Scattered Lots of Land that nobody wants

10 Replies

My friend inherited a Real Estate Company recently and I am trying to help him get it to the point where it cash flows well enough to help his mom out through retirement. Part of that is selling off all of their crappy, headache properties. A lot of them are random, small residential lots in a place that nobody wants. How should I unload them?

@Timothy Douglas first be sure that nobody wants them, in many markets residential lots are something people will want as they can build a home and not have to pay as crazy high of fees for permits and utility connections.  Now if these are landlocked parcels, I'd try talking to the surrounding owners to see if anyone wants to buy, and I wouldn't ask too much when your customer base is 4-10 people.

Originally posted by @Aaron K. :

@Timothy Douglas first be sure that nobody wants them, in many markets residential lots are something people will want as they can build a home and not have to pay as crazy high of fees for permits and utility connections.  Now if these are landlocked parcels, I'd try talking to the surrounding owners to see if anyone wants to buy, and I wouldn't ask too much when your customer base is 4-10 people.

 Sounds good, would you suggest reaching out to developers too or just neighbors?

@Timothy Douglas are the lots landlocked or not?  

If not you could probably sell them on the open market without much difficulty, if they are landlocked, then they are of pretty much no use to anyone unless one of the neighbors wants to give you an easement for access or they want to buy it themselves.

Originally posted by @Aaron K. :

@Timothy Douglas are the lots landlocked or not?  

If not you could probably sell them on the open market without much difficulty, if they are landlocked, then they are of pretty much no use to anyone unless one of the neighbors wants to give you an easement for access or they want to buy it themselves.

What do you mean landlocked? 

Originally posted by @Timothy Douglas :
Originally posted by @Aaron K.:

@Timothy Douglas are the lots landlocked or not?  

If not you could probably sell them on the open market without much difficulty, if they are landlocked, then they are of pretty much no use to anyone unless one of the neighbors wants to give you an easement for access or they want to buy it themselves.

What do you mean landlocked? 

 No access.  Surrounded by other properties

Originally posted by @Aaron K. :

@Timothy Douglas, just as Matt said if the property does not border a street, or have a recorded easement.

Well most of them aren't landlocked, so who would want them besides neighbors? Would it be developers, wholesalers, or...? 

@Timothy Douglas it depends where they are and what houses go for in the area, you could sell to people looking to build or wholesalers, you could try asking at one of those "we build on your land" companies if they have anyone who'd be interested in purchasing.  If they are landlocked, neighbors and fools are realistically your only buyers, but ripping off fools is mean.  Depending on your local environmental regulations and how big the parcels are you may be able to sell land to the city if they need to replace habitat to build a road or something.

Originally posted by @Aaron K. :

@Timothy Douglas it depends where they are and what houses go for in the area, you could sell to people looking to build or wholesalers, you could try asking at one of those "we build on your land" companies if they have anyone who'd be interested in purchasing.  If they are landlocked, neighbors and fools are realistically your only buyers, but ripping off fools is mean.  Depending on your local environmental regulations and how big the parcels are you may be able to sell land to the city if they need to replace habitat to build a road or something.

Thanks for all of your help!

 

@Timothy Douglas I invest in vacant lots.  I'll send you a PM and you can provide me with the portfolio and I can quote it out.  Presently infill lots (small lots ready for one house, typically 0.25ac or smaller) are less desirable in the land investing sphere because new construction takes a big hit during recessions.  My present infill lot inventory has gotten a lot less traffic lately but my rural larger acreage seems to be hanging in there.