Real Estate Investment: Maximize Land Value Strategy #shorts

Today in the Deal Room. Spending probably 50 to 60%, probably about 50% of market. We're not interested in buying something retail. What would you assess this property at retail? So what I— let's just— I'm going to use hypothetical numbers because I don't have the numbers in front of me. But if it said that your property's $8,000 an acre, we're only interested in paying about $4,000.

My question was, going into this, did you have any inclination what the value was?

No, no, because land value is based on what's high and best views. And based on what the market said that that property is valued at currently is a little bit more than what you guys are paying for it. I think, I think you had an appraisal at $2 million, correct? Right. So we would— we— right. And we would— and, and so we would only be able to pay it at most 40 to 50% of that appraisal. Yeah. Yeah, yeah, I mean, we've got the parcel of $20 million, but I understand that. And again, like, we can, we can call it whatever it is, but it's only that until somebody pays it, you know.

And it was, you know, breaking it up, putting it into 40-acre or so parcels and so on and so forth.

There's— so, so there's— see, that's the difference. Like, if I had to pay for it right now today, it's 40% of the appraised value. If we go through and do all that work, then of course, yes, it goes up in value and it reaches the $20 million, right? So if you guys are selling that to me today, you're only going to get 40% of the appraised value. And I'm concerned with the understanding of what it takes to get that done. Have you done it before? So then go ahead and do it and then, and then make— bring it up to the $20 million value. We'll have a conversation then. I'm confused. Right. Based on us, us partnering. So if we're not partnering, I'm just— I'm telling you what my investment group's willing to do.