Is there a deal in lease optioning vacant land? - Posted by Stonelove
Posted by Stonelove on May 08, 2006 at 13:39:48:
Hello all - one of my leads generated a seller who has some vacant raw land he’d like to dispose of really cheap.
As a newbie investor at first I wasn’t particularly interested since i’m not a developer/builder - but the land is in a desirable area and at a recent auction I attended some parcels of land were auctioned off (with building permits) so I do know that there is demand for such in my area.
This got me thinking perhaps I could do the same by lease-optioning the land, doing some “sweat equity” work by researching the property, permits, comps etc and stop short of building on the land (its an acre, in a street with some mcmansions in a very desirable area). I would wholesale the whole deal to other investors/developers.
What do you think and how would you structure such a deal, is there a better way than lease optioning? I want to tie down the land for a minimal cost to do the necessary footwork and if i’m unsuccessful then I walk with only a minimal loss on my part. Can one auction such a deal - might be a stretch since I would only have the option and I guess i’d might have to pay off the land owner to take it to the auction, but i know there are some creative wizards out there so please weigh in.