All Forum Posts by: Doug F.

Mike
In South Carolina, Every year, every county that I am aware has a county tax auction. It is held on the first Monday in October.

The law states: that if a home owner/ property owner is delinquent in his county tax obligation, that the property is to be sold at auction the following year in October, The starting bid is for the delinquent amount plus an interest penalty. If you bid on a property and is successful, the county holds your funds in escrow for one year, (the redemption period) if the deliquent owner doesnt come back and pays up his over due taxes, you are awarded the property for your bid amount. If the deliquent owner pays his taxes, the county refunds your bid amount plus pays you 12% interest on your money. (not bad).

I believe all my facts are correct above.

I have been buying in retirement community outside of Augusta Georgia (in South Carolina) on the Savannah River, there are about 4,000 home sites there with a couple of golf courses, community center, pool, country club, but only about 1,500 home sites have been built on, but all the homesites have been sold to individuals or investment groups over 10 years ago, so the Developer is no longer involved, just the local home owner's association. So i have been able to purchase a few of these lots through the delinquent county tax sale for about twenty cents on the dollar.
I like buying the lots, being out of state, I dont have to worry about fixing up a neglected property, or eviction, or vandelism. My only up keep is paying about $95 a month in property association dues. but I have bought $40,000 properties for $1,500, so I have time make up on it.

also, one thing better, I have learned to set up an individual retirement account which has allowed me to set up a limited liability corporation within my retirement account so I can purchase real estate through my IRA, and hold it in my IRA.

I would also be interested in learning more about Roger's questions, and would like to network with others interested in investing in such notes.

thanks Doug

I am posting this to get some feed back or general opinions on a couple of property listings, I have posted.

I am curious, since I feel these are very attractive deals, and I have had over 500 views of the deals, why no one has contacted me with any questions, interest or comments.

So I am just asking for honest critique or opinions.

I have a couple of residential lots in a South Carolina Golf Community for sale and as purchase options. I purchased these through a bank foreclosure sale at a very good discounted price. I am now offering them for sale, at small profit for myself and to move them in this difficult market..
I have listed them at about 40% - 50% below similiar lots in the community ( ranges from $25k - 65k). They are all attractive lots, couple of them are on the golf course, and all are level buildable lots, with utilities in place. The community is Savannah Lakes, in South Carolina, and offers very reasonable taxes, and a very low monthly property association dues, and no time table to build.

Here is the deal:
I have offered these for sale, a couple of them as purchase option, meaning, you can lock up the purchase of the property with a low deposit, which I will put in an escrow account(SC Title agency) for a year, and then close on the property after a year (tax incentive for myself) at a preset purchase price which is discounted. Also for those wishing I will offer some owner financing.

Given the state of the stock market I would think many would find this very attractive, to be able to lock in on a discounted property and not have to close on it for a year. Think of the equity and position you could be in, when this down cycle begins to turn, you have a property at 50% discount value, and not having to pay for it for a year from now. Also, for those who are aware of purchasing property through your retirement accounts (this could be a seperate blog) what a nice option, to be able to buy a discounted piece of real estate with your IRA and having control of it instead of having your money tied into a mutual fund, which you have little control.

With this all said, what is your opinion? anyone?

Thank you

DJF11

Thank you Mark,

Are rents able to be adjusted to cover the cash flow of a mortgage, insurance, and other fee's

When i was looking at some four plexes the rents seemed to low to cover the expenses, but that was a year ago, I assume maybe the values have dropped. Doug

Just wanting to know how the SC market , especially around Greenville is doing?

Has anyone been successful with probate deals?

I have seen alot of info coming out lately saying its the best way to invest. Buy through probate and turn around for quick sale or sometimes even before closing.

just curious for thoughts.

Doug

Hello
Quick introduction, my name is Doug, and i am in ohio.

I have investing in real estate for over 10 years, started out fixing up and reselling houses, and owned a couple of multifamily units as well.

Lately i have been able to invest in vacant lots through foreclosures.

If you have any questions please feel free to contact me.

How does capital gains tax work for a land contract sale?

If a property was purchased say at $50,000 and then sold via land contract at $ 90,000, assuming everything simple, and there is a capital gain of $40,000.

if the land contract is for a period of 10 yrs, and the seller is recieving yearly payments of principal and interes.

When does the $40,000 capital gain tax become due? is all $40,000 looked at when the property is sold, or is it spread out over 10 yrs as one recieves principal?.

I understand that one must also pay tax on the debt income recieved too.

thanks

Doug

I am new to here, but an investor for past few years and have found some properties in SC in a golf community for whick i have purchased at foreclosure tax sales and now wanting to offer them.

My idea is to offer them at 40-50% below market value so there is a good deal for an investor, since these times are difficult.

My plan is to offer these lots as a purchase option (1 year from now) since i dont not have clear title yet. The lots (non golf course lot, non lake lot, but nice interior wooded lots 1/3 acre) are valued in the range of $25,000 to $45,000.

I would sell the lot via land contract at a set price $12,000 - $25,000. The buyer would purchase the option for an agreed amount now - approx. $3,000 in an escrow, and would be credited at closing in one year, as the down payment.

I would then finance the balance for a 5-10 year period.

Should I not be able to provide a clean title or have possesion of the property (couple of these lots I will be purchasing at a tax sale and the deliquent owner has one year restitution period). I will refund all but $400 of the down payment.

Thank you

DF