Purchase a house under land value?

[Alex Huegle]

Hello all!

Newbie wholesaler here and I've utilized this site for lots of advice so I'm hoping to this will work again.

I just looked at a property with my contractor and the potential for a great deal is there with very motivated sellers, but I was wondering people's experiences in offering home owners a sale price of less than the land value of the property?

The house we viewed sits on just a shade under 1/2 an acre with a land value of 36k, but sticking with the wholesale formula in order to get this property I would need it at 20k max.

If anyone could offer any advice or tips from past experiences on how to frame up this conversation I would greatly appreciate it. To me it's basic math. While the land may be valued a certain number, given the condition of the house the repair costs will simply eat into that number in order to turn a profit.

Thanks!

[Patrick L.]

The land isn't worth "land value" until the house is demolished, removed and the site cleaned up.