Joe SchmittParticipantFebruary 13, 2018 at 10:40 pmPost count: 63
I offered $300 an acre in Elko County, NV (northeast corner of the state). I was fortunate to open my mail today from a seller who is willing to sell me two properties quite close to each other (1.3 and 2.7 acres in the same subdivision) for $2200. They are 5 miles from Elko proper where there is a Walmart, Home Depot, etc. Both have access, but not much else.
Comps seem to be about $1000 to $1500 an acre for properties that are further from town than these. It brings my acquisition price up to $500 an acre, and really burns most of my seed money. I’m a little concerned about sitting on the properties for too long too since stuff in this part of the country seems to sit for a while. However, taking down two properties in one quick deal may be worth it.
Thoughts?Charley SchelhouseParticipantMarch 11, 2018 at 8:52 pmPost count: 11
At those prices there’s not enough meat on the bone to wholesale them. I might pass for now unless you could counter low enough where you and whoever you wholesale them to could make a profit. So maybe counter for all 3 acres at $1250 , sell for $2500 wholesale, and he can resale for $3750 which puts you right in the middle of your comps. That way everyone doubles their moneyLuke SmithModeratorMarch 11, 2018 at 11:17 pmPost count: 1247
Are those comps my land? I might sell you some Elko for 300$ an acre.
It’s almost spring though that’s when that stuff moves retail.Joe SchmittParticipantMarch 12, 2018 at 3:23 amPost count: 63
I did wind up buying these properties. I figured the point of doing your first deal is to get it done and learn.
I guess it’s better to be lucky than to be good. I am fortunate that these parcels are quite close to town, so that has generated some decent interest. I’ve already had a few calls on the smaller one after less than a week. I might do another mailer just to the subdivisions around town to try to scoop up additional small lots.
I don’t think they were your comps @luketsmith. I used Ladnwatch and CL for sanity checks.Kevin FarrellModeratorMarch 12, 2018 at 5:25 amPost count: 753
Joe – Congrats. Dive in there and learn as you go. None of us ever really learn in this business unless we actually buy and sell land. After the first few deals you will be hooked and a little smarter too.
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