All Forum Posts by: Patrick Connell

@Miles Stanley, I didn't mean to come off ****** (if I did, seems like I did but I could be wrong).

I agree with your example of a vacant lot in an established subdivision, short of the owner just holding it because they want it for some random reason.

My preference is also for cash-flowing properties, but this is a nice way to make some change without to much "work." 

Values for what I'm doing, individual lots outside a sub-division, is determined based on comparable properties in the area. They exist and they are relevant, and just like pricing a property, location, view, surrounding structures, etc. will all affect value.

Originally posted by @Miles Stanley:

@Marcus Nickson @Patrick Connell

Someone i know did this a few years ago and lost big.  I think he may have gotten a little overconfident (cocky) and went too big too fast.  His issue was he was holding onto the property (and making large/costly finance payments) while deal after deal kept falling through bc the buyers couldn't qualify, etc (there was always something).  Other than developing (which as an engineer specializing in land devlelopment, I can tell you invites a ton of other expenses that need to be accounted for...that a lot of starting devleopers DON'T) or selling off later (here's the speculation part), i don't see the value.  But then again, it isn't my model of choice.  You could maybe lease it out to others for storage to generate income (like RV's and stuff), but that might fall more into the realm of land development again depending on if any site improvements need to be constructed, etc..

Miles,

I think we may have two different ideas of what I do. I don't buy/sell lots with Developers in mind. What I buy are single lots, or large lots that I can sub-divide, and then sell them to people who want to build their dream home, investors who want to build other peoples dream homes, etc. I already know the area I'm buying in and because there are "small" lots within a City, the values are fairly constant and predictable.

I have bought them from tax sales (which means there is a little hold time before you can sell with Title Insurance but not to bad) or from owners who own them outright but have liens against them because Code Enforcement had to force mow it. Last year I picked up one for $7k, put another $500 into it getting a variance to increase the build-able width, and then turned around and sold it for $21k. My hourly rate on that project was $2,200 an hour, which I consider a huge win.

@Marcus Nickson I've been doing a few of these over the last couple years and they have been good to me.

Exit strategies include selling it off, developing it yourself, or holding onto it until the value increases; all depends on your capital, timeline, and goals.

Ray CPA out of Round Rock. CPA's, MBA's, and an Attorney all in staff. My go to for the last few years. Drop my name if you give them a call.

Or roll it over into a Solo 401k and invest in whatever you want.

If you're not wanting to work with an agent, you should hire an attorney to explains the in and outs of the TREC Contracts. Too many scenarios and specifics to answer such a broad question.

It's not what you think, but what you can prove. And based on what you're stating, there's no fair housing violation present. You're lucky they didn't just decide to evict everyone. Every State and Locale is different, but my leases all allow for guest to stay at least 15 days before needing express permission from me. The kids aren't such a big deal, but when adults over the age of 17 start moving into my units without proper background and credit checks, I get annoyed and mad. If I were your/get LL, I would have just evicted you for violation of the lease and left the increase alone. In the end, y'all are either gonna pay it, move, or be evicted. It's not pretty but it is what it is and the LL is in the right.

Every market and sub-market is different, do what makes you comfortable. In Central Texas, I usually charge one months rent. Some lower end properties, I charge 1.5x the rent.

You are correct, however, that they can't execute a lease without your written permission after the execution date.

In Texas, a Seller is NOT required to provide a Sellers Disclosure on anything other than a Single Family Residence. Duplexes and up are NOT required to provide a SD. The Seller is also not required to sign and amendment or do anything else. It sounds like you can't the timelines within the contract and are going to lose your EM if you are already outside the originally agreed upon OP. Also, there is nothing in Texas that prohibits a seller from "extorting" more money from a buyer. Edits closing. They have something you want, they can dictate what they want from you for certain things you want. All you can do is decide how bad you want it. Either way, you won't be recovering any of the money spent on due diligence.