tax amounts owed, years delinquent, estimated values, and — critically — deceased owner flags.

The 5+ year delinquency filter is the most important. Properties that have been delinquent for 5+ years typically have owners who have given up on the property, moved away, passed away, or are in financial distress severe enough that they've stopped paying taxes for half a decade. These owners are far more likely to sell at a discount than someone who's one year behind.

The heir/deceased signal filter adds another layer. Properties with deceased owners and no probate are the highest-margin wholesale opportunities because heirs often accept below-market offers to avoid the hassle and cost of managing an inherited property.

Step 2: Skip Tracing and Outreach (Days 2-14)

The investor runs skip traces on all 200 selected owners through LienSuite's skip tracing tool. Results come back with phone numbers for 142 of the 200 owners (71% hit rate). The remaining 58 get direct mail letters only.

The outreach strategy combines two channels:

Phone calls (142 owners): The investor calls each owner with a simple script: "Hi, I'm [name], I'm a local real estate investor. I noticed you have a property at [address] with some outstanding taxes. I'm interested in purchasing it as-is if you're open to discussing it."

Direct mail (all 200 owners): A simple, personal letter referencing the specific property and tax situation. Includes a phone number and mentions that the investor can pay cash and handle all paperwork.

Over two weeks, the investor makes 142 calls and receives responses from 31 owners or heirs (22% contact rate).

Step 3: Qualifying Leads (Days 14-30)

Of the 31 conversations, the investor quickly qualifies each one based on three criteria:

1. Motivation: Does the owner/heir actually want to sell, or are they just curious?
2. Price expectations: Will they accept 40-60% of market value (leaving room for the end buyer's profit)?
3. Title clarity: Is there a clear path to marketable title, or are there complex heir/lien issues?

The filtering produces 8 qualified leads. The investor visits all 8 properties to assess condition and verify the comparable values.

Step 4: The Three Deals

Deal 1: The Heights Bungalow ($22,000 assignment fee)

• Property: 2-bed / 1-bath, 900 sq ft bungalow in Houston Heights
• Situation: Owner died 6 years ago. Daughter (sole heir) lives in California. No probate filed. 6 years delinquent, $18,000 in back taxes.
• Estimated ARV: $285,000 (Heights values have skyrocketed)
• Condition: Teardown — foundation issues, roof damage, mold. A builder will demolish and build new.
• Contract price with heir: $55,000 (heir signs heirship affidavit and quitclaim deed)
• Assignment price to end buyer (builder): $77,000
• Assignment fee: $22,000

The builder's math: $77K acquisition + $18K taxes + $185K construction = $280K all-in. New build sells at $425K+. Plenty of margin.

Deal 2: The Acres Homes Ranch ($15,000 assignment fee)

• Property: 3-bed / 1-bath, 1,100 sq ft ranch in Acres Homes
• Situation: Elderly owner in nursing home. Adult children managing finances. 7 years delinquent, $14,500 in back taxes. Family can't afford to catch up.
• Estimated ARV: $155,000
• Condition: Needs $20K in rehab (kitchen, bath, paint, flooring, HVAC)
• Contract price with owner: $38,000
• Assignment price to end buyer (fix-and-flip investor): $53,000
• Assignment fee: $15,000

The fix-and-flipper's math: $53K + $14.5K taxes + $20K rehab + $8K costs = $95.5K all-in. Resale at $155K = $59.5K profit.

Deal 3: The South Houston Duplex ($10,000 assignment fee)

• Property: Duplex, 2-bed / 1-bath each side, 1,800 sq ft total
• Situation: Owner divorced, moved out of state. Property has been vacant 4 years. 5 years delinquent, $12,200 in back taxes.
• Estimated value: $130,000
• Condition: Needs $15K in rehab per unit
• Contract price with owner: $30,000
• Assignment price to end buyer (buy-and-hold investor): $40,000
• Assignment fee: $10,000

The rental investor's math: $40K + $12.2K taxes + $30K rehab = $82.2K all-in. Both units rent at $950/month = $22,800/year. Cap rate: 27.7%.

The Deal That Fell Through

A fourth contract was signed on a property in Third Ward, but the deal fell apart when the title search revealed an old mortgage from 2004 that was never released. The lender had been acquired by another bank, which had been acquired by yet another bank. Clearing the lien would have taken 3-6 months and $2,000+ in legal fees. The end buyer backed out, and the investor released the contract.

The Result

Metric	Amount
Deal 1 assignment fee	$22,000
Deal 2 assignment fee	$15,000
Deal 3 assignment fee	$10,000
Total assignment fees	$47,000
Total marketing cost	($486)
Net Profit	$46,514
ROI on marketing spend	9,568%
Timeline	60 days
Properties contacted	200
Deals closed	3
Deal rate	1.5%
Revenue per contact	$235

$47,000 in 60 days with less than $500 in marketing spend. The investor never purchased a property, never managed a rehab, and never dealt with tenants. Pure profit from information arbitrage — knowing which properties to target and which buyers to connect them with.

Key Takeaways

1. Data quality is the wholesaler's competitive advantage. The investor's edge wasn't salesmanship or negotiation — it was starting with a filtered, scored list that identified the most motivated sellers. Without LienSuite's filtering, the investor would have been calling thousands of random delinquent property owners hoping to get lucky.
2. Heir properties are the best wholesale leads. Two of the three deals involved deceased owners or heir situations. These sellers are uniquely motivated because they inherited a problem, not an investment. The deceased owner signal is the single most valuable filter for wholesalers.
3. Know your buyers before you find your sellers. The investor already had relationships with a builder, a fix-and-flipper, and a rental investor before starting the campaign. Knowing what each buyer wants (teardowns, light rehab, cash flow) determined which properties to pursue.
4. A 1.5% deal rate is realistic and profitable. Out of 200 contacts, 3 deals closed. That's 1.5% — right in line with industry averages for wholesaling from tax delinquent lists. The key is that each deal generated $10K-$22K in fees, making the overall campaign massively profitable.
5. Title issues kill deals — research before you contract. The fourth deal fell apart because of an old unreleased mortgage. Running a preliminary title check before signing a contract saves time and protects your reputation with end buyers.

How to Find Similar Deals

1. Download a tax delinquent list from LienSuite. Start with your local county or a high-volume market like Harris County, Dallas County, or Bexar County.
2. Filter aggressively. Don't try to work the entire list. Use LienSuite's filters for 5+ years delinquent, deceased owner signals, and your target property value range. Focus on the top 100-200 prospects.
3. Build your buyer list first. Before you send a single letter, know 3-5 active buyers in your market. Attend local REIA meetings, join Facebook investor groups, and ask fix-and-flippers who they know. A deal without a buyer is just a contract.
4. Combine phone and mail outreach. Phone calls produce faster results; letters produce more responses over time. Using both channels on the same list maximizes your contact rate.
5. Start with 100-200 contacts per campaign. Don't try to work 1,000 leads as a solo operator. A focused campaign of 200 contacts is manageable for one person working part-time over 2-4 weeks.

Ready to start wholesaling from tax delinquent lists? Download your first list on LienSuite, filter for high-motivation signals, and start making calls.