1 Acre vacant Land quick Flip

[William Bratrud]

Investment Info:

Single-family residence wholesale investment in Wildomar.

Purchase price: $95,000
Cash invested: $96,500
Sale price: $105,000

Bought vacant land, obtained a street address from city and conducted a perc test. Sold a month later to a family member for a quick $5k.

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

We were planning to develop the 1 acre property with a new manufactured home but with the market slow down and the amount of time it was going to take we decided to make it a quick flip for a $5K profit instead.

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

I found the deal on Zillow the day it came out and through my agent we offered the seller his full asking price of $95K. He accepted, we completed our due diligence and a few days later closed escrow. Large lots are rare in the area so we knew it would be desirable at resale. Similar properties were on the market and selling for $110K +

How did you finance this deal?

We paid cash for the property

How did you add value to the deal?

We applied for and obtained a street address, we verified utility costs, development costs, and acquired a perc test on the property. Other than a a couple hours to make a few calls, schedule a perc test and visit the city we didn’t do anything to improve the property.

What was the outcome?

Originally our plan was to develop the property but we knew that it would take several months to complete. We decided to list the property at $120K while we started the development application process. Shortly after we found out that a family member was looking to buy land in the area so we decided to sell it to them at a good price.

Lessons learned? Challenges?

Utility applications can take several months and developing vacant land is a lengthy process, so market timing is critical. Sometimes the wiser choice is risk management and market foresight and it’s better to avoid the long investments when the market downturn is likely hanging in the balance. Although we probably would have still made a decent profit I decided the safer choice would be to have our cash liquid for other opportunities.