OfflineIve been searching through thousands of tax liens & came across several subdivions in 1 county. The theory is the company stopped building for whatever reason. Usually due to the economy. House and land value in the area went down, so its more expensive to buy the land and build a house then what they can sell them for after their done. Hence they have no cash flow because they stopped building. They have a certain time to pay u back with interest or u get the property. So if u go in and buy all 50 lots for 800 apeice, and they assess for 45000 apiece, u can make alot of money. 2,250,000 asessed/40,000 paid. And since they have cashflow problems, most likely they wont be able to pay back the lien with interest or get financing for it because they could go bankrupt. If u get them at auction and pay 800, u can sell them for any amount up to 45000 and make money.
1) what ya think? Attainable or unrealistic?
2) explain?
3) and ive found this exact situation somewhere in the eastern new englund area. how can i get financial help and the know how to profit.
$2,250,000 tax lien subdivision
Posted on: Thu, 11/18/2010 - 12:20
$2,250,000 tax lien subdivision
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- by imyours87
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Great job on researching deals. This process is attainable but you need to look at the big picture. How quickly do you think building will resume in that area? If you are or have a cash investor with $40,000 who can wait until the parcels sell, it could be a huge return on investment. Questions to ask: 1)What is the redemption period, months or years?
2) What will be the ongoing cash requirements to hold the lots? Additional years of propety taxes, mowing the lots, etc.
3) Marketing cost to resell the lots?
4) Investment required in infrastructure to make all the lots sellable. Are all the roads and utilities installed? Some times the developer only brings roads and utilities to the lots as they are sold or built on.
The numbers look favorable if all the rest of the factors indicate the lots are really marketable and at what price.
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