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Updated over 11 years ago on . Most recent reply

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Wendell De Guzman
  • Investor
  • Chicago, IL
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How to Wholesale Land from a Desperate Developer?

Wendell De Guzman
  • Investor
  • Chicago, IL
Posted

I am an experienced wholesaler but I have not wholesaled land before.
Someone approached me with a land development gone "bust". The developer did not finish the project and ran out funding (he prioritized other development projects).

The land is in a good area of Chicago and I believe there is potential.
However, I don't want to jump into the deal without knowledge so here I am asking you, my fellow BPers for your help.

1) How do you evaluate a development deal, i.e., what's the project worth and what's a good price for a developer-buyer to take over the development or buy the land from me?
2) I plan to put an option to purchase on the land at one price and sell the option at a higher price. I will put minimal option consideration to control the deal. Is this the best way to control the deal?

Thanks in advance!

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

With a failed development, there is probably a laundry list of liens, mortgages, etc. make sure you know what all these are. And a developer isn't going to be as ignorant as the typical homeowner when it comes to RE dealings, tying the property up with options, etc.

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