Investment Info:
Other wholesale investment in Savage.
Purchase price: $50,000
Cash invested: $2,000
Bought 3 City lots in a city with very high demand for housing. Plan on developing these into rentals and/or lease options/ owner carry.
What made you interested in investing in this type of deal?
The land was purchased below appraised value in a good area with very high rental demand. I'm bringing in temporary rental housing to cover expenses while investigating building the first permanent home. I plan on eventually adding three permanent homes with two or three ADU's.
How did you find this deal and how did you negotiate it?
My husband has a friend he went to high school with who is a real estate agent. I simply called her and had a conversation about what was available in the area that would fit what I was looking for. She sent me some listings, I choose the one that I thought would be best as far as location, beauty, accessibility and put in an offer. They accepted a lower offer than listing price without any counter, paid closing costs, half the appraisal and we had the deal done within a month.
How did you finance this deal?
I took out a HELOC on my home and paid cash.
How did you add value to the deal?
Offering to pay half of the appraisal costs.
What was the outcome?
We now own the lots. They are almost completely paid off on my HELOC and there is a huge potential to gain alot of capital out of these.
Lessons learned? Challenges?
Still learning. This adventure as just beginning.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My agent was extremely knowledgeable, helpful and fast. She is there on a moment's notice when I have an inquiry continually. I most definitely would give her name to anyone looking in my area.
