Is It Worth It?
I need some advice from my fellow tax lien investors. There is a land parcel that was struck off in previous years. It is about 7 acres and was owned by a builder who has since gone bankrupt. Only one house has been built in there but everything (roads, sewers...) are in bad shape. The struck off parcel has a mound of dirt and shale which is sitting on the parcel. The township might soon go after the builder who wants him to remove which estimated is about 500 dump truck loads. The liability would obviously transfer to the owner.
Cost of the lien is about $11,000.
Advice? Strategies?
thanks guys.
You would be buying the tax lien. Not sure if the builder will let the lot go as the assessed value of the land is much higher than the lien amount. The parcel is vacant but with cleanup costs due to the detention basin.
If the builder declared BK, I think the township would have a hard time going after him, if he lost the land in the BK.
What do you want to do w/ then land?
Hold and then sell to a developer?
can you JV with a company that can do the hauling?
Is there anything hazardous in the dirt?
I would like to hold and sell to a developer. Nothing hazardous in the soil that I know of. Just soil and shale pieces (not the shale type you can extract oil from).
It would be nice if I could locate a company to do a JV and have them haul the soil away. i would think they would want to utilize the soil and thereby charged a lesser fee......
is the soil usable?
There are all sort of specs on soil and when and where it can be used.
Is there debt on the property?
I would assume the soil is usable since it has not been contaminated by any other means.
No debt on the property.
Not sure how NJ tax liens and such work so will give my impression of Missouri and maybe you can manipulate the ideas to your benefit.
1. Don’t know what you mean by struck off. ( I’m no help here)
2. 7 acres (sounds like a nice lot)
3. Struck off parcel has a mound of dirt and shale (if dirt and shale can be used as fill - You may have to check your state statutes - then what does fill in your area sell for?? )
4. township might soon go after the builder (by this do you mean they place a lien against the builder somehow or against his/this property?? (We had a parcel that had an old house on it, the city demolished the house, placed a $13,000 lien against the property so owner let it go at tax sale. After time was up city tried to sell property but no one would buy it for the high lien. A few years later the county sold the property at tax sale. County said purchaser would notify city, just as they do other owners and lien holders and the city could either let the property go or pay the bid price off and take the property back – with the lien still intact of course. So now the city would be getting their lien back plus owing / paying the county taxes. Seems like the county is higher on the totem pole than the city. I believe person bought property for around $1100 )
5. 500 dump truck loads (What does a truck load of this material sell for?? In your state if you purchase the land could you go into the dump truck – dirt - fill business. Perhaps you could buy yourself some swamp land or a gully and use this dirt to fill it it)
6. liability transfer to owner (are you saying liability will transfer to builder or to you if you purchase the acres. Would this be a personal liability or land ownership liability )
Last but not least I would dearly LOVE to purchase 7 acres with 500 dump truck loads of fill