Investment Info:

Other other investment in Grass Lake.

Purchase price: $22,000
Cash invested: $2,900

Home run deal! Thirty eight acres of vacant land netted out over $100,000 (before taxes). I sure hope i can do a few more like this one but it would be tough to top. It wasn't without ups and downs. The owner who I put it under contract with was actually not the full owner. It was tied up in two estates and a trust totaling 7 heirs. The title company tossed it out the first time I brought it to them. I then brought my broker on board and he was able to pull together all the heirs in a purchase agreement via Dotloop. We got it back under contract and it took months to sort out all of the heirs and estates but when we closed we went close to close in just over five weeks. The land had some garbage dumped on it so I had it cleaned up and back on the market quickly. We listed it for $115,000 and quickly received two cash offers , one of which had an escalation clause. We countered to the offer without the escalation clause at $145,000. They accepted and in just a short time, we were staring at a massive profit!!

What made you interested in investing in this type of deal?

Great deal!

How did you find this deal and how did you negotiate it?

Direct mail. The seller called me and told me that he would sell the property for $20,000

How did you finance this deal?

Cash

How did you add value to the deal?

Removed trash and debris

What was the outcome?

Roughly $105,000 profit

Lessons learned? Challenges?

Title process was rough due to amount of entities and heirs. Broker helped tremendously bringing purchase agreement together as well as negotiating a sale price $30,000 over asking!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Absolutely! Tim Creech - Tim Creech Team - 5 Star Real Estate - Jackson / Brooklyn, MI