I Bought This For $24.36 and Sold It for $125,000 - BULL CRAP !!

By
Real Estate Agent with Network Real Estate, Inc. PB00001682

Tax Lien Property

I bought this home for $24.36 and sold it for $125,000 in just 18 days! You can too!

BULL CRAP!!!!

  I don't know what the general consensis in the country is, but I'm sick and tired of these real estate con artists telling people they can buy Tax Deed Property for "pennies on the dollar and sell it for a fortune in a matter of days"!

  In Arkansas, here's how Tax Deed Property works and I sure would like to hear from others across the country to know just WHERE these wonder deeds can be had.

  First you have to be delinquent on your real estate tax for 3 years at which point the county collector will turn your file over to the State Land Commissioner
    Then the Land Commissioner sits on the unpaid tax bill for 2 more years before setting it up for auction.  That's a total of 5 years of unpaid tax.
  The Land Commissioner sells the property at auction for the ASSESSED VALUATION, which is 20% of the value on the books, so if your home was valued at $100,000 then that means the Commissioner sells it at auction STARTING at a price of $20,000.  PLUS you have to pay the past 5 years of unpaid tax.
    Now here's the Kicker!  If you bid $20,000 and get the "Land Commissioner Deed", then the original owner has a 1 year Right of Redemption.  That's right....you bought the property but the original owner can come forward and pay the back 5 years taxes and get the property back and the Commissioner will return your $20,000 and tax paid and THAT'S IT!  So if you spent 1 penney fixing it up...you LOSE that money.
    The Land Commissioner says that "after the sale, the original owner has to file a notice of objection within 30 days as to why the sale should be set aside OR their chances of having it set aside are virtually nill".  So one could conclude you are safe after 30 days of purchase BUT they still have the legal right for 12 whole months to file an action that "can" be undone.

  So the best you can do is pay some $25,000 cash for a $100,000 home and let it sit vacant for a whole year before you can consider it yours.  That's the way it is in Arkansas, so WHAT STATE LET'S YOU PAY $24.36 AND SELL IT FOR $125,000 IN 18 DAYS????  I may have to move to that state OR start selling a "Real Estate Infomercial" on How To Get Rich On Tax Deed Property!

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Groups:
Investors
Online Marketing Help Center
Fixers, Flips, and Rehabs
Foreclosures
Tags:
selling tax deed property

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
30,116
Darin Haughie
Esslinger-Wooten-Maxwell, Inc. (EWM) - Pinecrest, FL

there is a guy (Beck) always on TV here in Florida selling the same thing. I think they make big money off the kit? Another business scamming on the get rich quick crowd. We have similar rules here in Florida.

July 24, 2008 06:59 AM #1
Rainer
63,682
David W. Bolick
Network Real Estate, Inc. - Little Rock, AR

Darin...so you're saying that your Tax Deed sales are similar to ours here in Arkansas?  I'm familar with Beck and he's one of the guys I'm referring to.  I don't understand how this doesn't break some law unless there are states where you can do this.

July 24, 2008 07:04 AM #2
Rainmaker
969,507
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

There are always folks looking for the quick buck....In this case it is the TV pitchman!

July 24, 2008 07:07 AM #3
Rainmaker
714,046
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

I talked to some buyer who is a renter now with little money to put down that thinks he is going to be a tax deed property for next to nothing, I was thinking..WHATEVER buddy.

July 24, 2008 07:22 AM #4
Rainer
63,682
David W. Bolick
Network Real Estate, Inc. - Little Rock, AR

Well, in addition...not all tax deed property exists.  I know of one in my area that a California woman bought sight unseen for $900.  She thinks it's a lakefront lot but as it turns out, the property was actually part of a major purchase track of land about 10 years ago and the tax office never removed that particular lot.  So here she owns a lot that Doesn't Exist!

July 24, 2008 07:27 AM #5
Rainer
30,116
Darin Haughie
Esslinger-Wooten-Maxwell, Inc. (EWM) - Pinecrest, FL

David ,yes Florida has the same deal, most investors buy the Tax certificate @ 12-18% but only to make the interest off them rarely does the home get forfeited to the buyer of the certificate.

