All Forum Posts by: Anthony Ruiz

@Brent Coombs, Thanks for your reply. Yes I plan on being upfront and honest with anyone I deal with. I don't want to be known as "the guy who screws people over", especially little elderly ladies. Haha. In fact, before I even contacted her I came on BP to research questions to ask when looking into land. I wrote down about 10 and used them as a guide. She said I sounded very knowledgeable and asked if I was in real estate. I thanked her and told her; I worked with a group of investors who are always on the look out for a good deal.

I brought up the selling to a family because I would love the land for my family and I to live on. However, after paying back my funding with interest. I know I couldn't make the monthly payments.   

The PL 15% is with me bringing in the 35% of the deal. She only lends up to 65%. However if I can have my partner come up with say, 50% I can see if she'd be willing to lower her interest rate. 

@Curt Smith, Thank you for your reply also. I never even thought of seller financing. She did say everything was negotiable and seemed very willing to work with the buyer.   

I've been researching lots sold nearby. I did find a lot less than a mile away that is 0.73 acres and sold in May of 07' for $1,400,000.00 Just recently there sat two tiny houses maybe 500 sqft on the lot that have now been torn down. I'm looking for the owner of that land to be a potential end buyer for this one, if he's planning on building new construction.

Thanks again guys,

Anthony 

Hi BP,

I'm a long time reader time reader, first time writer. I'm usually able to find the answers to my questions by reading through older post. This time I'd really appreciate any advice and insight to a potential deal I'm working on.

Here's what I'm working on.

Spoke to a FSBO. She is an elderly woman who is currently living in a home that sits on two acres. She is looking to sell the land and move into a mobile home park in a near by city. The land has utilities hooked up to it. She owes nothing on the property. No liens, back taxes, etc. She is a retired broker and is looking to sell for only the land value. She's asking $620,000.00 Doing my research though the county tax assessor and collector's office, their sites give a roll value of $59,850.00. The land has been in her family since 1944. She told me the lot adjacent to her's is another two acres her grandfather gave to the city; which they have done nothing to it. The area is a very highly desired area. Within a one mile radius builders are building new homes. The new town homes going up start at $375,000.00 and another builder is building estate homes that sit on half an acre starting at the low $900,000.00. It's zoned R2, county permits 4 house per one acre. That could potentially be 8 homes. She had mentioned or 14 condos. She said she's been offered cash and closing in 30 days from several builders, but said that isn't enough time for her. She is obviously not in a rush to sell. I do not have it under contract yet. I told her i'd like to do some research before making an offer. She said everything is negotiable.

I had a few thoughts on what I could do and wanted to get some feedback. 

1) I can borrow up to 65% from a private lender friend at 15% interest, with 12 months to pay back. I can get the other 35% from a partner and offer him a percentage as well. I'm thinking I could sell the property to a builder, pay back the funding and pocket the rest.

2) Add in my fee and wholesale to a builder or investor looking to get into new construction. Without borrowing any money.

3) Wholesale to an end buyer, but keep a portion of the land for myself to build on and live.

I've read the exit strategies for wholesaling before having an end buyer in place. IE. inspections not passing, partner not agreeing, etc. It sounds like she'd rather sell to a family then a builder. 

I'm a newbie and this would be my first deal. I thank you all in advance.

Thanks,

Anthony

@Jon K

Thanks! Would you, or anyone; mind explaing the differences between; market trends and emerging markets. Or are they the same thing?

Thanks again

Corey

Great question. A question as a newbie; Do I still have time to make money now, if Im just starting? Short term goal is to wholesale/assign, long term buy and hold apts.

Thank you for your replies.