Good afternoon folks. I apologize if I am asking a question that is already on another discussion that I did not find, but I am seeking guidance on wholeselling a property where a corner of the house crosses a state line and the rest of the land is on the other state. The seller is very motivated and is wanting to get rid of a 10-acre property. The house and two acres are in texas, and the other 8 acres are in new mexico. I was only curious about the property when I cold-called the owner and now I have a motivated seller that will consider any offer. I only have 3 months experience as an investor and this might be too much for me to chew, but I am curious and creative enough to try and pull it off.
I need advise, please and thank you!
I don't have any experience with this particular issue, my first reaction would be to subdivide the property along state lines.
One fact I forgot to include is that a fraction of the living space is on the new mexico side. I am finding it difficult to even make an offer but I don't want to let go of a motivated seller. To subdivide the property will be a challenge.
You'll need to find out how it is legally described. My gut feel is that you've got a parcel in one state and a separate parcel in the other state, so you will be working with two separate contracts and working with the laws in two different states.
Indeed, the 10 acres are split into four parcels, two in Texas and two in new mexico. The seller has given me the option to purchase them separately once I asked if there were parcels on the property. Good gut feeling Linda :)
After clarification, the living area is actually all on the Texas side, it just looked like it was on the NM side because there is a home on each parcel with the main house being in the two Texas parcels..
This would be the first deal I work on where I need to deal with parcels and state lines, and it is proving to be as interesting as it is challenging.
Hi, are there more experienced wholesalers in your REIA group you can partner with and let them guide you through this and split the profits? Last I heard, the group meets every week. It might be worth checking out if you have not already.
Not sure I understand the "problem" here.
It's a deal like any other except that the transaction costs will differ because there are two different sets of local transfer and recordation tax rates.
When a parcel straddles 2 jurisdictions the deed, etc. are recorded in both.
You need to get past the 2 states issue and focus on the numbers.
Thanks folks, with some clarification the deal seems less complicated than I though.
it did not occur to me at first that a large property such as this one would be split into parcels and that knowledge is definitely helping me focus on the numbers to make an offer. Turns out one of the parcels on the NM side has a mortgage and another one on the Texas side has a lien on it.
You are right tom, I do need to focus on the numbers just like any deal, except it is hard to make an offer when you are unfamiliar with a property in two states.
When Linda mentioned there might be a parcel on the NM side it became more clear and defiantly less complicated. Thanks again!
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing