How to Find Profitable Real Estate Deals from Deceased Owners, Liens, and Tax Delinquencies

Uncle Karl (Karl Spielvogel) shared six real-world deals that generated well over $1 million in profit. These case studies highlight a strategic, repeatable process that focuses on distressed properties often involving deceased owners, tax delinquencies, and multiple liens.

Many investors avoid these situations out of fear or confusion, but this method turns complex problems into high-margin opportunities.

He emphasized that you don’t need deep pockets to succeed, just basic tools, persistence, and the willingness to dig one step deeper than your competition.

Why Inherited Properties Offer Massive Opportunity

When property owners pass away, their homes often become neglected. Family members may be grieving, live out of state, or simply be overwhelmed by the legal process. As taxes go unpaid and maintenance is deferred, these properties become ideal investment opportunities.

Tell-tale signs include overgrown grass, hanging gutters, and piles of mail—classic indicators for "driving for dollars." Yet many investors miss these properties because they stop at the surface. This is where a simple but powerful step, verifying if the owner is deceased, can make all the difference.

The Core Strategy: Finding Deals Few Investors Touch

Step 1: Spot Properties with Deceased Owners

It’s essential to use skip tracing tools that can confirm if a property owner has passed away and identify their associated relatives. This extra step helps ensure you're contacting the right person and not wasting time on outdated information.

For example, a property owned by Cecilia Poinsetta was listed as deceased in 2011. Most investors kept calling her number—with no results. A simple obituary search and a look at relatives revealed Tanya Poinsetta Lee, who had lived at the same address for 20 years. A quick phone call led directly to the right person.

Step 2: Confirm Tax Delinquency

Check your local county’s delinquent tax list. If a deceased owner’s property is also behind on taxes, it’s a strong signal that the property may be a high-value opportunity. In one deal, a home had five years of unpaid taxes. That consistent delinquency pointed to underlying issues that other investors missed.

Step 3: Locate and Contact the Right Heirs

Once heirs are identified, reach out with empathy and curiosity. Ask open-ended questions like:

"It looks like you’re one of the heirs to [address]. I noticed the property is tax delinquent and I was curious—what are your plans for it?"

This opens the door to honest conversation and valuable information. For example, one heir mentioned a $97,000 Medicaid bill they assumed had attached to the home. A $100 title search revealed no such judgment, unlocking a clear path to purchase.

Real Case Studies: Turning Heir and Lien Chaos into Profit

Want to see real-life examples of how these deals came together? Watch the full walkthrough below, straight from Uncle Karl, who made over $1 million using this strategy.

Case Study:

A $7,500 Investment Turns into a $280K Property

One deal began with just $7,500 invested. The team took the property subject-to the existing mortgage. They confirmed the owner was deceased and contacted a daughter listed in public records. That simple extra step led to control of a home now worth over $280,000.

Five Years of Unpaid Taxes and a Family Tree

A second property had five years of tax delinquency. The team used genealogists ($5–$15/hour) to build a full family tree from obituaries and public records. One heir had given up due to assumed legal roadblocks. By offering $5,000 upfront and a clear, fair agreement, the team secured the deed and cleared the title, netting nearly $140,000 in profit.

They even tracked down a missing heir through Facebook after spotting her selling a pink Michael Kors purse. That purse is now a trophy, proof that creativity pays off.

Controlling Judgments for a $143K Win

A tax-delinquent vacant lot came with $25,000 in back taxes and two large judgments: $73,000 from HD Supply and $66,000 from Ford Motor Credit. The team negotiated with the judgment holders. They bought the HD Supply judgment for $16,000, giving them priority control.

Instead of satisfying the judgment, they held it, preventing Ford Motor Credit from moving up in lien order. A discounted settlement followed. After clearing both liens, the property sold, and the team walked away with $143,000 in profit.

What to Say on the First Call with an Heir

Start with curiosity, not assumptions. Your goal is to listen and learn:

"It looks like you’re an heir to the property at [address], and it’s showing up as tax delinquent. I was curious—what are your plans for it?"

