Newbie In Crisis
I have not done my homework yet. Mainly because I do not know exactly what I need to know yet. There is a property (owned by a relative in Pa.) that owes 67K on the mortgage which is behind and close to foreclosure. but, it has also been discovered that there are tax liens on the property as well (possibly IRS, possibly county). The property needs quite a bit of work (septic, heating system, well) but would probably sell at close to 500K. There is developable acreage as well (about 25 acres total).
My questions are numerous. From what I am gathering on these forums, I would like a little direction.
My thought is to try to buy the property before the bank gets too ornery. Would I be able to sell off some of the land to pay off the tax liens after that?
Are there other options that I am too green to see?
Any advice would be appreciated. I have been on the fence about getting involved with investing for a while, and this may be my first run at it.
It may be that the value of the property lies in the land--in other words, the highest and best use of the property might be for development, and the existing house should be dozed.
Insofar as your buying the land and then selling it, in my experience (as a land broker) that depends on several issues, including:
1. uses permitted, lot size and other requirements of the current zoning
2. useable land area that could be subdivided (# of potential lots)
3. realistic value of the new construction (new house on its lot)
You should have a title company run a title on the property to see what the total $$$ of the various liens are that are recorded against the property. And I think you should also consult a RE attorney who could explain your options to you.
Nancy
Loon is right. Leave your baseball bat in the car and your gun in the holster...
Have some of the Boys from the local Mottorcycle club go over, park on the lawn, and say it was just rented to them as of this next Monday.... They will move over the weekend.