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Updated over 2 years ago,
Vacant Land Subdivision Deal in Kentucky Bluegrass Country
Investment Info:
Other other investment.
Purchase price: $509,500
Cash invested: $61,500
Sale price: $1,081,500
Purchased in 11/2020 a cattle farm and barn in Central Kentucky with over a mile of minimally trafficked, state highway frontage and close access to I-75 and Toyota Mfg plant down the highway in nearby Georgetown. Put 12% down and financed remainder of purchase with private money at 10%. Embarked on a basic land entitlement process with county officials upon purchase, garnering approval for a subdivision into 10 residential building lots of varying sizes in an agricultural zone. All lots approved for access from the road, except for 3 which would share a 1/2 mile private access gravel road, which was necessary due to rolling topography. Development costs were limited to construction of punch outs for driveways, the private road, county fees and surveying. By 5/21, had sold 6 of 10 lots and paid off mortgage. By 9/21, had sold all lots except one. Sold final lot 5/2022.
What made you interested in investing in this type of deal?
Seth Williams from RE Tipster on Bigger Pockets podcast episode #39, and E.B. Farmer, the Land Flipper.
How did you find this deal and how did you negotiate it?
Found on Zillow the first day it was listed, then read thoroughly the county planning and zoning code. Drove to Central Kentucky the next day from Columbus, Ohio and made an offer the day following.
Lessons learned? Challenges?
You will feel stupid at some point when you are doing things for the first time. Ride that out and keep asking questions until you understand. As long as you do your homework, know your stuff and make sure you don't overpay, a big deal can be the same amount of work as a small deal, but much more lucrative.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Tammy Traylor, land realtor at Carr Realty & Auction, Rita Jones, land realtor at Keller Williams Greater Lexington.