Working with a land bank

[Jeff Mauerman]

There are a number of homes in my area which are owned by a county land bank authority. They are all distressed properties, ranging from roof leaks and crumbling plaster to empty shell (meth house that has been stripped of ALL systems). Prices range from $5000-$30,000 per property, ARV in these areas would not likely exceed $70,000. Prices asked seem to have little to do with the condition of the house, they are all over the map.

Does anyone have experience working with or negotiating with a county authority like this? Each home has a set of must do’s that come as a stipulation of the sale. Some of the demands are frankly absurd, as are some of the prices being asked. Since these people have no skin in the game, what might be a good strategy for approaching them to see if they can relax some of the restrictions/prices so I can rehab these properties and get them back on the tax roll? Many of these have been sitting on the market for 300 days or more.

One upside is that all back taxes will have been settled or satisfied, so that will not be a concern with any of these potential properties.