I’m getting calls from a subdivison that went bankrupt. They platted it and have a bunch of mud roads and that’s it. The entrance is locked, from what I see in pictures of the area.
Have any of you done any deals in a place like this, and if so, were there a lot of hoops to jump through to buy and sell in the area? I see sell prices, back in 2010, were at 6 figure numbers to a few hundred or a few thousand now and all tax assessments were much higher. All assessments, on every lot, is at $2,500, now. Is this, basically, a pass or is there a chance of some deals, maybe, being there?
@gary-sk I looked at a deal like this once. There was one separate property owner in the defunct HOA of 16 lots. The other 15 lots were for sale from the same owner… so I would’ve had to figure out how to deal with that single owner.
The properties in this deal also weren’t great. Several of them were on a very steep incline and weren’t buildable. I ended up walking from the deal because I didn’t want to take on the complexities of it.
@carolinajay Developed lot deals can be interesting. Usually they have some hair on them, which is why they’re abandoned. My brokerage has worked with many developed lot deals in the past, sometimes just on the sales side, but other times actually buying the development, cleaning up paperwork, liens, roads, approvals, etc. then flipping it to a builder. They can be very profitable if you know the market, which is what I’d say is the most important part of the process, making money when you buy. If you give me some specifics, I’d be happy to do some research and give you my opinion!
@carolinajay a call to the county or city planning department is worth the time. Sometimes progress just didn’t get to the area. 2009 saw a lot of this in fringe of LA