All Forum Posts by: Mitch Bernstein

Good idea about the local price per square foot.  Looks like from what I found on Zillow (Recently Sold), the price per square foot is about $.41, for a cleared lot. 

The are essentially asking $.49/square foot ($150K) so I think a fair price would be about $120K, especially since it's a wooded, undeveloped lot.   However, to get to that price, I'm assuming I go in at $100K.  

Would you guys agree with that strategy?

I'm looking at purchasing a lot to build on for personal residence.   For obvious reasons I want to get the lot for as little as possible.  Getting it for the price I want is where I need some guidance.   Should I offer %50 below asking, 60%, etc?

Last time a made a low offer on a different property the owner was so insulted they didn't even negotiate.  

This property has some unique features (good schools, low taxes, etc) so I'd like to negotiate and not risk having them scoff and slam the door so to speak. 

 The lot is wooded and undeveloped, and is owned by the neighbors who we believe are going through a divorce and offloading this as they are moving out. 

Any thoughts?

@Martin Scherer With respect to direct mailing, is there a particular method you use or is it simply keep mailing until you get a response? Do you include an email or just a phone number so they are forced to actually pick up the phone?

@Mark D. I like your idea and think it makes sense, if nothing else to increase the odds that a pre-MLS property will be brought to my attention. To Martin's point, maintaining a good relationship will only help those odds.

@Karen Margrave All good points. Seems like "pounding the pavement" is the most focused strategy. I assume this means driving around the area to see if there's any land/tear downs for sale by owner. I'm guessing it also means writing letters to owners and knocking on doors. Is this about right or are there other things I could do as well?

As far as assessing land value, that is more murky to me. My contractor partner can provide the cost of what it needs to become buildable, i.e. septic/sewer connections, utilities, etc. But what the VALUE is, I can't say I'd know more, other than looking at nearby homes and determining what it cost to build the house, then subtract that from something like a Zillow estimate to determine land value comps. Is there a better/more accurate way to go about this?

John, Elizabeth,

That's a good perspective. I'm glad to hear that your experiences with a realtor have been positive, especially since this seems like the most direct route to acquire lots/properties.

Thanks John. With realtors, I've been given mixed advice. Some have said find one that invests on their own so they understand what you are looking for. But others said that creates a conflict of interest, since they invest they will take the best properties for themselves.

Is this latter statement valid or just someone that had a bad experience?

Hey Everybody,

I'm looking to buy a single lot to build a single family house in NJ, at the RIGHT price. The problem I find is that all the land advertised on Zillow or Realtor.com is either not worth it or over priced.

How do I find land at a better deal? I'm willing to buy an existing property and knock it down, provided I can still turn a profit.

Is auctions the way to go? REO's? Other?

Any advice is greatly appreciated.

@Bryan Hancock

Wow, I never would have thought about a franchise/tax implication. I'll have to look into that.

@Lynn Currie

Thanks Lynn. I'll be sure to put a contract in place between the two. Since the LLC's are both owned by my company, would I have to pay some kind of formal fee to "hire" the the one with the builder's license? I'd rather not move money around if it makes it easier.

Thanks for the response Dave. I must have missed this; sorry I didn't reply sooner.

In my case, it would be most advantageous for the holding company to have the GC license and then build each project under a separate LLC but using the main company's license to construct.

I am becoming a builder/developer and wanted to know if I can start an LLC as a holding company, and then build each project under it's own LLC. The project LLC's would be held by the holding company LLC, in theory. Is this possible?

The hope is that it would provide protection and keep each project's liability separate. HOWEVER, if possible, how does this apply to the builder's license? Can each LLC under the holding company operate under the Holding company's building license?