Vacant Land Development

[AJ Wong]

Investment Info:

Other other investment.

Purchase price: $95,000
Cash invested: $5,000
Sale price: $160,000

Purchased a double lot vacant property with partial utilities in place. Invested to have the property cleared and more presentable. Physically installed and permitted temporary electrical. Doubled value in less than 1.5 years.

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

They're not making any more land.

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

Identified potentials on the MLS. Called the listing broker. Gained favorable owner terms to minimize upfront cash investment.

How did you finance this deal?

Owner financing. 25% down @ 6% interest only for 3 years.

How did you add value to the deal?

Identified investment. Scheduled and physically prepared property for installation of utilities.

What was the outcome?

400% return on investment.

Lessons learned? Challenges?

Vacant land is hard.

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

Yes..