The Best Start Up Ideas Come from Where
Jack Butala: The Best Start Up Ideas Come from Where. Every Single month we give away a property for free. It's super simple to qualify. Two simple steps. Leave us your feedback for this podcast on iTunes and number two, get the free ebook at landacademy.com, you don't even have to read it. Thanks for listening.
Jack Butala: Jack Butala here from Land Academy. Welcome to our Cash Flow for Land Show. In this episode Jill and I talk about the best startups ideas and where they come from and why. Jill I'm excited to share how I came up with this new ... I'm excited to share how we come up with new product ideas and share it with the audience I guess and how it applies to buying and selling land. Before we do that, as always let's take a call.
Jill DeWit: Okay. Earl from Texas called and asked, "Is it okay to buy property with back taxes? I don't want to go through another foreclosure."
Jack Butala: I'm so glad we got this question, so this topic comes up not very often, but I actually had ... I did an acquisition a couple years ago face-to-face, which really never ... It's unusual for me at this point now to acquisitions myself, but I did. It's extremely unusual for any of us to do face-to-face acquisition, but there's a guy, long story short, he owns a bunch of property in Northern Arizona.
He worked at University of Phoenix and so I met him on campus which is just a few miles from here. He worked there and on campus, at the cafeteria, we did the deal and his reason that for selling the property, because we always ask, "Why are you selling this?" or his reason to sell is. He did not want to go through another foreclosure so I chuckled to myself. I think I actually came back to the office and told you about it, but let's get all informed here. Unless we have something to say about this I'm just not going to ...
Jill DeWit: No. Go ahead.
Jack Butala: When you own property, free and clear like this, and the property taxes themselves start to accumulate, there's no foreclosure process. Well, there is, but it's not like getting foreclosed on from a mortgage company or credit card situation where people are calling you all the time, and it's a horrific experience for anyone to go through that. When your taxes are delinquent, your property taxes on a property, and there's no data associated, whether it's a house or an apartment building or anything. The set process is exactly the same.
The county or the taxing entity is almost always accounting. Send you a letter and then a bunch of time goes by, and then they send you another letter, and another letter, and maybe at best they'll send you a registered letter. No one ever calls you. They don't care and eventually there's a foreclosure proceeding that you will not even know about and they'll take the property. They'll take title to the property. In between that, they're might be a tax lien stage and it's way beyond the scope of this topic, but there's no foreclosure process to go to. The most painful thing is if you ignore your mail. That's as hard as it gets.
Jill DeWit: Then you just let it go.
Jack Butala: Yeah.
Jill DeWit: Does the ...
Jack Butala: So, Earl?
Jill DeWit: There's no ding on your credit or anything like that?
Jack Butala: Yeah, there's no credit score.
Jill DeWit: They're not going to come after you and start garnishing your wages, or anything like that?
Jack Butala: Yeah, that's a good point. Which could happen. Well, that happens with
Jill DeWit: Other stuff. The mortgage.
Jack Butala: The mortgage foreclosure and credit card stuff and all that.