So, there’s this deal that I’m kinda working on in New York State. It’s an 88 acre tract, in a somewhat rural area, located about 20 minutes in either direction from a couple of big summer resort towns. The guy that owns it uses the land as his personal summer retreat, keeping a camper there. He’s done 4 man made lakes, drains swells, a septic system, a well, as well as having cut roads into the property. He’s made some attempt at subdividing it, having gotten approvals for about 15 1 acre home sites, and theres room for another 40 or so. Great mountain views surround the place, and it seems to me the two best options for this property would be to subdivide or keep it together and have someone build a country getaway on the land (hunting, fishing, watersports, snowmobiling, and skiing are all the big to-do’s in this area).
I found this property on craigslist, and he’s been apparently trying to sell it for a couple years at least. Doesn’t seem to be in a big hurry, but he does want the right buyer, someone who knows what they’re doing and with the money to back it up. He’s offering it for about $490,000, and willing to carry back some financing as well, if the down payment is worthwhile.
So, I’m thinking, what if I got him $100,000 for a down payment, and he carried back the other $390,000… then what if I sold this same property on some kind of wrap around- like $550,000 (on terms), with me asking for like 20% down ($110,000), which puts some cash in my pocket, and then tacking on a point or two of interest to make a spread every month. Or just try and straight flip the property to a cash buyer for like $510,000 (putting $20,000 in my pocket.) Either way, this seems like a potentially good deal for me.
I have two questions- one, I assume that if I can line up my buyer first, and then put the deal together, it shouldn’t cost me anything much out of pocket, right?? I’m not exactly rolling in dough these days. Two, aside from listing with a real estate agent (which since I don’t own this land, I assume I can’t anyways), what other options do I have to get this deal on the desk of developers? I can’t sell them something they don’t know exists, right? Any suggestions???