All Forum Posts by: Tim Pau

@Christopher Hunter 

Now we are thinking of selling one of the lots. An older gentleman in our church is a school teacher who has a real estate license. A month or so ago, we asked him about listing both lots. He asked us what price we would like to list them for and for how long. He also said that the commission would be 4%.

Although we know what the properties appraised for, we don't know what we should list them for. Also we don't know if 4% is reasonable? TBH 4% seems like a lot when no open houses or showings are required...but, then again, I'm not in the real estate business.

Because of our previous verbal commitment to have him sell the properties, we'd still like to give him our business. But if you were to be our agent, would you be able to provide additional insight and/or services?

Thanks!

Christopher and Allan,

Thanks for the reality check. We are now strongly considering just selling both properties.

Tim

Through inheritance, we have received two vacant lots in Huntington Beach, California. The two lots are adjacent to each other. Each lot is about 7,400 sq ft and were each appraised for just under $800K. Nearby homes on similar-sized lots sell for $1.3M to $2.4M. These are custom homes about a mile or so from the ocean. Also there are no other vacant lots in this area.

A good friend who buys, builds, sells, and rents real estate has offered to put up the capital to build a house on one lot. He thinks that he can build a nice house for about $500K and then sell it for about $1.5M. We would then use that capital to build on the second lot. The only downside is that he currently has another project consuming his time and capital. He thinks that it would be at least two or three years before he could work with us.

Although we don't have any experience in real estate other than buying our own home (here in Orange County), we like the idea of developing the property. We live about 20 minutes away from it.

Since we don't have the capital to build, our options are limited. Here is what we are considering:

• 1. Sell both properties as-is and then use the proceeds to get into real estate buying something else.
• 2. Sell one lot and use the proceeds to build on the other lot.
• 3. Other???

So I'm looking for advice and ideas. Thanks!

BTW This is my first post here. I discovered BP through listening to podcasts on Spotify.