The DADE County Sentinel
Trenton, Georgia 1/11/2012
County Collects $210K At Auction
“We are not trying to sell land here,” said Ric Baxter. “What we are trying to do is collect taxes.”
It was Tuesday, Jan. 3., and Baxter, an auctioneer from Appalachian Mountain Services, was explaining the rules to the 30-odd prospective buyers who had gathered in front of Dade’s new courts facility for the county’s tax auction of lots at the Preserve, the Southern Group’s stalled luxury-home-slash-resort development in Rising Fawn.
Baxter told the shivering bidders that..he was required by law to set forth the basics on the courthouse steps before the auction could [proceed]
The basics were: Bidding opened with the amount of back taxes due on a property. What was offered for sale was not the property itself but the tax lien on it; after the auction, the original owner had the venerable legal time period of a year and a day to buy back the property by paying the new owner the purchase price plus a 20 percent premium.
Angie Galloway of the Dade County Tax Commissioner’s later released the figure of $210,000 as the total collected.
The tax-due amount on many of the lots was $2,183.96, [to] $4,000s. During the Preserve’s sales heyday, lots there had been appraised for loan purposes at $175,000-$250,000.
See the entire story: County collects $210K at tax auction
Coach Mitch’s REFLECTIONS™
What are you trying to accomplish?
The greatest benefit of Coach Mitch’s “Ridiculously Simple System…”™ is that it is highly probable that real estate can be found and purchased at a small fraction of its Fair Market Value, FMV.
One of the best ideas in Coach Mitch’s arsenal is to locate tax delinquent property that has a specialized use. Special purpose properties are very valuable. If the special purpose property is tax delinquent then the potential exists to make a great deal. This allows you to implement your plan at a price that can be afforded, which is usually much less than the competition, so you have a large competitive edge.
Currently, I’m looking for a motel. I am animated by the idea of creating an Adult Congregate Living Facility, ACLF.
An ACLF or Assisted Living facility (AL) is a specialized building that houses multiple adults who need observation and some care. The landlord provides all meals, transportation to doctors, supervision, and some activity. Two persons could share a room and at least four persons are able to be supervised by one attendant. They each pay about $2000 per month. Even the county will pay $1000 or more per individual per month. That’s a minimum of $4000 and potentially $8000 income per month for a one family home. Even after expenses, the profits are significant.
In my town there is a luxury ACLF charging a minimum of $3900 per person per month. I’ve toured the facility, checking to see if it would be good for my mother. Each person has their own private space, including bathroom, small bedroom, and combo kitchenette with a very small living room; about 230 square feet total. A nurse attends 24/7, there are Jacuzzi, massage, and exercise rooms along with meals and entertainment.
I’m seeking a tax delinquent motel because people really want their own space, especially their own bathroom. I would install a kitchenette that includes a sink, refrigerator and two burner stove. There are even specialized kitchenettes for persons in wheelchairs. A pull down Murphy bed makes the entire room usable for activity during the day. I’m guessing that $2000 per month will be easily had when compared to a private home with shared facilities. If I can get a 20 room motel, at a substantial discount, then the income can be substantial.
Golf course lots
I’m really proud of the Techniques Manual in Coach Mitch’s “Ridiculously Simple System…”™ This manual has over 175 ideas on how to make money with tax liens, tax deeds and tax delinquent property. A great method is to locate specialized property where the owner and has not paid the taxes. They are usually in a ‘situation.’ They are really motivated to be out of their situation. You just need to be creative.
A really great type of specialized property are those empty lots that surround many golf courses. In the article above, the lot was appraised at a minimum of $175K. However, you should be able to get the golf course lots at a much reduced price from an owner who is so disappointed/distraught/disgusted/desperate that he has mentally divorced himself from the property. I call these the “5 D’s.”
I remember one conversation pretty clearly. I was speaking on the phone to Sophie, the owner of a vacant lot on a golf course. I asked, “What’s happening with the lot?” She said, “My husband Sammy wanted to retire to Florida and play golf, so we bought that lot. But my Sammy died last year, bless his heart. My new husband, Herbie, his children are in Arizona, he doesn’t want to pay the association fees anymore, and, I think that he’s a little jealous also (whispered). So, I want to make him happy and let the lot go. It’s not worth the tzurus.” (Yiddish for hassle, trouble) “What would you like to do?” I asked. “I’ll tell you what, we paid $17K for the lot. If you give me that I’ll be happy.” Before phoning Sophie, I had checked the recent lot sales and the tax assessment. I knew the lot was worth several times that amount, so I said, “Sure, that’s fine, and this is how we’ll do it. I’ll give you $1 to option the lot at $17K, that makes it legal so I can take care of this. When I sell the lot I’ll send you the cash.” “Oh, that sounds wonderful. So you’ll take care of it for me? Thanks honey, that’s a relief.”
In order to keep peace with her new husband, this woman would have let the lot go to tax auction, getting nothing. Fortunately, I found her before the tax auction. The lot was worth over $60K and I tied it up for $1 using Coach Mitch’s “famous $1 Option.”™.
Use your imagination
Every type of property pays property taxes. This means that every type of property is tax delinquent, somewhere, sometime. You just have to find it. If you want a horse farm or an orange grove or a Laundromat, and they are not in your county just now, then look in another county, and keep looking until you find it.
I don’t say that you will get the world’s best deal, but I do contend that when someone does not pay their property taxes, that something negative is going on. You have a much better chance of getting a great deal if you are only speaking to folks who are having problems. Somebody, sometime will say, “Sure, take it, I don’t care.”
Remember, the tax delinquent is “The most motivated of all motivated sellers”™
See See Coach Mitch’s “Ridiculously Simple System…” ™ for details.
Go forth and prosper,
518-439-6100 until midnight EST