Posted by Steven K Long on November 04, 2005 at 10:59:17:
Well how would you, the seasoned professional go about doing this?
Thanks for your input.
Pre-sold type questions - Posted by Steven
Posted by Steven on November 03, 2005 at 11:51:16:
Newbie idea and questions.
First I have no money, so my idea is to look for acres for sale for cheap, pre-sale them as subdivided property, get the money, and buy the acres, then turn around and sign over the title to who ever bought the subdivided property.
Example: Find 1 acre for $500
Subdivide it so 20 houses could be put there.
Sell each for $20,000 (even though I don?t own the property yet, I?ll even disclose that fact to avoid lawsuits). Have them use there own house plans, and construction companies.
When I get the first $20,000, I?ll buy the acre for $500, subdivide it, and sign over the title to the person who bought the sub-divided property.
20 properties: $400,000
1 Acre $500
My profit: $399,500
Minus any expenses
Are there any problems with this approach? How would I go about subdividing these acres? And how would you experienced investors market/advertise this type of pre-selling? Any other questions that I should have asked, but didn?t, and what would the answers be to those questions as well? What kind of risks are there?
Thanks for any info.
Re: Pre-sold type questions - Posted by Rob Ricker
Posted by Rob Ricker on November 03, 2005 at 18:48:59:
No offense, but it sounds like you’re really, really, really young … like 12 years old ;-). In all seriousness, your ambition is admirable, but you must gain the knowledge to match it.
Re: Pre-sold type questions - Posted by funbob
Posted by funbob on November 03, 2005 at 17:04:05:
I think the real problem is that you may be thinking too small. The lot
would be 208 feet long and wide if it were square. That’s big enough
to put a nice tall luxuary high rise condo. Maybe 20 floors with 10
units per floor. Just get a developer and do a no money down deal and
pre-sell the condos. Check zoning first though.
Re: Pre-sold type questions - Posted by Sign me up
Posted by Sign me up on November 03, 2005 at 12:33:37:
It sounds to me like you’ve overestimated your cost per acre and underestimated your lot values. I wouldn’t pay more than $200 for an acre and you should be able to sell your 2,200 sf lots for $50,000. That should make profits of about $1,000,000.
Re: Pre-sold type questions - Posted by DSmith
Posted by DSmith on November 03, 2005 at 12:14:40:
If you?re going to tell them that you don?t own the property, why would they not go and buy it for themselves for $500? This sounds far fetched to me.
Re: Pre-sold type questions - Posted by RMW(FL)
Posted by RMW(FL) on November 03, 2005 at 11:55:40:
You are going to divide 1 acre into 20 lots? I think your math is off just a little…the lots would be 10x20…Sounds good though…
Re: Pre-sold type questions - Posted by Steven K Long
Posted by Steven K Long on November 04, 2005 at 10:54:35:
And this is a great place to get that knowledge, is it not?
Oh, by the way I’m 38 years old.
But thanks for the info.
Re: Pre-sold type questions - Posted by Steven K Long
Posted by Steven K Long on November 03, 2005 at 12:19:57:
I would show them the pictures of where the acres/property is. But I would not tell them where at, until the purchase.
Re: Pre-sold type questions - Posted by Steven K Long
Posted by Steven K Long on November 03, 2005 at 12:01:53:
As a newbie I was just guessing. How many lots could you get on 1 acre?
Thanks for any info.
Re: Pre-sold type questions - Posted by Sgt.Sausage
Posted by Sgt.Sausage on November 03, 2005 at 15:42:25:
That’s nice. Are you telling me that you (or anyone you know) would purchase property … property for $20,000 (!) true “sight unseen”? Without checking it out first? With the intention of building on that property?
I’d like to know who your market is. I’ve got a couple of bridges I need to unload real cheap. I’ve got pictures of 'em too !
Re: Pre-sold type questions - Posted by Sgt.Sausage
Posted by Sgt.Sausage on November 03, 2005 at 15:22:54:
'round here – none. I live where things are sold in the hundreds of acres, and not a single one for miles around is divided into anything less than 5 acres. That means 5 acres for 1 house.
If we go a few miles in towards town, once inside the corp limit, I believe my local town allows for 1/2 acre lots. Meaning you’d get 2 lots from your acre.
BTW – I think you’re plan ain’t gonna fly. If you can pick up an acre for $500, why on earth would someone give you $20,000 for it? If I were buying, I’d take my $20K and buy 40 acres from the same folks who are selling it to you for $500 a pop. Folks really aren’t that ignorant. They’ll look around and see land going for $500 an acre and won’t go near your $20,000 for part of an acre.
Re: Pre-sold type questions - Posted by RMW(FL)
Posted by RMW(FL) on November 03, 2005 at 12:42:03:
You would have to check with your city/county ordinances to see. If you live in a rural area my guess would be one acre/one lot. Good luck!