Land Locked Vacant Land Fixed and Flipped

[Ryan MacDonald]

Investment Info:

Other fix & flip investment in Conroe.

Purchase price: $20,000
Cash invested: $32,000
Sale price: $155,000

Contributors:
Logan Fullmer

This was a land locked 6.5 acres in Texas. It was part of an old partition deed from the 40's but it was the last parcel furthest away from the road. A neighbor owned the 6 acre parcel next door and the 10 acre parcel across the street but a poorly indexed easement allowed us to build a road through the middle of their property. We tore down the neighbors fence and built a 500 ft road to our property line in order to give us access and then we sold the land to a realtor on MLS.

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

It was a land locked parcel and we were confident about our purchase price and being protected should we hit a road block.

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

A wholesaler brought us this deal as we have been doing a good job letting others know that we buy property with dirty titles and land locked properties in Texas.

How did you finance this deal?

We used our own cash to finance the deal.

How did you add value to the deal?

We purchased for 1/3 of CAD value but felt that the value would be significantly higher if/when we get access to it and a road.

What was the outcome?

We were able to get access through the neighbors land and build a road. When then sold it on MLS to an investor who was going to develop the deal.

Lessons learned? Challenges?

Challenges as always are managing construction crews and timelines. We were delayed several months because of extensive amounts of rain prevented the crew from being able to perform work on the land. Also, after the road was built, there was a heavy rain that came and we had to rebuild a large portion of the road that was washed out during the rain.

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

Yes I worked with a local agent to help us sell the land. His name is Jason Franks and he is in the Montgomery County Area with Top Gun Realtors.