Bought first vacant lot for $100!

Real Estate Deal Analysis & Advice
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Bought first vacant lot for $100!

Priscilla Z.
Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes

It took time, but we did it! My partner and I (more my partner...) have spent some months learning about how to acquire vacant land for very cheap.

We followed the steps...looked up the records online, sent out postcards, captured leads, made offers, and out of about 150 letters & postcards sent out, we got one!

We did a title search, mailed the owners a warranty deed and $100 money order, had them sign the deed and notarize it, mail it back to us, and we registered it last Thursday!!!!

My first vacant land success story, I am so glad to share it! I hope this is the first of many to come!

2Reply
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Nick J.
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
16y

cool! now what are you going to do with it?

4Reply
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  • Nick J.
    Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
    16y

    cool! now what are you going to do with it?

    4Reply
  • Priscilla Z.
    OP
    Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes
    16y

    We are going to FORGET about it. It's in an area that is developing, so we see it as a great investment for now.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    16y

    I agree with Nick - you have to somehow get paid, and until then ...

    0Reply
  • Mitch Kronowit
    SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
    16y
    Originally posted by Priscilla Z:
    We are going to FORGET about it. It's in an area that is developing, so we see it as a great investment for now.


    How big is the lot? Is it adjacent to a busy street?

    Depending on the zoning, here are some ideas:

    1. Rent out space to people who want to store their boats, RV's, trailers, etc.

    2. Lease out a spot to someone who would like to install a billboard or ad-truck on your site.

    3. Install a mailbox and sell the address to people who would like to use it as a "ghost" address. You pick up the mail on a regular basis and forward their mail to them.

    Any other creative ideas of what to do with a vacant lot? I'm sure you can let the kids play stick-ball there, but they probably won't pay much. :lol:

    4Reply
  • Priscilla Z.
    OP
    Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes
    16y

    I was just excited I bought a lot for $100! Not planning on selling it at this point.

    It's in an area where a developer had gone in to clear out the land, paved the roads and was going to begin building, but obviously stopped. Wonder why....

    Mitch, thanks for the suggestions, however, with the area it's in, there are NO houses around, or traffic for that matter, so none of those ideas will work for me. I could possibly rent it out as a landing spot for UFOs though.... :green:

    0Reply
  • Mitch Kronowit
    SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
    16y
    Originally posted by Priscilla Z:
    Mitch, thanks for the suggestions, however, with the area it's in, there are NO houses around, or traffic for that matter, so none of those ideas will work for me.


    Well, selling ad space would definitely be a challenge in a desolate area, but not the other 2 options. RV storage space (you said the roads were paved) and a ghost address (so long as the USPS will deliver there) are still possibilities. Just something to think about. And they're easy to dissolve once development takes over again and you find your humble lot in the path of a new Wal-Mart or something.

    A UFO landing spot would be ok, but you'd have to check with Thomas Cook regarding currency exchange. :wink:

    3Reply
  • Jeffrey K.
    Real Estate Investor · Milwaukee, WI · Member since 2008 · 1k+ posts · 671 votes
    16y

    Is this land locked? Do you have utilities running to it? How much are the taxes? I see people selling lots here in Milwaukee for $500 with owner financing. Maybe its just me and I dont want to spoil your fun, but what good does a lot do with no plan to do anything with it? There is a reason someone sold it to you for $100. Hope it is not the greater fool theory.

    3Reply
  • Adrian G.
    Real Estate Investor · Chicago, IL · Member since 2008 · 318 posts · 30 votes
    16y

    I buy and sell numerous lots from 30 bucks to 800 bucks and from my experience its more profitable to sell it back right away then to hold it. I got a lot one time from the state of ohio for 50 bucks and ended up selling it for about 1k. Priscilla make sure that it makes sense to hold it for long term and see what other lots are selling for in the area. As for getting it for a 100 bucks GOOD JOB...

    2Reply
  • Adrian G.
    Real Estate Investor · Chicago, IL · Member since 2008 · 318 posts · 30 votes
    16y
    Originally posted by Jeffrey Koenig:
    Is this land locked? Do you have utilities running to it? How much are the taxes? I see people selling lots here in Milwaukee for $500 with owner financing. Maybe its just me and I dont want to spoil your fun, but what good does a lot do with no plan to do anything with it? There is a reason someone sold it to you for $100. Hope it is not the greater fool theory.


    Jeffrey, Where are you seeing these lots?? Driving around, craigslist??? Any info would be great.
    0Reply
  • Priscilla Z.
    OP
    Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes
    16y
    Originally posted by Adrian Gutierrez:
    As for getting it for a 100 bucks GOOD JOB...


    Thanks Adrian, that's what I'm excited about! The price! :lol: Buildable lots in my area are selling for around $4,500 - $5K. People here do not believe that since they were selling for $50-80K just some years ago. No it is not buildable at this moment. Again, I am in an area that is still developing and I've been attentive to the plans that the city has released, there is a lot that is going to be happening here in the next few years. I can wholesale it, I know that is an option. If I find someone who wants it, I might sell it, but I won't concentrate my marketing on it right now.
    0Reply
  • Tom C
    Real Estate Investor · OH · Member since 2008 · 1k+ posts · 86 votes
    16y

    I've thought about buying a few cheap lots in our city, but I really don't want to pay the taxes and insurance on it and also be responsible for the maint. $100 bucks, nice job!

