Good Deal??
Found 7 house lots today for 42,500 where the lots themselves have been selling for 27,000 a piece on their own. The guy is moving and needs rid of the things. Of course the lots are un improved, so a little money may be needed for improvements. what do you all think about this?
Need more info to give you meaningful response. For example, what would the new homes sell for there? Do the lots have frontage on an existing road or would a new road have to be built? Public utilities or on-site? Is the owner willing to sell fully-contingent or is this an "as is where is" sale?
If you are anticipating selling finished lots, you need to estimate a sellout timeframe and retail price. After you estimate retail price estimate a discount rate or yield rate. If your yield rate is say 15% and sellout projection is 1 year you can discount the lots over the sellout period. You need to estimate your costs per lot and make sure there is enough profit to do the deal.