Wholesaling Vacant Land

[Alan Hernandez]

Hey BP Fam, 

So I am a new wholesaler in the central Oregon area (would love to connect if you're in CO). I recently came across a vacant land property and wanted to ask the community how do you guys run comps regarding land. I tried looking at the recently sold properties around the city but since its a smaller community I didn't have much luck. I'd appreciate any feedback or advice, thanks guys!!

[Bryant Brislin]

@Alan Hernandez Here is another way to handle it, assuming you are really, really struggling to find comps and the local agents aren't of any help. A very, simple metric we use (I've been a land broker for years), is many times we say that whatever a brand new house on that lot would sell for, i.e. 900k, the retail value of the land is 1/3 of that, so 300k for the lot, BUT, that's "retail" meaning technically if it's permitted and ready to go. So you'll want to try to get the land at even less, i.e. 100k or so, so that you can maybe wholesale it for 120k. In general, I would say land deals can be very tough, so don't spend too much time on it, because on the dispo side of it, you have to think, who is my buyer? Sometimes that's a needle in a haystack that you can only find by putting something on the MLS, etc.