In real estate, money is often made at the time of purchase. So, finding a good deal, which is not easy at all in this market, is another way to increase your return. It’s hard to find deals in standard SF housing but When buying land or farms, comps are much harder to find so the markets aren’t efficient. Anomalies are not uncommon where a motivated or misinformed seller/agent may list something below market.
To actually win though, you will need to be looking relentlessly, have your mental model tuned to spot a good one very quickly, analysis tools ready to validate, and have the paperwork and confidence ready to bid immediately.
In our fast market, I typically don’t even bother looking at properties that have been in the market for over 2 days because they are either not interesting or undergoing an auction. not useful for me
All my best deals in this market have been when I was the first bidder, typically the same day it’s listed and out ran my competition. I have been able to buy 5-8% below market a few times. By buying cheap, you immediately put yourself in a position of some minimal profit and can outdo the market returns.
I love the question, but markets are pretty efficient these days. Unless you can add value (subdividing was mentioned in a response above), you're still likely better off in the stock market.
In real estate, money is often made at the time of purchase. So, finding a good deal, which is not easy at all in this market, is another way to increase your return. It’s hard to find deals in standard SF housing but When buying land or farms, comps are much harder to find so the markets aren’t efficient. Anomalies are not uncommon where a motivated or misinformed seller/agent may list something below market.
To actually win though, you will need to be looking relentlessly, have your mental model tuned to spot a good one very quickly, analysis tools ready to validate, and have the paperwork and confidence ready to bid immediately.
In our fast market, I typically don’t even bother looking at properties that have been in the market for over 2 days because they are either not interesting or undergoing an auction. not useful for me
All my best deals in this market have been when I was the first bidder, typically the same day it’s listed and out ran my competition. I have been able to buy 5-8% below market a few times. By buying cheap, you immediately put yourself in a position of some minimal profit and can outdo the market returns.
@Danny Webber took some digging with the city, county, and Manville water - one property per acre has been confirmed and cross referenced with deed restrictions, so 4 new builds and a remodel of existing is the exit.
The unknown is whether or not the current city water line will provide sufficient pressure to all five structures. A feasibility report would need to be run to ensure it can. If not, there would be additional build costs associated.
That's an astute observation @Aater Suleman - and I agree, market information is much harder to come by with land outside of City of Austin jurisdiction. With SF in town, it's transparent and competitive because of all the recorded market prices - minus cash or off market transactions.
That's an astute observation @Aater Suleman - and I agree, market information is much harder to come by with land outside of City of Austin jurisdiction. With SF in town, it's transparent and competitive because of all the recorded market prices - minus cash or off market transactions.
Thanks. By the way, you seem to have really gotten far with Williamson Count. I can't even get them to answer my call this quickly. May I know how you got this good information so quickly? What process did you follow?
For Austin, I have heard that the market drivers are many folks moving from the coastal markets, so if you are able to buy a property on a big land and build near Austin, you are on to something.
Now many developers will tell that the development process is not for the faint of heart and they are right.
What you could do is get the site entitlements and flip the land to a developer at a premium.