Land Acquisition and Entitlements Financing Equity Partner

[Timothy Hicks]

Hello,

    I have recently started my journey into land acquisition and  entitlements, and I'm having some issues with the financing side of things. Originally, I was hoping to have the property owner hold the property while I take the agricultural property through the feasibility study and rezoning to have paper lots approved by the city I choose to annex the property into. 

   However, I am dealing with a lot of 1031 exchanges and investors buying raw acreage quickly here in Colorado. This is where I am having my major issue. My ideal situation is to find a finance partner to help fund these deals for approximately 12-16 months, and we will exit the deal after selling to a significant multifamily, home builder, or developer for them to build on the approved land. 

   The great news is I have the time, knowledge, resources, and critical thinking skills to bring these projects to fruition. Unfortunately, I don't have the working capital to procure the land and finance the entitlements process. Can anyone point me in the right direction or help me find a solution to my funding problem? I appreciate all input, as I have a deal in the works ready to start at any time.

Thanks,

[Jay Hinrichs]

its not realistic to buy land before the rezone has been done.. what happens if it fails.

Unless the rezone is basically guaranteed.. also the issue is cost of money holding land that long .

I help fund a large project out of the springs where it was bought prior to approvals but it was already properly zoned so it was just prosecuting the map under the given zoning and that still took a few years. However I would not fund a deal based on a rezone unless it was a screaming deal and it could be sold as is for the current use so we did not lose money.