Posted by michaela-ATL on November 08, 2002 at 05:20:58:
steve,
several things, that come to mind:
if the lot is not big enough to build on, why would a developer or builder want to buy it?
if this is 1 single lot now, then you can’t sell part of it off, without paying off the mortgage.
you write:
“Do I buy the lot undervalued refi high and give the seller (someone close) the asking price later after the work?”
what work are you referring to? the paperwork? rehabbing the house? (you only talk about buying the lot at that time, so that can’t be right).
either way, i don’t suggest to do work on a property without owning it first. you never know what may happen. what if the owner suddenly doesn’t want to sell, because now the property is nice and fixed up? (when it comes to business, it’s very difficult dealing with friend and relatives. even if you have the greatest relationship, once money is involved, it can hurt that relationship.)
what if the owner doesn’t pay the mortgage and the lender forcloses?
just my thoughts
michaela