Vacant Land Subdivision Deal in KY Bluegrass Country

[Alicia Prokos]

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 in Central KY with over a mile of minimally trafficked frontage and close access to I-75. Embarked on a land entitlement process with county officials, garnering approval for a subdivision into 10 residential building lots of varying sizes. Development costs were limited to construction of 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.

How did you finance this deal?

Put 12% down and financed the rest with private money.

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 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.

[Ryan Taylor]

@Alicia Prokos wow, that’s awesome! I’m so intrigued by this idea. I’ve seen several vacant land listings in my area and always thought it would be great to invest in them somehow. I love the idea of developing a subdivision with lots to sell individually. Congrats!