All Forum Posts by: Kristine Ann

Never, ever believe people when they tell you how much they made on a real estate deal (or trading stocks and crypto). Don't believe a youtuber and don't believe a friend.  It's not just that people will flat out lie.  It's also because people don't understand how costs and market changes affect their p/l. 

Creating a New York LLC is not a hassle at all. It's very straightforward and the NY state website is very easy to use. The publishing requirement is a one-time thing. You publish in two different newspapers for six weeks, get proof and submit it and you're done. It's not difficult at all and it's not that expensive.

I challenge you to explain (to yourself) why you don't want to do the publishing.  If publishing is too complicated, then the work around will be even more cumbersome.

Was this a tax lien certificate or a tax deed?   There is a big difference and you don't sound like you know which one it is. All states and counties are different, so you need to read through the county documents carefully and consult a local real estate lawyer.

Some counties will only sell the tax debt.  If that is the case, you absolutely do not own the property, you can't trespass and you definitely can't cut trees down!  

Some county's seize the property and then they actually auction off the property in a tax defaulted auction. Winning bids receive a quitclaim deed and then the bidder has to file the quitclaim deed with the county clerk to get title and officially own the property.  Even after you have title, if there is a redemption period in that state, then you want to wait until the redemption period has passed before you make any costly repairs or upgrades.  Just winning the bid and paying at the auction isn't the end of it.  There are several things to do legally after that.

Every county and state is different as far as what they do with tax defaults, which is why you are getting different answers from different people.  You need to go to that county's treasurer and county clerk website (or in person) and carefully read through all the information about how they handle tax defaulted properties.

It seems to me like most of the bidders have no idea what they are even bidding on, even with tax deed sales. It's usually not worth it to bid because the clueless people are driving the prices up. 

Here's one for you.  Tax deed auction last week there's a house in an economically depressed area in northern New York State (Clinton County).  The pictures look pretty but I know the house and the area and it's in very bad shape and a very bad location.  

It's accurately assessed for 45k next to the train tracks and has a 16 foot wide easement right through the property.  The roof is collapsed and has been for at least 2-3 years which means there's damage throughout the house. It auctioned off to some online bidder for 30k! Maybe it would've been worth it at 5k, but 30K is crazy.  What are people even thinking?  The only explanation is that it's out-of-towners thinking Clinton County is in New York, so the land must be worth it?  It's not.  

Wow, I totally get it.  I hate in when I rent secluded cabin in the wilderness in the middle of nowhere and the owls, frogs and foxes won't be quiet.

Tax deed auctions vary by state and county.  I would go directly to the county in Arkansas you are looking to and read the information they have there, both for property owners in default and bidders.  The auctioneers often have very good location-specific information for bidders. We have online and in-person auctions in NY state, so it really depends on your location and the auctioneer. Online bidders have paperwork they need to fill out and send in by a due date to participate.

You usually get a quitclaim deed from the county.  Before you sell, you usually have to "quiet the title" before reselling, which takes some time and a lawyer.  

I was going to suggest talking to your insurance agent also.  You didn't mention home insurance and that will need to be set up before closing.

Don't buy anything yet (don't rack up you credit card balances), but window shop at the hardware store.  If you are ready to go with a paint color for your owner's suite, then you'll be able to start painting your portion of the apartment as soon as possible. Take a leisurely walk through home depot or Lowes. Look at paint, flooring, closet systems, door knobs, locks and so on.  

Get your banking set up to receive rent.  Look into tenant management apps. Think about what company you will call for plumbing issues.

This question is terrifying.  What does your lawyer say?

@Patrick Goswitz Not to argue with your chat gpt lawyer and accountant, but I'm actually attending a foreclosure auction next month that took two years to get through the courts. I'm not saying it's the average time, but it is possible and does happen. 

If you under contract and are getting a loan, just wait for the assessment to come back.  Yes, it's possible for an aging mobile home to be worth less than 40k.  It can cost 3-5K to get those hauled away.  And they start at about 110k new. 

I agree with @Rachel H. that the value is the utilities already on the land.