How can I un-own a property ?

How can I un-own a property ?

Wholesaler · Holiday, FL · Member since 2013 · 571 posts · 221 votes

I own an now long since abandoned house in NJ.  There was no mortgage but the taxes and W/S bills now far exceed any possible value of the property.  The town used to clean up the property and then put a lien on the property for the costs.  This proving generally ineffective to their purposes - they have adopted an alternative tactic now.  Now they do nothing but demand that the owner clean up the house, repaint it, and etc.  And then if the owner doesn't do it they issue a 'ticket' - which results in a summons to appear in municipal court, where the judge then revokes the owners driver's license.

My question is:  can I form a land trust or other entity, sell the subject property to the created entity, and then just let them chase that phantom?  Who, after all;  even if they do ever catch them, will not be at all inconvenienced by having it's driving privileges revoked in the state of new jersey.

Or can you all think of any alternative resolution to this issue?

stephen

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Jean BolgerPro Member
Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
12y

@Account Closed that is an uncalled for attack. Have you actually read this thread? do you know the area and the circumstances? To say that this property is unsaleable due to Stephen's being "unaccountable" is to ignore pretty much every relevant detail.

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  • Jean BolgerPro Member
    Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
    12y

    @Jassem A. , the working class area that I currently live in was actually referred to as a "war zone" by a local investor on BP  -- which was patently ridiculous, but you can see how the term is misused (or at least is very broad in its meaning). 

    To assume that every blighted area will eventually be cleaned up is, in my opinion, naive. And to assume that if you take the boards off of one of the houses on an abandoned street and arrange for running water (thereby making it the nicest house on the block) then someone will want to pay rent to occupy it... well, I doubt it.

    I really hope that Camden will come around. It would take massive, massive investment, both private and state -- and the state has pretty much wiped their hands of it at this point.  I really hope Detroit will come around as well. If I were a betting woman and had to pick one of these cities, my money would be strongly on Detroit, no question.

    I think this thread can serve as a great reminder to folks about how cities and neighborhoods can change, not always for the better. It sounds like this area was a good area for investment back when Stephen bought the place, after all. 

  • Investor · PA · Member since 2013 · 1k+ posts · 602 votes
    12y

    @Jean Bolger

    As long as the roof is in decent shape then all I'm talking about is removing the boards, screwing in used windows where needed, spray painting the whole interior with semigloss, painting hardwood floors or putting down laminate.  Might take a couple weekends and a couple thousand at most and then someone might want to rent it.  The rents there might actually be sort of high since it's close to Philadelphia. 850-900/mo appears typical based on ads I'm seeing on Craigslist for Camden.

  • Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
    12y

    Though it won't remove existing fines/liens as @George C. pointed out, I vote for you "selling" it to the "Camden Revitalization Trust" and putting the address for the trust as the local code enforcement or city building. Hopefully it throws off the scent and prevents future harassment. Then since you are actually in charge of the trust, if a miracle happens and property even regains value, you still have a play. Who knows, maybe they will believe they own it and remove the fines? It's not over-insured with faulty electric wires, is it?  Just asking!

  • Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
    12y

    @Jassem A. Google some articles about Camden. I'm not sure you are understanding how volatile and toxic the area is. I have rentals in "bad" areas, but this is an entirely different beast. 

  • Investor · PA · Member since 2013 · 1k+ posts · 602 votes
    12y

    @Derek W.

    I see it is ranked #1 in the nation for crime but I would think that it does have some not-so-bad areas.  I've been reading up about Camden and it looks like the police patrol a lot and that the school system is well-funded there.  It's likely more of a bad reputation than anything that scares off investors.  I'd consider investing there if I lived close by and if I couldn't find inexpensive property anywhere closer.

  • Wholesaler · Holiday, FL · Member since 2013 · 571 posts · 221 votes
    12y
    Because I can't make the numbers work. <g>

    Let's figure;  new kitchen, all plumbing, new bath, new heating system, flooring, some window/door repairs, paint in and out.  Let's say:  $5000. total - maybe I can cut some corners. <g>.

    Water is turned off because of the $8000. unpaid balance.  So at the time to rent I am out $12,000.  Rent is $800.  Taxes are at least $200. a month.  Water/sewer is about $100.  Cost of the $12K = $100. a month.  Let's budget $100. a month for maintenance.

