Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 13 years ago on . Most recent reply

User Stats

115
Posts
83
Votes
Robert Dobbs
  • Residential Real Estate Agent
  • Delray Beach, FL
83
Votes |
115
Posts

57 vacant lots, a "bulk deal" and I "sold-em" in two months!

Robert Dobbs
  • Residential Real Estate Agent
  • Delray Beach, FL
Posted

Whew! I did it!

I put under contract, a "bulk deal, 48 vacant Florida homesite lots on April 26. I was given until the end of the "bank quarter" (June 28th, 2012), or about two months to complete this transaction:

This deal was called a "step-down contract".

I was allowed to close on a minimum of 12 lots at a time. The original "vacant land contract" was for 48 vacant lots, and was ammended to add another 9 lots to the deal, bringing the total to 57 lots I closed on!

The seller (a bank) suggested this "step-down" technique to me, as they did not want to do the deal my way, via "option to purchase".

The first batch was to be 12 lots (I put 10% down on those 12 lots).

I instead closed on 28 lots on the first batch of lots (as I had these 28 lots sold within two weeks!).

I closed on 12 lots for the second batch.

I closed 17 lots for the 3rd and final batch!

All went smoothly!

The key to this type of transaction is having a way to market all properties within the alloted time frame, per the agreement (the "contract")...

The second key to my success is pricing.

I portray myself as a "land liquidator".

So I make offers, what I call, "well below wholesale bulk deals". And then I sell them wholesale ("below market") to others, working on "thin margins", so I can move them fast!

My monetary risk was an initial 10% "hard deposit" on 12 lots. And my bigger risk was not completing the original deal (48 lots) and losing the trust and confidence of the seller (the bank)...

I was able to sell 26 lots (11 lots, and then 15 lots) to an investment group (they "warehouse" these properties for a "future rainy day-real estate boom"), and 7 lots to another investor of mine (thru his self-directed IRA) and the balance (24 lots) were sold as "singles" or as "doubles" (i.e., 2 adjoining lots) on eBay (as I am a long-time "power seller" and "top-rated" seller there!)...

All-in-all, it was a pretty cool deal, for a few months of hard work.

I "patted myself on the back". Now what?

I need to DO IT ALL OVER AGAIN!!!

Bob
Land Rescue League LLC

Most Popular Reply

User Stats

16,121
Posts
5,816
Votes
Joshua Dorkin
#2 Questions About BiggerPockets & Official Site Announcements Contributor
  • BiggerPockets Founder
  • Hawaii
5,816
Votes |
16,121
Posts
Joshua Dorkin
#2 Questions About BiggerPockets & Official Site Announcements Contributor
  • BiggerPockets Founder
  • Hawaii
Replied

Robert -
Perhaps you could share with everyone how you put the front end of the deal together? How did you negotiate the deal with the 48 lots in the first place?

Loading replies...