This offer too good to be true? - Posted by Jeannie

Posted by Jim on June 17, 2000 at 24:51:45:


Just because the land is cheap does not make it a good investment. My father recently e-mailed me and told me that “to jump quick” because for 85k I could buy 317 acres in the middle of ? The bottom line is, investigate, find a seller and an income use before you buy. You want an asset or cash…not a liability.

Good Luck. Is it a good investment? I don’t know.

This offer too good to be true? - Posted by Jeannie

Posted by Jeannie on June 16, 2000 at 23:12:11:

Hello everyone,

I have been reading the messages here and researching creative real estate for the last few months now and one thing that I’ve learned is to keep my eyes open to deals that other people usually turn down because of skepticism. However, I do realize that some of these deals are in fact scams so I decided to post excerpts from the latest ad that I found here, in this forum and see what the seasoned investors think.

It really does seem too good to be true. Here it is:

“52.4 Acres. Raw Land. Overlooking the lake. Incredible view of lake
and valley. 30 mile view. Land is can be subdivided into 10 acre
parcels. The assessed value is $595,000. So I’m asking only 3.9%
of the assessed value. A high income individual could purchase
this land for just $23,000, donate it to a charity, and take
a $595,000 tax write off. It would put you in the 3.9% tax
bracket, so to speak :slight_smile: Or it could be developed to make in
incredible view estate. There is about 300 feet of road access
along highway. The view
of the lake is incredible. I’m selling this land at a very low
price because I need to raise cash quickly.”

Am I too much of a novice to recognize a scam when I see it, or is there potential here? I emailed this guy to ask him more about his situation. If this deal is legit, and seems like a great investment opportunity, how should I go about creating the deal? What pitfalls or dangers should I be aware of? How should I protect myself against a scam? Get a lawyer right away? Get the land appraised first? What kind of research should I be conducting?

I offer any advice. Just wondering what all of you would do?


Be Careful… - Posted by David Krulac

Posted by David Krulac on June 18, 2000 at 17:17:39:

Steve and Jim are right. The property could be worth less than the asking price but the assesment may not reflect the true market value, particularily if there are other negatives, like wetlands, streams, remoteness, landlocked, unperkable, environmental problems, underground storage tanks, toxic waste, etc,
Be very careful, the ad only said that the land was a good tax deduction. And even they that’s tricky. The carity has to be bonifide with the IRS and must accept the property. If its of little or no value what charity would even want the land?
David Krulac

Re: This offer too good to be true? - Posted by SCook85

Posted by SCook85 on June 17, 2000 at 08:15:51:

Based on the information you have given no one will be able to determine wheter or not this is a good investment. However, it is common for other investors to run ads such as this dealing with raw land, especially mountain type land overlooking lakes and rivers. This frequently occurs in states such as VA, NC, WV, etc… These types of plots in many cases were parts of a much bigger piece of land that they subdivided. There is no water, no sewer, no roads, no electricity. The land may not perc. The cost of developing the property just to make it buildable would be exhorberant. Look into all of that before you do anything.

Hope this helps.