Hi all,
I am relatively new to investing in real estate. I currently only wholesale. My question is will builders (mainly custom builders) buy at lot value or would they only buy at a significantly lower price?
Here is the senario:
Trying to get 2 properties under contract. Both are in very high end neighborhoods but were built in the 50’s and are bad shape. Would cost more to rehab than to tear down and rebuild; so i’ve been told. They are being sold at lot value, 1 @ 650k and one close to 550k the new custom homes a few houses down and on the other side of the street are being sold for 1-1.4mil. My question is…what price would a builder be willing to buy these lots at??? To give you and idea, the new homes in that area go between $150-$250 a sqft. Thanks in advance for ANY feedback!