Someone bought a private road for $994 in San Francisco

Tax Liens & Mortgage Notes
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Someone bought a private road for $994 in San Francisco

Ryan Lee
Investor · Bowie, MD · Member since 2016 · 143 posts · 51 votes

Look at what can happen to a gated community that don't pay there taxes.

http://www.npr.org/2017/08/07/542076983/wealthy-san-francisco-neighborhood-fails-to-pay-taxes-loses-private-street?utm_source=facebook.com&utm_medium=social&utm_campaign=npr&utm_term=nprnews&utm_content=20170807

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Danny Grey
Investor · La Jolla, CA · Member since 2016 · 66 posts · 169 votes
9y
Originally posted by @Ryan Lee:
Originally posted by @Matt K.:

 I love that they kinda sticking it to the wealthy a little. 

 Why? Do you think this neighborhood's residents deserve to have it stuck to them because they are financially successful?

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  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    it was about 90k not 900.... and they are likely going to get outspent in court. 

    I'm not sure if you could, but they should of NNN leased it back to the HOA... instead they are trying to tell super wealthy and elite families they are going to have to pay for parking haha.

    3Reply
  • Ryan Lee
    OP
    Investor · Bowie, MD · Member since 2016 · 143 posts · 51 votes
    9y
    Originally posted by @Matt K.:

    it was about 90k not 900.... and they are likely going to get outspent in court. 

    I'm not sure if you could, but they should of NNN leased it back to the HOA... instead they are trying to tell super wealthy and elite families they are going to have to pay for parking haha.

     thanks for the correction. I love that they kinda sticking it to the wealthy a little. 

    1Reply
  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Ryan Lee:
    Originally posted by @Matt K.:

    it was about 90k not 900.... and they are likely going to get outspent in court. 

     thanks for the correction. I love that they kinda sticking it to the wealthy a little. 

     You are right though the past due taxes were only about $900... it just got bid up to over $90,000 at the tax foreclosure sale. Apparently 30 years of backed taxes at $14 a pop, plus interest! The devil is in the details...

    1Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    I'm curious how this turns out... I see an army of lawyers dragging this out in court and the street owners running out of money first.

    1Reply
  • Jay J.
    ., OH · Member since 2015 · 361 posts · 127 votes
    9y

    I don't get it..  what's the point?? 

     I mean, its not like the 'road owner' now owns the homes or anything.. (seriously, they just bought a bill bill, didn't they??) what are they going to do, make it a toll road??!!  lol

    1Reply
  • Justin Fox
    Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes
    9y

    The HOA committee is made up of those elite, wealthy family members, right? Turns out, it's not the county/cities job to make sure they're actually paying the taxes, it's theirs.

    Right of redemption window has more than lapsed.  The homeowners better get ready to shift some of the 500/mo to the new road owners.

    High property taxes keeping the peons out is fine and dandy until the poor buy your road at auction lmao. 

    1Reply
  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Jay J.:

    I don't get it..  what's the point?? 

     I mean, its not like the 'road owner' now owns the homes or anything.. (seriously, they just bought a bill bill, didn't they??) what are they going to do, make it a toll road??!!  lol

     Parking...

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    Since this is a private road... does the owner of the road:
    Assume the landscaping contracts (I highly doubt a place like this is doing their own landscaping)

    Maintenance for the road itself? Is it on some kind of schedule set forth by the HOA?

    What about the utilities like the sewer/water lines... since it's a private road wonder who has ownership in the road itself.

    0Reply
  • Dennis Weber
    Real Estate Investor · Indianapolis, IN · Member since 2014 · 316 posts · 165 votes
    9y

    But wouldn't the homeowners have an easement after so many years?  They would in my state. 

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    I'm talking who is responsible for replacement/repair not access. Around here a lot of homes the responsibility ends at the street or the curb. I'd be curious if the HOA (who previously owned the street) was responsible for all the repairs and upkeep of the "common" areas that would include the road. But since the HOA no longer owns the road would that responsibility be passed on to the new owner?

    I guess basically is this new owner responsible for upkeep of this road until it reaches the public street.

    0Reply
  • Desmond Alexander
    Real Estate Investor · Bentonville, AR · Member since 2017 · 40 posts · 5 votes
    9y

    I saw this and thought it was hilarious. They got a heck of deal haha

    0Reply
  • Ryan Lee
    OP
    Investor · Bowie, MD · Member since 2016 · 143 posts · 51 votes
    9y
    Originally posted by @Matt K.:

    I'm talking who is responsible for replacement/repair not access. Around here a lot of homes the responsibility ends at the street or the curb. I'd be curious if the HOA (who previously owned the street) was responsible for all the repairs and upkeep of the "common" areas that would include the road. But since the HOA no longer owns the road would that responsibility be passed on to the new owner?

    I guess basically is this new owner responsible for upkeep of this road until it reaches the public street.

     Not sure what the laws was 30 years ago when they first develop the area

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    This area been around since like 1905...

    0Reply
  • Danny Grey
    Investor · La Jolla, CA · Member since 2016 · 66 posts · 169 votes
    9y
    Originally posted by @Ryan Lee:
    Originally posted by @Matt K.:

     I love that they kinda sticking it to the wealthy a little. 

     Why? Do you think this neighborhood's residents deserve to have it stuck to them because they are financially successful?

    7Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    9y

    Saw this recently in Texas two where a commercial building had several parcels of land around it.  One was the entrance to the parking lot and a small sliver of the parking lot.  It was near Austin if I remember right.  In the end I decided it was probably not worth the fight I would create.  At least the tax authority seems to be on the buyer's side.   I'm sure there will be some fun legal battles at some point.  Hope someone can keep us in the loop as to what happens.

    0Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    9y

    I am reaching out to the buyers to see if they will keep us updated as to what happens.

    @Matt K.   since you are in the area, could you keep an eye on this for us and update us periodically as to what happens.   

    This should be very interesting.

    0Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    9y

    Looking at google maps, I wonder if it is the circle.   That should be interesting.

    https://www.google.com/maps/place/26+Presidio+Terrace,+San+Francisco,+CA+94118/@37.7882039,-122.46166,17.73z/data=!4m5!3m4!1s0x8085873acfc5aa6d:0xc4f3f3511cd36c3c!8m2!3d37.7876463!4d-122.460155

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    I think there's a guard shack at the entrance or at least a guard to keep people out. I think his smartest play would of been to offer to lease it back to the HOA....

    1Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    9y

    Maybe they should try being nice to the new owner and offer to work something out. They purchased it legally due to an HOA mistake.

    My favorite quote:

    And, the spokeswoman told the paper, "Ninety-nine percent of property owners in San Francisco know what they need to do, and they pay their taxes on time — and they keep their mailing address up to date."

    3Reply
  • Patrick Desjardins
    Real Estate Investor · Amherst, VA · Member since 2015 · 386 posts · 400 votes
    9y

    Not sure why people here are siding with the buyer. Sure, they did nothing wrong, but trying to invest in a neighborhood private road is pretty lame, akin to patent trolls. Nothing to be proud of!

    1Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    I saw this story earlier and had a chuckle as well ... I agree with some other posters, this strategy won't likely work out for the buyers for the exact same reason that governments don't typically succeed in using eminent domain to build freeways through the middle of really nice neighborhoods ...

    0Reply
  • David Ferrette
    Developer · Austin, TX · Member since 2014 · 266 posts · 110 votes
    9y

    I am with Patrick on this one.  They are not bringing any value to the situation, they are only trying to exploit a situation for their own gain.  I am all for people making a buck, just not at the expense of others.

    1Reply
  • Clint ShelleyPro Member
    Surveyor · Dothan, AL · Member since 2014 · 425 posts · 391 votes
    9y

    This is a classic hold your deed hostage play. This will settle where the owners will probably buy the title back. If not the new owner who thought he bought a deal will be liable for all of this maintenance which will be thousands. The homeowners could sue for an ingress-egress-utility easement claiming continuous uninterrupted use. This would be called a prescriptive easement. Usually the new owner figures out what the other side will spend in attorneys fees and sell for a few dollars less. It's a legal circus🤑

    Clint 

    1Reply
  • Dennis Weber
    Real Estate Investor · Indianapolis, IN · Member since 2014 · 316 posts · 165 votes
    9y

    @Clint Shelley an easement is more likely the case. I think the investor lost his money. Also, after his motives are known, like maybe that he only purchased this property to extort money from the home owners, his legal problems become worse. No win here. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Clint Shelley  big part of any type of perspcriptive easement is paying the tax's.

    this would be an easement by necessity... and I don't think the utls company would put utls in without an easement.

    also on the plat since its a private road there could very well be an easement for ingress and egress.. the city would want that for this very reason..

    ONe needs to pull the plat map and read it  LOL.. the rest is conjecture.

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