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Real Estate question

my friend is getting into buying up land by lots from forclosed homes or lots. he's talking auctions where they say lots for as cheap as 200 bucks opening bids. he checked out some of the areas as well and they aren't too bad.

i wanted to know if anyone has experience in dealing with stuff like this because me and him want to buy some of it up and sell it to real estate companies like century 21 or fillmore because they sell land like this for roughly 20,000+.

if it's too good to be true it usually is.

such as tahitian noni juice

quote:

Originally posted by Sunflower if it's too good to be true it usually is. such as tahitian noni juice

it's not really too good to be true because it is forclosed property and 200 bucks is just an opening bid. people walked away payin about 13,000 for land they can resell for about 20,000 but that's also without paying taxes and shit u know?

See if there is a way to get some info on the propertys first before you buy. I had a friend that buoght some land from an auction & he found out after he bought it that he couldnt build on it. But he only paid like $200 for it. So he didnt loose much.

are you talking about government tax sales? that sounds like what you're referring to. basically when people dont pay their taxes the government can take the property and sell the property at auctions for the price of whatever the unpayed taxes are. say you have a house valued at $100,000. you stopped paying your taxes and you owe 800 in taxes. In most jurisdictions, when a property owner is late on paying real property taxes, the county or municipality will issue a a tax lien on that person's property. Certain states allow the tax lien to become a first lien on the property, which is then turned around and sold at auction as a tax lien certificate.

then if the homeowner doesnt repay the taxes within a certain amount of time, the property is officially yours to do with whatever you want. real estate companies cant bid at these auctions so that means making bank for you. if i were you, get your hands on a house, fix it up and get its value assesed, then re-sell it yourself or rent the property for monthly income.

its a great way to make money. only downside is that at these auctions you generally need to pay for the back taxes up front in cash. its generally the only way they'll take it, but who cares when you resell it for multiple times the price you got it for.

quote:

Originally posted by D-res are you talking about government tax sales? that sounds like what you're referring to. basically when people dont pay their taxes the government can take the property and sell the property at auctions for the price of whatever the unpayed taxes are. say you have a house valued at $100,000. you stopped paying your taxes and you owe 800 in taxes. In most jurisdictions, when a property owner is late on paying real property taxes, the county or municipality will issue a a tax lien on that person's property. Certain states allow the tax lien to become a first lien on the property, which is then turned around and sold at auction as a tax lien certificate. then if the homeowner doesnt repay the taxes within a certain amount of time, the property is officially yours to do with whatever you want. real estate companies cant bid at these auctions so that means making bank for you. if i were you, get your hands on a house, fix it up and get its value assesed, then re-sell it yourself or rent the property for monthly income. its a great way to make money. only downside is that at these auctions you generally need to pay for the back taxes up front in cash. its generally the only way they'll take it, but who cares when you resell it for multiple times the price you got it for.

well yeah he called it forclosure but we're not real estate exprets hehe. he said there are only 2 auctions a year and one of them you don't have to pay the back taxes on it. is that possible?

and is there really a way i can get some land for about a thousand? my friend is leaning more towards buying up a house and fixing it up. i just wanna know if this is like trully a good thing to do and which is better?

thanks d-res ur info is so far extremely helpful!

sounds like that movie, the house of sand and fog or something

quote:

Originally posted by Lepanto well yeah he called it forclosure but we're not real estate exprets hehe. he said there are only 2 auctions a year and one of them you don't have to pay the back taxes on it. is that possible? and is there really a way i can get some land for about a thousand? my friend is leaning more towards buying up a house and fixing it up. i just wanna know if this is like trully a good thing to do and which is better? thanks d-res ur info is so far extremely helpful!

no prob

im no real estate expert either but i've been up late enough times to see the damn infomercials talking about this exact thing and a guy selling books on how to do this whole thing the right way. it looked like a great way to make cash so i did a bit of researching. im working full time this summer but i plan on doing this as a side project for extra cash.

buying land and buying a house is completely your call. it just depends what you're planning on doing with the land. essentially buying a lot in the city that you plan to sell to someone to build a house on or something is good and generally less expensive than buying a house but its also less profitable, unless its a large chunk of land. obviously houses are generally assessed at more money than just the land they sit on but there are always exceptions. you can most certainly buy land for less than 1000 at one of these auctions. its not always gauranteed but its be no means impossible.

