I need opinions on these numbers! - Posted by DaveM(CT)

Posted by DaveM(CT) on June 15, 1999 at 17:38:41:

The home currently sits on a lot just bought by a car dealership across the street. They want the LOT only, and will fill in the foundation hole left by the moved building in order to convert it into a parking lot that they can display their shiny new cars on. I’m trying to make use of a building that they don’t want. 20G can barely buy an outhouse in Litchfield County, CT, and that’s why I’m trying to do this deal.

I need opinions on these numbers! - Posted by DaveM(CT)

Posted by DaveM(CT) on June 15, 1999 at 14:02:14:

I’m really green to investing, and I only got one reply to this before, so I’m going to repeat a prior posting:

Posted by DaveM(CT) on June 13, 1999 at 23:27:31:

I think I can buy a small ranch, hire building movers to move it 4/10 mile to a lot, build a foundation, set the house down on it, and flip it very quickly. Neat-as-a-pin small ranch for 20G, 0.5 acre clear lot across from school & park for 30G, 15G for the move, 20G for hole, foundation, utilities, etc. Comps in area are 105-120G.
I’m an experienced builder & not afraid of the process or the details. I have weak credit, lots of desire. Have read Sheets programs and some Jack Reed. AM I NUTS TO DO SOMETHING SO RADICAL FOR MY FIRST INVESTMENT? I need advice! Is a construction loan the way to go? Thanks in advance for the response.

Re: I need opinions on these numbers! - Posted by eBankRobber

Posted by eBankRobber on June 16, 1999 at 13:55:03:

Since you are an experienced builder you should be able to pull this off without to many unexpected costs. At 120K it is a good deal, at 105K it is not a good deal. Get a more accurate estimate of finished value.

Numbers seem poor to me - Posted by Irwin

Posted by Irwin on June 16, 1999 at 06:43:55:

Altogether you’ll be spending $85k for a house worth $105-120. in the end. If it’s $120, the deal looks okay ,but for $105, I don’t think it’s worth the work or risk.
Many times, the land owner who wants the house moved gives it away free. There aren’t that many people who will move a house (except guys in the home moving business) and if you have to tear one down, it can cost $5-10k. Have you tried to get them to give you the house in return for you moving it and filling the hole?
Maybe partner the deal with a house mover? He handles the moving and you do the reconstruction. Split the cash outlay, or get a construction loan. Keep working at it.

Re:sounds a little too radical - Posted by Bob B

Posted by Bob B on June 16, 1999 at 04:50:08:

Try and find another deal for your first one, even if you are an experienced builder.

Why does it need to be moved? - Posted by mikeb

Posted by mikeb on June 15, 1999 at 14:37:27:

Why can’t you buy it where its located now? I don’t understand why you would need to move the house.

You’re not talking about a mobile home are you?