I would like to get some insight on a potential land purchase I am working on. This prospected vacant lot that is 11,517 sqft with water/sewer connections (need to confirm) in CA that the owner is asking $38k for. Since I know them personally, I think I can talk them down to about $33k. The whole objective is to buy and sell this parcel almost immediately after closing the first deal. However, the issue for me is finding the proper financing, since I don't have the full price in cash at the moment. I currently own a home with an estimated equity of $30k and was planning on utilizing this in order to complete the initial purchase. What is the best strategy available that will minimize my risk and reduce the potential for me to lose my home as collateral if I am unable to sell the vacant lot to a developer for much of a profit ?
Land doesn't sell nearly as quick as homes do. In my market, they sit for years sometimes. Even in nicer locations.
Im also not sure you can get financing on that. My advice is to do A LOT more research.