This property was discovered by Craig Hines, a mainstay client of Ken Crotts. Ken was interested in doing a deal in Montana because of the incredible opportunities that exist in the area. Craig found this property through a Realtor® who had a pocket listing, meaning it was currently not listed on the MLS. Craig was able to evaluate this property with Ken’s assistance and both of them soon realized the incredible opportunity offered by the deal. Ken Crotts put this property under contract to purchase once the sellers had completed the preliminary plat. In addition, the sellers agreed to complete roads within the subdivision and supply power along with phone service to the property.
Initially, we were not going to close on the property until all of the work was completed on this project. We explained the value of seller financing to the property owners and were able to close earlier on it. There were no seller financing terms negotiated up front, but Ken Crotts began to explain to the sellers how valuable it would be to do seller financing. We ended up getting the following terms: $130,000 down with a payment of $130,000 in January, $50,000 in February, $50,000 in March, and a balloon payment in April. Each unit will be sold before April 2007. We were able to negotiate these terms because we knew the needs of the seller. The Sellers were anxious to close on this property before the end of 2006. Ken assigned this contract to Mike Watson in May 2006 with a close date set for mid July. The sellers finished the roads in Nov 2006 and put in the phone lines in later on as well.
The Property
Park Trail Ranch is a 318 acre parcel, which is currently in the process of being subdivided into 15-20+ acre parcels. The property is located approximately midway between Helena, the state capital, and Bozeman , a major hub of development.
The Find
Pocket listing by a REALTOR.
The Technique
We put it under contract for 1,150,000. The terms include the seller being obligated to complete roads, power, telephone, and a water tank for fires. We also negotiated the right to begin marketing the lots before closing.
Highest and Best Use
20+ acre lots selling for 175,000. 9 Lots have already been reserved.
Current Use
Vacant land with a preliminary plat.
Acquisition Price
1,150,000
The Result
Final plat will be completed 30 days after we close. We will sell each of these lots in 3-6 months for a net profit of $1,320,000.
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