Hey everyone,
my partner and I have been attempting to follow the re tipster and land geek model for raw land investing / flipping.
After 3 mailings with about 800 postcards we have gotten 3 phone calls. 1 guy threatening to sue us for mailing to a “Do Not Mail To List” and two legit leads. Both don’t seem that straight forward and as this would be our first acquisition I was hoping to get some insight from the group. Both in Northern California.
Lead 1:
.23 acres, suburban lot, paved road,fenced, with utilities, water and maybe sewer(? not sure if a lot this small would have septic). Currently has a red tagged mobile home on it. It did have a non-permitted standalone garage that has been torn down. It has about $600 in back taxes and a $6000 lien from the county from the un-permitted structure we’re guessing. Seller started at $14k but then dropped to $7k if we take it as is and deal with the junk mobile home. Similar lots in the neighborhood have sold for around $30-55K in the last 18 months, but there are $150 to 250 houses near by. Assuming we use a title company to close we estimate closing cost to be about $1000 (seem right?) We think market value is about $25k.
So: $25k x 10%-20% = $2500-5,000 offer price. Say we get it for $5k+1000 closing+ 600 taxes+ 6,000 lien= 12,600 + unknown cost to deal with the mobile home, maybe 3-5K??
So maybe $15000 all in, leaves about $10k in room.
Questions: Has any dealt with junk mobile home? What about the lien? Can we call the county directly and get the true costs for get it clear? $15K would be a big chunk of our capital. Are we missing anything?
Deal 2:
Two lots, 20 and 23 acres on the backside of a large reservoir, surrounded by National Forest and something call an Environmental trust, several old mines in the area. Seller said access is easiest by boat, but it looks like there is a forest service road that almost gets within a mile. Seems like basically raw land, probably no water sources, tricky access, probably not buildable, maybe as hunting/ camping land. Hard to value this one, and the seller hasn’t given an idea, but I’m thinking around $1-5K, and maybe we could get $10-15k?
Any thoughts would be super helpful.
