Off-grid Land investment with improvements

[David Davey]

Investment Info:

Other private money loan investment in Spirit Lake.

Purchase price: $56,000
Cash invested: $23,000
Sale price: $100,000

Purchased a 5 acres parcel of land with a dry cabin and non working well, no electricity, no city services. Initially had to bring water onto the property with a 350 gallon water tank in back on my truck.

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

My wife and I wanted to live off grid and wanted to buy and investment property at the same time.

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

Saw it advertised. Price was recently reduced and we made a full price all cash offer.

How did you finance this deal?

We sold our previous home and had proceeds of $26K. We were desparate to get into an investment. I asked a relative if they knew of anyone one that would loan me $30K if I agreed to give them a 33% return in 5 years making monthly payments with no pre-payment penalty. One call and done! Once the property was completed, marketed and sold, we called the private lender to surprise them with an early balloon payment.

How did you add value to the deal?

Installed a well pump, pump house, breaker box, holding tank, plumbing for kitchen and shower, solar panels and more. Built a state of the art composting toilet. Cleared trees to thin out property for better growth. Upgraded driveway, etc.
Entire property runs off solar and generator.

What was the outcome?

Awesome! 15%+ profit