Stumbled into land investing

[Aaron Louis Gorres]

Investment Info:

Other buy & hold investment in Berkeley.

Purchase price: $55,700
Cash invested: $62,000

Bought a 3.3 acre lot in a residential neighborhood 1.5 miles outside of downtown Prescott, WI. Original plan was to build 3-5 years down the road, but now with the lot fully paid off and significantly appreciated, I would like to use this equity to kickstart real estate investing into cash flowing properties.

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

I was planning on building a dream home one day on this lot.

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

Found the listing on Zillow. Not a great negotiating effort on my part.. The realtor actually suggested I go lower.

How did you finance this deal?

I was 4 months into my career post college so I emptied my savings account and loaned money from my parents for the down payment.

What was the outcome?

Significant appreciation. Looking to sell and leverage the purchase price for a 1031 exchange towards cash flowing rental properties.

Lessons learned? Challenges?

Don't offer the listing price on a stagnant listing, go lower.

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

I would recommend the Lonnie Larson Singerhouse Team. Lonnie was a pleasure to work with and helped me through my first time as a buyer.