Hawaii situation guide · Updated November 2026

Wholesaling Tax Delinquent Properties in Hawaii

Wholesaling tax delinquent properties in Hawaii means signing a contract with an owner who is behind on county real property tax, then assigning it to a cash buyer. In Hilo and across Hawaii County, unpaid tax stacks up as a lien with added charges, so many owners welcome a quick, clean exit. Learn the tax delinquent lists first.

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The short answer

Can you wholesale tax delinquent properties in Hawaii?

Yes, you can contract with an owner who owes county property tax and assign that contract to a buyer, as long as you stay inside Hawaii licensing rules. Hawaii has no wholesaler-specific statute that we found, but broker-license law can still reach you. Ask a Hawaii attorney before you market any contract.

A tax delinquent owner in Hawaii usually owes a county, not a bank. Real property tax is generally handled by each county, so a home in Hilo is tracked by Hawaii County while a home in Kailua is tracked by the City and County of Honolulu. Unpaid amounts can grow, and a county can pursue a tax sale. Start with our tax lien vs tax deed guide.

Your job is not to collect the tax. You tie up the home at a price that works after the debt is paid at closing, then pass the contract to a buyer who closes through title. Our assignment guide covers how the contract moves, and the pre-foreclosure and tax lead guide shows how these leads overlap with mortgage trouble.

Tax Delinquent Properties in Hawaii at a glance

Who is owed	The county where the home sits
Lien status	Unpaid county tax is generally a lien on the property
Tax sale and redemption	County process; check current rules and dates
Closing tax	Conveyance tax falls on the seller; investor rates are higher
Licensing	Repeat assignment deals may look like brokerage
Wholesaler statute	None found in our review; confirm current text

The opportunity

Why tax delinquent leads fit Hawaii

Hawaii homes carry high values, so even a modest tax bill can sit on top of real equity. Absentee owners are common around Hilo, Keaukaha and Pana’ewa. A county notice often gets ignored for months. That gap is your opening. Pair this with absentee owner leads when the mailing address is off island.

Equity hides behind the bill

A small tax debt on a home worth hundreds of thousands leaves room for a seller payout and your fee. See how to calculate ARV.

Heirs who cannot agree

Family land often sits unpaid while relatives debate.

Less competition on foot

Few investors call Hilo owners one by one. Try skip tracing for hard-to-reach owners.

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Lead sources

Where to find tax delinquent leads in Hawaii

County tax records. Hawaii County Finance and the City and County of Honolulu hold real property tax data.
Public notices. Counties and courts post notices in newspapers and online.
Probate and heirs. Estates often leave taxes unpaid. See our probate leads guide.
Direct mail. A short, kind letter to the owner works better than a flyer. Read direct mail for wholesalers.
Driving the neighborhood. Overgrown yards in Waiakea or Kaumana can point to owners who stopped keeping up. Use driving for dollars.

Your exit

Who buys tax delinquent deals in Hawaii

Local rehab investors and landlords are the usual buyers. They care about clear title, a fair price and a short closing. Tell them about the tax lien up front.

Point buyers to an investor-friendly title company and review how to do a title search.

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Step by step

How to start wholesaling tax delinquent properties in Hawaii

Find the owner. Pull county tax data and confirm the owner on title. Use owner lookup tips.
Make contact. Call or write with a plain offer to help.
Learn the debt. Ask the county for the current balance, and ask the owner about other liens.
Run the numbers. Use the ARV calculator and the MAO calculator to set a price after the tax payoff.
Sign the contract. Write a purchase contract and disclose in writing that you may assign it. See writing a wholesale offer.
Market the deal. Send the contract to buyers on your list, with the tax balance spelled out.
Close through title. Have the title company pay the county and any liens, then fund the seller and you.

Your checklist for wholesaling Tax Delinquent Properties in Hawaii

Confirm the owner and any heirs on title.
Get the current county tax balance in writing.
Ask about leasehold terms if the land is not fee simple.
Disclose your assignment plan in the contract.
Ask a Hawaii attorney whether your activity could count as brokerage.

A Hawaii example: a Hilo home behind on county tax

Home	Three-bedroom house near Waiakea, Hilo
Contract price	$395,000
County tax owed	$14,200
Other liens	None found
Assignment fee	$12,000
Seller payout	About $368,800 before closing costs

In this worked example, a retired mechanic in Hilo inherited his mother’s house but lived on Oahu. He had not paid Hawaii County real property tax for three years, and a notice had gone unopened. He agreed to sell for $395,000.

You checked recent sales with the comps guide, and repairs looked modest. The title company confirmed $14,200 owed to the county and no other liens. You signed the contract, disclosed the assignment, and sent it to your buyer list.

A local landlord took the deal and paid you a $12,000 fee. At closing, title paid the county first, then sent the seller about $368,800 before closing costs. These numbers are illustrations only, not market data.

Hawaii rules to know

Tax sales, conveyance tax and license limits

No tax sale or redemption timeline is stated here as fixed, because Hawaii counties run their own processes and details change. Hawaii also charges a conveyance tax under HRS chapter 247, and the seller generally pays it. Rates are higher when an investor buys a condo or single-family home that does not qualify for the county homeowner’s exemption. Check current text for brackets.

Licensing is the bigger worry for a tax lead deal. Chapter 467 defines a broker as someone who negotiates sales for pay, and it names option deals used to dodge the license. The owner exception does not cover people in the brokerage business. No wholesaler-only statute turned up, but silence is not permission. See working with an attorney.

Learn it with a mentor

Work tax leads with a coach

Tax delinquent leads are emotional and the paperwork has traps. Mentorship students bring us their county notices and contracts, and we help them plan scripts and deal structure.

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FAQ

Tax Delinquent Properties in Hawaii: common questions

Is wholesaling tax delinquent properties in Hawaii legal?

Often, yes, with care. Our review found no law written for wholesalers in Hawaii. The risk is broker licensing: HRS 467-1 and 467-2 can capture repeat assignments sold for a fee. Tell sellers what you do, close through title, and have a Hawaii attorney read current text.

Who do tax delinquent owners owe in Hawaii?

Real property tax is generally collected by the county, such as Hawaii County for Hilo or the City and County of Honolulu for Kailua. The amount can grow with added charges. Ask the county finance office for a current payoff figure, because a seller’s own estimate is often out of date.

Does the tax lien get paid at closing?

In most deals, yes. The title company pays the county from the seller’s proceeds before funding the seller. That only works when the price leaves enough equity, so run your numbers first. Confirm the payoff in writing with the county or title company before you assign the contract.

Who pays the conveyance tax in Hawaii?

Under HRS 247-4 the seller generally bears it. HRS 247-2 sets rates per $100 of value that climb with price, with a higher schedule for buyers who cannot claim the county homeowner’s exemption on a condo or house. Because rates may change, request the exact amount from title.

Can the county sell a delinquent home without court action?

Hawaii counties have their own tax sale process, and we have not confirmed its steps or redemption rules. Do not quote deadlines to a seller. Ask the county and a Hawaii attorney for the current timeline, since your offer should respect it.