OfflineWould you put an offer in on a property that has leased land? We came across a property that is by the water. The house is in great condition. It is for up for sale at $75,000. The surrounding houses are 2 million dollar homes. This little house is the eye sore of the neighborhood. I am worried about a buyer not wanting to mess with leased land. The lease is $10,000 per year. The fix up here would be to either knock the house down and build a mansion or add on to the little house to make it a mansion.
What do you think? I really can't get into another property where not one buyer will touch it. I'll lose my mind! LOL
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Allen & Denise
Denal Enterprises
how long is the lease for? I think that who you have for your end buyer will determine if leased land is a problem. If you have a landlord buying from you they may not have any problem as is extra income for them, if you are selling to a builder/developer then the length and terms of the lease would be a more probable issue....I would first figure who I am trying to sell to and second, get a copy of the lease...
"dump the clutch and nail the throttle"
"Just do it, Get it Done!"
--Matt Larson
It's $10,000 a year. Apparently the owner offered the land to all of the houses there and everyone bought except this house. Now, the land is worth $415,000.
I have 2 builder/developers on my buyer list that might be interested. Do you think it would be wrong to just send them an email asking what they think of buying a house on leased land? That way I at least know if they are open to it before making an offer.
If they aren't interested at all, I'll pass on the property.
Allen & Denise
Denal Enterprises
Is there an option in buying the land as well. The 75K is for a house and no land, and the house sounds like it needs major work. I believe it would be hard for an investor to be interested in buying just the house with no land. The value is the land the home is on, because houses typiclly loose value. It is the land they are on that gains value. So again check to see if you get the land as well
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when does the lease terminate??
Could you put the property undercontract after the lease terminates?
Speak to you buyers and simply state that you have a property that they may be interested in and explain about the leasedland....
If you knew the terms of the lease that would be helpful
"dump the clutch and nail the throttle"
"Just do it, Get it Done!"
--Matt Larson