Broken Down mobiles have hidden value

[Heather Vest]

Investment Info:

Other fix & flip investment in Ponca.

Purchase price: $50,000
Cash invested: $1,000
Sale price: $108,000

This is something Ive alwsys know to be true as an agent and finally was able to show true in rral life: people will assume a piece of land with a broken down mobile is worth less than a blank piece of land.

My hubby and i found 5 acres of land on fb marketplace, cleaned it up and flipped it for a profit.

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

We were actually considering multiple options with the land. Leasing it out to a mobile home owner, an rv owner, someone with a small amount of cattle, to grow Marijuana (legal in Oklahoma) , potentially build a house for ourselves or to flip.

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

We found it on Facebook marketplace just scrolling through ads one Sunday. I convinced the seller to pick us because 1) we were cash 2) I was a real estate agent and was willing to make it all formal 3) we shook on it.
I later helped prove my value to them by getting them an amazing deal on a house.

How did you finance this deal?

Cash.

How did you add value to the deal?

Removing the mobile home (we found someone willing to haul it off for free), getting dumpster and cleaning up random debris around the land, brush hogging land, adding a fishing dock, detailing in marketing all the great things about land in immense detail with amazing drone photis.

What was the outcome?

We had one failed offer when bank said land did not appraise. Ironically, another buyer came 5 months later with SAME bank and it apprised just fine.

Lessons learned? Challenges?

Look for deals everywhere. Broken down mobiles have a hidden value because to put in water, electric, a concrete pad and a septic tank will easily run you $30,000. People fail to see that. That was a huge selling point of the land (plus the spring fed stocked pond) .
Getting the bank to see the value that others did when comps were scarce was hard.

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

I was the agent on both buy and sell. Not a fan of bank who did lending just how slow they are to respond to things.

[Andrew Freed]

@Heather Vest - This is amazing, great work seeing opportunities where others did not. I think this just goes to show, when you are an expert in a market and know it like the back of your hand, you spot opportunities where others do not. That's why I believe nicheing in a specific asset class and market is so criticial to scaling, it takes much less time to see opportunity and strike!