Vacant Land...please read - Posted by bmeesh

import · May 11, 2006, 6:59am

Posted by michaela-FL on May 13, 2006 at 11:44:30:

Leon,

I started off finding the ‘perfect’ area, that had lots of vacant lots from previous demolitions. And there had to be new construction as well. I traced owners and heirs.

Came across a bankrupt mortgage company (see my post to bob and other posts, that I did last year, when this all happened) that had a bunch of properties still out there.

Worked out well for me.

Michaela

import · May 11, 2006, 6:59am

Vacant Land…please read - Posted by bmeesh

Posted by bmeesh on May 11, 2006 at 06:59:47:

I am a Realtor in South Florida. Great market, been a bit flatter, but still a good time to buy. Lots of seller concessions…with that being said however, I am expanding my horizons to other states in the South including Tennessee and South Carolina and would love to network and chat about the market up there in regard to vacant land and developments going in. I am on the West Palm Beach board and recently joined the Florida Keys Board as I have a contract on something in Key Largo, so any of you Keys investors I would love your take on what is really happening down there. Just shoot me over an email.

Michele Bellisari

import · May 11, 2006, 1:05pm

I agree with Gene - Posted by michaela-FL

Posted by michaela-FL on May 11, 2006 at 13:05:55:

Please stay away from land! I have made a lot of money
with vacant lots in the past few years and I’d really prefer other investors to stick to houses.
Less competition that way - lol

Michaela

import · May 11, 2006, 11:31am

Is vacant land an asset or a liability?? - Posted by Gene

Posted by Gene on May 11, 2006 at 11:31:12:

I personally stay away from vacant land because it takes money. It has negative cashflow.

In my book that makes it a liability.

import · May 11, 2006, 2:16pm

Praying for appreciation?? - Posted by Gene

Posted by Gene on May 11, 2006 at 14:16:21:

Do you just pray for appreciation?? With appreciation the way it has been you could buy anything and hold it for a few months and make tons of money…but the markets have been changing.

Or are you into development, subdividing, ect?

I purchased land and develped it and made good money.

I like properties that cashflow because they give you many options (and multiple exits). Here is an example…I bought a double wide with land for under 20k. Similar units are selling for $60k to 90k. So what are my exit options…

Resell it with no fix up for ~60k

Rehab and resel for ~90k

Rent it for 550 to 650 a month

Lease option it for 700 a month with an option to buy for 85k

I had a lot of options and even if the markets turn I will make money…lots of it. I ended up renting it and getting it refinanced. It apprased for 82k and I got a 80% loan and got 65K cash out of it. The rent covers my new morgage and I am siting with 45k in my pocket.

With deals like that I have no problems let you have all the land “deals”.

Gene

import · May 11, 2006, 1:46pm

Re: I agree with Gene - Posted by Max-Va

Posted by Max-Va on May 11, 2006 at 13:46:32:

Michaela
I missed you at the convention. I was hoping to put a face with the name I know so well from the boards here. Oh well, maybe next year.

import · May 11, 2006, 4:00pm

Re: Praying for appreciation?? - Posted by michaela-FL

Posted by michaela-FL on May 11, 2006 at 16:00:22:

nah, just flipping to builders.
I buy tax delinquent lots in upcoming neighborhoods.
Builders fighting over any lot I can get my hands on.
No problem selling, compared to houses, which sometimes may take months to turn over, get trashed and burglarized during holding period, take more than budgeted etc.

You have your niche and it’s great that it’s working for you. I find, that I don’t have a lot of competition, because most investors think like you and don’t look at lots.

Some of the deals I did last year:

vacant double lot - bought for $ 2,500 (initially thought I could hold out for 800k, since a company bought out everything around it. They then did a landswap with the city and the city condemned and paid for my ‘Quiet title action’. I ‘only’ got $ 92,500 paid for it.
double lot next to a golf course. They’re now building $ 500K houses down the street. value about $ 200k. I paid 15k
triple lot - paid $ 5,500. Needs Quiet title action
worth about 200k
single lot - paid $ 2,500 - needs quiet title action
worht about 140k
single lot - paid $ 2,500 - needs quiet title action
worth about 40k

various lots that I bought between 15 and 20k and made 15-35k profit on each.

So,I’m quite happy, if you let me have the land deals. I’m happy to let you have the mobile homes

Michaela

import · May 11, 2006, 4:26pm

Re: I agree with Gene - Posted by michaela-FL

Posted by michaela-FL on May 11, 2006 at 16:26:16:

Max,

thank you. It’s nice to be missed. I’m no longer in Atlanta, but moved to Jacksonville. So, no convention for me.

