Commencement Date: July 2025
- Land Acquisition
a) Funded through self-directed, tax deferred accounts
b) Letter campaign. Targeted 5 or more acres with focus on flip.
c) Need $400K in reserves
d) Rural newspaper advertising also
e) Target mobile home also with multi acres.
d) target via Vulcan with high equity, low mortgage
f) target via absentee owners
g) Alternative is not tax deferred accounts for property that is buy-n-hold. Focus on property that generates 7% annual ROI through carbon, solar, conservation, and hunt leases. These properties need to be located within the existing property sphere. - Loan Service
a) Minimum buy-in $500K
b) target is $10M from single source - Real Estate Listings (possible time vampire, beware)
a) in conjunction or as complement to 1). For owners who want to test retail price.
b) Establish Private Listing Service. Beneficial for marketing land acquired under 1)
c) Add SC license for prime acre
d) PLS needs to focus on listings that generate $2K or more in commission per transaction.
e) Real Estate Niche must generate $250K per year in commissions - Drone and Photo (possible time vampire, beware)
a) complements 1) and 3). Primarily boost for 3).
b) works best as value add, not a side hustle. Must generate $50K as a value add - DTS, Private Placement, Qualified Intermediary
a) DTS requires accredited investors
b) QI disallows brokers and lenders
c) 2) is fewer people and fewer problems - Fix and Flip
a) Works with 1) 3) and 4).
b) Where? Does it compete with current client base?
c) Who does the work?
d) is this headed into a falling market, i.e., market declining faster than renovations can be completed and property resold?
e) If pursuing, this is self directed, tax deferred. Need an additional $400K reserve - Tax Sales has some negatives
a) Quiet title is $7K to $15K.
b) The one year wait and possible redemption
c) Focus only on land, cannot insure structures
d) Land must be multi-acre to overcome the cost of quiet title
e) The retail value must be in excess of $50K. 50 - 25 (purchase cost) - 15 quiet title = profit of 10K.
f) Tax commissioner may not sell property that is greatly in excess of tax value.
e) watch out for green space and conservation restrictions
g) No guarantee that timber will not be cut during redemption period
h) Best purchase is judicial order
i) watch out for excessive HOA fees on property
TO DO
Rank time commitment versus return. Include assessment of immediate involvement and long-term involvement. Also consider what involves the least number of dependency on people. The least moving parts, the least interactions results in the least amount of friction.