OfflineI'm considering a deal, but not sure how or the first things I need to be looking for to make this deal profitable for me at end of closing. The property is under assignment 3/1 1120 sq. ft. sitting on 1.1 acres and asking 104k including assignment fee and able to split the property for more than one home. Has city utilities on a gravel/dirt road,I'm thinking will have to upgrade curb appeal such as building a road, curb, and side walk to increase the property value. Plus has an ajoining lot of 1.6 acres with no house on it asking 37k including assignment fees and it is zoned residental 3.5so it can be split to build on. Can I combine these lot for a small development. City allows '98 or newer manufactured homes or stick built homes.The assignment fee on the house is 4k.The assignment fee on the property with no house is 2k. Im clearly excited about the potential opportunity with a little creative thinking and TLC this could very well benifit me and my family.Sugestions and advise welcome I need it.
Wholesale Opportunity with Developement Potential
Posted on: Tue, 07/01/2008 - 02:08
Wholesale Opportunity with Developement Potential
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- by hughdwash
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Welcome to the DG family, we're happy to have you here! First let me ask you what is it you want to do with this deal? Have you checked the numbers? What are other homes in that area going for? What does the home need in repairs? What will it sell for? How much will all that stuff you mentioned cost to do? Do you have money lined up for that? When you find a property you have to know what you intend to do with it, of course make money, but how? Do your homework, know all the facts, make sure the value is there, then you'll know if it's a good deal or not. Make sure you have a couple of options in case one doesn't work out. I hope this helps you.
Best of luck to you, keep us posted!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
hi there. I think we need to know more about this deal. On the above entries, this sounds like a great deal especially if there is opportunity to combine the lots and then split them and sell seperate parcels. i want to know more info:
-what are the residential lots like in your town? avg. size?
-where is this development? accessible to town, schools, etc...?
-I assume that another investor wants to wholesale these properties to you. these sound like pretty low assignment fees for such a potentially profitable deal. have you spoken to said investor?
-do you have financing available if need be?
Thanks in advance and please furnish us with more information when it become available.
Nick Walters
Walters Property Investment Group, LLC
Hello Nick, thanks for your input.The avg. size lots in this town is between 900-1200
sq.ft. in Redding, Ca near schools accessible to town and public trans.Yes this investor is looking to wholesale the property to me and this is where I'm at a lost for words and creativity to structure this deal through the process that will work best for both parties.I have spoken to the investor and we plan to meet on Saturday 7/5/08. I have a contractor that I can count on to walk through this property who will give me fair estimates for the necessary work.I'm working the financing for back up if needed time will tell! Any more detail or question that i should bring to the table? I do appreciate any and all sugestion that you can provide for me to discuss with the investor on Saturday.
I would probably suggest you find out more about zoning laws in Redding. Can you combine these lots? Is the empty lot in fact in a residential zone (it probably is being on a dirt road
? If this investor is going to wholesale it to you, you are probably going to need your own financing. I can't think of any creative way to finance it without conventionally doing it. Any ideas anyone out there? Does he actually have the property/land under contract as we speak? I hope we learn more about this when you meet with him on Saturday.
Nick Walters
Walters Property Investment Group, LLC