Under-valued land sale

[Ladd Hallows]

Investment Info:

Industrial other investment in Ephraim.

Purchase price: $72,000
Cash invested: $12,000
Sale price: $172,000

This was a piece of raw land that was in an industrial area. I saw that the growth of the small town was moving in this direction. I purchased it with the plan of holding for 1-3 years and selling. I was approached about a year later by a buyer and named my price.

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

I saw the land sit for a couple years and I realized how valuable it would be shortly down the road.

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

I would drive past the for sale sign on a regular basis. I simply made them a reasonable offer for the property and they countered close to my offer so we approved it.

How did you finance this deal?

Private financing through a family member.

How did you add value to the deal?

I purchased two parcels that previously weren't owned by the same person and by doing that it gave the back landlocked piece access to paved road frontage.

What was the outcome?

I was able to help a local business owner find the perfect piece of property and I was able to 1031 exchange into a duplex.

Lessons learned? Challenges?

Jump! Move, this was my first deal. Don't just sit.