What To Do With Land
Hi All,
I looked today into Oklahoma County's tax resale list, and most of the properties available are residential land. There was only a handful of improved residential properties. John Beck mentioned on his web site that he sold land he acquired on California tax deed auctions on EBay for a profit.
I was wondering if anybody on this forum has had consistent successful experience reselling at a profit land acquired at tax deed auctions. Are there "creative" ways of building new houses with instant equity in an area like Oklahoma City where most houses are worth below $50,000 ? Any other ideas on how to make a profit on Oklahoma City land (I thought about prospecting for oil now that gas prices are so high).
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achab--(MD)-------------------
Well, if you already know the oil and gas business, you might do all right with your plan. However, if not, you may find yourself owning properties which provide you no profit. And watch out for uncapped wells. There is a state law requiring that they be capped. Average cost, I believe, is about $2500.
My observation is that over 90% of properties that go to tax sales are vacant lots, properties, and tracts of land.
I know that John Beck does make a lot of money reselling-tax-sale-purchased properties. Much of this is online. However, he and his wife have been at it a long time and have many people who buy directly from them, without going through the internet.
I have experimented and bought 80 vacant properties last year in OK at the tax resales. I have sold some on the internet for a profit. However, I have lost money on a couple of them. And I'm scared I'm going to lose money on a lot more, since I have a lot of properties similar to those upon which I lost money.
Here is a BIG HINT, derived from my experience and what John Beck has said: only buy low-cost properties. Don't pay much. Then you can consistently make a profit.
In OK county many of the properties owned by the county because of earlier tax resale purchasing are being sold off. People are buying them. I can tell because of the legal advertisements appearing in the Record-Journal, the legal paper for the county.
By the way, while there are about 290 houses listed for sale at less than $52K in the Oklahoma City area, the median asking price on http://www.realtor.com is $115K.
Good Investing****************Ron Starr*************
[ Edited by RonaldStarr on Date 05/22/2004 ][ Edited by RonaldStarr on Date 05/22/2004 ]
Thanks Ron for sharing your experience with Oklahoma vacant land. I was mostly joking when I mentionned prospecting for oil.
I may see you at the June 14 resale in OKC. I plan to be there if the only house I am interested in is still on the list the last day of publication, and if I have any money left to invest after 2 tax lien auction I plan to attend here in Maryland early June.
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