First property, an offer I couldn't refuse

[Ricardo Mejia]

Investment Info:

Other buy & hold investment in Valley Village.

Purchase price: $12,000
Sale price: $25,000

Plot of land in Ocala designated for mobile homes.

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

It was being sold half off it's market value.

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

Through a family friend that needed to liquidate due to financial troubles.

How did you finance this deal?

Cash savings

How did you add value to the deal?

Haven't done much to it. Need to start getting some ideas. The land is currently empty.

Lessons learned? Challenges?

Always be prepared, you never know when an opportunity will appear.

[Joe Villeneuve]

If you like this deal, I have some swampland ocean view property that I'll sell to you for two thirds off market value.  

Never buy anything that is on a discount, where the seller is in distress, if you don't have an exit plan in place.  Without the exit plan, you could be just taking over the seller's problem, and will come to realize why they were in distress, and why they sold it for half price.

I'm not saying this was a bad deal.  What I'm saying is that until you have an exit strategy in place (executed), this deal can go either way.