    Hmmmm . . . . doesn't sound too bad, does it?  I put out $12K and then get about a 30% return on it.  And all I have to do is own and maintain a house in Camden.

    Oh, except that renting in Camden is illegal without a permit - issued after a city inspection.  That inspection includes all liens, back taxes, and any other money owed to the city of Camden. <g>

    stephen
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    Originally posted by @Jassem A.:

    Why not do some minimal repairs to make the house liveable again and rent the property to someone who gets a check every month? This would at least provide some money that could go towards back taxes and your water/sewer

  • Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    Wow. This is tough and I feel your pain. There are properties that are not even worth $1. We have some of them in Chicago Southside...

    But here are some ideas for you:

    1. Negotiate the liens with the city - offer them $5,000 in lieu of $75,000 and them not getting any money at all...then

    2. Donate the property with the now lower lien amount to a charity and get the tax deduction (50% of the value of the property?)

    3. You can also sell to a landlord for $1000 as long as they pay the $5K (reduced) lien

    4. Demolish it - and yes, you pay the $10K to demo it but the city won't have a property anymore for them to stick you with violations. You're out $15K but you cut your losses and move on.

    Of course 2-4 above will only work if you can make #1 work. In Chicago, we asked one seller to negotiate with the city on code violations and they released a $5,000 lien for $100. Hopefully the city of Camden will do something similar. Otherwise, on paper, they can make you sink deeper and deeper into debt but they are not going to get a dime out of you.

  • Mike B.Pro Member
    Developer · Chicago, IL · Member since 2013 · 435 posts · 358 votes
    12y

    @Wendell De Guzman where are you getting buildings demolished for $10k in the city? I'm going through the process now and I'm being quoted $25k (including all the permits).

  • Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    @Mike B., fortunately, I didn't have a property I needed to demo. The City of Chicago is always expensive. I heard from other investors in the suburbs that it cost them $10K to demo their properties. But I guess it will also depend on the size of the property?

  • Mike B.Pro Member
    Developer · Chicago, IL · Member since 2013 · 435 posts · 358 votes
    12y

    @Wendell De Guzman that sucks. You gave me hope that it was only going to cost me $10k! Sadly, Greystone 2 flats in the city are $25k to demo.

  • Investor · Fort Worth, TX · Member since 2013 · 309 posts · 150 votes
    12y

    Why not deed it to the city? You can call it a donation for the police department to use the facility as a neighborhood sub station... I knew a guy who did that with his commercial building because he couldn't sell it and was tired of paying taxes on it. It was in a high crime neighborhood and the police wanted 24/7 presence without using tons of resources.

  • Jean BolgerPro Member
    Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
    12y

    It would be great if people could actually take time to read a thread before commenting. 

    (I'm not trying to be a grouch, but it's just a trend I'm noticing that I think detracts from the forums)

  • SFR Investor · Dallas, TX · Member since 2011 · 604 posts · 243 votes
    12y

    Putting the title in someone else's name won't get rid of your problem,,you were the owner of record when all this went on.  It will stop any additional fines/taxes, but you are still liable for all  of the back taxes unless you can come to some agreement with the city that you will be donating and asking them to forgive the back taxes/finesj.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Stephen S. 

      Well there is always the thought to have the fire department burn it down for practice.

    We do that quite often here in ORegon if there is no asbestos in it.

    But then again if its anything like Detroit the fire department probably does not need any practice  ....

    What an absolute nightmare... the water bill is insane.. I had the same thing happen to me on one of my OREO's in Detroit by the time we got it back 4k in back water.. the tenants basically never pay the freakin water and the city won't turn it off. 

    There is a lot more to know about owning rentals in these bigger cities that are strapped.

  • Wholesaler · Holiday, FL · Member since 2013 · 571 posts · 221 votes
    12y
    Hargrove  (the local demo bigboys)  quoted me $35K and said it might be $50K.  Camden permits are a fortune and they make the process as difficult as possible.  Both side houses would also require engineering studies and then require shoring.

    stephen
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     Originally posted by @Mike B.:

    @Wendell De Guzman where are you getting buildings demolished for $10k in the city? I'm going through the process now and I'm being quoted $25k (including all the permits).

  • Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    12y

    See if Billy Graham will take it off your hands;

    http://billygraham.org/give/other-ways-to-give/gift-planning/ways-to-give/

  • Investor · Duluth, MN · Member since 2014 · 22 posts · 8 votes
    12y

    Didn't you say you had already quit claimed the property to someone else?   If that is truly the case, you no longer own the property.   You cannot give or sell it to anyone else.   I would update the taxpayer information with the "new owners" information.   As others have said, this doesn't necessarily take care of any debts against you personally, but it should stop any future debts.

  • Wholesaler · Holiday, FL · Member since 2013 · 571 posts · 221 votes
    12y
    I am the grantor.  The grantee has to sign and record the title into their name.  None of them ever did - although I signed the quit claim deeds each time.  Most recently it was a lawyer representing the city who sent over all the paperwork.  Which is why I had forgotten about it until I got the notice to rebuild the house recently.

    How exactly can I "update" the tax payer information?  I cannot just assign the property to an unwilling participant.  Or;  if you can tell me how - I will do it tomorrow morning as soon as the hall of records opens.

    stephen
    -----------


     Originally posted by @Steven Potter:

    Didn't you say you had already quit claimed the property to someone else?   If that is truly the case, you no longer own the property.   You cannot give or sell it to anyone else.   I would update the taxpayer information with the "new owners" information.   As others have said, this doesn't necessarily take care of any debts against you personally, but it should stop any future debts.

  • Real Estate Investor · Deptford , NJ · Member since 2014 · 33 posts · 5 votes
    12y

    you are sitting on a debt. The liens and such is what you're trying to give away. You make it sound like you're trying to sell or give away  a house when really it's just a debt. Why would or should the city take a debt from you lol. Have fun paying that back. Maybe next time maintain your properties instead of trying to be unaccountable for your properties when u fail to make a profit. 

  • Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
    12y

    hey @Account Closed , next time you teach the class "how to be a perfect investor and use my proprietary crystal ball to all avoid all mistakes" will you send me an invite?  I need to go to that course!

  • Jean BolgerPro Member
    Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
    12y

    @Account Closed that is an uncalled for attack. Have you actually read this thread? do you know the area and the circumstances? To say that this property is unsaleable due to Stephen's being "unaccountable" is to ignore pretty much every relevant detail.

  • Real Estate Investor · Deptford , NJ · Member since 2014 · 33 posts · 5 votes
    12y
    Originally posted by @Derek W.:

    hey @Account Closed , next time you teach the class "how to be a perfect investor and use my proprietary crystal ball to all avoid all mistakes" will you send me an invite?  I need to go to that course!

     Noones perfect.  If everyone could keep the wins and give back the losses the industry would last 3 seconds. I think the whole concept of accountability went over your head. You dont  need an invite but the dry humor was hysterical. 

  • Real Estate Investor · Deptford , NJ · Member since 2014 · 33 posts · 5 votes
    12y
    Originally posted by @Jean Bolger:

    @Account Closed that is an uncalled for attack. Have you actually read this thread? do you know the area and the circumstances? To say that this property is unsaleable due to Stephen's being "unaccountable" is to ignore pretty much every relevant detail.

     Do I know the area. Yes I do it's the town next to where I grew up. I apologize if anyone felt attacked I was merely making an observation. As far as the circumstances yes the area is terrible but did it ever occur to you that maybe it's so bad because the people who actually own the properties are doing what the thread starter is doing? Which is nothing but letting the city foot the bill hoping someone will take the problem off their hands. When we invest do we abandon our  responsibility to the community we invested in if we don't have the expected desire?  Maybe you're ok w that. I'm not. 

  • Investor · Duluth, MN · Member since 2014 · 22 posts · 8 votes
    12y

    @Stephen S. 

    I don't know about NJ, but in MN all you have to do is Create a quit claim deed, deeding the property to whoever you choose.   Record the deed in the county recorders office.   Visit the county assessors office with a copy of the newly recorded deed and update the taxpayer information to the new owners.     In my neck of the woods, you can bequeath your property to anyone for a $46 recording fee.  For a little more money you can have a local title company do it for you.

  • Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
    12y

    @Account Closed you are forgiven as it was SO obviously a comment from a newbie, and not from a grizzled real estate vet. There aren't any old timers out there that haven't stepping in a pile of s*#t now and then and had to learn how to clean off their shoe.  Thank you for your military service. Now it's time to learn real estate.  

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