Tax Sales Of Commercial Properties
I am curious to know if there is a difference in tax sales of commercial properties?
Are commercial properties and private residential properties, having delinquent taxes due, disposed of in the same manner? Do the same rules, redemption periods, and protections still apply aply to a tax sale investor in commercial property?
Thanks
Jim
Thanks John.
Taney County Missouri has such a property. It has been through many annual tax sales with no takers. It used to be a gas station and motor inn. I am told that it has been empty and abandoned for at least 30 yrs.
As a newby is there some place a person can go to investigate spilalges or contaminations from that long ago?
JIm Hosack
dman1413
The sales I have been to had no difference between commercial and residential in the offering. They were handled the same way. One sale near Joplin did not even state that the property was commercial and the one sale near Lebanon gave a good account of the property, including that it was a former gas-oil site. I and my brother tried to buy a site near Jeff City. It had been a former dump site. The EPA was very much involved in the sale. We told them we wanted to cover it over, plant trees and grass and make hunting land out of it. We had no intention of using it for anything else. Long story short, they were very impressed with our intentions but “thanks - but no thanks”. I don’t think I will get involved with “EPA” land anymore. On a side note. Myself and a couple of other tax sale enthusiast have meet in Nixa and had dinner and a discussion about how to do tax sale stuff. We’re just looking for another good time to have another meeting. Do you have any interest in joining us? Let me know.
haynesm
Meeting in Nixa sounds good IFyou are unafraid of a rank ameture! I would love to network with other people in this area.
Just tell me when and how to contact you.
Jim
I am not familiar with the state of MO.
In IL and TX the law provides for different procedures to follow when foreclosing on a tax lien through a tax deed proceeding.
If noone is looking at that gas station, you can be sure it is leaking. Depending on the type of liquid (e.g. gasonline vs. diesel) your clean up costs may vary.
Start with an EPA research. Only if it shows nothing hire a consultant for phase 1, 2 and even 3.
I will bet dollars to donuts it is leaking.
I have never heard of any tax certs that pay 20% after only 6 months. I think your info is really off
Yes, I beleive there is a spread to be made but what is the cost of credit and risk that you end-up w/ a clunker property.
They same can be done w/ notes that are secured by the mortgage & TD.
If you buy the note at a discount (or even face value if the is a high enough default rate), and the owner pays the loan or it is sold at auction, you get the face value which bumps the return on the note.
The risk is that you end up w/ some low note coupon, but you did but it at a discount, or the property as REO.
I can give you come basic information for the state of Arizona.
It is a tax lien state. The interest rate starts at 16% and has a 3 year redemption period. The interest rate is bid down at the sale. The sales are the responsibility of the county treasurer and are held in February of each year. To bid you fill out a bidder information form and a W-9. Fill out the W-9 correctly. The treasures office is required by the IRS to withhold 31% of all proceeds for noncompliance or incorrect reporting of the tax identification number on the W-9 form. Good Luck.