Raw Land Flip in Texas ending in Double Close

[Jake F.]

Investment Info:

fix & flip investment.

Purchase price: $17,660
Cash invested: $1,200
Sale price: $62,000

Four acres of raw land. Land was fenced with some high brush on it that was pretty overgrown.

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

Fun and profit.

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

Deal came from a response to my direct mail campaign aimed at land owners who were delinquent on taxes. Owner was behind on the land and on her home and was anxious to sell the property.

How did you finance this deal?

Hard money loan.

How did you add value to the deal?

All I added was the willingness to deal with the owner's judgments and some marketing skills.

What was the outcome?

Double close. Happy seller and happy buyer.

Lessons learned? Challenges?

My buyer wanted to close with a certain title company, so I moved both the buy and the sell over. I immediately encountered resistance as they didn't like my contract and refused to underwrite. After satisfying them, they refused to answer calls or emails for about two weeks. Literally the day before closing they told me that I needed a survey, and then I found out they were refusing to close on my sale side. It all worked out, but it was unbelievably frustrating.