Self Storage- Subdivision Collateral

We have continued to grow in the last 7 years with our Storage business. We are now up to 8 locations. Most are at 100% occupancy. 4 have land to expand, and we will next year. Focusing on our last locations 7 and 8. Our last piece of purchased ground should go on line this month, subject to inspections which are almost complete.

As you grow, you use up either your liquid assets or your Assets that can be collateralized. You could stop and pay down on your existing Storage locations and build up equity for your collateral. We have chosen to push forward, and our locations have gotten larger with each addition. Other funding solutions could be to get partners, hard money lenders or to syndicate. We have chosen not to go down these routes since we have decided "Enough is Enough" with Self Storage and are winding down our "Growth" mode. Our son is 20 and not ready for Real Estate Development, so no need to keep growing.

Realize most posts are talking about how do You invest with Zero Cash. How do I start in real estate. Is now a bad time to get into Self storage or Real Estate. Thought I would show you some back end logic for a business reaching its peak investment target/levels.

Based on the need for more funding, we decided to take some of our non-liquid Assets and use as collateral. We have taken our 80 acres where we live and set up a Subdivision. More of a country subdivision with lots in the 2 to 21 acre sizes. This is just road entrances. We did the numbers and it was a lot riskier if we did a true Subdivision with concrete driveways installed. Also the lots would have to be 1 acre and smaller to make the math work.

After we laid this out and did the Subdivision work, we were able to use this "increased value" as a subdivision versus farm acres as the collateral for our latest expansion in Self Storage. Most families would never sell off the ground around their house; and would say let their children deal with that. We decided to keep 20 acres for our house and sell "now". Probably the same in your area. Housing shortage, builders can't keep up with demand, not enough lots are available and Interest rates are low. Being in Iowa, you wouldn't think it, but we are getting a lot of buyers from out of state. Decided to sell now. Can't tell when in the future all of these data points (low interest rates, housing shortage, Builder shortage, Lot shortage, migrating investors, migration from city to country, family RE knowledge) will come together.

The process of subdividing created value from $6,000 farm ground per acre to $50,000 per acre for the 2 acre lots. This really helped with the appraisal and the banker giving 65% collateral value. Thus we did not have to come up with Cash on our latest project, using this subdivision as collateral.

As we sell a "lot", the cash is transferred directly to the Bank, since they have a lien on the property. We are allowing them 100% of the cash since we are doing Early Depreciation write offs on our new locations, which is helping to offset the Capital Gains on the land sales. Them getting the 100% versus the 65% collateralization will help relieve our debt burden really fast. Basically we are taking farm ground that earns about 1% and converting into both high yielding and Value increasing Self Storage.

On part of the land we are exiting a prior 1031 sale/purchase. We had a separate 48 acre spot we sold and then bought part of the 80 acres about 15 years ago. Decided to exit into cash, versus doing another 1031 sale/purchase so we can use the funds for a more valuable asset, Self Storage. Key is to keep your transaction documents on file and document the transaction path for your CPA tax preparer.

4 of the lots have sold in the last 2 months. We actually don't need to sell all of the lots to cover our last Self Storage funding needs, since the cost versus sales price on the lots is so great. Not getting into details, but the location is great. We put "stupid" money price on the lot next to us, since we don't want anyone to buy it. But you never know.

To increase both the property value even further and to speed up the sales, we are currently building a two acre pond and will do some large boulder landscaping at the entrances on some of the lots. There is only so much you can do to a bare lot to increase its value, prior to the house site being determined. We installed concrete driveway entrances, versus leaving as dirt. 10 to 15 years ago we planted a lot of evergreen and oak trees. Took these and transplanted them next to the lot property lines, along road ways for sight and sound barriers, and around the lots, where they would not be in the way of the home sites. Transplanted about 150 trees. Did not cost that much since we owned the trees and the Tree Spade did not have to travel far.

Realize everyone doesn't have additional assets to collateralize, but wanted to show you a different path.

Below are some of the actions we have taken.

Lot 5 which is not shown is our house, which isn't for sale. Did a youtube for each lot noting its special features. Really helped with people at home due to Covid, online shoppers and from out of state.

Putting Tube or culvert into one of the lots. Wanted it in place so the potential buyers could visualize the entrance, versus waiting for them to pay. Had my son dig out and put in culvert. Can do a lot of work with a skidsteer.

Creek behind our house, between most of the lots. We are clearing trees and will dam for the pond. It has eroded about 8 feet since we bought the place. This actually helps out, since the dirt is drier and we can dig further down, prior to hitting the creek level. You will note how large the dam is relative to this creek. Only once, but I have seen it 200 foot wide after about 2 months of rain and then we got 5 inches of rain in an hour.

