All Forum Posts by: Jim & Michele Wilcox

If that is true - why would anyone even consider the property? even if it was free! - why take on such a cleanup headache? You can pass on deals - sometimes its the best thing to do.

If you are afraid of what might go up and can't swing both, maybe you should pass. If you are investing to resell - it may not matter what is next door. Mostlikely, someone will by the vacant lot and build. But if its not YOUR permanent home - I wouldn't worry very much. I purchased the vacant lot next to me because I was planning of living there a long time and didn't want anyone next to me.

Its like anything else, you have a gorgeous sunset out your back window until the guy next door builds his home. You can't stop that and I don't see how it could affect you in any way when selling - just so long as the buyers knows and sees that something may be built next door.

If he takes over 6 months to rehab -- he shouldn't be doing this or the job is way too big - cause he's gonna lose money! :wink:

If it takes longer to sell it - yes, he'll need another one.

If you are assigning the property - it will state that in the contract - and it should state that in the contract. So, when you are going over the contract with the buyers, you will talk about that clause. You'll tell them that you have partners who might like to purchase the home from you or you know other investors who do rehabbing that might want to purchase the home, or you might rehab it yourself.

If the Sellers are eager to get out from under - they will understand. As long as they feel they are getting a good deal - they will not care what happens after they get their money or ??

Explain it up front though and make sure you have an assignment clause in your contract. People say sometimes that if it doesn't say it - it is implied. It's better to be upfront and state - "John Doe and assigns".

As far as earnest money ... you can decide that yourself. If you want to give the Sellers some good faith money, do so. The amount doesn't have to be a lot. Then they can get the rest AFTER the closing and AFTER they move out. Some people give them nothing. I think giving some money gives the Seller a better feeling about the deal. Many deals don't even involve money to the Seller because they are so far behind on payments. In that case, some people will give them "moving money".

Good luck.

You can easily find out if you can subdivide the lot by finding out how it is zoned. Just go down or call your city planning dept. and they can tell you. Usually to subdivide one lot in half is very easy. You just get a surveyor to survey the lot and show where you want to split it. Then submit it to your city planning dept. and then when approved - record it. If you were dividing the lot into many lots, that's where you run into red-tape and lots of money.

You'll probably need an appraisal on it when you sell it - so why not do it now. It will probably be "current" if you take only a couple months rehab time. Then pass the appraisal fee onto the buyers.

If you want to know IF you should purchase the home, just ask a realtor to run comps or solds for you in the neighborhood. That will tell you what the house will probably sell for.

Hi - The way you explain it - nothing. Check into who owns it - then offer them a deal and buy it. Then you control what goes in next door on the vanant lot.

That's why I purchased the vacant lot next to me.

Sounds great! Yes, share the details....

Welcome ... Are you saying you are looking to purchase property in California for in the price range of $55,000 to $100,000? I doubt that is possible. Do you live in California? If so, you should know that houses haven't been in that price range for many, many years. Even REO's won't be that low. Most REO's are listed at FMV or just a tad below even though there's work to be done on them.

With so-so credit and little money, you'll need to be creative. You might look into doing some subject to deals.

Do some reading around this forum and you'll learn quite a bit.
Good Luck.

Just one word of caution. Talk to a mortgage broker about your project. There are some problems with private individuals buying land, building and then selling - called a spec home. There may be some legal or tax issues there. Who is going to live in the new dwelling is of concern to a bank especially if you are a private person and not a construction or investment company. They don't like to trust people who have never built new construction or have any building experience - even with a competent builder.

What you need to get is a construction loan that wraps your property (if not owned) and buiding costs all in one package. You can also put your interest payment (carrying costs) into the loan too. So you won't need to put out one penny until the project is finished. You'll need to get appraisals to satisfy the bank as well.

Do your research and talk to lots of people about how to do this correctly. It is not an easy thing to do - although everyone seems to think they are builders these days.