    0Reply
  • Mark UpdegraffBusiness Member
    Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 690 votes
    16y

    Congrats Priscilla!

    Always nice to hear a real life success story. Feel free to post an article on "how to buy cheap land" so we can all go out and get a cheap UFO pad ;-) ;-)

    Podcast Guest on Show #112
    Updegraff Group Realty4.746 Reviews
    WebsiteView Page
    0Reply
  • G. F.
    Real Estate Investor · New York, NY · Member since 2008 · 105 posts · 69 votes
    16y

    Congrats Priscilla.

    Be sure the taxes and insurance are reasonable. If you have the stomach to hold it a few years, this may end up being a cash cow.

    Talk about buying at the bottom of the market. $100! Unbelievable. Again congrats.

    0Reply
  • Mark Yuschak
    Residential Real Estate Broker · Grand Blanc, MI · Member since 2008 · 885 posts · 316 votes
    16y

    I've got a vacant lot which once had a house on it. The house burned down. I collected the insurance proceeds, and there the land sits.

    You interested in it? Add me as a collegue and we'll discuss. I'll make you a helluva deal on it.

    0Reply
  • Just Don
    Member since 2009 · 499 posts · 117 votes
    16y

    here an empty lot REQUIRES daily snow scooping all winter,,mowing all summer,,and taxes and insurance as well sidewalk maintenance. Just disconnecting the utilities from an existing house cost 1000 bucks. And I see the city just fined thru the courts for failure to remove a house that burnt last winter,,,wonder how fast they think it can happen???its only been fit to work on that for about 30 days or so.

    0Reply
  • Just Don
    Member since 2009 · 499 posts · 117 votes
    16y

    forgot to add,,,if there is anything there to demolish it reqires a $400 asbestoes inspection and its expensive requirements,,,last one was 7K

    so cheap lots arent always cheap!!!!

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    16y
    Originally posted by Mark Claire:
    ... Feel free to post an article on "how to buy cheap land" so we can all go out and get a cheap UFO pad ;-) ;-)


    I think you're looking for this:
    http://www.biggerpockets.com/forums/79/topics/32290-jack-bosch-land-for-pennies
    0Reply
  • Jerry R.
    Wholesaler · Fort Myers, Cape Coral, Naples, FL · Member since 2009 · 185 posts · 33 votes
    16y

    Hi Priscilla,

    I think you did great. There is nothing wrong with just holding on to it until the market turns around. After all it was only $100 and I bet the taxes are cheap too.

    I bought 40 lots in the last year. There are quite a few people who invest in vacant land (land banking). I prefer to buy and flip, but others hold - it's a valid passive strategy.

    Jeffrey, I am from Milwaukee and would not touch anything there. The problem is no one is building there anymore (homes). A lot in Milwaukee is a liability not an asset.

    0Reply
  • Jeffrey K.
    Real Estate Investor · Milwaukee, WI · Member since 2008 · 1k+ posts · 671 votes
    16y

    Here is one. Bet he will take close to 100

    http://milwaukee.craigslist.org/reo/1702783556.html


    I can find them all day and I wont even charge your a birddog fee or w.e. these guys do.

    THE POINT IS JUST BECAUSE IT IS $100 DOES NOT MEAN IT IS A GOOD DEAL!

    2Reply
  • Priscilla Z.
    OP
    Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes
    16y

    Jeffrey, point made. However, mine was/is a good deal.

    2Reply
  • Mark Yuschak
    Residential Real Estate Broker · Grand Blanc, MI · Member since 2008 · 885 posts · 316 votes
    16y

    Are you interested in the one I PMed you about?

    0Reply
  • Priscilla Z.
    OP
    Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes
    16y

    I'm not too familiar with MI. Let me do my research tomorrow and I will contact you either way.

    0Reply
  • Adrian G.
    Real Estate Investor · Chicago, IL · Member since 2008 · 318 posts · 30 votes
    16y
    Originally posted by Tom C:
    I've thought about buying a few cheap lots in our city, but I really don't want to pay the taxes and insurance on it and also be responsible for the maint. $100 bucks, nice job!


    How do you pay insurance on vacant land?? Believe it or not I TRIED TO GET IT (for protection) and NOBODY would sell it to me.
    0Reply
  • Adrian G.
    Real Estate Investor · Chicago, IL · Member since 2008 · 318 posts · 30 votes
    16y
    Originally posted by Mark Yuschak:
    Are you interested in the one I PMed you about?

    Mary, DETAILS DETAILS :)
    0Reply
  • Tom C
    Real Estate Investor · OH · Member since 2008 · 1k+ posts · 86 votes
    16y
    Originally posted by Adrian Gutierrez:
    Originally posted by Tom C:
    I've thought about buying a few cheap lots in our city, but I really don't want to pay the taxes and insurance on it and also be responsible for the maint. $100 bucks, nice job!


    How do you pay insurance on vacant land?? Believe it or not I TRIED TO GET IT (for protection) and NOBODY would sell it to me.

    I have no idea, but there has to be someone who does it. I certainly would never own any land without insurance. All it takes is for someone to get hurt and you are hosed.

    0Reply
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