Buying an OTC Tax Lien on a Parking Lot

3 Replies

Hello All, I am looking into possibly buying an over the counter tax lien property from the county. The parcel is for a partial parking lot for a "big name" national bank. The bank parcel adjacent to this lot is a (mostly) drive through location, but per the sign on the front door, they do have bankers onsite for walk in appointments also. They have a total of 9 parking spaces, of which this particular tax lien parcel would cover about 3.5 regular and 0.5 disabled parking spots (see photo attached). In addition, one of the main (there are a total of 3 possible) parking lot entrance / exit points is included in this parcel also. Would any of you say that this is a worthy purchase from the standpoint of trying to sell it back to the bank? It's worth noting that property has been deed eligible for for some time now, as the original tax sale was held back in 2013.

Click on image below to see approximate parcel boundary lines.

@Kevin S.

I personally like to control my own destiny. I buy houses that no matter what is going on with the title that I can fix and rent.

This piece of land looks pretty worthless except to the bank. What if that branch is about to close and that is why they quit paying tax on this lot?

If the bank decides they don't want to be strong armed and can live without these parking spots then what can you do with the land and who else would want to buy it?

Are you going to pay for a fence to keep people from parking on your property?

I personally wouldn't want to get involved with this unless you were confident you had an end buyer lined up in case the bank doesn't play ball like you hope.

You could get lucky on this, but who has more money for the court battle.

My thought is they're going to fight you that they weren't properly notified.

Tie it up for a year or two or three.

The sale gets cancelled and you get your money back...no interest....

So you loose.  You pay your attorney fees, you loose the use of your money for 1-2-3 years.

You loose the opportunity to buy something or many something elses for 2-3 years while your money is tied up.

These are always...WOW---what if, but I think success is probably rare in these circumstances.

One thing you might check is to see if the bank owns or leases the rest of the property.

Is that sliver worth anything to any body else?  Could another bank put ATMs there?  

Is it big enough for anything else to go there?

Originally posted by @Bruce Lynn :

You could get lucky on this, but who has more money for the court battle.

My thought is they're going to fight you that they weren't properly notified.

Tie it up for a year or two or three.

The sale gets cancelled and you get your money back...no interest....

So you loose.  You pay your attorney fees, you loose the use of your money for 1-2-3 years.

You loose the opportunity to buy something or many something elses for 2-3 years while your money is tied up.

These are always...WOW---what if, but I think success is probably rare in these circumstances.

One thing you might check is to see if the bank owns or leases the rest of the property.

Is that sliver worth anything to any body else?  Could another bank put ATMs there?  

Is it big enough for anything else to go there?

Bruce,

The parking lot parcel that I'm talking about is owned by the bank itself. The adjacent lot with the bank's building on it is being leased by the bank. The parking lot parcel is likely not worth anything to anybody other than these two parties. It is, however, possible that another bank could easily put an ATM there as it's located at a major intersection in the heart of the city. My thought was to negotiate with the county to buy this at a lower price and take the risk to see if I can sell the parking lot back to either the bank or the property owner.

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