Developer wants to take my house.

[Nelow]

Earlier this year my city sent my family a letter that they want to take my 3plex apartment away because it was not in use. In turn they will give it to a holding company that would then turn it over to a big developer interested in the block the house is in. He has already bought 80% of the block and now coming for the rest.

This apartment is a large project that we were saving up for fixing. The building is also fully paid no debt but they city wants to claim it for free. Has anyone ever had a similar situation with any of their property?

 

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[Red]

Most people's knee-jerk reaction to something like this is "Fight them off! They can't do this to you!" but you can really work this out in your favor, in my opinion. A private developer wants the land and they typically have deep pockets. Just work out a deal where you come out ahead.

Are there other 3-plex's in the area that are ready to rent out or currently rented? Perhaps in better shape? Tell them you want one of them for your property -like for like. You get an asset that's currently more valuable & actually performing for you in lieu of one that's not. Then maybe ask for your property taxes to be paid for the first few years on it.

I don't know, it sounds like this might be a good opportunity to really upgrade to a performing asset with nothing out of pocket & very little effort. I would be very excited if I was in your position.

 

[Nelow]

Thanks for the replay @Red

That is what i'm hearing from most people to sell, but before this developer showed up i saw the potential in the area and its only up from here. There are only 2 multifamily buildings on the block and including mines. All his building are zoned as single due to the extended vacancy.

The developer does have "deep pockets" as i learn from a conversation he held with my neighbor in which he offered my neighbor who's house is well on the way to use and occupancy a pretty crap offer on his home.