Note business model

[Russ Goodman]

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.

[Joshua Andrews]

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