It was a really run down and had seen much better days years ago. As I came around the bend, there it stood, an old stone building that used to be a personal care home. It had been vacant for several years. Behind it was a large occupied home in the center of five acres.
The house was occupied and very rough. I met the seller and asked him if it was still for sale, and he nodded yes. I asked him how much that he wanted and the details of the property and buildings.
He informed me that there were two structures and two acres on one deed, two and half acres one the second deed, and a half an acre on the third deed. He showed me the layout and we toured the buildings. They were very rough and needed lots of work.
He had wanted $500K several years ago but no one ever looked at it. He said to make him a reasonable offer. I took all the information with me and began to pour over it. I met with the township to get some direction and got the latest codes.
I met with an engineer and also checked out getting access to utilities. It was at best a challenge. I knew there was potential, but I still had more homework to do.
I went back to the seller and explained my findings and of my casual interest. I didn't want to do all this work and have it sold to another. I met with the seller, and we agreed on a selling price of $225K and he would hold the mortgage.
I decided to test the waters, so I placed a small sign on the property and ran ads in the paper under various uses. I was so surprised by all the calls that I got.
I had numerous open houses and had interest in both structures and also in the acreage.
Then, it finally dawned on me what I needed to do. A simple changing of the property lot lines would solve the problem. It was already subdivided, but both structures were on one deed with two acres. If I were to divide and place one structure with one acre, and the second structure with one half acre, and the raw ground with the balance of the acreage.
I hired an engineer to draw it up accordingly and I took it before the township, and gained instant approval in ten minutes. I had a list of buyers for each of the new parcels. All three buyers were on board right away. One for the home, one for the building and another for the raw ground to construct town homes.
I had a three-month option to buy. I spent $5,000 for engineering fees, and after closings, walked away with a total of $106,000. I knew that this property had potential, and by playing with some various scenarios, finally determined that by simply moving two interior property lines, that solved the problem and made all the difference.
More money could have recognized if I had wanted to redo the commercial building and to also develop the raw ground, and construct the town homes of at least $300-400K more. Not a bad return. Most of my best deals have come from challenged properties, especially when they have motivated sellers.
To learn more about how to find these highly profitable deals, how to analysis, and how to structure the offer for maximum profits, please visit my website today. Thank you…
The house was occupied and very rough. I met the seller and asked him if it was still for sale, and he nodded yes. I asked him how much that he wanted and the details of the property and buildings.
He informed me that there were two structures and two acres on one deed, two and half acres one the second deed, and a half an acre on the third deed. He showed me the layout and we toured the buildings. They were very rough and needed lots of work.
He had wanted $500K several years ago but no one ever looked at it. He said to make him a reasonable offer. I took all the information with me and began to pour over it. I met with the township to get some direction and got the latest codes.
I met with an engineer and also checked out getting access to utilities. It was at best a challenge. I knew there was potential, but I still had more homework to do.
I went back to the seller and explained my findings and of my casual interest. I didn't want to do all this work and have it sold to another. I met with the seller, and we agreed on a selling price of $225K and he would hold the mortgage.
I decided to test the waters, so I placed a small sign on the property and ran ads in the paper under various uses. I was so surprised by all the calls that I got.
I had numerous open houses and had interest in both structures and also in the acreage.
Then, it finally dawned on me what I needed to do. A simple changing of the property lot lines would solve the problem. It was already subdivided, but both structures were on one deed with two acres. If I were to divide and place one structure with one acre, and the second structure with one half acre, and the raw ground with the balance of the acreage.
I hired an engineer to draw it up accordingly and I took it before the township, and gained instant approval in ten minutes. I had a list of buyers for each of the new parcels. All three buyers were on board right away. One for the home, one for the building and another for the raw ground to construct town homes.
I had a three-month option to buy. I spent $5,000 for engineering fees, and after closings, walked away with a total of $106,000. I knew that this property had potential, and by playing with some various scenarios, finally determined that by simply moving two interior property lines, that solved the problem and made all the difference.
More money could have recognized if I had wanted to redo the commercial building and to also develop the raw ground, and construct the town homes of at least $300-400K more. Not a bad return. Most of my best deals have come from challenged properties, especially when they have motivated sellers.
To learn more about how to find these highly profitable deals, how to analysis, and how to structure the offer for maximum profits, please visit my website today. Thank you…
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