All Forum Posts by: Bruce Lynn

It's official....it's on the amazon website.  

Someone is going to get fired for leaking to WSJ.

https://www.amazon.com/b?ie=UTF8&node=17044620011

Texas got the cool Spaceport.....actually we've had it for a while.....165,000acres in West Texas.... and they're hiding aliens there.

I think you can find a place near where you are now, but you're looking way too early.  Most places seem to rent pretty fast these days...so you probably want to look about 30 days before you want to move.  Anything available now should be long rented by April.   

What you might want to do now is check and see exactly what day your lease ends.

Also see how much notice you need to give.

Make sure your credit is in good standing....pull your credit report to check and fix items now.

Sock away some money for deposit and rent and application fees.   Most places will want one month of deposit and one month rent up front, plus $35-85 per adult application fees.

This will help you present a competitive application when you're ready.   You want yours to be the best so the owner picks your application above all others.   Frequently there can be multiple applications for the same place.

Occasionally we see people pushing to invest in countries outside their own. There can be trouble with this as many popular countries and introduced or always had restrictions on foreign ownership of real estate. Some don't prohibit it, but enact laws to discourage it with high purchases taxes or restrictions when you sell. Even the US has imposed restrictions on cash transaction in some locals. Treasury started requiring identification of principals behind LLC in certain areas of the country like Florida and New York (https://papers.ssrn.com/sol3/papers.cfm?abstract_i...)  and now there is FIRTA which requires tax withholding on sales by non-residents/non-US citizens.

Here's a list of popular countries, with restrictions:

United States--- Purchases in some areas can require disclosure of principals and FIRTA withholding at sale time approximately 15%.

United Kingdom--- 3% stamp duty on investment buyers and 15% tax if bought in name of shell company.

Thailand--- Foreigners cannot buy freehold land....and only 49% (foreign quota) of certain condo projects.  Plenty of people try to get around these rules by creating companies with Thai majority directors or using usufructs to lease homes long term.  I think you are at risk if you do this.  Sometimes the powers that be can get cranky about falangs trying to skirt the law and the home could be subject to confiscation.  (http://www.thailand-real-estate-law-center.com)

Switzerland--- Limited to 1500 purchases a year with a permit from the government.  There might be exceptions for EU passport holders and in certain locals to boost property prices.  There can be maximum size restrictions as well.  So it may be tough to buy your Swiss Castle. (https://www.swissinfo.ch/eng/buying-property/29263...)

Mexico--- Foreigners typically restricted from buying within 50km of the beach and 100km of the international border.   Of course that's often where we want to buy.    The fideicomiso may be a way to circumvent this law, but there are risks with it.  Obviously there are whole resort towns where you see this is standard practice, but there have also been instances where people lost their homes when trying to skirt both the law and the spirit of the law.  (http://articles.latimes.com/1999/sep/03/news/mn-63...) and also check out this article: (https://www.linkedin.com/pulse/my-investment-mexic...)

Maldives--- Foreigners are restricted to buying 50 year leases in certain resort areas.  

Hong Kong--- Foreigners get a stamp duty of 15%...and there are restrictions on what area you can buy.  Some areas are only available to PR of HKSAR.  

Dubai--- Probably one of the easier countries to hold freehold property or long term leases.  There can be restrictions on areas.  Bonus is Dubai will soon allow 100% foreign ownership of companies.   Seems to be lots of speculators though and that could be an issue.  In 2018 I was asked to attend a "Dubai Property Show" over a weekend with 20,000 properties on offer.  Then got a call on Sunday afternoon saying I should get there soon as the properties were almost all gone.  Somehow I doubt they sold 20,000 properties to my fellow Dallasites over a weekend.

Cambodia--- Typically foreigners cannot own land in Camboida, however there are certain of the newer condo buildings that allow up to 70% of the units to be sold to foreigners.  Some people arrange 50 year renewable leases for foreigners through a company with 51% ownership by a Cambodian national.  There are risks with this....so be careful if you choose this option. 

Belize---  YEAH....maybe one of the easiest places for foreigners to own land and property with the same rights as citizens.   Just need to beware of the scams.   They are plenty.  See: (https://www.wsj.com/articles/ftc-alleges-100-milli...)

Australia--- Foreigners can buy, but have a 8% stamp duty, plus there can be annual taxes and vacancy taxes.  There are also restrictions on banks lending to foreigners.  

What are your thoughts?  What are your successes?   Any failures?

Any other countries that interest you?

