How to Structure Land Deals? Newbie Needs Wisdom!

[Deja Clark]

Hey All,

I have zero experience in real estate. My aspirations include becoming a real estate developer, so I want to learn as much as I can. I heard the deal starts with the land purchase!

How would you structure this deal to make it work for a single family home build?

I entered negotiations with a wholesaler for a vacant lot. The price started at 120k and I counter-offered 90k to which the seller was going to accept. However, they wanted fast close at 10 days when I need 30-40 days to complete the survey. I then lowered the offer price to 70k since I wouldn’t be able to complete the due diligence piece. The seller’s most recent counter-offer was 90k for 30-40 day closing with a 10k non-refundable earnest money deposit.

Location: Tampa, FL

Zoned: RS-50

Lot size: 6,969 sq ft

New construction homes in the area are selling for at least 350k.

*** Also, this deal has lots of red flags including the immediate 30k price drop, the 10-day fast close & the non-refundable 10k EMD. For kicks and giggles, I would still like to know how you guys would make this deal work for you. All insight is appreciated :)