Land flip that was bought as a package with another house.

[Boone Tyson]

Investment Info:

Other fix & flip investment.

Cash invested: $1,500
Sale price: $30,000

Our only land flip. We bought this as part of a foreclosure from the MLS last Christmas. When we saw the property, we noticed it had a vacant lot attached that we were able to subdivide at the closing table. It was already metered separately and didn't need any work. We held it for about a year debating whether to build on it or sell it and elected to liquidate in order to pay off a loss we had when another property of ours caught on fire last summer.

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

The land was a huge win. It allowed us to take a loss when we sold the house we bought with it, and still come out well ahead on the value of the dirt.

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

MLS. Made an offer to listing agent. It was a foreclosure, so there was very little back and forth.

How did you finance this deal?

LOC

How did you add value to the deal?

Subdivided the house and the 2nd lot to sell seperately.

What was the outcome?

Made about 15K

Lessons learned? Challenges?

Call the city first when needed questions related to subdividing and zoning. Also, make offers quickly. I'm convinced we got this deal because we were faster than most people.

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

n/a