OfflineRight now I am working on my first deal-5 acres zoned residential at the end of Rd surrounded by housing. The land in this township goes for $100,000-$300,000 per acre, this lot in particular has all public utilities.The owners want around $650,000 but negotiable, agents are like vultures wanting to get the property into their MLS. The sellers do not want to be tied down-I feel like a fish out of water, is there anyway that I can get the land appraised without using my own money???
What cost comes with buying land to build on? I have interested investors but I really dont know what they would pay, what should I DO??? I know I should have the land under contract but I dont know what to offer since I dont know what another investor would pay, I am afraid of saying ok i will give you $500,000 and then the investor wants to pay $450,000 max???? HELPPPP
>>>>NEVER give up, and know that the SKY is the LIMIT. We are OURSELVES worst enemy<<<
I have not done any deals yet so someone with experience may have better advice. But, if I were looking to do this type of transaction the first thing I would do is determine the FMV of the property. I would then speak to my investors who have already told me that they will purchase land and ask them what % of FMV they will pay for a property. That will also help you to determine how much to offer and how much you can make. It will also tell you if you even have a deal worth pursuing.
Good Luck on the deal!
From what I know about PA law is that if it is a land with no house on it, then you might be required to pay capital improvement fee. I might be wrong, but I would ask a RE agent. If the seller has not signed a contract with a RE Agent yet, that means that he would rather deal with a private person. He probably thinks he can save some money by not paying the % to the agent. As far as the price... I would hire an independant appraiser, it will cost you $300 maybe even less but you will have a piece of mind. ALso, if you have investors who want to buy it, then you should ask them what they would be willing to pay... Or throw the number at them. Say you have this great land that appraised for 600K but you can offer it for 500K since the seller wants to sell fast. See what they say. And just go from there.
Yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
If you are not sure what you are doing or confident you are getting a solid price than can easily be profited on with the right marketing and/or restructuring to the land then you do not want to actually buy the property, particularly for that much money, on your first deal. Instead, look at assignment. If you find the most investors are willing to pony up is $450k and you have it locked in at $500k, then no worries, simply move on - nothing gained, but nothing lost but time.
I also thought of getting an appraisal-but really hard because I dont have money to dish out specially since I do not know if I will be able to make a deal with this property. I guess I have to risk, I will feel better. So I met with the owners and what they said was NO to my offer of $350,000 and insteaqd counteroffered with $650,000, I then said $450,000 and they didnt reject it but want to have a solid offer by my end buyer. So now i am trying to find investor willing to pay for the land which i have at least 2 that might be interested. I am thinking of just assigning it because its giving me a headache.
I guess I will start to shop around for an appraiser......NOOOOOOOOO
>>>>NEVER give up, and know that the SKY is the LIMIT. We are OURSELVES worst enemy<<<
Taxes paid a year is only $5,000 the owners had the property for 3 generations want to use money to pay off grandmom nursery home expenses. There is a duplex/farmhouse on the property but are not worth a thing.
Hey guys has anyone tried using ZIPrealty? I was on thier last nigfht requesting info on as many homes I could- at least 90 days on there, its great. you can also pick an agent to work with, i e-mailde one that had experience with investment properties and guess what he respond??????
" I dont work with people that use get rich programs"..ahhhhh at least he didnt say unrealistic. I feel i just received a big gulp of fresh air....NOT
>>>>NEVER give up, and know that the SKY is the LIMIT. We are OURSELVES worst enemy<<<
Yea I use Zip. good sight for info and i also get new listings sent to me automatically for my area'a.
My agent is from Zip but i dont trust him any more.
What are you trying to accomplish on this land deal? Are you trying to make some quick profits or develop the land/property to make it something much more profitable?
If the former is your goal, really the only thing you should be considering is reassignment at that price, on your first deal. There is no reason to buy something, get appraisals and end up with a bunch of costs to set you back or worse, land you cannot sell trying to do a deal.
If the latter is your goal you might have the cart ahead of the horse a bit, but not to say you can't do it, but usually this is something you do once you know the business well, have contacts, have money to gamble, etc. You might want to try to pull in partners who are familiar with land investing, development, etc.
There is no reason you have to work this deal either. If you find that a land deal is hard to do (and it can be quite hard to do on your first deal unless things just fall into place) - move your efforts to a different piece of property that is in demand - like a median priced single family home at 50%+ off FMV.
I don't know your area, but sometimes you have to go outside your city/town to find the best opportunities - so if this land deal is your focus because of limited possible deals in your immediate area then try elsewhere.
PS- Get the assignment contract locked up before you start marketing/trying to find a buyer or you may end up doing all the leg work for nothing.
thn admin for the insight. I am trying to pass it on, there are limited individuals interested in the deal since its land and the property on it is worthless. I see the opportunity,and I know I can make something happen I will have my investor sign a Confidentiality agreement but again dont i need to have an appraisal to know its true value? is hard to get the FMV on this property since it doesnt have comps-the land anyways
>>>>NEVER give up, and know that the SKY is the LIMIT. We are OURSELVES worst enemy<<<
I got your message, sorry I was in Poconos and my phone service is crappy there. Call me tomorrow any time. As far as the land goes, the fact that it has low taxes might be your selling point. Emphasize that to your buyer. Tell him that no matter what he pays, he is saving a lot on taxes. If they reject your 450K offer, then definitely try and find a buyer first. Also, as far the appraisal goes, I have few ideas...
Call me tomorrow
Yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --