Wholesaling..... residential lots!
Hello fellow wholesalers! I'm pretty sure everyone has heard the saying "there is nothing new under the sun!" I'm looking for more information on wholesaling a residential lot. I came across one in a neighborhood yesterday and it's for sale by owner. I want to wholesale it. What due diligence would I need to perform? Is it the same as if I would to wholesale a house (look for ARV, estimate new construction for home) or is it totally different? What would the buyer want to know?
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It's more of a price per sf, where you find out what similar lots (similar size, topography (i.e. flat), neighborhood and zoning) have traded for and that's how you comp it out. On larger residential developments, then you use a proforma to figure out the residual value. So if you see that in general area that people are paying 20k per lot, and you can tie it up for 13k or something like that, then it should be a good wholesale deal.