Big Picture of Vacant Land in Tax Foreclosure
With about half the states being tax lien and the other half being tax deed states, there's plenty of room to go into markets (whether you live there or not) and begin working tax deed sales prior to the actual sale.
Think of it as essentially a pre-foreclosure type of strategy.
After doing some basic research and building a list of potnetial deals, you can then begin marketing to those owners.
Many property owners who have land headed to tax sale have very little (if any) emotional interest in the property so oftentimes a deal can be made quickly and cheaply.
Sure, there's a little "more" to it but we're just getting started here. LOL
My next post will go into a little more detail and the whole concept will begin to make more sense.
Brian
Comments (3)
I do believe in the possibilities, and do this in my area. There also used to be a time where the vacant land could be used as collateral for your business. Similar to a "line of credit" or HELOC loan is used today. All you had to do was have the deeds free and clear and they totaled more than 50% of the "line of credit".
Jim Wineinger, over 15 years ago
I hear ya, Jim - if you're trying to sell to someone who is barely making ends meet. I also agree that if you can't afford to pay taxes or make a house payment then you have no business trying to invest in any type of real estate. :^) Consider this scenario, if you buy a (oftentimes free and clear) parcel for as little as $100 and then turn around and flip it for a quick $5K-$10K while leaving plenty of dough for your buyer, do you think you'd have trouble finding buyers? There are PLENTY of buyers for these types of deals.
Brian Wilkinson, over 15 years ago
As of right now, people are having trouble holding on to their homes, much less vacant land. This is a good strategy IF you have the ability to pay those taxes until the economy recovers to a point in which people will again look to land as an investment and be willing to purchase that vacant land from you.
Jim Wineinger, over 15 years ago