Creative ways to make money from destroyed properties

Creative ways to make money from destroyed properties

Rental Property Investor · Los Angeles, CA · Member since 2015 · 3 posts · 0 votes

Hi! I'm a wholesaler who is targeting Birmingham, Albama. I've been doing pretty well out in that market. But I keep coming across properties that are beyond destroyed. They need to be demolished. I was wondering is there anything that can be done to make money from these types of properties? I've tried to wholesale them but I have a hard time getting investors. Is there anyway of making money from them? I was thinking about purchasing them myself and doing the demolish and cleaning up the land to sell it to a developer, but is it worth it? The homes in the area sell for 60k to 90k. Anyone have experience in this? Thank you!

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  • CPA · Charlotte, NC · Member since 2016 · 37 posts · 16 votes
    6y

    I know of a way you may be able to save on your taxes by doing this through Real Estate Deconstruction: 

    https://www.washingtonpost.com.... Instead of trashing it, donate some of the materials and recognize the write-off to charity at fair market value


  • Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    6y

    @Alex R. Have you talked to any larger contractors in the area? I could foresee a partnership where you buy the land, demo the house, and sell it as a residential spec/build to suit. Have drawings and maybe permits going. Builder builds after property is sold.

    Buyer would be someone who wants a semi-custom house. Basically you’re doing the leg work for the builder and guaranteeing them a new house build when sold.

    No idea how a partnership like that would actually work, but I’d imagine someone could figure it out!

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