All Forum Posts by: Stefan K.

@Jerry K. (sorry if that didn't work, computer not cooperating) - thanks for the info. I knew Pasco was bad but I hadn't gone back to analyze the data, more just gave up in frustration. I'm sure I would have and will take a closer look before next year's auction.

Surprising results for that one bider in Palm Beach. Higher average winning bid on single families than mobile homes and the condos were a lot higher than I would have thought.

@George P. did you find out any information on this issue? I'm assuming that timing of the record of ownership is based on the date of the tax deed, not the certificates purchased, making the gain taxable as ordinary income. But I could be wrong and would love to know what you found out.

@Wayne Brooks the third largest bidder was actually the certificates struck to the county that no one bid on, so they can be purchased from the county OTC for 18%.

@Jerry K. will have to let you know if the second largest winner hit 10% because they bid on a lot of vacant land or something like that.

@Jerry K. I noticed in this year's Pasco County auction that low end properties, mostly mobile homes on land, were bid down significantly compared to the last couple of years. Something I would have gotten a rate in the high teens on the last couple of years was bid down to the 6% - 9% range.

This is my third year investing in tax liens so all I've known is how the auctions go in the current market enviornment of low bond rates. As market rates rise over time, do you think there will be less competition for tax liens as other investment vehicles become more attractive again or is this the new norm?

@Account Closed this home is attached to the land and no seperate title on it here.

@Bill Gulley thanks for clearing that up for me. I've done a lot of reading on the SAFE act over the last year and prefer not to finance the deal. I understand the concern with connecting one potential red flag with another - great heads up. I'll look into the Special Warranty Deed, I had thought I wouldn't be able to use one in this situation.

@Bill Gulley which part concerns you? The quitclaim deed or the seller financing?

I have a small mobile home on its own lot that I obtained through a tax deed sale. I was the applicant and no one bid so the property was struck to me. I've had it on the market for almost 3 weeks at $12,500 cash sale but said I would consider owner financing with 40% down. I came up with this amount based on the very few comps in the area and the general dissrepair the home is in. Here are the comps:

9/2012 $7K

12/2012 $21K

8/2013 $15.5K

So far I've had about a dozen responses to my ads with two people looking at it inside and out and a couple of people checking out the outside. I've had one person ask me over the phone if I'd take $10K and one person ask the same question through text. Another person emailed me and asked if I'd take $7K. None of these people have been inside the home.

I finally had two showings last night and one person wants to bring their handyman out to do a further assessment. That person asked how low I was willing to go and I told them I've received two offers for $10K and had more showings to do (it was supposed to be four showings last night).

The second showing, I was offered $7,500 cash with a 10 day close. I told them about the two offers for $10K and that a couple more people want to see it, but for a quick cash close, I could go down to $9K. He wanted to think it over and would if I still have it this weekend might be able to do a deal with me.

Additional information:

#1: The last owner had a tenant move in a couple of months earlier to "fix the place up" and he let another guy move in with him. He told me last night he found a place and I think I'll end up helping him out with his deposit of $250 to get him to move on.

#2: I own this with a tax deed and due to the low price I'm trying to sell it via quitclaim deed. I could quiet the title ($2,500) or use Tax Title Services ($1,650) to allow the buyer to purchase with title insurance. Both seem cost prohibitive. I've done my own title search on the last owner and the prior owner, which dates back to 2002 and everything looks clean. I still recommend a title search be done by a title company. I explained all of this to the second showing, so they know the situation.

So my question is, am I being too greedy? Should I be taking the $7,500 and moving on to the next deal or hold out a while longer to see if one of these nibbles for $2,500 or $5,000 more work out?

I'm not looking to rent out this property. My exit is a cash sale or potentially a seller financing deal, but I'd need to find an MLO and a servicing company for that and I've only had one person inquire about the financing so I haven't pursued it.

Sorry for the long post.

I list on Craigslist and Postlets, which also feeds sites like Zillow. Not sure how easy or hard it is to filter only FSBOs.

@Patrick L. - he's done minimal work right now. Started priming the walls in one of the rooms and some other work in one of the other rooms.

The real selling point on this property is the land and the fact that is has water and sewer at a very low price point (not sure how much info I can give here without moving over to the Marketplace). I've seen these types of properties get quiclaimed to investors who build mobile home buy and hold portfolios. So, I'll see where this goes with the handful of responses I've gotten so far. If I just can't move it, I'll have to figure something else out.

@Ned Carey I'm looking to sell it. I've listed it on Zillow, Postlets, and Craigslist. The guy in there wasn't scary at all. He's an Vietnam Vet living on social security. Really, he's getting the short end of the stick here. The last owner had him move in for $350/mo in rent a couple of months ago and this guy was going to be fixing it up for him. I assume the old owner was going to try and sell it but never got to it before the auction. He called the old owner because the foreclosure auction sign was posted in the yard and he was told not to worry about it. Then the old owner stopped over and pulled the sign out of the ground.

Best scenario would be finding an investor to buy it who wants to let this guy stay and keep the same deal he had with the last owner. Otherwise, I can try cash for keys or go through the court for a writ of assistance to get him out. This has been quite an adventure.