An Extra Lot

With all the things that may come into a deal, sometimes what might be included in the deal is an extra lot, a smaller piece of property with dimensions that are so abstract and a shape to the property that may make it difficult to sell or to build on.

Problems that you may have with lots like this (an example might be a lot that is sized at 50x150) is that it may not be buildable. That is, unless someone wants to build a house shaped like a french fry. Even if it is in a very prominent area with a lot of growth, it still may prove difficult to do something with.

If you find yourself in this situation, here are a few things that you may want to consider trying.

Start by going to your tax assessor’s office and ask them to pull you up the plat map and get you a Xeroxed copy of the lot preferably showing the dimensions. Then take it to code enforcement and tell him that this lot is on Elm Street, right off the corner of Brookview, and it's over there in that part of town. It is 50x150 or whatever… is this buildable?

It’s possible that your code enforcement folks may give you a list of setbacks based off of the actual location. An example might be something like twenty feet from the rear and twenty feet from the front and fifteen feet from either side. So fifty minus thirty is twenty. Here is where you have to decide what you want to do and what you are going to do with it.

You could consider reselling it for a profit to a developer, builder, or to someone who wants to build their own home there, or maybe you can find something to build there and then sell it. You could also consider using it as a down payment the next time you’re talking to a seller who wants to give you their deed but they want ten thousand dollars. Tell them you don’t have the ten thousand but you can give them that lot. Maybe you might trade it in some other way. It might be a good thing to have as long as it has future value.

Whether or not it’s buildable is something that your code enforcement is going to be able to shed light on it. They're going to be able to give you all your setbacks that you will need to consider. Whatever you do, be sure you do your homework. It will keep you from getting burned and hopefully save you a lot of money!

For additional information on real estate investing and the hot foreclosure market, I recommend joining Ron LeGrand's Millionaire Maker Newsletter The newsletter itself is loaded with great tips and resources, and he's usually giving away something free like a CD or something that generally has a lot of great information on it.