I think I may be on to something here. My dad owns land where his multi-family building once stood. The building was demolished by the city of Chicago after mysteriously being set on fire and my dad had to pay them off. For what I am not sure. I am a newbie who badly wants to get my first wholesale deal so I asked my dad would he sell and he said yes. I need help finding out what to put the land under contract for. I have no access to MLS and also my dad is not sure what leans are against the property but there is no mortgage. How do i get the right numbers? I would greatly appreciate your help!
If you are trying to wholesale a deal even from a relative you need due diligence. I am fairly new myself but I would start by cold calling real estate agents in your area and asking them average time on market for land in the area. Also look into finding any other land deals in your area that were purchased with cash. This will let you know what investors that are looking to purchase land are willing to pay. Make sure your numbers are correct before you lock this deal into a contract. The only way to know for sure if it will look is to find out what liens are on the property. Once again I am new to real estate investing but you need to do some homework first.
Land is probably not the best way to start. It is generally more complex than residential. Here are some things that a buyer may need to know about the property, besides liens and comps (comparable sold properties): zoning, setbacks, easements, utility length/connection cost, phase 1/2 soil assessment, survey, legal access, and flood zone. Being that a previous building burned, I would also check to make sure there will be no problems insuring a new structure.
A Realtor probably wont want to help, unless you are doing business with them. For some reason, they don't like to work for free. If you do acquire the services of an agent, make sure that they are a land agent. Your average residential agent knows little about land. Your assessors office may also have sales info. Check their website. A title company can search for liens or other clouds on the title. They will probably help you with some of the property research if you use them for the transaction.
I would suggest you spend some money and have a title search conductged and see what liens are on the property, if any. Determine if the property has been sold due to back taxes, etc. Once you determine the status of the property, you can then proceed. I would suggest you spend the money and get a professional search conducted. This obviously is a personal opinion and not a legal one. Good luck.
If you're in the city, look at recent lot sales. Probably difficult without a Realtor assisting you. Best way since it's family is to get an appraisal!
There is another way, look at comparable properties and deduct the improvements, this will be beyond your skill set unless you understand the process, not an easy estimate to make.
Sounds like a rather blighted area or questionable market area with a firebug, might get a few agents to give you an amount they would list it at, you can always accept offers.
A few ways to find comps if not an agent:
1) Search recent sales/active listings on Redfin.com
2) Search recent sales/active listings on zillow.com
3) Ask a Realtor to help you value the property.
Thanx for all the great advice
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