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Real Estate question
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| 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+. |
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| Sunflower |
if it's too good to be true it usually is.
such as tahitian noni juice |
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| Lepanto |
| 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 u know? |
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| jonSun |
| 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. |
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| 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. |
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| Lepanto |
| 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! |
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| FuzzyChicken |
| sounds like that movie, the house of sand and fog or something |
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| D-res |
| 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 :p
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 |
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| 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. |
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| Lepanto |
| 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. |
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| Vivid Boy |
| 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 |
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| Lepanto |
| 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 . 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 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. |
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