4.26 Acre land deal with mobile and several exit strategies.

[Chad Shultz]

Investment Info:

Other wholesale investment.

Purchase price: $250,000
Sale price: $280,000

Wound up getting property under contract in a Land Trust. (Only a few states allow Land Trusts.) Land Trust held the purchase contract & was able to arrange a sales contract for the same property at $300k within 90-days. After securing this entry and exit, the Land Trust interest was sold off for $280k. Additional exit strategies include subdividing and developing two parcels, if the current contracted buyer decides to default on the contract. Project took 11 days with 0 out of pocket.

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

We, (a small group of partners) decided to move on this deal due to several possible exit strategies. Ultimately, the one we took was the quickest and simplest to get in and out.

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

The deal was brought to us from an acquaintance. We tried to make a deal initially, but the seller did not accept. We actually walked away and the seller came back to us with the modified deal, which we took.

How did you finance this deal?

No financing needed.

How did you add value to the deal?

Packaged it up and delivered it to another investor.

What was the outcome?

Quick cash return, similar to a wholesale.

Lessons learned? Challenges?

Lots of paperwork and hoops, but otherwise, no issues.