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Hell pecker yeah
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Discussion Starter #1
A few years ago I bought a 1.58 acre empty lot on a lake. It's about 60 miles from Dallas. I was working in the oil field at the time and planned on building there. I would only have to commute to the plane station once a month or so for work. Well, life got in the way, I had to leave the oil field and now I have a different job. I technically work from home, but I'm a field service engineer and I am supposed to live within 25 miles of Dallas or Fort Worth. The lake is too far. I'm in a rental house now in the middle of the Metroplex. I want to sell this lake lot so I can get the equity out and use it for a down payment on my own place with a shop and room to play. It's been on and off the market for two years now. I've dropped the price over that time to below what I paid.

I've also been through a couple different realtors. One told me to just let it go to foreclosure. I fired him. Another didn't seem like they wanted to make any money. Gone. New one I was told was young and hungry. He's been the best so far.

Realtor reached out to me today and told me there was someone interested. There are currently three lots listed in this cove. It is a development that has 16 or so lots, a 20 slip marina, gated boat ramp, etc. No houses have been built yet. The cove has been dredged out so if the lake goes low again we will still be able to get boats in and out. The other two lots are asking the same price, with one of them being the same size as mine and the other only 1 acre. This interested party wants to know if I am willing to do owner financing.

Years ago I sold a house on a rent-to-own basis. It turned out ok, but it took time and a good faith extension on the original contract.

What do y'all think I should do? Realtor said he would ask them to bring an offer because I told him I didn't know where to start. I don't want to scare them off and I don't want to screw myself.

If I do this there will be a contract, obviously.

Here are some ballpark numbers to let you know what I'm working with.

Original purchase price: $89k
Down payment: $18.8k
Still owe: <$50k
Current asking price: $79k
Annual POA dues: $1k
Annual Property taxes: $1.7k
Lot size: 1.58 acres
One boat slip in the covered marina.
Approx. 200 ft of lake frontage.

I can't wait to read the responses.
 

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DW can't take a J... or a D
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2,128 Posts
Personally, I'd just hang on to it. They aren't making any more land, especially lakefront land. Retire there or something. The annual cost to hold the property doesn't seem that high, and you aren't going to clear that much money after you sell it and pay the scumbag, er realtor, and you'll make even less money with whatever owner financing turns out to be.

Hell, stick a tiny house on it and put it on AirBNB. I'd love to rent a place like that for a week where I can bring my boat.
 

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Registered Offender
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31,377 Posts
yeah I would keep it too since you aren't in it for a lot of money so to speak and as VGT said perhaps build yourself a retirement place or put a small cabin on it and rent it out for a vacation property or a weekend getaway to fish or something. the whole owner financing thing to me just screams that they have shitty credit or simply no credit at all since in the grand scheme of things 80k for a lot is really cheap especially for lakefront so it wouldn't be hard to get a loan for it if they had good credit
 

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Registered Offender
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funny thing is that your lot is just a little smaller than the spare lot I just bought with our new house and its worth 80k and its not even lakefront and I know our market isn't as expensive as texas…..or at least I don't think it is
 

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.
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Land is dirt cheap there, but they sure tax you on it!

If you can afford it, keep it as no sense in taking a loss.

Then again, poa and taxes every year at close to 3k, maybe it's time to cut the loss.
 

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Hell pecker yeah
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7,147 Posts
Discussion Starter #7
The tiny house and AirBnB isn't a terrible idea. Might as well have it make me money while it's sitting there.

I'm not super excited about the owner financing, but with it being on the market for two years this is the biggest inquiry I've had yet. I really want to just take my licks and move on.

I still buy lottery tickets once in a while though.
 

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Fake bacon lover
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10,509 Posts
Holding on to it is the smart play.

However if its chewing up too much of your liquid cash, its simply too much.
The owner finance seems frightening. And for such a small amount. BUT, if you do your due diligence with the legal side, you can make money. "Probably" (wildassguess), these people won't build either for a while - as they don't have the money. Thus, if they default, ??? You get the property? IDK, this is outside my wheelhouse.

Building something on it for rental? Eh... Seems like you'd just be in more $$ unless its really some place that you want well down the line.


PS: be glad you left the oil patch. I suspect next year is a crash. Hell, many service companies right now are starting to go belly up. Waaaaay too many frac fleets out there for sure.
 

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Hell pecker yeah
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7,147 Posts
Discussion Starter #9
Thanks, Dave. Working on medical equipment now. It's a lot more stable.

To add to the folks asking about the owner financing, they just bought a non water front house in the neighborhood across the street. They want a place to park a boat that is close and easy. Realtor is telling me that they asked about the owner financing because they want to see if any of the three lot owners can beat rates of what a bank would charge them. I don't think they plan on building on the lot so worst cast would be they default on the contract and I keep everything they gave me and start over.

Still considering it - as long as a good contract is in place. My goal here is to free up liquid. I don't want to touch savings or retirement money.
 

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Administrator
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18,935 Posts
FWIIW, I'd keep it because no one is making more lakefront land in Tejas. BUT... if you're needing to cut expenses, that's an easy target. So, in my mind there are 2 options.
  1. Sell it free and clear; be done. Hookers and blow, bro.
  2. Sell it on land contract (owner financing). They're payment equals your debt service + property taxes + HOA fee + beer money. If they default, you're back on the hook for the holding costs, but you also get your property back free and clear, minus some legal expenses.
Option 1: Corndog is cool. Corndog is wise. Corndog has hookers and blow.
Option 2: Corndog is still cool, but Corndog is probably wiser and has more beer money.

That's just my 2¢.

<----- Shoulda/coulda/woulda bought 50-Acres in Southern Ohio a few years ago. Asking price was $900/Acre at the time. That property just sold for almost 10-times that amount to a "modern farming" operation.
 

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Hell pecker yeah
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Discussion Starter #11
Thanks, Middy. I've had a lot of time to think about this in the two years it's been listed. As much as I'd like to keep it - because I know they aren't making any more real estate - I want to stop the outflow of money that doesn't help me now.
 

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Here for the Gangbang
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1,873 Posts
Yeah... I'm in the "put a tiny house on it and rent the motherfucker out" group. Pay a local company 10% of the rent to manage it and let it ride. If you're losing money at the outset, that's potentially a tax deduction. Before you know it, another ten years will have flown by and you'll have an equity ATM.
 

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Murphy the RMGTO Mod Dog
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3,406 Posts
To add to a tiny home idea. You could use it too. Quick cheap vacation. That close to Dallas it should do well. Look around Air B&B for the area and see what the going rates are and how easy it is to book time. Should give you a quick picture to if people are using them.
 

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Super Moderator
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10,364 Posts
Are there existing Utilities on this lot already? If there's nothing that could be insanely expensive to get the utilities in place.
 

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Fake bacon lover
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<----- Shoulda/coulda/woulda bought 50-Acres in Southern Ohio a few years ago. Asking price was $900/Acre at the time. That property just sold for almost 10-times that amount to a "modern farming" operation.
Growing Pot?



Corny FWIW, I'm in Middy's camp.
 

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Hell pecker yeah
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7,147 Posts
Discussion Starter #16
Waiting to hear back from the realtor. He told them I was willing to listen/work with the potential buyer and that I needed to hear a starting point. We'll see what happens.

Thank you all for your time and advice.
 

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Super Moderator
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No doot aboot it eh?
 

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