Posted by zach on September 07, 2006 at 01:18:29:
Well if they are undeveloped a land developer could go in there, develop them, and make a profit selling off to a builder. Or someone could go in there develop and build all together. Or maybe the producer had them developed and is now selling off to a builder, doubt it though.
Empty lots? - Posted by Pilar( Long Beach, CA)
Posted by Pilar( Long Beach, CA) on September 07, 2006 at 24:02:53:
A movie producer is selling some plots of land above Ventura Blvd. in Woodland
Hills…why would you buy something like this? Aren’t these lots hard to sell if
there is nothing on them? Is there and investment to owning plots of
land…empty ones?
Re: Empty lots? - Posted by LK
Posted by LK on September 08, 2006 at 19:35:14:
When my grandfather was young (now 101) he claims he could have bought the 60 Acres he leased for $6/acre. When I was young (now 35) , I could have bought it for $400/Acre. Now FMV would be about $4,000/ acre. That is a decent return. I wondre what it will be worth in 10 years?
The problem is he didn’t have $360 in 1930, I didnt have $24,000 in 1988 and I dont have $240,000 now to park with no return until 10 years later.
So, as Mr. Garcia stated, you have to improve the use, subdivide it, build on it, or the most costly, sit on it.
Re: Empty lots? - Posted by Ed Garcia
Posted by Ed Garcia on September 07, 2006 at 08:54:08:
Pilar,
In Realestate Investing, we look for two things going into a deal.
First, a MOTIVATED SELLER.
If the seller is motivated they will give us either a better price, terms and conditions, or both.
The second thing we look for is properties that have UPSIDE potential.
Upside in a deal, means that the subject property can make more money if we do something else with the property other then what is currently being done.
Example:
Buy a house and fix it up (Rehab).
Buy a house that could be a small 2 bedroom and ad a bed room, bath room, remodel the kitchen, up grading the house because the surrounding homes in the area warrant it, allowing you to make more money on the deal.
Buy a large lot or parcel and subdivide it, making more money in the transaction.
Buy a lot and build on it.
Buy a property that is a good candidate to re-zone either to ad more units or turn into commercial.
Buy Apartments and convert them to Condo?s.
Buy a property that?s not currently being used for it?s best possible use, such as a boarded up gas station, on a corner lot that can be redone into a Commercial Office building.
These are just a few examples of looking for opportunities or properties that can make more money on what they could be, rather then what they are now. This is what I call VISON, and is being done by the more advanced Real-estate Investors.
I hope this post has helped you with your question,
Ed Garcia