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I was wondering if anyone out there has any information or has had experience in buying land from individual land owners that are over due on their property taxes. I'm not talking about paying the back taxes and putting a lein on the property. I'm talking about contacting the owner directly and making them a low ball offer on their land and getting a free and clear title. Is it true that alot of land owners have just walked away from their property and have failed to pay property taxes for years and feel they will never get any money for their land? Is it possibble to locate these people from county records and offer them pennies on the dollar for their land? If so, do you recomend a real estate attorney or title insurance or search to make sure land is free and clear before purchase? I assume I will have to pay the back taxes myself too.
Just thinking about different investment ideas other than the market now.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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I've bought several tax delinquent props from owners, but not for 'cents on the $$', more like near assessed (not appraised) values. Sometimes as much as 50% off prime market rates. I'm sure there are lots of bargain places, as even the ones that are listed are going for 50% off their highs. (maybe closer to 'reality'
my process;
locate the area I want (I have specific criteria that is focused on desirability of resale)
do a bunch of research to determine comp values
determine ownership (I used to go to the court house and camp out in the assessor's office for a few days) I get parcel maps and color them and write in the ones I would like to target for purchase.
I pick the most likely ones that will want to sell (a criteria I don't publish on public websites, as several realtors have absconded with my ideas and target markets) You can do most of his on-line now (unless you live in the boonies and only have dialup... like me)
I contact the owners and offer them attractive deals, especially if they will finance balance with 25% down and short term note. Contacting them in the next couple months (Before taxes are due) is best leverage.
I use title companies, and only involve attorney if there is something out of order with previous ownership, or easement / boundary. I bend over backwards to make it ez on the seller and I don't hammer them on price or terms. I spend a lot of time talking to neighbors and land use planners BEFORE I make an offer, as I like to know the history and whether there are any barriers that are 'unseen'.
Buyer beware, but remember the saying... "If it is already on the market, it is no longer a good deal" - you have to dig, but rewards are there.
Do your "due diligence" as janb suggests carefully. Sometimes there are serious defects with the property that makes it unmarketable in a conventional sense. In other words it is totally worthless. One reason why someone may decide to "just walk away" by ceasing to pay the taxes. It's the easy way to make it the local govt's problem.
One such example would be the property is heavily contaminated by the gas station that used to be there 20 years ago, by inground tanks that leaked. The cost to cleanup the site would far exceed, by several times, the otherwise fair market value of the property. An extreme example, but theres the point.....beware the hidden dangers.
I was wondering if anyone out there has any information or has had experience in buying land from individual land owners that are over due on their property taxes. I'm not talking about paying the back taxes and putting a lein on the property. I'm talking about contacting the owner directly and making them a low ball offer on their land and getting a free and clear title. Is it true that alot of land owners have just walked away from their property and have failed to pay property taxes for years and feel they will never get any money for their land? Is it possibble to locate these people from county records and offer them pennies on the dollar for their land? If so, do you recomend a real estate attorney or title insurance or search to make sure land is free and clear before purchase? I assume I will have to pay the back taxes myself too.
Just thinking about different investment ideas other than the market now.
Thanks for your insight,
Scott
Check with your local tax office and see when they have their tax auctions.
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