I have a investor who recently moved to California looking to sell a vacant lot. I am new to investing so my money is somewhat low. How do I determine if buyimg this land is a deal? He wants 10,000. The lot is in a location where there are a number of vacant ugly houses but the property value is going up and a number of investors are buying properties there.Can a lot be wholesaled to another investor?
In my opinion NO!
The only time I would buy vacant land is if there is new construction in the area, lots within a neighborhood no older than 5 years, or old homes being torn down for new homes.
If you do need to sale land, first prospect is you adjacent property owner.
I think the general consenus is that vacant land is not usually as good an investment as a house. With vacant land, yes, you can make a lot of money on appreciation if you get lucky. However, with a house or condo, you not only get appreciation, but also rental income potential.