Some advice on this please!!!

I have been looking into pre-foreclosures for some time but have not ran across anything that looked too profitable. However I recently ran across a deal that I might be interested in working and keeping for myself. I would like to just give you guys the numbers and see what you think.

32.91 acres
Market Value $122,228
Principle still owed $52,730.82
Total amount in arrears $8,903.12
Total back taxes $1,478.96

Other than that I do not know anything else such as whether there is power, or water ran out there. Also I have not yet done a title search to see if there is any other outstanding balances attached to this property. My business partner is going to check the land out tomorrow and see what it looks like and get back with me.

It has always been a dream of mine to pick up some land and open a high end resort offering cabin rentals and horseback/backpack trips. There is nothing of this sort in the area at all which is really surprising. This land is located in the prefect area since it is right next to a National Forest with plently of trails and outdoor recreation opportunities.

What do you guys think my next step should be? Do you think I could maybe work a short sale directly with the bank? I am planning on contacting the owner as well by mail and see if he is interested in working something out before it goes to auction because I know the price is going to be driven fairly high.

Also how hard do you think it would be to find possible investors for a project like this? I want to build a lodge and start off with about 8 cabins for rent each having different themes. Of course everything done would be of the highest quality as that is the atmosphere I am trying to achieve. I have excellent credit and about $14,000 cash on hand plus my partner is my dad and he has over $50,000 cash on hand and even better credit. However I want to do this right so I know that I am going to most likely need outside investors.

Any suggestions would be greatly appreciated because I would like to get working on this as soon as possible since the auction is scheduled for the 29th of July at 10 a.m. That is why I want to get your oppinion on this and its potential. Thanks a lot in advance for the advice.

That looks like a pretty big project.
I would look V-E-R-Y closely at available utilities,
construction costs, and operating costs. If you’ve
not done much development or building, you probably should be a bit leery.
I also would wonder why the present owner is
allowing the property to go into foreclosure with
so much equity in it. Something seems to be not quite right. Be careful.
Good luck,

You will need to check with the city or county to check out the zoning on that parcel of land and to see what the future plans on the surrounding property because that can affect the value of the property lets say future plans of running freeway through the property or a sewage plant or something odd may be looming.

You may also just check at water rights or what it would cost to improve they land in to plots.

You will also need to ask the city or county planning department to ok the land for development for cabins or what ever you plan on building

You will need to do your your due dillegence because of the risk involved in raw land because anything can change and the city and change there minds.

I wish the best for you and I hope that you have found a great deal because the numbers do look great and your exit stategy sounds good too.