Why We Passed on a Cheap Land Deal (And You Should Too Sometimes)
Not every land deal is worth doing.
A while back a friend brought us a piece of land in Harrisburg and suggested we buy it.
At first glance it looked like a good opportunity.
But when we started doing our due diligence, we discovered something important the land was not perkable, which meant it couldn’t support a septic system.
In simple terms: it wasn’t buildable.
We told him right away and said we should return the property.
Instead, he suggested we just sell it to someone else since the purchase price was low.
We decided that wasn’t something we were comfortable doing.
So we stepped away from the deal.
He eventually sold the land, and to this day the property keeps moving from one buyer to another.
Unfortunately, situations like this happen more often than people realize.
Land deals can look simple on the surface, but the real work is in the due diligence.
Before we buy any land, we go through extensive checklists sometimes dozens of different items
to make sure we truly understand what we’re buying.
In this business, knowing when not to do a deal can be just as important as knowing when to move forward.