Michaela

import · May 12, 2006, 5:08pm

Re: Praying for appreciation?? - Posted by Bob Smith

Posted by Bob Smith on May 12, 2006 at 17:08:28:

What kinds of title flaws are you quieting? I’m also curious about why you’re getting such good prices. $15k for a $200k lot? I never see that kind of price disconnect on a house, even when the owner is clueless. They might be 25% low, but never 90% low like your deal. I’ve seen some nice waterfront lots around here, but they’re so heavily prospected by agents and builders that it’s virtually impossible to get good deals on them.

import · May 11, 2006, 5:39pm

Re: Praying for appreciation?? - Posted by Gene

Posted by Gene on May 11, 2006 at 17:39:26:

Yea, Tax Sales are great. I used to do real well with them.

My county switched to selling them all on bid4asetts.com and they started advertising the sale real heavy. Now most lots sell for retail.

A couple friends of mine work the timeshare side of the auctions and make great $$ doing it.

I am looking forward to buying at the auctions once again soon, as the market here is changing. Hopefully there will not be so much competition as there is now.

import · May 16, 2006, 2:05am

Jacksonville?.. - Posted by Barry (FL)

Posted by Barry (FL) on May 16, 2006 at 02:05:31:

thought you were in Pensacola.

import · May 13, 2006, 11:42am

Re: Praying for appreciation?? - Posted by michaela-ATL

Posted by michaela-ATL on May 13, 2006 at 11:42:17:

Bob,

a bunch of my lots came from a bankrupt mortgage company. The former officers are/were out of state
and had no idea about these properties not having
been dealt with in the bankruptcy. It was found money.
Also, someone had started another coroporation with
the same name and Quitclaimed the proeprties to
another corporation that he owned. That was clearly fraud. That’s were the Quiet title stuff come3s in. The former officers were’nt interested in getting involved in any kind of disputes and were
happy to just get some unexpected money. I spent
about 6 months in research on this. The properties had been out there for 10 years and it was pretty involved trying to trace everything and figuring out what to do.

In fact, yesterday I found an outstanding mortgage that was never foreclosed on by this mortgage company. I will go through ever security deed they ever did and follow the papertrail and see if there are others.
They are very willing to sell me anything I can find. I’ve had several attorneys involved in this so everything I’m doing is proper.

Michaela

import · May 12, 2006, 11:38am

Re: Praying for appreciation?? - Posted by michaela-FL

Posted by michaela-FL on May 12, 2006 at 11:38:07:

I don’t do tax sales. I find the real owners/heirs
of abandoned lots, that used to have houses on them, that got demolished by the City.

Michaela

import · May 16, 2006, 10:28am

Re: Jacksonville?.. - Posted by michaela-FL

Posted by michaela-FL on May 16, 2006 at 10:28:01:

Wel,

things changed ;-). I’m in Jacksonville, Actually
Atlantic Beach - right on the beach. (I figured I needed to find out what that’s like and when I’m tired of the beach I’ll move to Springfield, which is Historic District in JAX.

Michaela

import · May 14, 2006, 1:18pm

Re: Praying for appreciation?? - Posted by Bob Smith

Posted by Bob Smith on May 14, 2006 at 13:18:15:

What’s your trigger? That is, other than one-off mortgage company deals, what triggers your research of a lot? Most lots aren’t good deals, especially once a realtor has contacted them, so trolling for them doesn’t seem a good way to spend time. Btw, aren’t you in Jacksonville now? ATL doesn’t quite fit

import · May 12, 2006, 8:34pm

Re: Praying for appreciation?? - Posted by LeonNC

Posted by LeonNC on May 12, 2006 at 20:34:18:

Michaela,

How do you screen for those leads?

By that I mean do you first look for tax delinquent or foreclosure then cross reference to see which ones have been condenmed?

Then the real fun begins I would imagine. If that’s too much information I understand.

Regards,

Leon

import · May 12, 2006, 11:56am

Re: Praying for appreciation?? - Posted by Gene

Posted by Gene on May 12, 2006 at 11:56:24:

Thats an intresting spin, diffrent than anything I have heard about before.

Its not everyday that I learn something new on this site.

Thanks
Gene

import · May 14, 2006, 3:21pm

Re: Praying for appreciation?? - Posted by michaela-FL

Posted by michaela-FL on May 14, 2006 at 15:21:08:

Bob,

I deal with lots where no realtor has contacted them. These are not owners that have their name and actual address as tax address. I have to do some research.

the ‘ATL’ was just a typo. I was so used to writing it, that it came automatically.

Michaela