How to Buy Cheap Lots

Question

On MLS i see most lots for sale have been acquired within the last 6 months for 50% of asking price. How are these flippers finding these lots? I'm not looking to flip, i want to build for rent but really dont like buying a $60k lot when the buyer just picked it up for $15k 60 days ago....how are people sourcing these super cheap lots? Maybe HUD has a program to sell suprlus? or the city? never done this before...would love to hear how others learned this process. Thanks!

Mason Hickman · Answer

@Mark Hunter

Generally speaking, land moves much slower than houses so the sellers will have differently mentalities. Start making offers for what you're willing to pay and point to those comps when you're making your offers. Some sellers want to hit the lottery on their land purchase, others are just testing the waters with "someday" plans, and some will want to get the hell out because their property has been on the market for three years. Make enough offers and you'll start finding some deals at good prices.

Clark Gibson · Answer

You can buy cheap city lots by scouring www.Zillow.com or sites like www.MILandList.com -- Often the price increase is a matter of Timing.  Simply holding onto the lots for a few years will return more profit than putting your money in a savings or market plan will.  Also, many of these investors have Insider knowledge of an area (ie. a major factory is coming to the area, and folks know that the demand for real estate will go up in a few years)Or, Michigan just legalized weed, so we can assume that their market prices will go way UP over the next few years, like the other states did.