Wimberley
Ownership research, an auction deadline, and a path to closing.
- Location
- Wimberley, Texas
- Property
- 8.88 acres
- Participation
- Sourced and led by Alexander Vitenas with an investment partner
- Outcome
- Sold intact, without subdivision
- Approximate acquisition price
- $220,000
- Approximate sale price
- $400,000
The prices are approximate transaction figures, not net profit or investment-return calculations.
An approaching auction
Alexander discovered the opportunity approximately two weeks before its scheduled tax auction.
Using technology and research methods he had developed, he investigated the ownership situation and located the deeded owner’s grandson. Establishing whom to contact required substantial research into the property’s ownership history.
Establishing a contractual path
Alexander negotiated a purchase contract and delivered the transaction to a title company.
With the property under contract and title work underway, he persuaded the taxing authority to postpone the scheduled auction. The postponement created time to complete title work, document the private loan, and close.
Introducing private leverage
This was the first transaction in which Alexander and his investment partner incorporated private leverage into their investment model, adding financing to a process that already included sourcing, ownership research, negotiation, and title coordination.
Outcome
The investment was acquired for approximately $220,000 and ultimately sold for approximately $400,000.
The 8.88 acres were sold intact. No subdivision was carried out.
What the transaction demonstrates
The work involved finding the opportunity, reconstructing the ownership situation, locating the person needed to transact, and creating enough time to complete the purchase.
It also marked a change in the investment model through the introduction of private financing.