Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

Real estate strategy 101!

10 Jun 2025 · 2 min

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1:34

In this segment, the speaker outlines a practical approach to acquiring and developing real estate. For small residential lots, the strategy is to purchase the land outright with cash at a price below market value, then use the undervalued land as equity to secure a construction loan, effectively stepping up the land’s basis and achieving greater leverage than buying an existing property. For larger parcels, the speaker recommends placing the property under a contract that is contingent on successful due‑diligence, financing approval, and rezoning, typically spanning a 12‑ to 18‑month period. The overall message emphasizes using land as a financial lever and structuring contracts to mitigate risk while enabling development.

Chapters

What's your strategy? So we don't do options. It depends on the size. Small residential lots, I'll usually just buy with cash. I try to buy it, obviously, but the goal is to buy below market value, right? And if I'm buying that land cheap, I can take that land as equity to a local bank and get a construction loan, and that land becomes my equity. So, and the beauty with development, you can accomplish more leverage Mm-hmm. Than if you're buying an existing asset, because I can take a piece of land that's worth $50,000, but it's worth $100,000, and I bring that $50,000 piece of land as a $100,000 piece of equity to my construction loan. Mm-hmm. But I can, I can do a step-up in land basis essentially, and bring that land at higher value to my bank and generate more leverage on that $50,000 than I would if I'm buying an existing asset. If it's larger pieces of land, we will typically put it under contract. If the zoning is already in place, that contract will either be contingent on a successful due diligence period, or it will be contingent on successful due diligence period and also financing, construction financing being approved. I will put it under contract contingent on that rezoning being successful. And so that can be a 12 to 18 month contract, and, and we've done that before.