Can you wholesale Land

Question

I had someone that called me from one of my bandit signs and asked about if I could purchase some land.  Its just under a acre in a subdivision in a pretty good neighborhood.   There was a house on the land but it burned down a little over a year ago.  She is asking for about 4k for the land.  How could this deal be done with a wholesale is it the same as wholesale a home.  Thanks

Joel Owens · Answer

Find an agent for GAMLS or FMLS.There is a section for developed lots and then also raw lots.

It might not be called exactly that but they can look it up for you.

You could take an agent to lunch and pay for them in turn for doing a quick comp check and maybe make a good connection in the process.

Joel Owens · Answer

"land being sold in the area"

Just like you compare houses you compare the land.

Has to be apples to apples.You can't compare a commercial piece of land or main street frontage with a residential lot in a subdivision.

Those are two totally different animals.The tax assessment has nothing to do with value of the lot.

Joel Owens · Answer

Jonathan look up the taxes and divide by 12 to get monthly tax costs.

Look for the HOA docs to see if there is an assessment and how much.Usually if you find a listing on MLS in that subdivision there will be some houses and it will list association dues monthly or yearly.

For instance if taxes are 1,000 and HOA 1,500 then you have about 208.33  a month in costs.

If you buy for 4,000 and hold for 2 years you have to get at least 9,000 in 2 years time to break even and even more with closing costs etc.

That money will be dead not generating a return for you.You also need to know the soil sample and build ability of the lot.This will be a factor from who buys from you if they want to build  a house.

On the MLS you can see what developed lots are selling for.Is this lot developed and cleared with pipes sticking out of the ground or does it still have all the trees and uncleared and ungraded in it's natural state??

I personally wouldn't buy a lot unless I know I can unload it fast and it has characteristics that would make it move fast (great view,cul-de-sac,nice big lot,etc.) The slope of the lot can make it very difficult to build on as well..

Jon Holdman · Answer

Do you actually have any buyer's interested in land?  Building lots are a tough sell these days because buying an existing house is almost always cheaper than building.

Jonathan Tew · Answer

Thanks

Jonathan Tew · Answer

Joel Owens what do you recommend as far as finding the comps for lot is there a website or would i need to talk with an agent

Jonathan Tew · Answer

Joel Owens thanks alot for your input

Jonathan Tew · Answer

Joel Owens its looks like the taxes were $400 for 2012.  Does the land assessment value have anything to do with any of it or is it more important to look at the land being sold in the area

Michael Spencer · Answer

What are the comparable's in the neighborhood? What is the difference in cost between trying to wholesale it and maybe getting a hard money loan to build a 2/1.5 and then selling it?

Jonathan Tew · Answer

Jon Holdman I don't have any buyers for land at the moment.  At the price im thinking about keeping it and holding it.  Joel Owens it doesn't have any views of the following just in a subdivision.  How can i find out the carrying cost to see if it can be made for a profit.  Ed O. thats a good idea but Im not sure if the owner will wait that long she is in need of a car and was going to use the money for that.  She even offered a trade for it.

Can you wholesale Land

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