Help me outwit a scam...or at least stop the loss!

Help me outwit a scam...or at least stop the loss!

FREMONT, CA · Member since 2011 · 8 posts · 1 vote

Hi.  Thanks for reading.   My dad was scammed and I now own the problem...can you help me with ideas of what to do???      10 years ago my dad bought 10 acres of open land for $10k in upstate NY.  It's got underbrush and a few trees, and its got frontage on a busy 2-lane road.   He may not have known it was 'wetland' and cannot be used for building...or maybe he did.  He passed away 5 years ago.  My brother was taking care of things (he is not business-minded at all), and one day I thought to ask him:   Hey, what about that old property...do we have it? what are the taxes?  Well, we do, and taxes are about $1k per year!

So here's a non-useable property that I've paid over $10k in taxes on top of the $10k cost...and it has no sale potential, according to a new real estate agent I just found.  (She wanted to help and to list it, until she found it was 'wetland.'   

So how can I let go or dispossess this property and in some way recover some money?    BTW I don't live in NY so i cannot really manage any dealings that take a local presence.    Can I donate it, but to who and why would they want it?  Can I call it a Wildlife Refuge and take a tax break?   if so do you know the details of how to do it?     

I appreciate all suggestions, but pls keep it constructive and positive.  I am very distraught that my father was scammed and my family has lost $20,000 or so.   thank you.

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Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Josh MADONNA depending on where it is ( you'd have to do a little research in it) you could sell it as "recreational land". People will buy it for hunting on, or for dirt biking, etc... there is a market for unbuildable land, you could call a realtor in the area to find out if that option is possible. Good luck!
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  • Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    8y
    @Josh MADONNA depending on where it is ( you'd have to do a little research in it) you could sell it as "recreational land". People will buy it for hunting on, or for dirt biking, etc... there is a market for unbuildable land, you could call a realtor in the area to find out if that option is possible. Good luck!
  • FREMONT, CA · Member since 2011 · 8 posts · 1 vote
    8y

    Hi Jason, thanks.  Its in upstate NY as mentioned.   I believe 10 acres is too small for that (hunters must need more for stray bullets, right?) plus it's heavy scrub brush with a few inches water, while there seems to be miles of forest to either side.  I did connect with a realtor who said (1) it's unuseable due to the water and (2) so small in value it's hardly with a realtor's time/effort to sell it.     So here's a question:  how do I give up ownership so that I don't have to pay taxes anymore?

    Does anyone know if there are legal consequences if I stop paying the taxes so that the state can take it away ?  will I be liable for penalties and back taxes in the future?   Ughhh...

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    in most states just stop paying tax's and call it a day.. or donate it to a land trust if they will take it.. 

    some environmental groups will take on wet lands and give you a tax write off.

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    8y

    Is it all wetland or is any of it treed or could someone place a mobile home on it ? My husbands family owns undeveloped land in upstate NY and it was made  a tree farm which lowers the taxes, how much I don't know.  Other then that you can try to give it to the town.  I think there are some people  who might use it recreationally if it  is wetlands but not actually wet but if it is on a major road that might not work. 

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @Josh MADONNA one option is to auction it.

  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    8y

    Charity. 

  • Developer · Indianapolis, IN · Member since 2012 · 259 posts · 129 votes
    8y

    You can definitely do any of the above, but there is another option.

    When we were developing land into a residential neighborhood a few years ago, part of the land was a wetland and could not be used. We got around this by paying someone else that has a wetland a fee, and they registered their land in the Wetland database to compensate for the wetland that we destroyed.

    Therefore, if you find a developer with wetland on their property that needs to build on it, you can offer to register your land as a wetland and make some money from them. There are probably lots of rules you need to follow, but it may be worth it. Contact your states Department of Environmental Management. You could also probably just sell the land to them so they control completely. Good luck!

  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    8y

    I'd say put it on the market. 10 acres even wetlands does have value. what someone decides to use it for isnt really your issue. Just let them know it exists. Maybe a photographer, hunters for sure, nature buffs who want their own swamp. You could stop paying the taxes and they will just take it, but may as well get something for it.

  • FREMONT, CA · Member since 2011 · 8 posts · 1 vote
    8y

    Wow, everyone, thanks!!!

    Neil - wonderful! helpful story/info, and I'll try Dept Env Mgmt if I can find it.  That's great!

    Colleen - it has very few trees; couldn't call it a tree farm.  Might have to give-away but where to start?  who to call?

    Ned - I'd need some guidance on where to find a suitable auction site...ideas?

    Sam - how do I find a charity willing to take this weird donation?  I get ~20 letters/month asking for cash though :-)

    Mike - I like your optimism so while I try other ideas I'll also get it listed.

  • New to Real Estate · Chino Hills, CA · Member since 2017 · 23 posts · 8 votes
    8y

    Make it into a Paintball field...........doesn't hurt to have more locations for activities. Make it useful.

  • Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    8y

    Try the Nature Conservancy.  If they do not want it, they may know another agency that would accept it as a tax write off.  Or use is as mitigation wetlands to offset someone else building on their wetland--they buy it from you for that purpose and they donate it to a wetland bank.

