Need help with my first deal

[Didi Oliva]

Hello as, just got my first lead & need help! seller house's ARV is 450,000,but she also owns the 3 lots around her house (28,000 each) All lots are over an acre. Do i use diff contracts? Im also trying to find out what she owes on it but its not on the assessors website. The house needs no repairs its in perfect condition but she's willing to take a profit cut just to sell it cash and fast and is very motivated. Even when I deduct her mortgage amt owed and my fee and 15% profit for my buyer, I'm not sure if the amount would be too high for a cash buyer. She says a cash buyer can build 3 more houses on the other lots so i think it would be a great deal but I dont know any investors that would go that high right now. Can anyone offer some advise please. thx

[Lynnette E.]

Originally posted by @Didi Oliva:

Hello as, just got my first lead & need help! seller house's ARV is 450,000,but she also owns the 3 lots around her house (28,000 each) All lots are over an acre. Do i use diff contracts? Im also trying to find out what she owes on it but its not on the assessors website. The house needs no repairs its in perfect condition but she's willing to take a profit cut just to sell it cash and fast and is very motivated. Even when I deduct her mortgage amt owed and my fee and 15% profit for my buyer, I'm not sure if the amount would be too high for a cash buyer. She says a cash buyer can build 3 more houses on the other lots so i think it would be a great deal but I dont know any investors that would go that high right now. Can anyone offer some advise please. thx

You still need to do due diligence with lots.  They may not be buildable.  The soil may not perk for a septic system, the soil may be unstable or there could be flooding on the lot.  Or maybe there is not available services such as water for new builds.  Or an endangered plant may be growing on the lot, or its wetlands.  Or maybe the building lot minimum size may have changed since the lots ere subdivided.  Lots of possibilities!  Do not assume they are buildable.