How should I develop?

[Carl Dieckmann]

Investment Info:

Other other investment in Lago Vista.

Purchase price: $50,000
Cash invested: $13,000

I purchased this unrestricted land for a great price (and did 1031 from two lots into it); it is a great location right outside the city limits. The land is unrestricted, which can be a big deal in Texas. I have several ideas for development, including a commercial workshop, a small RV park, or a location for tiny homes. If anyone has any suggestions, I would appreciate it. Thanks!

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

Unrestricted land in Texas can have enormous value depending on the location, specifically if local municipalities are a bit strict with what they allow.

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

The lot sat on the market for two years and dropped in price from 200k to $68. I looked at it for another client and recognized the value. I made 100% that client didn't want it, and then made a cash offer of $50k for myself.

How did you finance this deal?

Cash, and a 1031 from a few lots I sold. I had picked up the lots for cheap on a tax sale.

How did you add value to the deal?

I haven't added an improvment yet. Currently I'm getting a permit from the BCCP (we have endangered species in the area) to clear some trees.

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

My wife... I push all the negociating to her. She has a more steady hand when it comes to this.