All Forum Posts by: Robert Dobbs

In November 2009, depressed, like many here, ...a victim of the "real estate bubble" and the horrible economy (the "the dark days of 2008"!).

I get an unsolicited email saying, ..."21 bank owned vacant Florida parcels". As a "real estate junkie", I guess I "couldn't help myself", so I "Googled, researched, did some due-diligence (I.e., Google "street views", etc. and more!). Most of these 21 acre lots were about 1/2 acre each and some were 1 acre. The 21 parcels, ...all looked "pretty cool"!

So I then called the listing agent who emailed me, introduced myself and asked was it possible to "make an offer", a "package deal" for all 21 vacant lots.

These 21 parcels were listed by the bank for $8,000 each. I made my offer: "I offered $1,200 each!" The listing broker (actually the listing broker's son), shouted, "that's crazy!", the bank is asking $8,000 each!" I told Preston (the Broker's son), ..."look we are both fellow agents (Realtors), so kindly submit my offer to the bank". Preston said, ...well, ok!

I "wrote-up" the deal, emailed my offer (contract) to the Broker. And guess what? I got a phone call the next morning from Preston (I.e., the Broker's son), ...Mr. Dobbs, "I just can't believe it!", if you can close by the end of the "bank year", they accepted your offer! 

"To make a long story short", this was the beginning of a "11-year relationship" with this bank. ------> "I purchased well over 500 vacant parcels" from this bank.

I was basically, "the bank's real estate REO enema" for small vacant parcels, for over 10 years"! Yikes!!!

This story didn't end with me buying bank-own parcels. Building a great relationship with the title agent (who did the closings for this bank), Amanda (the title agent), introduced me president of the local Habitat for Humanity. To make this "long-winded" story shorter, I bought hundreds of donated vacant parcels that people from "all over the country" that donated "real estate bubble" parcels to Habitat for Humanity. Over the years, my relationship grew with Habitat and now we do "land swaps" (I'm very, very proud to say, "well over 50 parcels of mine that I "land-swapped" with Habitat, now have a "Habitat home" on my lots. Wow!

I may not be the "King of Lowballing", but I have carved-out a "10-year chapter" in the "Book of Lowballing", LOL!

Over and over again, I keep hearing the "same olde line", ..."Mr. Dobbs, I can't believe they accepted your offer"!

Robert Dobbs,                                                                                                  Trustee Settlor of the Land Rescue League Trust and The Renaissance Trust
 

IRS Extends Tax Deadlines

The IRS issued guidance Thursday evening to grant deadline relief for both 1031 like-kind exchanges and opportunity zone investments that are already underway. Both of these programs are designed to promote economic growth in communities, and the National Association of Realtors® made the case that investors in these programs should not be harmed due to the effects of COVID-19. 1031 Like-kind exchanges. If an investor has taken the first step of a like-kind exchange by selling the old property, and either the 45-day or the 180-day deadline falls between April 1 and July 15, the deadline has been extended to July 15. Opportunity Zones. If an investor who sold a capital asset planned to roll over the gain into an Opportunity Fund and the 180-day deadline to do so falls between April 1 and July 15, 2020, he or she can make the investment as late as July 15. Also, sole proprietors who pay quarterly estimated taxes now have until July 15 to file their second quarter payment. As a result of an earlier IRS notice, first quarter estimated tax payments had already been extended to July 15. This means that any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty. The National Association of Realtors® (the "NAR") has advocated heavily for these extensions since the outbreak of the COVID-19 pandemic. A big thank you to the National Association of Realtors® (the "NAR") for all their successful lobbying and advocating efforts helping fellow real estate professionals (Realtors®) like myself, plus helping "all us" fellow real estate investors and also, not to forget helping and the "NAR" advocating too, for the general public's "buying, selling and exchanging ("swapping") real estate!  Many thanks to the "NAR"! From Robert Dobbs, a longtime real estate investor, a longtime licensed Realtor® and a longtime "dues paying" member of the "NAR" (the National Association of Realtors®).

Hello! My spin on this? 

