Buying City owned Property... is it possible?

Question

I've been looking for potential fix and flip properties around my neighborhood. And found an vacant dilapidated three story multi-family building in descent location.

All of the windows and doors are boarded up, and the place doesn't look like anyone lived in it for a while. So I started searching for anything and everything I would find on this property. Nowadays, anything can be found online easily, but I was having real difficult time finding property owner info. But with a help of @Pete Nater, and his propertyshark account, I found out that it is owned by City of Mount Vernon. Thanks Pete!

I think I am going to the city hall to findout more about the property.

Anyone here has experience in dealing/ buying city owned property? Any tips on dealing with the city? It's not for sale, so I am not even sure whom I need to convince to buy it. Can I JV with the city? Or can I do long-term leasing?  Maybe I should not deal with the city and move onto other properties?

Roy N. · Answer

Bill Gulley

You are absolutely correct.  However, in the end, patience and persistence can pay off.

We are not developers, but buy and hold investors.  That said, we have been bringing proposals to our local planning committee (the City) w/r to acquiring/rezoning/repurposing properties for some time.  Naturally, in the beginning they laughed at us.  A few proposals later, they engaged us and even liked many of our ideas, but doubted our ability to make it happen {this was the hardest time as we got to watch others carryout projects very similar to what we had brought to the City}.  Now, after seeing the work we have done on other older, rental properties we have acquired - and having paid our dues providing ideas that have made a few City planners look good - the City has approved a couple of our proposals.

It is our firm belief the process will get easier in the future as we establish a greater portfolio of successful rehabilitated rental properties.

Bill Gulley · Answer

Hope you didn't pay too much to be able to find that one.

The property may have been condemned and taken, there may be a redemption period to allow the owner to redeem it. So, it may not be for sale yet.

I'd suggest you call your city building regulations department to start.

A municipality is not going to "partner" in any investor scheme or lease deal, they sell for cash.

If you have a track record, they may have financing available for properties they sell. :)

Bill Gulley · Answer

Guys, accept it, prime locations are political, when the moment comes when the city decides they will sell, they heavy hitters will submit offers and plans and the city will determine the best deal which doesn't really mean the highest price, they will look at the total package, ability to perform, track record, financial strength and who the heck the buyer might be related to. Hate to pop dreams, but back to reality! :)

Roy N. · Answer

If this property has real potential (location, size, etc.) and you are truly interested in developing it, then take a value proposition for a better/best use of the property to the City planning committee/department.

If your proposal demonstrates better use (read: more tax revenue and neighbourhood improvement) for the City then Mayor's personal view on the property may change {or will not sway council if it does not}.

Kay Lee · Answer

That is a sweet deal @Gary Hurst. "The mayor wants to hold on to it" was the exact words I got from comptrollers office, so I don't think I can present the offer.

@Mark Beekman the best way to find out about the property is to go and ask the building department about it as @Bill Gulley suggested. If the turnpike slip-ramp is completed and there is no reason to hold this property, the town might want to unload it.

Mark Beekman · Answer

Along the same lines as Kay Lee's situation, I'm looking at a vacant SFH property that's owned by the Pennsylvania Turnpike Commission. I believe they acquired the property through eminent domain, as they did several other properties during their original planning for a turnpike slip-ramp that was completed recently. It's about .5-1 mile away from the slip-ramp.

Anyone know how I'd go about trying to buy a property like this?

Gary Hurst · Answer

We bought an acre of land inside the city limits in Killeen Texas.  We went to the City attorney who passed us on to the Assistant City attorney.  The process here was to present it to the city council to approve the sale.  Once the city approved the sale it was then put in the paper to allow others to bid.  NO one bid so we won the acre for 3500. Sweet

Wayne Brooks · Answer

The city doesn't want it.  There wil be some procedure in place for disposing of it.

Bill Gulley · Answer

Due diligence is important on such properties, be careful, just because it's there and available doesn't mean you have to do it. :)

Buying City owned Property... is it possible?

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