Jack Thursday - Land Academy Word Association Test (LA 1656)

Transcript:

Steven Jack Butala:

Steve and Jill here.

Jill K DeWit:

Hello.

Steven Jack Butala:

Welcome to the Land Academy Show entertaining land investment talk. I'm Steven Jack Butala.

Jill K DeWit:

And I'm Jill Dewitt broadcasting from the valley of the sun.

Steven Jack Butala:

Today is Jack Thursday. And I'm going to talk about this little game that I devised called land academy word association test.

Jill K DeWit:

Can I ask what the outcome is supposed to be of this?

Steven Jack Butala:

Well, okay. I mean, since you brought it up, you should take this question real quick and then I'll get all into it. But here's a little prelude.

Jill K DeWit:

Okay.

Steven Jack Butala:

If I say customer, and you say no. If I say, not you necessarily, Jill, because you won't. But if I say, I don't know, 10 or 15 of these words, like customer $50,000 a month. Ranch land. Nope, nope, nope, nope .

Jill K DeWit:

Is this to help you decide if you're a land person or not?

Steven Jack Butala:

Yeah.

Jill K DeWit:

Ah, Change. Okay.

Steven Jack Butala:

Ferrari.

Jill K DeWit:

Nope.

Steven Jack Butala:

Calendar.

Jill K DeWit:

Yeah.

Steven Jack Butala:

You know? Exactly.

Jill K DeWit:

Got it.

Steven Jack Butala:

Before we get into it, let's take a question posted by one of our members on the land investors.com online community. It's free. And don't forget to subscribe on the Land Academy YouTube channel, and comment on the shows you like.

Jill K DeWit:

Tony wrote. I have a signed agreement from an individual who bought a property on a Sheriff's Tax resale deed in Texas. What issues could I come across if I buy this?

Steven Jack Butala:

All right, this is a very common thing. Full disclosure. I've done thousands and thousands and thousands of transactions like this with almost no incident at all, but like everything, you just need to know the facts. So what happens is people stop paying their taxes or they die or both. This is property taxes now. This is not income tax. These are property taxes, and they're associated with the land, not the person. Income taxes are associated with a person. Debt on property is associated with a person in the form of a personal guarantee. So this gets very misunderstood. If Jill has a piece of property, she's owned it for 10 years. She stopped paying taxes a lot of years ago. I purchase it from her, and she says, great. Here's the deed. Congratulations. Thanks for the check. Good luck.

Steven Jack Butala:

And I inherit the taxes that our associated with that property stay with the property. So now she's done, and she wipes her hands on the whole thing. Now it's my job to make good on the property taxes as a new owner. So what happened here is somebody stopped paying the taxes altogether. There was no purchaser sale. It went all the way back to the taxing authority, according to state statutes, sometimes local statutes, but mostly state. And the sheriff in Texas literally stood on the court steps. Maybe the sheriff themselves did it, or maybe they hired a company. Sometime lawyers do it in Texas. And they sold the property. Well, Tony here's buying it from somebody who bought it at that sale. And he's wondering what the problem is. So here's the issue. It all comes down to chain of title. In the eyes of the chain of title, this property has a break in the chain of title. And meaning that it didn't convey over its life with the title insurance policy, a title insurance policy, a title insurance policy.

Jill K DeWit:

Because they had to take it back, like forcefully take it back.

Steven Jack Butala:

Yeah. Got foreclosed on is what happened for property taxes, tax lien. So now he's buying the property, and he wants to, as much as he can, Tony here wants to, as much as he can.

Jill K DeWit:

Protect himself.

Steven Jack Butala:

Market the property with marketable title. That's the whole key here.