as far as being able to get the property without paying the back taxes, i dont know. as far as i know thats completely what these auctions are based off of, and usually the back taxes are less than whatever else they would sell it for. the highest i've ever seen back taxes are 8000 but the house was resold for over 200,000 so for 8 grand it was a great investment. usually these auctions have small but modest turnouts and if you bring a couple thousand dollars with you you can usually get your hands on a couple gems or one big gem. it sucks shoveling out money up front but it pays off if you do it right.

theres hella resources on the internet and at book stores, and what i've told you so far is about the extent of my knowlegde. if i were you i'd do a bit of research on house tax lien certificates work, etc. i have to wonder why these arent more popular. its such a great investment.

quote:

Originally posted by FuzzyChicken sounds like that movie, the house of sand and fog or something

great movie

yeah u guys got it all figured out alright lol.


none of u have even mentioned what state the market in ur local area is at.

quote:

Originally posted by Vivid Boy yeah u guys got it all figured out alright lol. none of u have even mentioned what state the market in ur local area is at.

it's not in my area it's in pike county, penn.

quote:

Originally posted by Lepanto it's not in my area it's in pike county, penn.

so hows the real estate market? do u know how to guess where the market is at? do u know any calculations to appraise the land? do u know if penn is expanding and in which way? hows the population growth?

theres soo many lil details u have to worry abt when investing in land, and u guys are worrying abt taxes lol. the key to investing in real estate is figuring out all hte lil details and then predicting the future.


im not a real estate expert myself either however i do have my real estate license and i do know investing in land is a lil more trickier then u think. my advice to you would be number 1 investigating the market where it is today. and then investigating whrre it was a few years ago and then look for an overall view of the market and find out any similarities and give a good estimate where the market is.that just to begin with too. really in real estate u can make money wether u buy high or low. it just all dpeneds how long u can hold on to that land for and how quick ur looking for an ROI

quote:

Originally posted by Vivid Boy so hows the real estate market? do u know how to guess where the market is at? do u know any calculations to appraise the land? do u know if penn is expanding and in which way? hows the population growth? theres soo many lil details u have to worry abt when investing in land, and u guys are worrying abt taxes lol. the key to investing in real estate is figuring out all hte lil details and then predicting the future. im not a real estate expert myself either however i do have my real estate license and i do know investing in land is a lil more trickier then u think. my advice to you would be number 1 investigating the market where it is today. and then investigating whrre it was a few years ago and then look for an overall view of the market and find out any similarities and give a good estimate where the market is.that just to begin with too. really in real estate u can make money wether u buy high or low. it just all dpeneds how long u can hold on to that land for and how quick ur looking for an ROI

that's pretty much a given, dude.

first of, alot of the area is empty and in NYC alot of people buy land and houses in penn for a summer home and shit. and i know alot of people who will be interested.

second of all, what are you talking "we're interested in taxes lol". this whole thing is based one PEOPLE WHO DON'T PAY TAXES.

furthermore, a 1,500 investment ain't a big deal if we fuck up. we'll learn from it and do better at the next one. not to mention the fact that d-res hooked me up with some info that im going over right now and am planning on picking up a few books on TAX LIENS, NOT REAL ESTATE BUYING AND RESELLING

thanks for a dumb input.

for example here in toronto the market is in a bubble. ppl are buying and selling like MAD. and the prices of houses are soooo fuckin inflatted. houses that were $200 000 5 years ago are selling for 400 000 thou today. and ppl are selling like MAD and guess what people are buying them too even tho the price is so inflateed. wanna know why? cause it smore affordable today to buy a house then it was 5 years ago when the price was so low. intrest rates back then were 16% today intrest rates are at 2% so everyone thinks they can afford these half a million dollar homes on their salary. most of the people buying too are immigrants who dont kno any better.


so im at home saving my money. cause i know one thing, the market is in a bubble. next year or the year after its gonna comin crashing back down, intrest rates are gonna fly through the roof, and these same people who have been buying and selling this whole time are gonna go broke and have their houses takin away form them because they cant afford the 16% intrest rate. and...thats where i come in and start buying. when everyone thinks im a fuckin psycho for doing it. im gonna buy a fe whouses and rent them out and pay the intrest rate out of my own pocket. because i know once again in 5 years that market is gonna bubble back up again and thats when i sell.

