Michaela-ATL 's Post: She spilled her Guts! - Posted by Tyrone

Real Estate Investing
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Posted by Tom PA on October 06, 2003 at 22:07:23:

The way that I see it, the thing that she really has going for her is her knowledge of the area. Which lots to go after and what they are worth.

The skiptracing isn’t really that difficult once you know who owned the property.

But I am with Jim on this one. Dealing with lots ain’t my bag. I took a bath on a couple a few years ago and I have no urge to get wet again.

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Michaela-ATL 's Post: She spilled her Guts! - Posted by Tyrone

Posted by Tyrone on October 05, 2003 at 21:20:20:

This seems to be a simple concept if you have a good property search service:

Here’s what she wrote:

I’ve made a whole lot more money with lots than with houses in the past 2 years. The thing is I only work when I need money ;-). I’m kind of lazy and when I run tight I say to myself: Ok, you gotta do some work. Go out there and find a lot next week - and then I do find one. I do abandoned lots with tax liens. They usually had a house on it, that got torn down years ago and the owner had already given up or is dead. Now the neighborhood is coming up, but the taxes are high and people have all forgotten about it.
Here are the pros:

  • I don’t have to compete with 3000 other investors, since everybody else is focused on houses.
  • The owners/heirs have no idea about the value
  • They usually don’t have much money and are happy to get something
  • Probate needs to be done and I have my attorney do it all and I pay for it, so they can just sit back
  • In the right neighborhood I have no problem selling the lots. Builders just gobble them up.
  • I like to do a little detective work, as in searching for owners, then for their heirs etc. Most people don’t so, there’re quiet a few lots out there, that none has redeemed.

Negatives:

  • It can be quiet a lot of digging to find the present owner. Internet, vital statistics, courthouse, probate etc.

  • there aren’t as many lots as there are houses

  • you have to be proactive and find them. You can’t really advertise ‘I buy lots’, because people don’t even remember grandpa’s lot and that they could sell it.

Since I’m planning on moving in Spring, I figure I’ll buckle down and really work the next few months and make some money, so, that I have an easy start somewhere else. An whenever I make a decision like that I can pull something to me :wink:

Michaela

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Re: Michaela-ATL 's Post: She spilled her Guts! - Posted by Sean

Posted by Sean on October 06, 2003 at 12:13:11:

Lot selling wouldn’t work well here at all. I am not arguing you couldn’t find a lot here or there to make some cash on… but by and large, people are looking for lots in existing neighborhoods to build. There are just too many existing homes for sale in existing neighborhoods… few and I do mean very few are building in existing neighborhoods.

Can’t say you couldn’t make money selling lots here, but this isn’t a hot land market. When existing homes in move in condition can sell for 50-100k, and a lot in those neighborhoods go for 30-40k ready to build… doesn’t take a genious to figure out, way easier to buy existing than to build.

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Nothing new here - Posted by michaela-ATL

Posted by michaela-ATL on October 06, 2003 at 07:14:21:

as I have mentioned beforeL if you read previous posts of mine, you will know exactly what I do.

Sure, it sounds easy: buy a lot and sell it to a builder. The difficulty is getting to be able to buy the lot. These are lots, where the houses have been torn down 10-20 years ago. Lots of demo and tax liens and people have long fogotten or given up on it. A lot of the owners have died and there’s an incredible amount of skip tracing involved. When I start I usually don’t even know the name of the person, that is the present owner by law. It takes more time than most people would want to deal with. I enjoy the hunt and prefer not dealing with all the competition.

But keep in mind - this is usually a lot more work than going after a preforeclosure or other house in need of repair.

Michaela

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Re: How amusing. - Posted by Jim V

Posted by Jim V on October 05, 2003 at 22:38:45:

I can’t wait for your next revelation that there are actually lists of default/lis pendens properties where people are facing foreclosure.

Niche investing isn’t based on general concepts, it’s based on developing a specific methodology for the niche.

Your post was supposed to impress others with your abilities to cut and paste?

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Re: Michaela-ATL 's Post: She spilled her Guts! - Posted by Rob Ricker

Posted by Rob Ricker on October 05, 2003 at 22:28:40:

I think being in the Atlanta area market helps her a little too. I have an uncle that lives outside Atlanta that knows little to nothing about real estate, but he made a bundle by buying cheap land right before some residential developers started building VERY expensive houses in the area. It’s a builders market from what I hear, and they will pay big bucks for the right property.

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I don’t really get it … - Posted by Fred Bauer

Posted by Fred Bauer on October 05, 2003 at 21:28:52:

Here in Texas tax foreclosures are held only once per month. Does this strategy involve finding tax foreclosed lots that no one bought at the auction … lots that have basically been forgotten about?

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No, I was simply pointing out - Posted by Tyrone

Posted by Tyrone on October 05, 2003 at 22:41:25:

Michaela-ATL’s niche… How she does it seems to be simple if the market permits.

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Re: Every niche is simple. - Posted by Jim V

Posted by Jim V on October 05, 2003 at 23:12:21:

When you figure out the nuances of making it work. The reason it’s a niche is that most people can’t figure out how to make the concept productive.

From what I’ve seen of her posts, I wouldn’t touch what she does with a ten foot pole. That’s what makes investing interesting, everyone has a somewhat different take and interest.

Take Care,

Jim V