Hi there,
I am extremely new at this and was offered what I think is a great deal. However I have no idea how to structure this deal. Here goes:
I was contacted about commercial land in Alabama. The land is pretty good sized and the area is booming according to real estate websites and people I have talked to in the area.
The land is adjacent to a freeway and across the street from many big businesses. The owners have been approached by fast food chains, movie theaters and others to purchase the land, however at the time they did not want to sell. Now the partners who own the land have split and they are trying to get rid of the property quick.
They are asking $895,000 for the land, however I have heard they may take $800,000. The property was appraised in 2004 for 1.5 million. I am guessing at this point it may be worth even more.
I was going to at least get it under contract and then try to assign it to another investor. My problem is the seller wants $5000 earnest money and wants to see 5% down. I don’t have either right now.
Are there any suggestions on getting it under contract and then re-assigning it or should I try for smaller fish and gradually work towards the bigger deals? I also heard commercial land can be a tricky issue at times.
Any info or suggestions would be greatly appreciated.
Thanks in advance for all of your help.