The Secrets About Land Banks Nobody Will Tell You
Tony Martinez is the Founder and Chairman of the US Tax Lien Association, which is an organization that is committed and dedicated to helping others achieve total financial freedom through the power of investing in Tax Lien Certificates. With over 30 years of expert experience, Tony is the world's #1 authority on the subject of creating enduring wealth through the little know strategy of investing in Tax Lien Certificates, which gives anyone the opportunity to earn guaranteed fixed rates of returns of 18% – 36% interest per year, and acquire valuable real estate for approximately 10% of market value.
The first Land Bank was founded in the 1970’s as a result of deindustrialization. This was a time where suburbanization, or the mass movement of U.S. residents to the suburbs, was rampant. This left many urban residential and commercial properties abandoned and in disrepair. Land Banks were established as an effort to revitalize these properties and find best uses for them.
Land Banks are quasi-governmental bodies, or non profits, that handle the inventory of abandoned and/or tax foreclosed properties. They have the power to rehab or demolish the properties, and then resell them depending on the needs of the area.
They are frequently overlooked however as opportunities by tax foreclosure investors. In fact, many tax foreclosed properties can be found in the inventory of Land Banks as many are deeded to them annually. Few people know that some Land Banks will gladly sell properties to investors as it is a mutual goal of both parties to see the properties rehabbed and occupied by either a renter or a home buyer.
These companies can actually be easier to work with than the counties because they often inspect the residences they manage, and can share that information with potential buyers. You can even view estimates of the needed repairs by qualified contractors! Their inspections would also include whether the residence is vacant or not, whether it is salvagable or needs to be demolished, and best uses for it. This is not to mention you can also ask them for permission to inspect the homes so you can determine if it is a good purchase on your own. This is a huge advantage many don’t know about!
So, If you have ever wondered what happens to tax deeds that don’t sell at auction for whatever reason, know that they are not always held by the county indefinitely. They can be deeded to companies that are easier to work with than the counties themselves when attempting to acquire investment properties.