Hello all, I finally might be close to making my first deal. I found property this spring but it was taken off the market because there were APA restrictions (upstate NY) that prevented a septic from going in because a stream is located on the property. Not much interest from people. I see the potential for having a small off grid rental on it though.
I had been calling the agency here and there and finally got a call back saying the owner (an older lady living in FL) didn't want to pay the taxes on the property anymore.
It's not listed on the market right now. I plan to get around the septic issue by putting in an incinerator / composting toilet and am waiting back on info about grey water system from the agent.
If it all works out, I plan to make an offer. My big question is should I hire an agent to help me out with this? This is my first deal so having some guidance would be nice. Would you recommend I do this? The property could be acquired for a steal I think if I can get it before it goes on the market.
Any advice would be much appreciated. - Kurt
You already did all the work. What will you gain by hiring an agent? I would allow the sellers agent to represent you so they get the full commission then ask them if they are willing to take a slight bit less.
I would hire an attorney and make sure you have a professional title company do a title search.
You're on the right track. The seller has several problems.
1. She is out of state
2. A portion of her income is disappearing each year on taxes.
3. The property at least has the appearance of not being able to be improved.
If through your research you can solve the 3rd problem then you may have a gem right here. Please remember that you are not "stealing" it but offering a fair price based upon the key fact that it cannot have a septic place upon it. This inherently drags down the value of the property.
You never pay for the work you are going to do, you pay for what they have.
You approach this as solving her problems of the property is draining cash from her and that she will not be able to sell this property as who would be willing to buy a piece of land without a septic.
Also think about your exit strategy. What will you do if your original plan does not pan out. The obvious one is to see if you can sell it to the property owners that touch this parcel so they can expand. Are there other options you can think of?