Do you buy parcels with a title problem you already know about, or only clean ones?
Sitting on two options with the same seller family and I have to pick a policy, not a deal.
Parcel A: 34 acres, deed chain clean back four transfers, access off a maintained county road, priced at $31,000 and there's no discount because there's nothing wrong with it. Margin looks like $14,000 on a cash flip, more on terms.
Parcel B: 46 acres, five heirs on the last deed, two of whom I've located and three I haven't, plus the legal description references a strip along a creek that a 1970s survey and the current tax map disagree about by roughly an acre. Seller side would take $16,000. Retail on clean title with resolved access is somewhere near $60,000. So the discount is enormous and it is enormous for a reason.
The argument for only buying clean is that my time is the scarce input. Curing heirship and reconciling a description can take a year, it needs an attorney in that state, and I can't price the cost because I don't know how many heirs cooperate. Meanwhile I can turn three clean parcels in that same year.
The argument for buying problems is that the discount on clean rural land is thin and getting thinner as more people mail letters, and the defect parcels are where nobody competes. Curing title is a repeatable skill once you've done it three times. Quiet title process and heirship rules vary by state, which is exactly why the pile stays untouched.
I've done two cures. Both took longer than I told myself. I still don't know if the answer is that they're a business or a distraction.
Would you buy the discounted parcel with known heirship and description problems?
14 votes