All Forum Posts by: Benjamin Shaw

Thanks so much for the responses everyone . This really clears things up. I'll update with the results soon. So much to learn.

Hi BP. My Brother In Law is about to purchase some land. He is being asked to make a written offer by tonight. Should he have a lawyer do this? Is a written offer legally binding? Is there such a thing as an informal written offer? Is this something that someone with no prior experience should be trying to do in one night? Thanks, Ben

Hello. I have recently discovered the BP forums and noticed all of the great advice given by professionals to help people just starting out so I thought I would give it a shot and post a scenario to see if anyone could help.

My brother is thinking of purchasing land in Danbury CT. Two acres, house plans (included) for a three bedroom, two bath, two story home, in a great neighborhood. The property is fully zoned, and has the foundation already poured. It needs the septic replaced and the pump and piping replaced for the well. It is selling for $95,000 and appraised at $120,000.

He has an excellent job, excellent credit, with $20,000 for a down payment. He does however, have a current mortgage that he is neither upside down on or has positive equity in. He really doesn’t have any near future plans for the property, only to possibly build a house to either live in or rent. He is financially stable enough to carry another loan for $1500.00 a month. Also, the land used to be in our family so he has a personal attachment to it as well, hence the reason I am seeking information to see if this would be a good deal for him without clouded judgment.

The seller has a pending offer, but is willing to wait to see if we can get financing for a counter offer. He will also give us the house plans to go around to banks and credit unions, and we will work up a portfolio on the property to show them as well.

If he chooses to proceed how would he go about getting a loan for land? I read land loans are very hard to get.

Would a personal loan be a good idea? If so any suggestions as to which company would be best?

He is also looking to purchase a heavily discounted rental property from his grandfather in the near future. It is located right next door to the land he is looking to buy.

By purchasing the land, could that somehow cause him to not get approved for the mortgage on the rental property? I’m just thinking ahead. I know this is a lot of information and there’s so much more to it but any advice at all would be much appreciated.

Hi Keith, Monday is good for us! I do work from 9-5 at my day job, but my schedule is flexible. I'll send you a text so we can set something up if it works out for you. Thanks Ben

Hi Keith, Very interested! No we are not in construction, although my wife and I just completed a new bathroom that turned out really nice. I should warn you that my real estate experience is limited to the 15 BP podcasts I've listened to and a few days of browsing the forums. I do have some entrepreneurial experience though and I am an engineer at my day job. Right now I do CAD design work on the side. The biggest plus being I've learned just enough about this to realize my wife was born to do this, and have also turned her onto the Podcast. She's excited, but at the same time concerned because we are still three years from paying off our debt. We do have excellent credit though. From what I'm seeing that should not stop us from charging ahead full force. Typing this on my phone in my car while I wait for an appointment so sorry for formatting or spelling errors.

@Keith Blair My wife and I live in Danbury CT and are just barely getting started in REI. Your construction background is interesting since we will most likely be looking for someone to partner with as we start getting into this. Also looking to network with people in the area.

Welcome to Danbury!