A 9-acre parcel gets split into three 3-acre lots by adding a side road. Each lot sells for $3.6 to $4.2 million, netting $2.3 to $4.7 million per lot against an $8.5 million purchase price. The strategy includes owner-financing the third lot to act as the lender.
Are you pitching deals in the deal room? You know, some people are like, oh, it's 9 acres. Well, we just build a road down the side of it so you can get into each one, right? And I think it's got back access and we can create front access pretty easily there. So it shows here that if we break them into 3 to 4 acre, 3-acre lots, your per lot value right there shows that you're going to sell for between $3.6 million and $4.2 million, right? So depending, like, you could probably sell the one all the way out by the road at $4.2 million and then sell the last one at $3.6 million, right? So the The lowest upside looks like about 2.3 to 4.7 above the 8.5, right? Nice. So here's how we're going to play that, is when we talk to them, we'll be like, hey, can it be subdivided? Can we split it in 3 lots? If we can actually sell it in 3 legal sellable lots, that's game changer, because then all we need to do is we need— literally need to sell 2 and keep the third and do an owner finance on that, and then you become the bank. So you see how all of a sudden the whole picture changes a little bit? We're trying to figure out how many trucks we park there when we need to figure out how to plant 17 survey stakes and a roadway.
