All Forum Posts by: Marvin Robinson

Ok understood.  So with that said Karen, is wholesaling infill lots that are empty or have tear downs on them, similar to wholesaling houses?  Meaning, I would find a lot and try and get it at 70-80% discount to arv?  Would I then find an investor buyer that would pay potentially what the lot is worth or am I expected to provide a discount to the investor buyer?  How should I pull comps on said infill lots either ready to build or teardown?  By pulling and comparing similar vacant lots or properties sold and current similar listings?

Thanks

Thanks for all the great responses.  I think I'll follow the KISS advice on this one and look to wholesale this puppy.  No, I'm not a contractor.  Before attempting building new, I'll look to get more knowledge in this area.  That said, I believe I read a post or two in here stating in order to come up with a price to offer you have to take the arv for the new construction in that area and subtract the new build construction costs, permits and site prep and my assignment fee is that correct?  Retail construction costs average $112-$120/sqft.  I'm told builders can build for ~$60/sqft, what number should I use for construction costs in general?  Did I miss anything in terms of determining an offer price?  What type of earnest money deposit should I shoot for?

Thanks

This is the better reply, sorry for the previous post:

Thanks for the reply. I would actually use a standard TREC purchase and sales agreement as I'm investing in the Houston, TX area and the seller of the lot has an agent and she contacted me to see if I could make an offer on the property before she lists it. To be specific, I was looking for particular verbiage that I'll need to ensure I place in the contract so I'm protected while also providing me with the most amount of time to entertain possibly finding a buyer to purchase the new construction, thus funding the whole deal. I know I could just wholesale the lot but I wanted to weigh all my options.

Is asking the seller for a 6 months window when buying an infill lot common if I try and find a buyer to fund the whole construction? What time frame is typical for contracting an infill lot with the purpose of wholesaling it, 30, 45 days etc, and is it similar to wholesaling single family properties?

Thanks,

Marvin

Unless you are an experienced real estate attorney, you have no chance to " draw up a contract to do so" even with help from BP members. If you had many years of real estate experience but no contract writing experience you might have a 2% chance to craft something that would be truly protective and effective. Writing contracts is a mine field.

I know almost nothing of the niche you are speaking about but my educated guess is that - provided what I'm about to write is legal in your state - you want to find very motivated sellers of the lots (developer and/or civilian owners), get options to purchase for at least 6 months and preferably a year or more (usually best to also have as an addendum the completed purchase and sale agreement that will be used, and secure your options with mortgages.

The option agreement and the mortgage must be created by a knowledgeable, experienced real estate attorney. The chances are great that they already have those documents available and can get them to you for reasonable prices ($100 - $200 each more or less).

Thanks for the reply.  I would actually use a standard TREC purchase and sales agreement as I'm investing in the Houston, TX area and the seller of the lot has an agent and she contacted me to see if I could make an offer on the property before she lists it.  To be specific, I was looking for particular verbiage that I'll need to ensure I place in the contract so I'm protected while also providing me with the most amount of time to entertain possibly finding a buyer to purchase the new construction, thus funding the whole deal.  I know I could just wholesale the lot but I wanted to weigh all my options.  

Is asking the seller for a 6 months window when buying an infill lot common if I try and find a buyer to fund the whole construction?  What time frame is typical for contracting an infill lot with the purpose of wholesaling it, 30, 45 days etc, and is it similar to wholesaling single family properties?

Thanks,
Marvin

That's what I was wondering because the speaker used the term control the lot vs wholesale in the webinar I attended.  I'm familiar with wholesaling single family, commercial, and multi-family, however with me being new to infill lots in regards to buying them and building new construction, I wanted to be sure.  So if controlling the infill lot means to wholesale it, is it unfeasible to place an infill lot under contract with the purpose of finding a buyer who wants to build new, and use their funds to complete the project including initial surveys, prepping the site for build etc, considering I would have to find a potential buyer?  If possible, is there a usual time period in the contract say 3 months, that could possibly give me enough time to find a buyer, that is typical when dealing with sellers?

As I've been looking for wholesale single family properties, I've come across numerous sellers who asks if I can buy their infill lot or tear down/build up lot.  I'm new to this and after watching a webinar, I now want to expand my investing into this area.  Any help to get started would be great.  Or, please let me know if clarification is needed.

Thanks!

Hello,

I recently attended a webinar that states investors should control build-able infill lots instead of buying them, how do I draw up a contract to do so?  The intention being to find a retail buyer that through their purchase of the new home construction, would provide the financing needed to build the new house, and my profit margin.

I'd also consider wholesaling this lot as well.  Are there any considerations for doing so?

Thanks,
Marvin