Lady wants to give me her lot?

Question

My assistant just called me last night (she rarely calls me unless it's something important) she tells me that a lady said she wanted to give us a lot all we have to do is take over the back taxes which are $900. The area isn't all that great but darn if I can't make money off a free lot then I shouldn't be in this business.

I've never dealt with lots before but this is to good to be true. I'm going to get a title search on it and try to sell it to the neighbors if that doesn't work I may try to sell it for a quick profit and let someone else take over the payments.

What would you guys do?

Jon Klaus · Answer

A few years ago I found a cheap lot on Craigslist and looked at it.  It was in a bad area and needed a few thousand in clearing and debris removal.  After evaluation, I decided zero was too much to pay.  I would not bave believed that "free" could be to0 much to pay before then.

Joel Owens · Answer

Yes many lots are not worth anything.

Could you just put it under contract and option it?? If you can't option in the time period then just terminate the arrangement and move on.

I definitely wouldn't want to spend 900 on it upfront.

This way you have zero risk just time in and get the upside if it sells but no downside if nobody wants the dog.If the seller is desperate enough they will try anything.

Account Closed · Answer

congrats Mike Nelson....what area is this in?  certain areas will crush you with lawn mowing fees, debris removal, snow removal, etc.  so make sure to budget that in if you plan to keep vacant for a few years...another option is to sell owner financed and pocket a few bucks every month...not a homerun, but it'll open up your buyer base, and will turn something out of nothing..good luck!     also, even though it's just a lot, i'd still recommend insurance to protect you in case someone trips on your lot or something ridiculous happens :)

John Evan Miller · Answer

Maybe just maybe it is a diamond in the rough.  Before you say yes, take a little time to do your homework.

Do you know the motivation of why she wants to get rid of the lot? That is, in my opinion, a major first question.  Even my half-senial great grandma knows land is valuable. So... why does she want to sell? Figure out that and you will know if you have a diamond or a lump of coal.

Next, check to make sure that the property is not in a flood plain, has a restrictive easement or some other encumbrance. Oh, and make sure she owns the property and not just liable for the taxes.

You should be able to do all this without paying for a title search. Your county records should show chain of title and recorded easements.

Callum K. · Answer

Not only are you looking at the cost for the back taxes, but also the initial cost for the title insurance and other charges related to researching the lot's history.

Rob K. · Answer

Could you have the lady quit claim it to you for a dollar? Then you could shop around for a buyer who will pay the back taxes. If there are no takers, let the city take it.

Steve Babiak · Answer

You still haven't learned this acronym: NEFF = "Not Even For Free!"

There are many NEFF properties out there, beware ...

J Scott · Answer

As others have indicated, FREE doesn't always mean GOOD.

If nobody wants to buy the lot, you're out the $900, you'll be paying annual taxes, you'll be paying for upkeep (lawn maintenance, debris removal), etc.

Each year that passes, your investment will grow, and you'll need to sell for more and more just to get out of the hole.

Not saying it's a not a good deal, but don't assume it is just because it's free...

Rob K. · Answer

Has the lot been used for illegal dumping for the last few years?

If she no longer wants the lot, she can just stop paying the taxes and pretty soon it won't be her lot anymore. I would look at the lot and make sure it's something you can make money on. Sounds like there's nothing in it for this seller if all she is getting is back tax money to go to the city.

Lady wants to give me her lot?

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