How would you handle this development deal?

[John Higgins]

Hi everyone. Long time reader here.

There is a busy road with 8 single family houses. The area, once out of the way, has grown into a hot new area of town.

The land where these homes sit, is now becoming prime retail/office space. All of the homeowners would need to sell to make it work.

Obviously there's the option of buying the properties up one at a time and playing a waiting game but not interested in that.

I am developing a plan but obviously need to lock down the homes before putting too much time and money into the project.

How would you approach this deal?

Thanks for your advice.

[Mike Salisbury]

I've watched a few of these deals blow up.

Valuations become very emotional as people hear what the neighbors get offered and inflate their property with little basis. The last few owners you approach have the power as they realize without them you have no deal.

My approach: meet them individually and have a stringent NDA- neighborhood gossip kills these deals.

Best of Luck.