First RE Investment: Vacant Land

[Emily Rozar]

Investment Info:

Other other investment in Memphis.

Purchase price: $3,400
Cash invested: $5,400
Sale price: $18,000

After some research on the neighborhood and sending out hand written letters to property owners, I purchased a vacant parcel in a neighborhood on the brink of redevelopment. I held the parcel for a year for long term capital gains and neighborhood appreciation. One of the added bonuses to this property was that it was actually two lots.

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

I was interested in this type of deal, because as a newbie investor I felt this was less risky. And it was a way for me to learn the steps of purchasing a property.

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

I found the deal by sending out 10 hand written letters to property owners of vacant lots in that neighborhood. I had two call backs. One property owner owed property taxes and was in denial. The other was willing to sell. I initially offered the assessed value on the tax assessor's website.. However, another investor had reached out to the property owner and offered him $1000 more. The property owner said that since I was the first person to ask, he'd give it to me if I could offer more.

How did you finance this deal?

Cash

Lessons learned? Challenges?

I learned how to purchase property.