The subdivide-and-sell strategy involves buying a larger parcel of land, dividing it into smaller lots through the legal subdivision process, and selling those lots individually for more in aggregate than the whole cost.
Log in to followSponsor has 120 acres under contract at $6,800 an acre, $816,000. Plan is twelve 10 acre lots, and their pro forma puts them at $135,000 a lot, so $1.62 million gross. They're rai…
A friend forwarded me a land loan term sheet on a 12 lot split so I could see what these look like. There's a partial release clause that says lots are released at 115% of the pro…
I coordinate survey and plat work for people doing small splits, and I decided I should actually do one myself before I charge anyone for advice about it. 22 acres at $6,500, so $…
Been running small numbers because that's the size I can actually fund. Ten acres, buy around $38k, split into two fives, comps on 5 acre pieces in that township are maybe $28k. S…
I've been circling this business for a while without knowing which side of it I belonged on, and the first thing I actually finished was small enough that I could hold all of it i…
This comes up in my inbox more than anything else, so putting it to the room. Somebody wants to do their first two or three lot split. Their home county has a subdivision ordinanc…
Two listings I've been circling for a couple months in the same county, both about 30 acres, both with county road frontage. The first one is zoned in a way that allows the lot si…
48 acres, ordinance supports 9 lots without a public road if I use the existing frontage and one easement, and the frontage is the constraint on how fast this moves. Comparable lo…
Third split I've worked on and I still handle the sales the same way, which is to say I list them with a local agent and pay the commission out of each closing. On a nine lot proj…
A sponsor deck I was reading showed a parcel bought at about $4,000 an acre and modeled the resulting lots at $9,000 an acre. Same dirt, same road frontage, and the only thing tha…
Sponsor I've done one small deal with wants $220,000 of preferred capital at 11% accrued, no current pay, into an 86 acre split. I built the model off his assumptions and then sta…
I don't want a second job. A land planner I called quoted $6,500 to take a 22 acre parcel through a minor subdivision into four lots, and said that excludes the survey, the county…
I'm looking at a $310,000 first position private mortgage on 46 acres, offered to me as a $100,000 participation. Borrower's plan is five lots. I'd rather understand this than own…