This helps you identify misconceptions (like assumed Medicaid liens) and offers an opportunity to explain how you can help.

Understanding Judgments, Liens & Priority

Every state has different rules, but some key principles include:

• Judgments expire: 5 years in PA, 10 years in NC, etc.
• Tax liens take top priority, above mortgages or judgments
• Lien sequence matters: The first recorded lien gets paid first

Smart investors don't avoid liens—they leverage them. You can:

• Let old judgments expire
• Buy them at a discount
• Dispute invalid claims
• Use attorneys to negotiate or litigate
• Foreclose from a lien position when appropriate

Understanding these rules gives you negotiating power.

The Trifecta: Deceased Owner + Taxes + Vacancy

When all three conditions exist—deceased owner, unpaid taxes, and vacant or neglected home—it’s time to dig deep. These are the best leads to pursue with full effort. 

These properties have little competition and can yield large spreads. Be ready to do extra work, but know that the payoff can be life-changing.

How Probate Affects Real Estate Deals

Probate is the legal process of transferring assets after someone dies. If a property owner passes away without a will, the state’s intestate laws determine who inherits the property.

Some key points:

• You may need court approval or an affidavit of heirship to transfer title.
• Probate timelines vary by state — some take months, others over a year.
• Many heirs don’t understand probate, which creates an opportunity for investors who can simplify the process.

Understanding probate allows you to navigate around delays and structure deals creatively with willing heirs.

How to Estimate Profit on Distressed Real Estate Deals

Before making an offer, always run the numbers. Here’s a quick formula to keep things simple:

1. Determine ARV (After Repair Value): What’s the home worth fixed up?
2. Subtract repair costs: Use a conservative rehab budget.
3. Subtract all liens and judgments: Include unpaid taxes.
4. Subtract closing and holding costs
5. Your target profit margin (usually 20–30%)

Example: If ARV is $200K and you estimate $30K in repairs, $40K in liens, and want a $30K profit — you’d offer no more than $100K.

Tips to Build Your Deal Pipeline

• Drive for dollars and note signs of vacancy
• Check county tax delinquent lists weekly
• Use skip tracing tools to confirm deaths and find heirs
• Search obituaries and build family trees
• Start calls with a question about their plans
• Run title early to identify risks
• Offer small, upfront payments to gain trust
• Work with attorneys to prepare proper filings

Legal Help, Ethics, and Risk Management

Respect is critical when dealing with heirs. Approach every conversation with empathy. Be transparent about your process, provide written agreements, and encourage heirs to seek legal advice.

Mitigate risk by:

• Running a full title search early
• Documenting all conversations
• Understanding judgment expiration rules in your state
• Partnering with attorneys for negotiations and closings

Frequently Asked Questions (FAQ)

Q1: Can you buy a house if the owner is deceased?

Yes, but you’ll need to verify the legal heirs and resolve any probate issues. Obituaries, public records, and skip tracing can help.

Q2: What are the risks of buying tax-delinquent property?

You could face hidden liens or unrecorded claims. A title search is essential to confirm what’s actually attached to the property.

Q3: How do I find heirs to a property?

Use skip tracing tools to locate relatives. Build a family tree and call everyone until you reach someone willing to talk.

Q4: What is lien priority, and why does it matter?

Lien priority determines who gets paid first during a sale. Tax liens usually rank highest, followed by judgments in order of filing.

Q5: Do you need a lawyer for these deals?

Yes. Attorneys can verify title, negotiate claims, prepare affidavits, and help close complicated transactions.

Final Thoughts: Why the Extra Step Wins

Karl Spielvogel described himself as a "private investigator." That mindset; being curious, detail-oriented, and persistent, makes all the difference. Most investors give up too early. The ones who go the extra step earn the biggest rewards.

Neglected properties with deceased owners and unpaid taxes aren’t dead ends, they’re opportunities waiting for the right person to step in. Use the tools, stay respectful, and stay consistent.

With this approach, you’re not just buying houses, you’re solving real problems. That’s where the value (and profit) lives.