The Value Of A Few Bucks
I recently bought a property for a spec home at a tax sale . When I went to start the premitting process I found out the county had changed the zoning a few years ago so instead of 1 lot you now needed 4 but with a sale contract you get grandfathered in. That stupid change was not notated anywhere in the regular public records and the zoning code for the area had never been updated with the property appraisers. I wrote the listed owners asking for a qc and offering about 3/4 the cost of a quiet title. I also asked him if he by any chance still had the sale contract. He signed the QC deed and sent the contract so I paid him the agreed sum and I even overnighted it to him. Man I was happy because with the contract the land was now worth over 4 times what I paid a few months ago and I could start building.
I got a letter 3 days later saying he was so pleased with how promptly I paid and with my honesty in paying him even after he had already sent the papers that he was sending me 4 contracts he had from the other properties they had owned (those had sold previously) in case they would be of some use to me.
That was a few weeks ago. I contacted folks who had bought the other properties. By now they all knew that the County had passed a previous ordinance that changed the required lot size unless they had the original contract and that they lot was pretty much unbuildable. I simply said I had the original sale contract for the lot and left it at that. A few days ago I was offered $7,000 for one of the contracts. I accepted and upon getting paid I sent the owner half of the money with a thank you note. Yesterday I got a letter with about 5 more contracts and a note saying other folks in his family had their contracts and he would get them and send them to me.
Paying folks promptly and sharing your windfall with them when they are integral in getting that windfall is a must. Yeah I could have kept the whole $7k but I was grateful that he had sent the contracts. Now because of that I have at least 5 more to work with.
Share the wealth folks. It will always come back one way or the other[ Edited by linlin on Date 12/12/2004 ]
Excellent!! A Universal Law being brought to Life!
~~tis the Season~~ and Thank You for paying it forward And adding a 'glimmer' to MY "Faith Basket".
that is incredible and encouraging to hear. thanks for sharing that...
God bless
Frank
LinLin--FL----------------
Thank you for your discussion. Congratulations on taking the step to invest in tax sales properties.
Contratulations again on finding another source of income. You now know about this specialized topic. This could be a "niche" investing situation for you. There are riches in the niches. Are there other properties in the area in the same situation? Could you collect original contracts from other people? How about soliciting those three other owners about paying for the contracts or, if they prefer, selling you their parcels?
Good Investing and Good Posting************Ron Starr***********
Ron,
I had that same thought yesterday so I prepared a nice little letter and I mailed them to all the original owners. I am also searching the probate records for updated addresses for the folks who died. Over 2500 parcels were sold originally so it could be a nice niche.
One owner that had one lot that I was buying also sent me the deed, title insurance policy and original contract without us even agreeing on a price. Surprised the heck out of me. When I called she told me it was swamp land her husband bought over 35 years ago and I could have it for $1K. I told her it was worth a lot more and she said "It's ok dearie. That was what he paid so that is all I will take" Amazing. I sent the money plus Christmas "present" off the minute I hung up.
I am very surprised by how willing folks are to help you when you treat them with honesty and a little bit of kindness. Truth be told I was getting really cynical in the last few years observing human behaviour and this just pushed that cynicism back.