Wholesaling Un-developed Land

2 Replies

Hi, all!

I am fairly new at this, so I need some help! I have a seller who has 4 lots on an un-developed street in the middle of a neighborhood. She wants $1,000/lot. Is this a deal at all? I am thinking maybe a developer would be interested, but with all of the bushes and trees I am not sure of the value. Let me know what you think! 

Hey Alexis, as a vacant land investor, I buy lots like that all the time. I’ve had success selling them and I’ve found that bushes and general growth do not really impact the resale value. That being said you’re not likely going to be selling infill lots of that price point to a developer. In my experience (developers chime in and correct me if you feel I’m off base), in general developers don’t target lots that are that cheap, because it usually means the market value of homes are low too, so there isn’t enough meat on the bone for them.

Of course if you’re getting them for 1k and they’re worth 50k then a developer will be all over them haha.

So, in my experience, you can buy a lot for 1k and sell if for 3k, of the rest are selling for 4-5k. But that’s generally not an A class neighborhood. If you buy it cheap enough and market it well you should be able to sell them, so long as you’ve done your due diligence and they’re buildable.

If its undeveloped street, no road in, those lots are basically sold at a huge discount because someone has to blow a road in. Its best to call a mid size builder and see if he has any interest, the big boys won't touch it because its too much work.

I love cheap lots, because I'm cheap, I just did one where I purchased the lot for 4k, it had a burned down house on it knocked the house down, tossed on a nice simple spec house and made a nice profit, actually one of my better % numbers to date.