Hey /biz/nitches, what you guys know about tax lien properties? Specifically in Alabama?
Looking to buy up some projects and shit for the lulz.
So far as I can tell once you get the tax lien certificate the original owner has 3 years to make good, but that incurs a 12% penalty on the taxes you paid + up to 15% of the value of the house you may have paid over base tax price. If after that 3 years they don't do shit you get a tax deed and the property is officially yours.
Seems pretty awesome to me, either end up with property or a nice 12% return on your dollars.... So what's the catch?
Also I'm not trying to get in a bid war on actual valuable properties lol, just looking to buy up random lands in weird places, and abandoned industrial shit, like I said, for keks. Lots of these properties have back taxes of like $300 or less lol.
Are you the same kike looking to move to St. Louis in nigger center?
>>1164009
What? No lol. Just a random dude in Alabama. Was looking at cheap properties and came across tax sale stuff and it got me thinking...
Plenty of developers around here made money buy buying historic or older housing when it was ghetto for like $500-$2000 for gigantic run down 5k sq ft houses and turning them into duplexes and plexus and shit.
I just want to try some DIY gentrification and get some random lands in the industrial areas to fuck around on.
Seems fun you know? If I can just mail the city like $250 and now have a nice chunk of land with an abandoned warehouse on it lol.
Or in ghetto areas buy up blight (often the houses are literally falling down, 0 value structures) then demolish the house, salvage what I can and just keep at it until I own the neighborhood.
>>1164007
Not familiar with Alabama, but definitely check the relevant state and municipality codes. If all goes well you're right, great 12% returns. If things don't go well though, you may end up responsible for foreclosure proceedings, and depending on the law, the owner may be entitled to auction proceeds minus your cut. Also should check if subsequent tax liens get priority over yours and if you have an early-bird opportunity to grab subsequent liens and secure your interest.
>>1164009
No, that's me (not a kike, btw, 14/88); think I'll look into some of this lien business there and Detroit....
>>1164119
Ah foreclosure proceedings. Figured there'd be some kind of downside, otherwise everyone would do it, right?
People say it's a risky investment but I mean government mandated 12% sounds nice.
pGuess I've got more reading to do... I'd be fine either way though, getting my money + 12% or ending up with some land or whatever.
>>1164380
Also planning on sticking to things that are more or less abandoned. Don't want to be a dick and kick people out of there homes, seems like a mess to deal with.
Also plenty of the properties have been abandoned for decades after previously being bought in large lots at auction. Various little holding companies just sitting on them doing nothing.
Lots of property people inherited from dead relatives too, but they live out of state or in a nice area and probably don't give a shit about some lot in the ghetto.
>>1164382
lmao look at this wiseguy
Can you explain to someone who is not American what this tax lien stuff is?
>>1164416
You don't pay your property taxes, local gov't says, OK asshole, we'll give you a while to pay but if you don't we'll go to court and take your fucking property and sell it as fast as possible at auction to get our fucking taxes that weren't paid.
Imagine dementia widow living alone, mail piles up, no family to take care of her business of paying her paid off home's property taxes. Theiving fucking property flipper sees her property on the tax lien auction list. Dementia widow's home is worth $400,000. County is owed $36,000 in back property taxes. County sells widow's hoe (with widow in it) to theiving flipper for $36,000 and who then starts proceedings to evict widow with dementia. Thieving flipper can't wait to get his profit by selling house at full market value.
Neighbors, politicians and lawyers get involved to help the poor widow. Suddenly flipper wants his money back ($36,000) slithers back under the rock he came from. Widow is taken care of.
This happened in the "Champions" neighborhood of Houston in the 90s.