VIVID, WE'RE NOT TALKIGN ABOUT THE SAME THING DO YOU GET IT?!?!?!

quote:

Originally posted by Lepanto VIVID, WE'RE NOT TALKIGN ABOUT THE SAME THING DO YOU GET IT?!?!?!

and then thats when i sell. cause the monkeyts fly at midnight. sometiumes i like a large cup of tea before bed time because thats the way i always have liked it. sometimes tho some hot choclate is good too but only on special occasions. and u wanna know why???? because hot coca gets me wired. yup thats right hot cocoa keeps wired on edge. speaking of edges i was reminisicing the other day abt wrestling. razor ramon. the razors edge. wow he was a charatcer i remember he once showed up drunk to the ring and the venue was this place in florida with a swimming pool around it. funny story too abt florida, i wasonce in florida with my friends and we rented out this lil villa sort of thing. and it TOO had a swimming pool so yeah we went swiiming and we splashed and we dived and we did lines. but the best part was, we did like 120 mph the whole way there AND WE"RE FORM TORONTO! we bought ourselves this nifty lil police radar detector. oh man we did that trip so quick.that also reminds me of this time i went to washington in rod ricos car. wow that was a fun time. we stopped off in buck fuck no where to getgas and food and as we were leaving from paying i hear in the background "welcome to john elways quarterback" and bam flashback to when i was a kid and i used to play that same game! so naturally ihad to play it. man i spend like 10 bucks on that machine before i was dragged away. it broke back some serious childhood memories. good times. so where was I YES! real estate. buy low sell high.

how wired are you right now

LOL @ Vivid

Re: Real Estate question

quote:

Originally posted by Lepanto my friend is getting into buying up land by lots from forclosed homes or lots. he's talking auctions where they say lots for as cheap as 200 bucks opening bids. he checked out some of the areas as well and they aren't too bad. i wanted to know if anyone has experience in dealing with stuff like this because me and him want to buy some of it up and sell it to real estate companies like century 21 or fillmore because they sell land like this for roughly 20,000+.

Is it just land or is there a house on this land as well?
If it is just land you do have to be careful of certain things even if it is going for a cheap amount. You have to make sure that you are able to build on it if it is just land. I was just out with my parents this weekend and they found an amazing piece of land. Turns out it was on a conservation area and you can never build on it so who would pay 125,000$ for a piece of land you can't do anything with? Or what if you build on it and your house sinks? (this has happend)

Also when dealing with foreclosures it is for more reasons then them just not paying taxes. If there was a mortgage on the land it could be from them not paying that as well. Before buying it look into everything about it first and find out as much info about the property as you can. Your best bet would be to call the city or township and get info from them and hire a lawyer. Most importantly if they did lose the property due to not paying taxes. How much were those taxes a year? Also if you are bidding on this I am sure it isn't just going to be 200-1500$ that you lose. Other people will be there bidding as well so be sure before you do anything cuz if it is a good property you will be paying more than that for it cuz property just isn't that cheap. Even with foreclosures they still have to sell it for what it is worth or if there was any kind of mortgage on it, they have to sell it to get at least the proceeds lost back from it. I think that it is a little too good to be true to be honest cuz if they are auctioning it off at 200$, there has got to be something up with it.

Good Luck to you and your friend. And make sure you don't jump into anything with properties like this. (unless it has a house already on it then you are a little safer )

Re: Re: Real Estate question

quote:

Originally posted by magikb Your best bet would be to call the city or township and get info from them and hire a lawyer.

Best advice in this thread.

You have to be very careful that the title/deed of the property is registered properly and transferred to you properly. I've heard of several cases where the documentation for title transfer wasn't done properly and the family started living in the house only to realize later that the house/property didn't belong to them!!!

In these scenarios where the property is very cheap, or "too good to be true" it's because of shady people involved that will defraud you like that.

BE FUCKING CAREFUL!!!

ok i get be careful lol.

i've seen some lots of land for avg of 1,000 and they aren't bad and something i'd get. half an acre by the delaware river. anyways, yeah my friend knows how to figure out from the township agencies if the land is doable or not. most often you can't build on it because of the sewage in the town or so.

but if i can't build on it i'll rent it out to trailers and RVs

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