July 24, 2008 07:42 AM #6
Rainmaker
151,950
Margaret Mitchell
Coldwell Banker Yorke Realty - York, ME
Seacoast Maine & NH Real Estate

I think those ads do a lot of damage.  Buyers think that the market is much worse than it is, that there are tons of tax lien properties, so why not make a lowball offer on that pristine property priced below market.  I'm with you on this, David.  Sick of those rip off ads.

July 24, 2008 07:44 AM #7
Anonymous
Anonymous
Anonymous

These no money down, get rich quick con artists make sooooo much money peddling B.S.  I went to one by   a well known author, and people flocked to the back room to spend $ 1,000.00  on books and tapes.. I could not beleive it.   I later went to one endorsed by a couple of Midgets,  when the presentation started, their presenter was using the same pictures of the run down properties that was used in the previous persons Presentation.  Stating they were properties they bought, fixed up and sold..  The presenter in the previous presentation was stating the same thing..   I wish they would monitor these sleezy sales seminars..  Yes you can get rich in real estate, and yes you can invest with no money down, but it is not as easy as these CON ARTISTS make it sound.   Thanks for pointing this stuff out David.

July 24, 2008 02:26 PM #8
Rainer
63,682
David W. Bolick
Network Real Estate, Inc. - Little Rock, AR

Marisa...thanks for the information and website link.  That is very helpful. 

July 29, 2008 05:38 PM #10
Rainer
16,094
Stacy Jones
West Little Rock Title Company - Little Rock, AR

Then, there are the title issues. Most title insurance undewrwriters won't insure Tax Deeds for some of the reasons mentioned above.

August 02, 2008 08:19 AM #11
Rainer
63,682
David W. Bolick
Network Real Estate, Inc. - Little Rock, AR

That reminds me of 4 properties for sale I saw on a foreclosure website that had a contact person.  I read the ad and the person selling has only a first name and telephone number.  I looked in the tax records and they DON'T own the house and I looked in the Real Estate Commission and they are NOT licensed.....so I wrote them and 2 responded by saying they "have it under contact and assigning it".  CRAP!  That's just a bunch of crap!  Either buy it and sell it or the owner just just list it.  What's which these "go betweeners"?

August 02, 2008 08:25 AM #12
Rainer
16,094
Stacy Jones
West Little Rock Title Company - Little Rock, AR

David -- yeah, a lot of people try to stay clear of that don't they.?..A stand alone transaction is usually much cleaner.

August 02, 2008 08:44 AM #13
Rainmaker
255,717
Don Eichler
Century 21 Shirley Hooks, Inc. - Granbury, TX

David,  Texas is not a tax deed state like in your state and I have bought a number of properties as an investment here.  We do have a time frame where the owners can recover the property but they have to pay a percentage for any improvements made to the property.  In Texas we have auctions on the courthouse steps with the buyers receiving a Sheriff's Deed to the property subject to recovery by owner.  Any property not sold at the auctions can be purchased at the tax office on a first come basis. 

August 02, 2008 02:06 PM #14
Rainer
63,682
David W. Bolick
Network Real Estate, Inc. - Little Rock, AR

Don...sounds simplier than here for sure.  I have a potential deal now that could be bought for about $14K with no other bidders in a remote place that could sell for around $150K but I don't have the money to sit on it for a year, plus if anyone else bids it could go to maybe $50K.

August 02, 2008 02:14 PM #15
Rainer
16,196
Tim Brown
SunTrust Mortgage NMLS #843991 - Richmond, VA

David, Great post.  These infomercial snake-oil salesman are a hoot though. I love it when they run the disclaimer "individual results may vary"...gee ya think?  If churning 50 grand on a deal was so easy...why on earth do they need to sell you a box of dvd's for $199.  I still watch them though..scary huh..

August 22, 2008 07:32 AM #16
Rainer
63,682
David W. Bolick
Network Real Estate, Inc. - Little Rock, AR

LOL, that's funny Tim.  Yeah...some of them irritate the crap out of me.  You'd think there would be some law against blatant lying.

August 22, 2008 07:42 AM #17
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the eye to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
63,682

David W. Bolick

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information