What is owed against this property by the sellers?
What type of cash do you have to risk and put down towards this land purchase?
Are your sellers of the land willing to finance you on the sale of the 110 acres to you and then let you market the lots for sale, obtaining “release clauses” for each lot sold when you pay down some of the balance due to them?
If the sellers really want more cash than your down payment will provide, then we can discuss another option that can generate that to them as well.
Posted by D. AHRENS on January 28, 2001 at 07:54:19:
I live in a small town (pop. 10,000) I am looking to purchase a large piece of property on a 1031 exchange. I have been told I can get financing by “selling enough lots to pay for the original exchange property”. Lots sell for $25K to $60K and if I sold 25 @ $35K I could do the deal. Is there such a thing as what this person has suggested to me? Sell lots on property I don’t own? The property is adjacent to the city limits within expanded growth across the street. It is 110 acres and is undeveloped. I am a first time investor (obviously), but I know there is growth potential in this town. There are currently over 150 homes for sale but there is also a lot of new housing going on (10 houses a month).