Other wholesale investment in Cleburne.
Purchase price: $1,500
Sale price: $9,000
Wholesaled vacant land in residential golf resort community.
What made you interested in investing in this type of deal?
Currently buying and selling vacant land parcels throughout Texas and beyond.
How did you find this deal and how did you negotiate it?
Direct mail to absentee owners. After performing due diligence, we made an offer based on local comps, pricing the lot roughly 20% below retail. Sold to a local builder.
What was the outcome?
Roughly 300% return
Lessons learned? Challenges?
Good lessons: perform more intensive due diligence on lot and owner back taxes, HOA and other liens before making offers. Be specific on who pays what closing costs.
Those places look attractive...there are a few communities like that. Glad you made it out alive. There are sometimes 100s if not 1000s of lots for sale in those communities. Developer does a great job of selling $40,000-$100,000 dreams. Did you ever get to play golf or use any of the other facilities? Some of those places have $1000-$1200 yearly HOA dues, so doesn't take long to rack up some big fees.
I live near that resort, lights up the MLS map in that area. Literally hundreds of lots for sale. Congrats on moving yours
Hey @Bruce Lynn . I'm not in the area, so no golf for me. Also turned it around pretty fast. It helps when you can get it pretty cheap! :) Quick profit, base hit, move to the next deal!
Thanks, @Daniel Parnell ! I've noticed that. I have another, similar deal at a resort in Arkansas that I'm working with -- something like 12 courses and tons of resort amenities, but a massive amount of inventory. I'm finding if you can really sell the same dream as the POA or builder (with a more attractive price tag), it puts the odds in your favor. We'll see if this one moves as fast.
What are you guys working on these days?
Congrats @Benjamin Portnoy !
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