Involved In Real Estate · Phoenix, AZ · Member since 2013 · 13 posts · 0 votes
Hello all,
I am interested in acquiring some vacant land parcels in my area (Phoenix, AZ) and wanted to do it by going directly to the the property owners who were behind on their taxes (through the Maricopa County website). Trying to find the ones who want to unload their land and I would pay the taxes and compensate them for their asset. Getting in touch with these people via direct mail, door knocking or phone calls, etc. I do have MLS access as well but the county website does provide plenty of information.
Is this a viable method to acquire vacant land? If so, who is actively doing it? Anyone in my local area? I would love to treat you to some coffee and pick your brain.
Based on your recommendation I just bought the book. I've bought hundreds of land parcels, farmland, woodland, etc., but I'm always interested in learning more.
There are so many cautions to buying land, more so that with houses. There are new cautions every year. Timely is the new flood insurance higher premiums just now going into effect. Higher expenses including flood insurance will decrease the value of property so affected.
Specialist · Grand Rapids, MI · Member since 2012 · 582 posts · 353 votes
12y
Hi @Eric Fox - it's definitely a viable method. I've been doing it for quite a while in a few areas throughout the U.S. and I much prefer it to the more traditional investing methods that you see on TV. I haven't worked in AZ before, but I know a few others who have and they've done pretty well for themselves.
The niche you're talking about is one that largely gets ignored by the masses - and this is a great thing for investors like yourself who are willing to pursue it because you'll have very little (if any) competition to fight with. I have literally never encountered a competitor in the areas that I work (and I doubt most other investors can say that).
Involved In Real Estate · Phoenix, AZ · Member since 2013 · 13 posts · 0 votes
12y
Hey @Seth Williams thank you for the reply. Your podcast on here is one of my favorites.
Good to know that it is viable. Do you mind sharing with me a sort of generic process you take from getting a list together, content in the mailings (post cards? folded letters? ads?), things to look out for, etc.?
Of if there is anything other relevant information available I will check it out along with reading up on current statutes.
Specialist · Grand Rapids, MI · Member since 2012 · 582 posts · 353 votes
12y
@George P. - that's certainly one of the dangers of investing in land (taking over a headache, or a junk property), but this only happens when investors buy without doing adequate research. It's actually an easy trap to fall into in the beginning, but it's also a mistake you don't make twice.
But to answer your question... yes, many of them are in fact, hidden gems. It's not that these sellers couldn't have sold to someone else a long time ago (for a much higher price) - because they easily could have. In most cases, it's that they're lazy, they just don't care, and/or there are external factors at work that are getting in their way of selling.
When an investor goes through the effort of seeking out these kinds of property owners and making the sale process very easy for them, there are some incredible deals to be had. These kinds of sellers are desperate, and they aren't necessarily thinking, "I need to get as much money out of this as I can". Instead, they're thinking, "I need to get this property out of my life as soon as possible."
You generally won't find these kinds of people listing their property on the MLS (because if they have it listed, that's a sign they they care, and they're not lazy). You have to find them where they are and make the deal easy for them to digest.
Based on your recommendation I just bought the book. I've bought hundreds of land parcels, farmland, woodland, etc., but I'm always interested in learning more.
There are so many cautions to buying land, more so that with houses. There are new cautions every year. Timely is the new flood insurance higher premiums just now going into effect. Higher expenses including flood insurance will decrease the value of property so affected.