Today I worked on a deal that is a bit unconvential. Here's how it works. My wife and I purchased a lot back in 2008 and then subdivided it into two building lots. So now as we are looking to sell we found a developer in town who is looking for buyers of his "to be built" duplexes. They are actually zero lot line homes, so you could end up selling them individually as well as renting them. The developer is selling them at somewhat of a discount, so the buyers are getting a good deal, the developer is making his money from the land. He purchased a sizable chunk of land and then short platted it to build these homes. Anyway, he is giving me full market value for each lot I have, while I in turn am going to buy 2 homes, or 1 duplex from him. The purchase and sale will take place simultaneously, so I can take some of my sales proceeds to put down on the homes. The developer makes a bit of money on the construction, but mostly in the land. He is even paying all of my closing costs. It works out for everyone, especially in todays market. My wife and I plan to either lease option the homes or rent them out for a few years. They are in a great location, which is always key, so we believe this is a great deal structure to create a win win situation. If anyone else has a similar deal structure or has completed one in the past, I'd love to hear about it.
Justin
Real Estate Investing Resource
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