Raw Land Deal ? yes or no

General Real Estate Investing
1

Have an out of state investor who bought a package deal here in NC
some appts, and land. I initially contact him on the appartments . He called me
a few days ago about his land.The investor he working with pulled out at the last minute. He has 12.6 acres of raw land. with homes built around the land already valued between high 200k to 400k. Lots of 1 to 1.25 acres has sold for 21-21k a piece. He had it listed last year with a realtor that appraised the land for $160k. He only signed a 3 month contract, then. The Realtor stated if he re-listed the land for 130k and was willing to take 120k, they were confident it would sell. He was interested in that then, everything was going good. But now his situation has changed… he needs to liquidate… I have this land under contract for $90k. He needs to close in 2weeks…

My cousin who is a builder said since the land isnt plated … I dont have enough
cash reserved to develop it. But it is still a good deal to try to sell to someone else.

My question is., Is it a deal. How would I go about finding a buyer. Is it realistic
to get it done in 2 weeks.

thanks.

2

There is absolutely no one who can tell you whether or not that is a good deal without knowing the immediately area of your purchase and the local market extrememly well.

I could tell you whether or not it was a good deal in my immediate town, if you gave name the exact address. In NC? I haven’t a clue.

What is happening with development land in my area is that it is not selling. The developers have stopped building until inventories are reduced, so the bare land is sitting, and there are subdivisions that are already completely ready to build on, and they are for sale.

I really like bare land. If you choose the right piece, you can do extremely well with it. Bare land is generally a long term hold investment.

You can flip bare land if you get it cheap enough, but it is slower to sell, because, generally, it is not financable. So you have to wait patiently for a cash buyer.