Re: land for sale 80% equity - Posted by ray@lcorn
Posted by ray@lcorn on May 03, 2006 at 18:58:23:
Something is wrong here… it sounds like either you’ve found a seller who doesn’t have a clue about value, or you’re holding a gun to his head. But then again, I don’t have the whole picture.
I’d check out the zoning, infrastructure availability, development standards, etc. to make sure you can do whatever it is you want to do with the land. Sometimes there are nasty zoning requirements that make development very expensive. Make sure this isn’t one of them. I’d also pull a title report, check liens and ownership, and make sure you’re getting clear title. You may or may not need a survey. You’ll definitely need a Phase 1 environmental report.
I’d use an option to control the property while checking all the above out. Try to buy at least six months (with a renewal privision) as cheap as you can get it… start at $1000 and go up slowly.
If it does check out, then you could just sell the option for $5T-$10T per acre; or use the time to find a private lender, a bank line of credit based on your other properties, or a partner. The option buys time to put it together.