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Hey Tom,
I was looking at lots today, and I had a question. Let’s say you find a great lot and you contact the owner and they want to sell it to you. How do you go about verifying that the lot is where the owner claims it is? Do you pay for a land survey or do you take a gamble and assume the property lines are correct? I could see this opening up a can of worms if you failed to do your due diligence when you bought it, and then when you sell it later if that owner finds out it was wrong he or she tries to sue you and then it becomes a giant mess.
My follow up question is, let’s say I find a residential lot between two houses, in an established neighborhood. How desirable is that lot really? I would think it is very hard to sell a single lot like that because only someone who wants to build a brand new house would want it, and that would mean their house is the only brand new house in the whole street that sticks out like a sore thumb. Is lots that fit only a single house a bad idea, should one stick to lots that are large for commercial zoning or multifamily?
A little background, I am in a very old part of Dallas – historic district type area where the houses are 80-120 years old. So the lots here are small and the houses are well well established. It is being heavily gentrified, so things are changing rapidly, but from doing my homework what I have found is that builders only build here if they can get 2-3 adjacent empty lots and build a row of townhouse like new build, or if they can put 4-5 brand new single family homes in a line. I have not seen any builders or people make one off houses in these single residential lots. I guess in a way, I might have answered my own question here as I was typing it – find a lot large enough to put several houses on it or you will be stuck with a single house lot that no one will buy.
Sorry if I am rambling, but I would love to know more of your thoughts on it.
Very Respectfully,
Cyrus
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1. I would always get a survey on acreage next to vacant acreage to easy to misunderstand the boundaries.
2. Buying a lot between houses is always a good deal if you buy it right.. Manny in our Gold group just did the same and I suggested he approach the neighbors. they probably have wanted the property for years.
3. Property zones dont matter if your only concern is buying under market and then sell.These are good Streamyard questions too.
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Here you go Cyrus its in the members area in “Members Area”
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Hey there,
The owners of the very first house I bought, bought the lot next door and added a lot of value, the house next door also got a piece of that lot.
We bought the house in a small town in Nc where the prices are increasing. Like Tom had mentioned in a recent video, people are leaving the cities. Anyways, I sold the house when I moved to Ga. Worst decision. It was before getting into real estate. My husband actually wanted to hold on to it, I convinced him we should sell.
If you get a lot in between houses, definitely get it as low as possible to then sell to the neighbors.
If that lot hadn’t been divided to the house i bought and the neighbors, i don’t think someone would have built. The houses in that street are 1700-2200 sqft, large lots. No way a house could have been built there and looked good.You can do it. Don’t talk yourself out of the possibilities.
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Hi Tom, thanks for answering my question on the video stream today. Here is a follow up question based on what I believe to understand was your advice.
The goal is to sell the empty lot between two houses to one of the neighbors, since that is probably the most likely way to successfully flip it. I think it would be significantly harder to sell that lot as it is to build a one-off house on it since it would be the only house in the entire neighborhood that is under 80 years old (I live in a historic neighborhood from the 1930s). The lots here are small, it just comes with the territory of old houses just outside of downtown, so I could see the advantage of someone doubling their lot size. The one downside is that they would add to the side of their lot and not behind their lot (in other words, they would get more side yard, not back yard, and maybe people don’t really want that.
So, getting back on track, should I try to contact the owner of the lot, put a deposit on it to tie it up, and then ask one of the neighbors if they want to buy it. If both neighbors tell me they have no interest in it, should I just ask for my deposit back and walk away (or potentially lose the deposit)? I am worried that if both neighbors tell me take a hike, I don’t want my money stuck on this lot that no one wants to buy and I could have used that money on a turning a single family home instead.
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