All Forum Posts by: Rich S.

I think the part you need to identify as mentioned early, WHAT IS YOUR GOAL? It is obvious you've done some really good things to get to where you are-- which is a place you are trying to avoid paying taxes! The toughest part with REI is the unknown... I'd say eliminate as much of the unknown as possible and get your net worth in places that are predictable and less volatile. You have enough power to live well in a predictable arena and not have to take chances. Yes, it might mean you pay taxes, but the reality is, paying them is inevitable-- people spend too much time on them as money lost, when in reality, you only pay them if you've generated money, so don't forget that part!

I think what is most important is your goals/priority.  Everyone has different goals and criteria that drive their investment decisions.  Many folks will say it is all about numbers and nothing else.  I can see that being beneficial, especially in volume situations.  You are mixing personal and business in this transaction so that is more difficult.  I would put it to you like this: Does it as a stand alone investment property(without your son needing a place to live) fit your criteria?  Does it as just a property for your son to live in meet your personal criteria?  If the answer is yes to both, then you likely should pull the trigger.  If the answer is yes to only one, you need to figure out which is more important.  You are the only one on here who can fully evaluate your friend's perspective.  The only thing I would say is how does it compare to a deal not driven by your friend... just to vet the quality of the deal.  Advice is always good, but at the end of the day, your life and your money.  I just laid out how I would vet it.  Good luck.

Until we return to a fabric in society where the journey is more valued than the destination it will only get worse.  Everyone deserves things, but nobody wants to earn them.  I fear the world my children will live in as adults.... America very likely will never be the same. 

Unfortunately follow up on the property yielded me with information that will not allow the owners to redeem.  It also goes to show that opportunities exist.  After explore all liens and judgements on the property they could have made roughly $150,000 had they just sold before forfeiture.  

While growing up we had a crazy neighbor who lived across the street from us.  He was a concrete contractor, who built the house himself over a couple of years.  He was likely a drug addict and would be doing work on his house at all hours of the night.  I would be fascinated to know what his actual medical diagnosis might be because he would work his butt off and had some great ideas in design areas.  It was a really well designed and looking house.  Anywho, during my college years, he got into some legal trouble, the house went pretty much abandoned for 3-4 years.  My Dad, a union carpenter lived right across the street and I kept telling him to just buy it(zero real estate background or investor ambition in my family).  He thought I was crazy.  A couple years went by and I was focused on school and starting a career.  It eventually sold for $28,000 to a flipper I've gotten to know who put $26,000 into it and sold it 6 months later for for $155,000.  This is in a market with less than average appreciation.  A childhood friend of mine lives in it now and just refinanced with appraisal of $255,000. 

I'm not sure if this is action would take care of any and all things attached to the property, but in case anyone else is following this thread, I requested a Owner's and Encumbrance report through a title company.  It will cost me about $100- but it will show real estate taxes, state and federal liens, judgements and bankruptcies.  I am assuming this will give me an idea if there is anything worth chasing prior to tax forfeiture auction. 

Thank you for the info.  This is likely a longshot, but worse case scenario I just learn about the process for future opportunities.  

Thanks @John Woodrich.  Any suggestions on best way to find that out?  Would it be listed with a lien of some sort then?  Thanks for your reply. 

Good day all.  I have identified a property in MN I believe has a fair amount of value currently in the Tax Forfeiture process.  I am attempting to contact the owner to help them "redeem" the property through redemption.  This way they get something and I avoid paying top dollar as often seems to be the only way through tax forfeiture in MN.  Anyone have experience in this?

Thanks for any help. 

This is an interesting thread and an absolutely PERFECT example of todays market in just about everything.  Gone are the days where every potential customer was important.  If it isn't over the top worth it to me, I'm not doing it... it is about me, not about anyone else.  Same concept of getting $60/hour labor to fix your car and charging you for it, even if not fixed, when for lack of a better term "the good old days" the mechanic would make it right before you paid a nickel.  I'm going to just guess, @Craig Parsons, but I assume you were born before 1980.  Before every agent reading this goes completely off the handle, I completely understand what some agents are saying on here, about how much time and energy things can draw from you.  The key to any business is putting time where it makes you money and not spending time on things that don't.  I'd also argue the market right now is in agent minds is like "a flip" of a house vs. a "long term hold" rental.  The market is moving so fast, it is about finishing transactions as quickly as possible, it isn't so much about building customer base.  So if you are trying to build some connections, the market just isn't allowing that to happen very well.  I'm not an agent, so I've never been on their side of this coin, these are just my observations and I'm likely just a person with ideals built for a different generation! 

As an example, a good friend of mine is a high performing agent/broker in an area near me, I won't use him as an agent anymore.  He moves stuff crazy fast, but he goes so fast he makes too many mistakes for my taste.  I've left enough money on the table because he just wants to do the transaction, I just won't use him anymore, but his stats in regard to transactions closed and his marketing are a machine and he does very well.  Don't get me wrong, he is still well above average as an agent, but I struggle with the agent who treats my transactions as just one of a zillion, instead of making sure all I's are dotted and T's are crossed-- just my preference anyway.

The other issue playing into this is how much real estate has been glamourized.  You have TV shows showing realtors in their 20s, making hundreds of thousands in commissions.  The days where the hungry new agent worked like a dog to build customer base and learn the business are really gone.  It is go big or go home for many.  Like has been pointed out, a realtor taking $50,000 listings is like not much of a performer.  I will argue that contacting the agent listing the house directly and not getting response is inexcusable, but not uncommon.  Like was mentioned, low barrier to entry in this realm.

People consistently make decisions based on what the market will bear.  For example, the agent that mentioned an upfront fee for working with investors.... in his market or at this time, that may be very plausible, but in other markets or in different times, maybe no so much.  Just like selling right now.... you might make an extra 15% on your home now, but may not in a year or two.