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Updated over 9 years ago on . Most recent reply

Note business model
I would appreciate some collective thoughts concerning my proposed business model. At times it help me to get clarification if I feel I'm getting too close to the trees not to see the forest properly so to speak. So I am open to some thoughts and guidance.
I am considering an overall strategy for real estate investing as follows: I live in Florida and there are vacant lots available to be purchased at tax sale. My approach would be to acquire the lots, clear title and as my exit strategy:
1. sell them outright;
2. take back paper;
3. develop the lot; or
4. accumulate a few and exchange them or use them as a down for another parcel.
I like paper, but with the recent dodd-frank and other issues I am concerned. I know i am papering lots but I'm not sure if it exempt. Am I looking to take on too much with the possible development? I would do the development as a turnkey operation. I may know which side of the hammer to use , but I know i still bend a lot of nails in the process.
You're thoughts and guidance would be most appreciated.
Most Popular Reply

Hi Russ,
I personally don't have any experience with vacant lots, but I can tell you they are much more speculative than homes. Of course the right lot in the right place could be worth millions.
Unless the lots are highly desirable, I would think it may be difficult to find buyers and create paper on them. This is said of course with the understanding I don't know how desirable the lots are. If they are on a golf course, well then you might be onto something.
If the goal is simply to flip them and make a chunk of cash, I think you may be sitting on the lots much longer than you anticipate.
- Josh