All Forum Posts by: Jason Hammond

Investment Info:

Other wholesale investment.

Purchase price: $66,500
Cash invested: $100
Sale price: $76,500

Undeveloped land with no utilities on it

What made you interested in investing in this type of deal?

The owner was in financial trouble, and I had learned the skills that could help him

How did you find this deal and how did you negotiate it?

The deal itself kind of fell in my lap. it was brought to me by a friend of a friend who was concerned for his friend. I went in on a joint venture contract with a partner to help me through my first investment wholesale deal.

What was the outcome?

I found a wonderful single mom with three boys that are all very active outdoors people, and they are going to build their dream home there!

Lessons learned? Challenges?

A wholesale deal on undeveloped land is very different than a wholesale deal on a house. I can do it again but I think I want to try for a house next time.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I would recommend working with the title company NexTitle, and as always the North Idaho REI team is an excellent resource!

Thank you! I await your message :)

I have some questions about wholesaling vacant or undeveloped land. I am new tho wholesaling, and was looking or my first deal when this parcel of land deal fell into my lap. As I had no idea how to really approach this, I found someone that knows just a little bit more than I and we are attempting to work the deal together. One major thing that I am finding though, it is a lot more difficult to get a list of cash buyers going for land than for houses.  The traditional method of looking up who previously purchased land around the area does not seem to be very viable, as most of what I am finding are families that have purchased for building their own home, not any sort of developer. Now I have a parcel of land under contract, not at a horrible price, but unsure as to how to move forward proactively. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

So I have a potential deal, but I am trying to calculate the numbers, and generate the right report for this. I found a place that is about to go to auction, and the guy owes $13,500 on his loan, of which the original balance was $108,000. The valuation of the property is at $208k currently, with average comps in the area running from 205 to 220. It already has tenants, and my plan was to help the owner out of his tough situation by seeing if he would take the amount of his original loan (divided to pay off the remaining balance of the loan) so he doesn't have a foreclosure on his record, and would give plenty of room between that and current valuation. But, the report is not generating the information I think it should, and seems to make it a lousy deal. What am I doing wrong? (the $10k wholesale is a very flexible number, just a standard starting point I use.)

@Jeffrey M I'm still very new myself, trying to find my first wholesale deal. I would love to chat with you sometime, perhaps we can exchange ideas to come up with a better way to make money in the Spokane market!

Two thoughts come to mind here, as I know what it's like to try to find a place while I have bad credit. First, there was a Bigger Pockets podcast just recently, where the gentleman spoke about actually and going to where his potential tenant currently lives to see how they care for that property. If it's not in the condition you would want to see your property kept, don't rent to them.

Second, in taking up front money, you set a precedent with them. Depending on the laws in your state, getting a squatter out can be lengthy and spendy. 

another option you could consider depending on what you want to do with the property, is a seller financed purchase option, at a slightly higher monthly rate, as you are carrying the note. If he backs out a you still have the same issues as before, but you don't have to worry about how he takes care of the property as much, as that sense of ownership tends to make a person care a little more for it.

Whatever you do, the hoops that you show your willing to jump through at the beginning will become expected of you later on. Is that time you would invest worth the income received?

Would it be wise is situation s like this to work more off the 2% rule?

@Bruce Ragle there is a meet up in cda tomorrow, and there is one every month in Spokane, and in Sandpoint. If you download the Meetup app, it has all the meetings in the area, and the ability to sync to most calendars.

@Matt R. While I was aware generally that there had been electric cars for longer than gas, indie not to that it was to such extent. Thank younger the great information! I still think that we should look into thorium, it is safer and better than uranium.

@Ryan Mckimm I never once disagreed with that we are hurting the earth, and that we need to do better. You did not seem to understand my point. I am in agreeable with you to an extent. However my point is that judging the results of what we have done to the earth by measuring carbon is like checking your tire pressure to see how fast you were going. Carbon is an end result. Not a cause. If you understand that, you will start to look for the cause (don't just say humans, that's a cop out) and you will start to see a much larger and scarier picture. There is so much more in play than just us. Magnetic pole shift. Oceanic jet steam changes. Saline content changes in the ocean. Volcanos, often not reported to the states. While our contribution to the damage and changes is not insignificant,  it is not even close to a primary factor for cause. You are right in the small part that you are speaking of, but from what I am seeing, your view is a tad myopic.