All Forum Posts by: Rich Silva

No, not usually for cash. At least not at the time I bought this. I would not buy any property with seller financing for a high price.  That is kind of a scam.  They ar counting on you not paying long term so they can resell it.  You can find deals on ebay but you have to really sift through the rubbish. I look for auctions that are full price auctions from a seller that sells often. I do my homework and make a bid. If your lucky you will get a decent price. Most of the time someone will outbid you for a price you dont want. Let it go.  but every now and then you get your price. For this property I saw value because it was listed like other "junk properties" but it had possible potential with the mining company close and the railroad going through it. I knew fo rmy price I could always resell it in the future for at least that price. so i felt it had low risk.  Always check the tax rate on these properties and figure how much you will pay in taxes for 10 years. You dont want a property that you pay $1500 for but taxes and HOAs are $200+ a year unless you are absolutly sure you will get that back several times over. 

Investment Info:

Other buy & hold investment.

Purchase price: $110,000
Cash invested: $60,000
Sale price: $325,000

16 acres raw land with views

What made you interested in investing in this type of deal?

I found a decent deal and it had been on the market a while so I thought I could negotiate. Location was good.

How did you find this deal and how did you negotiate it?

I saw it first in a local publication then it kept popping up in my searches. I negotiated a little off the price and was able to get them to carry.

How did you finance this deal?

55% down and owner carry with 5% interest.

How did you add value to the deal?

Just held.

What was the outcome?

500+% return on cash invested

Investment Info:

Other buy & hold investment.

Purchase price: $4,500
Cash invested: $4,500

40 acres raw land outside of Winnemucca

What made you interested in investing in this type of deal?

Originally this was just a cash buy and hold I got for a reasonable deal near the transcontinental railroad very close to a major mining area. Hoping for some sort of future need.

How did you find this deal and how did you negotiate it?

Honestly this was an ebay find.

How did you finance this deal?

Cash

How did you add value to the deal?

Holding this piece was the right call. EDF Renewables now leases it from me for a solar farm that supplies Winnemucca power. The lease is for 40 years and constanly increases. doing the math I believe I will recieve about $550,000 in rents for this property over the term of the lease. not bad fora $4500 investment.

What was the outcome?

Holding

Investment Info:

Other buy & hold investment in El Dorado.

Purchase price: $100,000
Cash invested: $20,000

100 acres raw land, 2 gold mines and awsome views.

What made you interested in investing in this type of deal?

Purchased for $1000 an acre 5 miles from the town of El Dorado Ca. this is not some unusable land in the middle of nowhere it is 5 miles from dense populated areas in the heart of El Dorado county. I already know when I prepare this land and present it better I will get well over a 300+% return.

How did you find this deal and how did you negotiate it?

I had my eye on this one for quite some time. I negotiated it to 30% of the asking price by waiting and knowing the area.

How did you finance this deal?

20% down and seller carry with 5% interest.

How did you add value to the deal?

I plan to wait at least a year to avoid higher taxes. Durring that time I will add the road and submit it to the county. Divide into a 40 acre and a 60 acre piece. Put in a well and clear it. with proper pictures and presentation it should be an easy 500+% return. Although I may consider construction before sale on atleast 1.

Investment Info:

Other buy & hold investment.

Purchase price: $89,000
Cash invested: $89,000

40 Acres Land. purchased for hold. Road installed and cleared. Well added. Current value aproximately $350,000.

What made you interested in investing in this type of deal?

Sensing market declines we have been into buy and hold on land

How did you find this deal and how did you negotiate it?

I know the land values in Ca. When I found this it ws a no brainer.

How did you finance this deal?

Cash

How did you add value to the deal?

Add a road, clear the land, add a well, and when ready I will present it far better than the original owner.

What was the outcome?

Still on hold

Lessons learned? Challenges?

So far it has gone as expected aside from equipment challanges.