Is "cost basis"! If you spent 80K total for a 20 acre parcel and a 6 acre parcel combined, what was your "cost basis" on "the closing date" for the 6 acre parcel that you "propose to sell" in the "short term"? What was the official "assessed value" of the 6 acres vs. the "market value" of the 6 acres at the time of purchase?  Many times, one of those valuations (I.e., "assessed value or market value") will be much higher than the other. The correct choice can be "very subjective". Did you purchase the "6 & 20 acre combo" based purely on "official assessed values", or did you base your original "combined purchase price" based on "market pressures". Did you "overpay" or did you purchase this "combo" at "below market"? It is even possible that the 6 acres you are selling "in the short term" could be a "break-even" deal, or even "sold at a loss", in favor of a future sale (I.e., "long term" on your 20 acres?) Do the math and figure your carved-out, best-suited "cost-basis" for the 6 acre parcel. Once you figure-out the correct valuation to use (note: remember your "valuation purchase cost" for the 6 acres is very subjective.  And remember to add-on all other costs: Such as prorated property taxes, property inspections, possible travel expenses related to your purchase (all expenses to be divided-up proportionally between the 6 and 20 acre parcels). Plus figure-out just how any "man-hours" you put-in, to purchase these parcels and how many hours you put-in after your purchase (I.e., time spent on "property clean-ups", getting parcel "ready for sale". Also a written record of expenses (costs) for paper, printing, postage, envelopes and the "hour or hours" to prepare all this "tax info". Have it all written down clearly and present all to your tax professional. All these "possible deductions" may be added to your "6 acre purchase valuation that you picked", and your tax expert should then come-up with your total "short-term cost basis".

Wow! What a "long-winded" explanation, sorry! LOL! 

Good morning John,

I'm a "land guy" here in Florida. I've sold "tons of cheap vacant Florida parcels", ...via "my own twist" to owner-financing: ---- "Rent-to-Own" ----

I've sold 100s of vacant parcels, as I've been awarded the status: a "power-seller" plus a "top-rated seller" on eBay. I "morphed into" selling land on eBay, beginning in  December 2009.

My spiel is offering vacant land with:  "No Banks!" -- "No Credit Checks!" -- "No Realtors!" -- "No Mortgages!" -- "No Fees!" -- "No Interest!" -- "No Escrow!" -- "No Taxes!" (Ugh! I'm "out of breath"! LOL!). I'm the only seller that offers "100% clean, free and clear title"! 100% guaranteed "or your money back". (Duh, I obtain my land inventory from Bank REOs, Habitat for Humanity, "motivated sellers", etc. - closing with title insurance! (So I can "toot my own horn" guaranteeing clean title (...it's like selling "snowballs in Alaska! As I know I already have clean title, when I obtained my "selling inventory".

Lately, ...because I've "built-up" a huge following and "cliednt-base", ...I do an "email blast" --- "to my regulars" and amazingly, ...many times, I sell a vacant parcel within minutes! ...turning down "my regulars" who responded "a minute or two", ...too late!

John, I use a "2-page" Lease-to-Own agreement, plus I also include a "Complimentary Payment Schedule" for my tenant-buyer's "convenience and record-keeping". This agreement is simple. Once the tenant-buyer completes all the agreed-upon monthly payments, I then promptly record a deed transferring title over to my buyer!

Plus John, ...with the nature of "no-qualifying owner-financing". I protect myself:  My agreement has a default clause as follows: "Default for Non-payment: As mentioned above, the Landlord/Seller expects prompt payments from the Tenant/Buyer. Important to note: If the Tenant/Buyer fails to make payments for 60 consecutive days, beginning on day 61, without any notification needed the Tenant/Buyer may lose all rights to this said property, plus all prior payments made will be forfeited to Seller/Landlord, and be considered, “liquidated damages”, plus this “Lease To Own” Agreement will be considered “null and void” on day 61". 

Also John, nothing is recorded until the property is "paid-in-full", ...thus avoiding possible expensive legal and lengthy actions (I.e., "lis-pendens", foreclosures, etc.). This system has worked for me successfully over the years, ...with many repeat buyers. What is very popular, ...each month, upon receiving a payment, I promptly send an "email receipt", with an updated payment schedule (my tenant-buyers "depend on these monthly email receipts" --- "they love it"!)

My agreement includes a "no prepayment penalty clause". I gladly allow my tenant-buyers may make extra payments at anytime!

So John, I add my profit, taxes, proposed costs to close, etc. to the monthly payment. The buyer simply "initials" page one and "signs and dates" page two!

