How We Turned Our First Messy Deal into a $60K Profit - Despite Everything Going Wrong
In this episode, we break down our very first distressed property deal - a challenging transaction that taught us crucial lessons about navigating complex ownership situations, dealing with occupants, and the importance of having multiple exit strategies.
What started as a seemingly simple $500 acquisition turned into a four-month journey involving multiple parties, aggressive negotiations, and eventual success.
Key Highlights
- Property: 1+ acre infill land in gentrifying area of Houston
- Total Investment: ~$50K
- Sale Price: $195K
- Net Profit: ~$60K each for both parties
- Timeline: 4 months to close
Deal Breakdown
- Initial Situation
- Three brothers owned property (25% each)
- One brother's deceased (three children with 8.33% each)
- Two brothers living on property in poor conditions
- $35-40K in back taxes due
- Property heading to tax sale
- Key Challenges
- Occupants living on property
- No direct communication methods (no phones)
- Multiple failed negotiations
- Family interference
- Had to pay significant taxes to stop sale
- Turning Point
- Draft lawsuit as leverage
- Final cash offer + partnership structure
- Creative solution involving all parties
Key Lessons
- Importance of early assessment of occupancy situations
- Value of multiple exit strategies
- Power of legal leverage in negotiations
- Significance of proper deal security
- Balance between persistence and knowing when to walk
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What is A Messy Million: A Learn Land Podcast?
Tired of competing for simple land flips? Welcome to Messy Millions, a 20-episode journey through the exact deals that built our first million dollars in distressed property profits.
Join veteran land investors Clint Turner and Jeremy Nash as they pull back the curtain on real-world case studies that transformed their business from basic land flipping to sophisticated deal-making.
You'll get an inside look at the title issues, tax problems, and property complications they faced, and the step-by-step strategies used to solve them.