Wednesday, April 2, 2008
Jake Clayson, MWI News

PROVO, Utah (MWI)- Jim Stephens, Kevin Liu, and their partners at Mike Watson Investing and J&K Interests put their Chateaux Pinehurst deal, in Humble, Texas under contract, selling the property for $2.28 million.

The property, consisting of 7.94 acres of vacant land, closed escrow in February of 2007. J&K had sent a multiple offer spreadsheet to the seller, a Mike Watson investing technique designed to discover and meet the underlying need of the seller to ensure cooperation. The seller accepted an all cash offer with a purchase price of $1,250,000.

Ironically, the property had been passed on a daily basis by Liu as he drove his daughter to school. Though it had a "for sale" sign posted, Sheri Barker from the MWI Deal Makers division reports that it was "falling over and hard to read." When Liu looked up the property on the MLS, he discovered it to be relatively unexposed there as well.

Following their investigation of the properties highest and best use, J&K developed a short-term and long-term exit strategy for the investment to ensure acceptable profits where achieved regardless of changes in the real estate market. The property has been platted and approved by the county as multi-family land with up to 200 units.

"The price for 200 platted & approved apartment units was under $7k a door!!! You would be hard pressed just to find the vacant land for that price in most markets," said Barker. For this reason, MWI eagerly accepted J&K's invitation to partner on the transaction.

In accordance with Mike Watson's Foundation to Success, J&K put the property back up for sale immediately following acquisition. Although they began the development process as a part of their long-term exit strategy, their short-term plan was to sell the property at a price that reflected the highest and best use they discovered, offering a massive discount to any individual who wanted to develop the property themselves for the remaining profit.

Having completed the entitlement process, J&K Interests and their partners had been working on obtaining construction financing when a builder/contractor expressed interest in purchasing the property and finishing the work himself. Thus, the short-term strategy has ultimately been the one J&K Interests has used, creating substantial wealth for all who have participated in the transaction at it's various stages.

For more information on the Foundation to Success, finding properties, and revealing a higher and better use for investment properties, click the links below;

Highest and Best Real Estate Investing Boot Camp

Foundation to Success Free eBook

Creating and Enhancing Equity Degree Camp

Any WHERE! Any TIME! Home Study Course

Cash Flow Super Camp

Copyright 2008 MWI News