EllisParticipantDecember 2, 2018 at 6:21 pmPost count: 22
Hi guys. Another quick question for the community.
Would you guys buy these properties? The reason I’m posting them here for opinions is they each have a “problem.”
Property 1: 2.7 acres of rural vacant land, but it’s got this huge bladed path through it. Do you think this takes away from usable value? Should I drop the resale price because of it?
Property 2: 2.06 acres of vacant resid city land, but it’s land-locked, and one would need an easement to get to the road.
Guys, I’m so conflicted about these two deals. What would you guys do?
Thanks in advance.Kevin FarrellModeratorDecember 2, 2018 at 6:30 pmPost count: 753
Ellis – On property #1 I would call the seller and ask what that road if for. He will know. You may not want to buy that if logging trucks go through there. Is it part of an easement? Just ask.
On Property #2 are you assuming that there is no easement? You may want to call the county and see if there is one already there. Without access I would not buy it.
Let’s hear from a few more people on this one!Rod HallParticipantDecember 2, 2018 at 7:43 pmPost count: 249
I don’t like either one. I used to deliberate should I Should I not? Took the fun out of it. For little properties it’s just not worth it to me. You didn’t say what they would sell for so I am assuming they are cheap. For me, to much thought for small money. That said I have bought super cheap problem properties just to “fill the shelve” on my web site.EllisParticipantDecember 2, 2018 at 10:08 pmPost count: 22
Yes they’re cheap. Selling between 5k and 10k. I’d be getting them both at a great (GREAT!) price though, which is why I’m back-and-forth about them.
For property 1, even if there is an easement through the property, I’m thinking there’s still enough room on the top half for the right buyer. What do you think?Kevin FarrellModeratorDecember 3, 2018 at 7:07 amPost count: 753
Ellis – Here is how I think about a deal like Property 1: If I buy it cheap enough someone will buy it but it may take a long time. By having that road taking up 1/3 of the property I have turned off 2/3 of my potential buyers.
What I always tell people is “Take these deals with questions and concerns and put them on the bottom of the stack. Work the better deals first. Always take the low hanging fruit.” If these two are some of your first responses to a mailer, then wait for better stuff. It’s coming. Just wait a few days.
Like Rod said – you can buy them if you want to fill out your inventory a little. They may not be fast profit deals.EllisParticipantDecember 3, 2018 at 10:38 amPost count: 22
Thanks for the advice. I think I’m just trying to salvage a 1400 piece mailing campaign that fizzled. Had 4 signed offers, and only Property 1 as a possible deal. The others fell through due to high tax balance, multiple owners (14 to be exact) and no/questionable access (Property 2 to be confirmed).
I may go ahead and purchase Property 1 and sit on a while. Thanks again.Kevin FarrellModeratorDecember 3, 2018 at 11:07 amPost count: 753
Ellis – Sorry to hear about the low success rate on your mailer. You already mentioned that the prices were really low in your offer. Too bad, but much better than high offers IMO. Also, if you think you know what adjustment needs to be made in your offer price, you can just update your list and mail again. I know J&J don’t teach multiple mailings, but I would try it in this case.
I would revise the letter to say “Hello, I recently contacted you about buying your land and I want to present an improved offer for your consideration . . .” By doing this you will get a few good, profitable deals and cover the costs of both mailers. Give it some thought.EllisParticipantDecember 3, 2018 at 11:48 amPost count: 22
Hmmm…you know, my business partner (i.e. wife) recommended the same thing. I will give it some thought indeed.
I offered about 15% of a really low retail valuation for the size range I mailed to…probably need to come up to at least 25% for cheap properties like this…lesson learned I guess.Kevin FarrellModeratorDecember 3, 2018 at 1:31 pmPost count: 753
Hey, not a bad lesson. Here’s another lesson: Make sure that when you do this, give your wife credit for the idea. Trust me on this one.EllisParticipantDecember 3, 2018 at 8:21 pmPost count: 22
By the way, turns out that path on Property 1 is a permanent pipeline easement…do you think anyone would live on that?? I’m thinking definitely run away at this point.
It’s pretty clear this mailer attracted all the junk nobody wants.Kevin FarrellModeratorDecember 4, 2018 at 6:02 amPost count: 753
I would not do this deal. Others might.Rod HallParticipantDecember 5, 2018 at 9:14 amPost count: 249
hmmm. Now I more interested in the deal. What is this particular property’s best use? I sold a 10 acre with a pipeline easement. Best use? Small ranch or grazing. Of course, recreation. (rural). But not to far from sizable town. On a road. Water rights. The easement was along the border of the parcel not through the middle.EllisParticipantDecember 5, 2018 at 10:38 amPost count: 22
This property is completely unrestricted usage wise. So, I’d say any of the uses you’ve mentioned. Of course this property is only 2 acres, and the easement is indeed through the middle.
Did you market that property as good for grazing, recreation etc.? How long did it take to sell?
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