Deal 3 - 2 Acre Colorado Mountain Lot

So this is the third entry where i will chronicle my first 10 transactions of buying vacant land. The third parcel that I purchased this year was located near Colorado Springs in the Mountains. I received a call from a gentleman that owned 2 acre property that he had purchased 30 years ago to build his dream vacation home for $15000. He was now being sued by the HOA for non payments. The seller was so negative towards the piece of land it had become very toxic. He had tried to give away the land to the POA and they would not take it. He actually had mediation scheduled for seven days. The current bills were

HOA - 2400

Water - 1500

Taxes - 400

I called the HOA and the water company and tried to negotiate the bills down. No one would budge. I told the seller I couldn’t help him. I received a call back about two weeks later. The seller had gone through mediation and paid $2400.00 to bring that bill current. He wanted to get rid of the thing fast. So I offered 1500. He would have to right me a check for 400.00 to cover all of the liens and encumbrances. The seller was about to go on a month long vacation so I told hime we would complete the transaction when he returned and I would continue to work on the water company.

After placing a few more calls I was able to get the water company to accept $600.00. So when my seller returned home I was able to give hime the good news. He would be able to put 500 in his pocket for a deal he originally bought for $15000. He was happy to get rid of it.

I paid all of the liabilities and started aggressively marketing the property. I was called by a realtor who guaranteed she could sell it for 10k in a month. Well 5 months later and a listing price dropped to $8500 I am still waiting for it to sell. Once my contract expires I will be able to sell my two acre mountain lot with water and power access!

This will be another solid deal. At this point I was still tweaking my marketing and sending 300-400 letters a month. Now I am sending 1000 a month. I will say when you start marketing with the right message in the right area the deals start appearing everywhere!