House + Vacant Lot?
Anyone purchase vacant lots? I have a seller that has a house as well as a vacant lot. She will sell both at a discount, as well as separately.
I don't know anything about lots or what I could do with them except find a builder that's interested.
This area has a lot of tear downs and in place they put up nice 500k-800k houses. The tear downs have just started, neighboring communities have already reached complete "upscale" status. She gave me copies of comps where houses have sold for $230k and torn down, built up, and are now listing at 800k.
Her house was appraised as is at 205k. She wants 170k but maybe I can pick it up for 160k.
She'll sell the lot separate at 130k...maybe I could go 125k back at her, not sure.
Combined she wants 240-250k.
She has a new house to move into and she wants to move in dec.12. She needs 80k at least for the down payment and to pay off other things. She's open to other terms as long as that's taken care of.
Any suggestions on how to tackle this? I've tried contacting other investors in the area that have more experience/financing.
If the new homes in the neighborhood would sell for around $800k, my suggestion would be for you to market the properties to builders as 2 building lots, each priced at max $125k. If her property is deeded as 2 separate parcels and presumably not needing to be subdivided, the builders should jump on this without requiring a long settlement date. And you might be able to get enough upfront money non-refundable from them so that owner can have the $80k she needs for her new home closing. Alternatively, if her property would need to be subdivided (and assuming no mortgage on the property), I would approach the builders to buy entirety for X price (more than $80k) with staged payout to her over some period of time, perhaps tied to their getting municipal approvals.