  • Catskill, NY · Member since 2018 · 636 posts · 668 votes
    8y

    Where in upstate NY is it? I've been causally looking for recreational land for quad riding and whatnot. I might be interested if it's useable for that purpose. Feel free to PM me. 

  • NYC, NY · Member since 2016 · 619 posts · 456 votes
    8y

    You don't say where it is in upstate NY.

    In addition to the local town, there are over 50 land trusts in NY State.  Check out this list, I think you can also see it on a map on the LTA website.  Find the closest one.

    https://www.findalandtrust.org/states/newyork36/la...

    If you have questions, ask.  I know many of them through my work.

    PS. I probably wouldn't bother with TNC.  This is a small parcel that should probably be handled by a local Land trust or conservation commission..(some small towns have ConsComs).

  • China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    8y

    @Josh MADONNA  In addition to all the other great ideas, you might also try for an abatement.

  • Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    8y

    @Josh MADONNA,

    It will be valuable to someone! 10 acres is a lot, and people want land for various reasons.    .... don't say there isn't a buyer until the market tells you.

    Why not owner finance it?   Have someone put at least $1K down to cover the taxes, and owner finance it for say $20-30K? 

  • Saint Petersburg, FL · Member since 2017 · 8 posts · 13 votes
    8y
    @Josh MADONNA One thing you did not mention, is how much of the property is on the busy two-lane Highway? It may be possible to put up Billboards and rent for advertisement if there is enough of a footprint. There is a positive to inheriting the property. The fact that it was inherited means that the initial expense of taxes (while your father held it) and purchase price was it has already been accounted for. Selling it for anything would reduce the amount of losses you take in the future. Thinking of the initial 10k and 10k in taxes as your expense may make you prone to hold the property longer than necessary. If the property was inherited by means of a will, then it is likely that the capital gains or losses will be assessed at the property's value from the time of inheritance. This is assuming you have had it appraised at the time of inheritance. If you sell it for a loss, it might provide a write off. Otherwise, any improvements (such as billboards) and taxes are the only costs out of pocket for this investment, should you choose to keep it. As far as selling it for recreational use, don't discount it before looking into it. Guns aren't the only way to hunt, and there are plenty of rednecks itching for a mud hole. One man's trash... I wouldn't simply stop paying taxes, however. The government is known for getting their money, and the IRS desn't Need to take you to court to garnish your wages or withhold any future tax refunds.
  • Member since 2018 · 433 posts · 208 votes
    8y
    @Josh MADONNA hey I've sent you a colleague request and message. I'm interested in talking to you about this property. I may be able to help, and if not I would like to keep tabs on what you end up doing with it.
  • Investor · Kirkland, WA · Member since 2017 · 310 posts · 271 votes
    8y

    If you don't want to try to sell it don't just stop paying the taxes and letting the government have it before you evaluate the other options for donating.  You might be able to get tax deduction if you go through the process to donate the property to city, county or state.  Review with your CPA, attorney and the locality.  There is a process for this, it's not a new thing.

  • Investor · Houston, TX · Member since 2017 · 129 posts · 62 votes
    8y

    Put up some WE BUY HOUSES signs or billboard on it. 

  • Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    8y

    Where in upstate NY is it?

  • Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    8y
    @Josh MADONNA just thought of this.... cell phone tower! Not sure who you would contact but you may be able to lease the land to build a tower. Just another thought....
  • Rental Property Investor · Chicago, IL · Member since 2018 · 4 posts · 1 vote
    8y
    @Josh MADONNA set up some tents and AirBNB it out as a military experience.
  • Rental Property Investor · Mesa, AZ · Member since 2015 · 143 posts · 187 votes
    8y

    See if the neighbors want to buy it on monthly payments, you never know. 

  • FREMONT, CA · Member since 2011 · 8 posts · 1 vote
    8y

    Thank you all so much, esp Shane(!) for the colleague connection if it happens...and Joshua if your recco not to stop paying taxes is accurate.   Anyone have direct experience with simply not paying the taxes?

    Answers: It's in Accord, NY which is 20 mi west of New Paltz, and 2 hr north of Manhattan.    it has 1000 ft frontage but there are billboards frequently on that road already and I don't know the # for any billboard co.

    All ideas are welcome but to keep email traffic down, pls only serious constructive comments need be posted.   Really appreciate these ideas, I just need specific directions though such as how to find neighbor's name/phone or billboard company or developer who needs wetland phone number or cell site guy, etc.   As I said I live 2500 miles away.    Thanks again you guys are really a great crowd!  It's my first experience in a forum that is very positive!

  • Catskill, NY · Member since 2018 · 636 posts · 668 votes
    8y

    http://imo.ulstercountyny.gov/search.aspx

    If you go to that link, you can search for addresses by number/street. There's a link for owner/sales once you search for the address. Click that, get the name, and do a google search and you'll probably get a phone number or address for them. That's how I found the phone number of the owner of the house next to me.

    Accord is about 45 minutes from me. Let me know if I can be of any help.

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