Troy:
As the exchangors like to say you don’t sound like a “taker” for this land lot to hold for long term.
If you are looking to buy low and then re-sell at a higher price, then you need to make sure you are buying this lot “right”. Is a purchase price of $10K a substantiatly below market price that will allow to mark up the lot upon resell to a “retail” buyer? If there is little “spread” here then this is not the type of deal to make quick cash profits on…
Need Help with buying land? - Posted by Troy W. (NC)
Posted by Troy W. (NC) on March 21, 2001 at 19:42:58:
Got a call today from a guy trying to sell me some land for $10,000. About 1/4 acre in a golf community. Is flexible for any options. Just not sure how to construct a deal because I’m so use to working on houses and not just land. Any help would be welcomed
If you think you might be able to resell this property and make a profit, why would you actually want to own it in the meantime? It seems to me that you could put an offer on it that allows assignment and is contingent upon (mumble…mumble…). Or, what about a simple purchase option? You give the guy a few bucks and reserve the option to buy at a certain price for a certain length of time? I’ve heard of purchase options as little as $10!
I guess I don’t know why you’d want to take on the commitment of owning the property and having to make payments before you had a buyer on the hook.
Troy:
Offer to put down a little $$$ and have him finance the sale of the lot to you over time. If he needs more cash than you down payment provides him then show him how he can sell off all or a portion of his note and mortgage secured by that lot (we would have interest in that type of land lot paper)to raise additional immediate cash.
When the dust settles, you own a lot, you have financing in place, and your seller has accomplished a quick sale.
Now, what is your exit stratergy or intentions for this lot?
Re: Need Help with buying land? - Posted by Troy W. (NC)
Posted by Troy W. (NC) on March 22, 2001 at 10:21:53:
My exit plan is to try and sell it off to someone else, or have a house build on the land and then sell it. It’s just that at this time I trying to make quick cash to take care of some debts.