Disposing of unwanted property

[Mark Yuschak]

This past summer one of my rental properties burned down. I worked through the claim process with the insurance company and properly had the house demolitioned to meet City codes. So, now I have a vacant lot in an urban area.

I quit paying the property taxes on it and owe about $650 to the City. At the end of the year when it's reassessed the taxes will go down to $11 a year.

What are some things you guys have done to get rid of unwanted properties? I'd like to donate it to get the tax write off, but have been unsuccessful so far. Here's what I've tried:

Contacted the neighbors to see if they want it
Contacted all the local churches to see if a parishoner wants it
Contacted Habitat for Humanity
Contacted the City to see if they just want it back (before tax foreclosure hits)
Contacted the Land Bank (charitable orginazation in the area that helps reduce blight in the City)

None of them have interest in it because it's not in any of their revitalization zones. (The parcel of land is in a nicer part of town).

So, all this being said, what do the bulk REO people do to get rid of their junk properties?

I never thought it would be this hard to give away real estate. lol

[Jim Wineinger]

Go to your county office that conducts the tax sales and find a way to pull a list of several of prior years tax sales.

This list should be public information as far as name, parcel, and sales amount.

Then advertise your property to the names that come up several times on those list as a "pre-tax sale" sale.

You should at least be able to find some local investors to add to your potential buyers list even if you get no takers on your property.

[Vikram C.]

Mark, if it's in a nicer part of town, isn't there something you can do with the land to create some value out of it?

[Mark Yuschak]

The only thing I could do, which I investigated, would be to reconstruct a new house. Given the current building costs vs. the cost to buy an existing home (albeit an older home) it makes no sense to build on the land. At least not to me as an investor, but I would think it has value to someone else.

[Raymond B.]

Have you considered placing an ad on Craigslist, or any of the other free sites?

Raymond

[Myka M.]

Originally posted by Mark Yuschak:

I never thought it would be this hard to give away real estate. lol

Had the same problem here. My first buy ever was at a city auction. There was a picture of the house and that was it, I didn't know then what I know now so I bid. Only took one bid... mine.

Imagine my drive past... 33 blank ave, 36 blank ave, 42 blank ave... wait where's 38 and 40??? The city had torn down the building months prior. I still have that lot to this day! LOL!

[Joshua D.]

What about setting up a contest and giving it away that way?

What city is it in? I can see if I can find someone for you if you're interested . . .

[Mark Yuschak]

The lot is in the City of Flint. Zip code 48507 - the most desireable area of the City.

I have it on craigslist but haven't had any bites. This just crazy!

[Vikram C.]

Mark, how big is the lot? What's the annual tax and other costs associated with it? I may be able to relieve you of your burden. :)

If you have an address, please PM it to me. My contact info is in my signature.

[Account Closed]

If Vikram decides not to take it, put it on ebay with a starting price of $650. Advertise as "will sell, no reserve price"

If that doesn't work, put it on Craigslist in expensive cities. Someone in San Francisco would buy a lot for $650 just so they could be a landowner. If taxes go down to $11, it's not going to cost anything to hold on to it.

Hey, Christmas is coming up. Wap that deed up with a bow and give it to someone for Christmas.

[Jim Wineinger]

Try everything else first, then allow the county to sell the property for you in the tax sale. If anyone bids more for the property than you owe in back taxes (plus penalties and court costs) you can claim the excess monies from the county.

[Mark Yuschak]

Both are very good ideas. I'll try the ebay route next.

If nothing else, I'll do what jawsette suggested and let the county sell it.

[Mark N.A]

Have a raffle - dollar a ticket.

Donate all proceeds to charity.

Who can resist the chance of becoming a property baron for a buck? (Besides most everybody here, anyways.)

[Account Closed]

Mark, measure it out and see if there is room for both a house and a big garage. Like maybe a 3 car with separate bays.

You leave a place for the house and you build the garage. Then you rent the garage for storage until the market improves.

When the economic crisis is over, you sell the improved lot.

[Jim Wineinger]

Go to your county office that conducts the tax sales and find a way to pull a list of several of prior years tax sales.

This list should be public information as far as name, parcel, and sales amount.

Then advertise your property to the names that come up several times on those list as a "pre-tax sale" sale.

You should at least be able to find some local investors to add to your potential buyers list even if you get no takers on your property.

[Jeffrey K.]

Do you want money for it or trying to sell it for $1? I am sure someone here will buy it for $1.

[Loc R.]

Another possibility is through networking, see if anyone out there is demolishing a good home (like a developer who is going to join adjacent lots).

From there simply pay to have the house moved to your lot, and viola! You have a house on your lot.

[Mark Yuschak]

All very good ideas! I've been getting inundated with PMs from people who say they want it. In the worst case, if I don't get rid of it, I'll let it go into tax foreclosure and let the County auction it off. Whatever excess there may be from the foreclosure costs, I'll make claim to.

The garage idea is a good one - however, since it is still technically zoned residential I cannot do that. There was a garage on the lot but the City made me demolition it along with the house since the garage was an accessory to the residence. An accessory cannot be had with out residence. Was a shame - perfectly good garage demolitioned.

$100 is what I'm asking for the lot. Buyer can pay via paypal and I'll mail them a QCD which he/she can record.

[Ralph S.]

Mark
Why not QC to BP, as a donation, and let Josh raffle it off to the BP Nation?

[Account Closed]

There are companies that pick up distressed properties and notes.

http://www.cvmanagement.net
http://www.kondaur.com
http://www.saycocapital.com

They also sell them.

Let me know if you want a direct contact at anyone them.

[Savannah Leigh]

I have a similar problem, except this one has a REALLY ROUGH house on it. Unable to sell it, not sure I want to throw the $50k at it that it's worth.

My city will take it as a donation, but my accountant says all I can write off is the costs My company has in it. If I buy the house personally (from my company) can I get more of a write off.

[Mark Cruse]

I hate mine so much. I just wish it would explode.

I think the only option is strategic default but its not in my nature.