Problem 3: Seller Financing. You bought a list of addresses where vacant land owners are delinquent on their property taxes (and hence in danger of losing their land) from a large county in the Midwest for $200, then sent "yellow letters" to 100 landowners on this list offering to buy their land at a significant discount. To sweeten the deal, in each letter you also offered to pay cash, to pay off all property taxes and late penalties, and to cover all closing costs. The cost to produce and mail each letter was $1.25. One landowner calls the next day to agree. You buy his land, which you think is worth about $100,000, for $20,000 in cash. You pay off his delinquent property taxes, which have grown with penalties and fees to $4,950. Closing costs for the purchase are $500. You immediately list the vacant land for sale at $55,000, and offer seller financing.