5ac w/ SF home & Barn

[Andrew Bourgeois]

Investment Info:

Other wholesale investment.

Purchase price: $81,000
Cash invested: $81,000

Purchased a 5 ac property with a 2000 sqft metal barn and 700 sqft 1/1 SF residence.... and loads of equine implements.

The plan is to basically "wholesale" the property, even though I have already taken title to the property.

I purchased the property at a county tax sale for $81k. Comps show resale values currently between $180k and $200k

What made you interested in investing in this type of deal?

I've been looking for acreage tracks for our family to build on. The area of this acreage doesn't fit our ideal location, but I knew the comps in the area. When I saw it listed on the tax sale, I knew there was good gain potential.

How did you find this deal and how did you negotiate it?

Tax Sale... No negotiation required.
I knew my comps, so I was willing to pay a little more than other bidders.

How did you finance this deal?

All cash.

How did you add value to the deal?

No value add needed other than cleaning up the property. Selling off old stuff for scrap etc.

What was the outcome?

TBD... we are still determining what to do with the property...

Options:
1 - Resale the property
2 - Fix & Rent
3 - Build on the property and sell our current residence to lock-in big gains there.

Lessons learned? Challenges?

Real estate isn't just about acres and buildings... it's about people.
Even though I just landed a great deal, there was a tenant (albeit living for free) in the property who is now without a home because they didn't want to start paying rent.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My business partner is an agent and he's experienced in flipping land.
Lem Brown with eXP realty. Check him out.