In this RED Podcast Legacy Series episode, Ferd Niemann explains Property Tax Appeals.

Enjoy!

HIGHLIGHTS:

0:00 – Intro

2:24 – Look at comps or the other properties in the area

3:08 – Sales chasing

3:48 – Appraisers need to appraise fairly and accurately

4:09 – There are 3 reasons to appeal; valuation, classification and discrimination

5:20 – Assessment is supposed to be revenue neutral

6:41 – Informal appeals and getting your documents together

9:20 – One of the benefits of the industry is that there's little barrier to entry

10:21 – Pull comps, and come up with the equalized value, and this will show a big difference in what you are paying

12:08 – Two options for the county are lower the equalized asset value or increase everyone else

14:03 – If you lose the board of equalization, you then go to the state tax commission

14:22 – Most of the time you need to hire an attorney and licensed appraiser just to play the game

14:51 – Going through a trial

16:13 – If you lose your only option is to then appeal in circuit court

17:36 – It’s important to continually do a cost-benefit analysis

RESOURCES:

Property Tax Appeal Checklist

In this RED Podcast Legacy Series episode, Ferd Niemann explains how to underwrite property taxes and how to get the most, or should we say the least, out of your tax bill. Enjoy!

HIGHLIGHTS:

0:00 – Intro

0:58 – It’s important to do a good job with property tax projections

1:53 – Property tax appraisers have values lower than the current market value

2:59 – Property tax assessors don’t want to raise the property value and annoy voters

3:33 – There’s a risk when you purchase a property that your taxes are increased

4:11 – Ferd looks at the current market value in accordance with what the assessor tells him

4:26 – Looking at the purchase price

6:19 – Ferd’s formula for calculating tax dollars

9:08 – Know your jurisdiction to calculate your paying

9:48 – How probable will a tax increase will be?

15:34 – You should underwrite some percentage of increase

15:54 – Strategies to mitigate the risk

16:51 – Allocate some of the purchase price to non real estate items

17:59 – Try to flag the sale as invalid by throwing something unusual into the contract

20:05 – Buy the LLC membership units

21:25 – Another risk is bankability

21:51 – Get mutual or buyer indemnification provision pre-closing

24:12 – There are going to be extra filings for tax returns

RESOURCES:

Underwriting Property Taxes Checklist

In this Legacy Series episode of The RED Podcast, Ferd Niemann takes us through 10 Things To Include In Your Zoning Letter.
Hosted by Jonathan Gilmore.

HIGHLIGHTS:

0:00 – Intro
0:59 – There’s 3 types of zoning; legal, illegal and legal non-conforming or grandfathering
2:26 – Grandfathering has its roots in voting laws
5:19 – A lot of mobile home park land was originally parking lots
6:03 – To preserve your zoning, it’s important to keep at least one mobile home on your lot
7:25 – A certificate of zoning or a zoning letter is government letter head which is your insurance policy to say you have a zoning right
8:41 – Make sure there are no outstanding code violations on the property
9:52 – Find out the current zone is
12:12 – You want your letter to say a mobile home can be placed on all existing vacant or occupied lots
16:30 – You want the zoning letter to reference the location of the homes in the park
19:23 – Make sure there are no restrictions on the size of the home or the age of the home
20:17 – Make sure there are no requirements or restrictions as it pertains to the concrete pillars or pads under the home
21:22 – Usually the city doesn’t care
21:23 – Ensure you’re not subject to development code or any new infrastructure requirements, impact fees or development fees based on the transfer of the park
22:35 – You want your letter to say the park was existing prior to the code of 1975, although usually this is the first thing cut out
24:06 – If the city objects, work out whether it’s worth it
25:19 – Threatening to sue and using demand letters works a ton of the time
25:36 – If they damage the value of your property, they have taken something from you, meaning if you beat them in court you can pursue legal fees
27:33 – If you do sue and win, prepare for an appeal

RESOURCES:

⁠Zoning Letter Checklist