All Forum Posts by: Rodolfo Calderon

7 acre tract. Asking price 150k settled for 90k being that theyd soon lose property due to taxes used a conventional mortgage. Initial plan was to develop & subdivide upfront costs and difficulty to acquire loan for construction and utilities would make me change plans. Focusing now on flipping being that similar properties going for 350k in the area. Take some drone shots list with agent that specializes in investment properties. Y’all’s advice and opinions are greatly appreciated and needed

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

I was literally just window shopping on realtor.com and saw this tract of raw land for a great price and just jumped on it. And of the excitement just started brainstorming investment opportunities

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

On realtor.com I was window shopping just for some raw land out side of city limits but not too far out so I could have an idea of the costs of trying to build my dream farm house. I passed the info over to my preferred agent and he really gave me the best advice for example when he offered 80k less of asking price I thought he was out of his mind but little did I know that he had valuable information such as they were in a distressed situation older couple children weren’t interested on keeping

How did you finance this deal?

Conventional mortgage 20% down 5.6% interest rate payments of 768 for 120 months

How did you add value to the deal?

By hiring a contractor to take down all the excessive brush mesquite

Lessons learned? Challenges?

Challenges My initial plan was to development and subdivide into 1/2 acre tracts and owner finance them starting prices at 60k per lot plus a reasonable interest rate depending on how long of a term would best fit the buyers budget. Being that upfront cost would be way too much for me to try and take on my own and also since I don’t have experience it’d be difficult to get a loan of that magnitude to subdivide and install utilities drainage storm water etc.

1 Vote

Investment Info:

Other other investment.

Purchase price: $90,000
Cash invested: $34,500

Found this 7 acre tract on realtor.com listed at 150k which to me was a great deal being it was border line of being in the city but still pertaining to county jurisdiction. So I immediately sent the info to my preferred agent he disclosed some information that they owed several years of property taxes and were motivated to sell we settled for 90k I took out my first ever mortgage loan which was a conventional loan 20% down 5.6% interest rate and for 120 months payment of 768 acquired property 06/13/2020 immediately hired a contractor with a dozer to take down most of the brush. My initial plan was to perform land development and subdivide into 1/2 acre tracts and owner finance them starting prices at 60k per lot plus a reasonable interest rate depending on how long of a term would best fit the buyers budget. But as talking to contractors and engineers I believe this route is to big of a fish for me to get my feet wet for this being my first ever true real estate investment. Being that upfront cost would be way too much for me to try and take on my own and also since I don’t have experience it’d be difficult to get a loan of that magnitude to subdivide and install utilities drainage storm water etc. My plan is now making a flip on it I’m looking at investment properties similar to mine in the area going for over 350k and they don’t have some the advantages that my property has such as it’s connected to 3 neighborhoods which will facilitate on utilities. My next step is to clean up the property make it look presentable. Hire some one to take some nice drone shots and list with a local agent that specializes in investment properties. Y’all’s advice and opinions would be greatly appreciated