Tear downs

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Hi everyone, Does anyone have experience with wholesaling possible tear downs? How do I know when a house is a tear down? If it qualifies as a tear down, should I reduce my offer significantly or, as a wholesaler, stay away from the deal all together? Thank you

[Lynn Currie]

Generally speaking, a tear down is a property that has no value other than the land. In some cases, It can be a little more complicated than that, but that's a good way to start thinking about it.

To start evaluating land values, look at new construction sales in an infill area. Assume that most of the lots that have new construction were tear downs and see if you can find out what the developer paid for the lot. 

Once you can identify what a tear down in your area looks like, start paying attention to what they sell for.