That's it!
(Also note: Future adjustments to payments may occur to allow for "increases or decreases" in property taxes, any additional future assessments, etc.).

Hope you found this helpful John (I.e., and can use something similar in California!)

Good Luck, Bob Dobbs Trustee of the Land Rescue League Trust

With the world "in the middle" of a worldwide virus pandemic, ...banks all across the world, ... are having "board of directors' " meetings, discussing "lending liquidity". I'm quite confident many banks will be removing vacant land from their lending roles, "as we speak"! Like Greg Dickerson posted, ..."local banks may be your best option". Good luck with this purchase, ...hope you are successful!

Hi Carolyn, part of my "early days" of tax deed investing, ...I also bought "year two tax certificates". I then applied, like you do, ...for tax deed auctions, my right as a  "year two mature cert holder". In Citrus County, the "average wait-time" for the tax deed auctions to be scheduled is approx. 1 year wait-time!  Like you said, "picking-up" 18% interest, while I waited was OK with me. Results varied. If, in my opinion, ife the bidding went to high, I would let it go and was reimbursed and collected up to 18% interest. In years 2014, 2015 & 2016, many times, I was simply  awarded the "tax deed parcel", because there were zero bids (plus I still earned interest!). Lastly, I would "bid-up" certain tax deed parcels that I really wanted. But I always had a "walk-away" price, where I would stop bidding, and let someone else win the parcel, and like I first said, be reimbursed for my cost of the "tax certificate", plus some nice interest. The biggest mistake that I see is other bidders "over-paying" for many lots, as these bidders get "caught-up" in the bidding action and wind-up paying more than they should for their "won tax deed parcels". All-in-all Carolyn, my experience has produced some good results. Besides picking-up some great deals, my best year of interest from Citrus County, florida was a "1099" for almost $7,000 in "tax certificate interest"! It was a "ton of work", but I enjoyed doing it and making $$$$$ too!

Bob Dobbs, Trustee of the Land Rescue League 

Here's a link for info. in Harris County, Texas: 
https://www.hctax.net/property/taxsales/taxsales
"Google" and search for links for the Texas County (or Counties) that you are interested in. Good luck to you! Bob Dobbs, Trustee of the Land Rescue League Trust

This is a picture of single-family row homes in Bavaria, Germany. Wow! "If you can build them, they will come"! ("Prices & terms" are unknown to me, ...but this "3-D home" idea, just might make "us investors" millions?) Just some "food for thought"!

LOL! 

Bob Dobbs

Good morning Carolyn, Good job! I myself ...have been a fan and a buyer/flipper of Florida Tax Deeds for many years now (in Citrus County, Florida). Personally, I'm not a fan of County available "list-of-lands" (as you called it, "over the counter", non-bidding parcels). But as you say, if you can acquire tax deed parcels well below certified County assessed values, ...you should be ok! I bought (I.e., at tax deed auctions) mostly plated small, low-priced tax deed parels (1/4 acre to 1.5 acres). To date (since 2014), I've spent a total of $145,177.75 on tax deed vacant parcels. I've bid on a total of 118 parcels and won 56 of those tax deed parcels! My "average purchase price" was $2,592, per tax deed parcel: includes recording/transfer fees, doc stamps, etc. All but 11 have been sold. And I'm confident, these 11 remaining parcels will be sold this year! I "bid and buy" online via: http://www.realauction.com/client-sites, you can bid at both tax deed and foreclosure auctions at a number of Florida Counties. Also, you also have access to "online auctions" in other states, such as as Arizona, Ohio and Texas. "Newbees" need to learn the "ins-and-outs" and the "rules of the roads" to these various auctions. Each state, for example have their own "governing rules" on tax deeds. My suggestion to potential tax deed investors, get educated and "learn the ropes" to tax deed investing, ...before you invest.

Good luck to you (and keep-up the good work Carolyn!)

Bob Dobbs (Trustee of the Land Rescue League Trust, investor and "well-seasoned", licensed Florida real estate professional.)

Congrats to my "fellow land brethren"! David, hope that deal was just beginning for you! (Good luck from Bob, Trustee of the Land Rescue League Trust). I did my first land deal in 2009 and now, ..."a thousand deals later", ..."still going strong"!