Deal 5 - Why I sell on a Land Contract

So my for my fifth deal things got a little more complicated.  I was called from a gentleman in North Carolina that owned a 1.6 acre piece of land in Northern California in a subdivision.  I originally offered him $3000 for a piece of land he paid $25,000 for 20 years ago.  He had not been to the land in over 10 years and said he would never go again.  He had not paid any of the bills in 4 years.

After my research there was 400 in back taxes and 1700 in back POA fees.  After some back and fourth he accepted $1200 and I pay all back liabilities.  I called the POA and tried to negotiate and they would not talk to me because I was not owner of record.  So I proceeded to purchase the property.  The neighborhood was a little depressed due to the fact that there had been rampant marijuana growth and there was no water service.  You had to get a well and septic.  The lot next door has just sold door $11,500. 

As soon as the deed was recorded I called the POA and they accepted 500 as paid in full!!!

 I started marketing the property and sold it for $1500 down and 199 a month for 60 months.  Well fast forward 3 months and my buyer made a payment after the down payment.  I couldn't find him anywhere.  I gave notice and followed the land contract to the "t"  So i took the land back over and started marketing again.  This time i sold for $9500 cash and I was able to sell the land within two weeks.

Total purchase price $2100

First Down Payment $1500

Cash sell $9000 after fees

Collected $11500 on $2100 investment and held for less than 6 months.  Again these are small deals that will not make you rich but if you do 12 of these a year .....