Huge scam reported in Belize.  I think you always have to be careful buying lots in any development.  Lots are tricky.  This is just one of many international projects that have not worked out.  Developer may have had good intentions in the beginning, but too often seem like they run out of money before they can fulfill promises.  

https://www.wsj.com/articles/ftc-alleges-100-milli...

I think this happens not just internationally but in the US too.  First tax sale property I bought was a 5 acre lot in a huge development that had originally sold for something like $80,000.  I picked it up for $12,000 and sold it about six months later for a nice profit.   Tons of lots for sale in the development today at a fraction of what the nice people from all over the country paid for them from the developer.  Years and years later there are still very few homes in the development.   At least roads, utilities, and the amenities got put in.

I also think of Lake Whitney south of DFW which is more or less in the same position.  Amenities got put in, but failed for the most part.  Main restaurant is closed, I believe one of the two golf courses is closed.

Be careful out there buying lots from the developers in resort communities.....especially international developments catering to foreigners.

If it were easy and simple, everyone would do it.

WSJ says today down to 3 cities....Northern Virginia, NYC, Dallas.   Tonight I hear it will be split between NYC and Dallas.  Investor recently bought a building site for them in downtown Dallas.  Not sure if that is speculation or inside knowledge.

I think you would be at risk if you sign a contract with a mentally incompetent seller.   I would think a lease option might not be the best option on this property.  You're at risk for taxes, judgements, maybe a mortgage that could wipe out your interest.   If they are in distress you probably just want to make the right offer that could solve that problem.   Maybe with owner financing if they will do that and own it outright.   You'll still have the outstanding taxes to deal with.

In my state, there is a minimum bid.  That is normally the back taxes through the date of the lawsuit, attorney fees, deed fees, etc.   Let's say for November sale that might include everything due through 2017, but not 2018 taxes.   Occasionally we'll see sale where the lawsuit was won 2-3-4 years ago, so you have to be careful with those and understand there could be another 1-2-3-4 years or more of taxes due.  You also have to watch to make sure all taxing entities were included.  So for example that not only the school district won the judgement and they're selling their taxes due, but not the other taxing entities.   That's not common around here, but does/has happened, especially in the big cities. 

You are right.  Common that the properties are paid off and owned by an estate.  Maybe no heirs, unreachable heirs, uncaring heirs, or heirs with no money or no time.

#1 question for you to answer is are you in a tax lien or tax deed state.

Get the list, or maybe you already have.

Pick out some properties you think are  a good fit for you.

Do your due diligence.  Drive by the location.  Know what you can sell it for.  Know how long you have to hold it and what the holding costs are.

Then go to the auction, but you are not ready to bid yet.  Watch-Observe-Network.  See who buys the properties you're interested in.  Talk to them after the auction and ask them why they bought it, what they plan to do with it, what they think it is worth.   Keep track of it.  See if you were right or they were right.

Talk to the organizer or organizers of the sale.  That might be the tax assessor, central appraisal district, or a law firm or firms.   See what advice if any they give you.

Get to the sale early and plan to stay late.  Some are very quick.  I've gone to a sale that lasted 10 minutes and all was wrapped up within another 15-20 minutes after the sale.  If you got there 30 minutes late, you would never know there was even a sale.  No one around.   When you get there early talk to the people there.  Are they there to watch, are they there to bid, are they there to buy.  Will they buy anything and everything or just interested in a specific property.  Talk to people after the sale while they are waiting to pay or finish paperwork.

Then you might bid at the next auction or for some people it may take 2-3 auctions or more before they are ready and knowledgable about what they want to do.  Never buy without seeing the property in person.  Google Streets is maybe a way to elminate property, but not a confirmation of what to buy.   Plenty of stories here and including my own this month where Google Streets shows a house, but in person it is a vacant lot.

Good luck and best wishes.

Not sure if you are in tax deed or tax lien state, but either way.....

I'd get the list for an upcoming auction.  Do some due diligence on properties you like and with minimum bids are.

Then go to the auction and see how it works.  Compare your bids to what bids are actually made at the sale.  Go and observe first.  Network before and after.  Ask questions.   See who wins.  Talk with them about what they will do with the property, how long they will hold, how they came up with a specific bid, etc.   You might do this 2-3 times...depending on your comfort level.

If you think the numbers and timeframes work for you, then go for it at the next auction.

If your goal is to acquire properties, then go see everything you bid on, before you bid.  Know what you are buying.   Know what your exit strategy is.