In this real‑estate coaching Q&A, Chris Prefontaine walks participants through practical, creative ways to sell vacant land that might otherwise sit idle. The conversation starts with Annette’s sub‑to/owner‑finance deal, highlighting the need to involve an attorney familiar with creative financing. Chris then proposes a repeatable strategy: partner with a builder to create a “to‑be‑built” package that combines the lot and a finished home, allowing the seller to market a complete product to end‑loan buyers rather than a niche land‑only audience. He explains how to structure the deal, price the lot, incorporate the builder’s fees, and manage expectations around waiting periods and escrow. The discussion also covers how to apply the same approach to smaller parcels, the importance of clear communication with attorneys, and the benefits of exposing the lot to a broader market. Chris ends with a call‑to‑action directing listeners to free resources on smartrealestatecoach.com.
Chapters
We sold every house that way till we got a little cocky and big for our britches, but we sold hundreds that way. Got it.
Now that script's a new—
Annette, you had a deal. I think it was rather early this morning when I answered everybody, but I think you had a deal. I said bring.
Yes.
What's— just go basic so I can get my head wrapped around it. What's the source of the deal? Where are you with it now? What help might you need to push the thing forward?
This source was expired.
Okay. Single family, mobile?
Single family.
Okay. Go ahead. Where are you with the whole thing right now?
Right now we're at— they are waiting for a contract because the wife happens to work for an attorney. They're very excited about the program. They just want to take it to their attorney for a quick review.
This is a sub-to.
This is sub-to owner finance.
Okay. As usual, I know Rusty's going to say the same thing. If the attorney never did a creative deal, it's going to be a little bit of a headache.
But she has. I spoke— I actually spoke with the attorney.
Oh, fantastic. Okay, so what can we help with? Is there anything hanging today or you got some stuff to do still?
I have some stuff to do on this one because I have another attorney that's already working on the Minnesota paperwork. I finally found one. That agreed to look at it. However, with this one, they will only do this home if we also agree to try to help them with our program on their lot. And that lot is 6.1 acres. You can see Lake Superior from the end of the driveway. Not—
Is it subdividable or one buildable lot?
It's one. It's one.
Is it free and clear?
Yes, it is.
Okay. I can make a suggestion. It's in the land course, but I did hundreds of these.
Okay.
As you say to them, look, I'm not going to buy it outright, but what I can do is right now, Mr. and Mrs. Seller, you're marketing to a person. So it's a needle. You're marketing to a person who knows how to and is comfortable with and is financeable to do a new construction loan because you have an empty lot.
Right.
Okay, so you're fishing in a small pond. Why don't we partner with a builder, put a to-be-built package together and market the house? And the budget is your lot cost. You'll get paid full price.
Okay.
And for that, I need X and you've got to put your fee in there because it's the truth. Now you're exposed to someone buying a house who can go get an end loan, and that's everyone. Not someone looking to buy a piece of land. That's a niche, right? That's what I do.
Okay.
I started years ago in the early '90s. It was— I had no money. I was just piecing together people that wanted extra land and a builder partner, and we put a package together. And I said to that, to the landowner, okay, wait, you'll get your full price. You just got to wait till we get all this done.
And, and they're totally fine with waiting, even with the house. They don't expect anything towards their escrow until the very end.
And then—
I love the whole thing. Then why not do the package?
Well, just because before, when you and I had spoken, it was just land. For us to look at land, it had to be subdividable.
By itself.
Right.
I'm saying get creative now that you're tying a house to it, because that house, that other house, what's the price on this other house you're buying?
Ballpark?
Well, $269,900.
Okay, so say there's $50,000 or $70,000 off the payday. Say there's $40,000. Doesn't matter. It's still worth you trying the lot. They can't— like, let's say you have them both on the market. Okay. What? We've even closed on a house and the lot doesn't sell. There's no contingency to say, give me the house back. You're just trying to help them with the lot.
Okay.
You're okay.
Okay. I'll move forward.
Good. Yeah. Let me know if I can help. Don't wait. I'll jump on a call too, but you just hit me.
I'm sure I'll be reaching out to you this afternoon.
Okay. Not sure where to get started? Go to smartrealestatecoach.com/getgoing for free books, strategy calls, and a whole bunch more. We're going to help you get going the wicked smart way. We've been after this for over a decade doing exactly that.
I got a couple of questions. I have an appointment coming up in August with a condo potential LP. Rick helped me with it, but they also have a piece of land that's empty that they want to sell and it's just empty. I don't think there's any plans for it. So listening to Rick, enough to build another building on. I mean, it's big.
I know, but is there only one? Like my question for Annette, is it one building?
No, it's not. It's not like 6 acres. It's like, you know, relatively small, an acre or 2.
Okay. Well, again, if you want to try to help. Yeah, it's the same answers in that. And I just— I would just have to help you package that and you'd have to know of or go find a builder and any builder would do it. They'd love it.
Now tell me a little bit about what package that means. I don't know anything about that.
Yeah. Okay. So let's go with— doesn't matter what piece of land. Let's go with the nets. So now a net goes, you're only selling your lot. Let me expose this to the whole market. Okay, great. Now, behind the scenes, Annette goes and finds a builder, or she knows one now, and she says to the builder what she's doing. Hey, I got a lot. You don't have to buy it yet. Give me a house plan. Let's price it together. Let's make sure the comps are good. Now we market a finished product, not a lot, not a construction price, a finished product with the construction and the lot mixed in together to make sure everybody makes money. Okay. Now the buyers are looking at a finished house. that they can go get an end loan for because the builder is going to build it with his own construction loan or cash.
Got it. So you're really finding a buyer for this builder.
You're finding a buyer for the builder. And in doing that, the builder is going to buy your lot. Got it.
Okay, now that makes sense to me now.
Okay, now I said we built package, right? They do it all the time. We sold every house that way till we got a little cocky and big for our britches. But we sold hundreds that way. Got it.
