Author Topic: Real Estate Investment group interested in buying my in-laws lot of land  (Read 1461 times)

jeromedawg

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Hey all,

So my in-laws brought over a letter from a local real estate investment group here in SoCal, expressing interest in purchasing a parcel of land that my in-laws co-own with 3 other couples. The land is zoned for industrial use I think, and is located up in the Lancaster/Palmdale area right across from an airstrip and was purchased for around $108k. Not sure of the comps yet but will check Loopnet, etc to try to find some.

This is a direct mail marketing letter, it seems... they are offering to pay all cash OR 1st Trust Deed on the property and pay interest at a 10% interest rate monthly. They are wanting to purchase direct from owner to avoid real estate commissions and are offering to pay all closing costs.

Thoughts on how to proceed? Should they attain the services of a real estate attorney and CPA who specializes in real estate? I have a friend who has her real estate license and is also a real estate attorney (though for commercial I believe). Wondering if we should ping her.

« Last Edit: March 23, 2017, 05:44:01 PM by jplee3 »

okobrien

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I can't tell you how to proceed, but I will say the investors are looking for a great deal. If you aren't desperate for the money or in a hurry to get rid of the property, you are almost certainly likely to earn more by putting it on the market.

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Another Reader

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Direct solicitation is almost always someone gambling on the lack of market knowledge of the sellers to pick up property cheap.  Loopnet won't give you much help with sales.  Chat with an industrial and commercial land sales agent to see if that person can provide you with comparable sales and an estimate of value.

SBuck

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Take a look at SiteXdata it's not a free site, but you'll find the information you need.

jeromedawg

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Direct solicitation is almost always someone gambling on the lack of market knowledge of the sellers to pick up property cheap.  Loopnet won't give you much help with sales.  Chat with an industrial and commercial land sales agent to see if that person can provide you with comparable sales and an estimate of value.

Makes sense... they got back to me and offered $55k for the property. I'm guessing they're basing this on the current other property just down the street that's up for sale in the same range. I'm not sure how I would negotiate with this buyer but either way my parents and their friends overpaid nearly double the asking price and likely aren't going to want to do anything with it (such a waste of $$$...)

I was also curious, when people buy a parcel of land and divide it up - how exactly does that work? Is there usually some contractual agreement arranged?
« Last Edit: March 27, 2017, 07:45:13 PM by jplee3 »

adamcollin

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If you arenít sure about the proceedings, talk to a real estate attorney. She will be able to guide you better.

powskier

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Direct mail marketing means "we'll catch at least one sucker if we send tons of letters/emails/whatever". It is not an expression of interest.

Dicey

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We own multiple properties and get those solicitations regularly. They all get filed in the same place.

Commenting to say if there are eight parties on this property and you are not one of them, you should pretend it doesn't even exist.