There is very little "valley" here. Thus it is a "dug out" pond which is very expensive. To help reduce the cost, my contractor waited till he had a buyer for the rich top soil. About 5 miles away there is a Miracle Gro dirt bagging center. You might be buying some of our dirt. This is dug extra deep so we could get Clay for the "key" way part of the dam.

The dam is in place. Still need to put the drain tube in. A smaller plastic tube is in the creek allowing the water to flow through. When all of the dirt and pond has been excavated we will tear out the mouth of the tube and plug up. Allowing the dam to fill.

Supposed to rain tonight. Worked till about 10 pm getting the grass seed spread. My son is rolling out and pinning the grass mat with staples.

Just back from his first year in college. Has three job applications at local stores to work. Until then working on Self Storage. Hopefully he learns 8 to 5 and no control; versus Self Storage and freedom over his schedule. Something we are all learning the difference at 30 to 60 years old.

This pond project will help sell the two larger and more expensive lots. Just called the realtor and increased the price. Three of the lot sales prices have been increased and will pay for the pond. Plus I finally get my fishing pond.

Basic decision was to take a non-liquid asset and convert to funding for our Self Storage growth. Another option if it fit your lifestyle would be to sell your house and make a larger than normal office/home as part of your self storage location. If we were at our "downsizing" stage, that is what we would do.

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05/25/2021

First dry day in a week. They started trucking some dirt out and also digging further on the pond. We also did some work ourselves on Fish structure. 

Took our old Cattle Trailer which is really rusted and laid on its side. This will provide Fish structure.

The orange pipes you see are the tubes from Fiberoptics. Cemented into the ground while we can access the pond bottom. This also will provide fish habitat.

The grass has really sprouted in the last 8 days. Warmer temperatures, but slight rain or drizzles every day, made it sprout.

Won't get the actual drainage tube for about 4 weeks, to install the permanent water outlet.

The first picture shows two islands with concrete around the sides. This will help with erosion and also provide habitat.

The water in the last picture is really clean. Most of this water comes from springs. It will be dirtiest this time of year as the crop ground is bare and soil erosion can occur.

The first picture you see a truck going up the hill. This lot just sold. Raised it by $20,000 to help pay part of the pond construction.

As we are closing on these lots, having 100% of the funds sent directly to the bank, to pay down Self storage loans. Closing on one more lot tonight at 8PM with realtor. Signing papers since we will be out of town.

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06/05/2021

Lots have really sold in the last 2 months. Lots 7/8/9 and 10 are now closed. See picture below.

Unusual items.

Lot 10 just left for Okinawa for a 4 year military assignment. They just loved the lot and wanted it to come back to.

Lot 9 also bought their lot, but with material costs up, are waiting a year or two to build.

Lots 4/6/7 raised the price $20,000 each to help pay for the pond, plus they became more desirable with the pond. The pond should help with a higher price or to sell quicker. See the second picture below and think of a pond in the valley surrounded to the west with trees and the pasture as a back ground. Will be end of June before it is finished. Moving dirt out as they sell it. Should end up costing around $30,000. This is a "dug out" pound and more expensive, than just a dam across a valley.

Now that Lot 7 is sold, finishing up the shared drive for 6 and 7. 7 is using the old driveway for now. The white pvc pipe is the property marker and the center of the shared drive. Just need to spread some crushed limestone over the dirt to start using.

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06/16/2021

Have 5 lots left to sale. Although we put in concrete driveway entrance pads, decided to complete the driveways into the properties, to help people visualize the property better.

Below is one of the entrances we put in place earlier last year.

Now we have filled in with further dirt and rocked the roads. Also decided to put some boulders for shoulder support and for aesthetics. Put some at the entrances to set it off. Boys still have to move the small rocks into the sides. This is a shared drive for two lots. Did put an extra turn out, in case they want to build a shed there.

The next lot entrance shot, is for a single access entrance. Decided to put a left and right turn in. Again so they can do a house and/or a shed. Because there are existing trees, trying to work them into the entrances and landscapes.

Kind of neat. Two new storage customers moving in, while I'm writing this.

This last lot entrance is also a shared entrance. Lot 7 has sold, we hiked the price $20,000 since were adding the pond. Lot 6 is still available, so we filled and graded so they could drive on the actual entrance. We are using Crushed Recycled concrete. 1 inch with the fines. Actually don't like this. Normally use bigger "Clean" rock for a base. As the ground gets wet and you drive over it, it mashes into the ground forming a base. But my local guy has a lot of this crushed concrete and it is only a 2 miles away so decided to use this.

On the dam, we put 4 dump truck loads of broken concrete as rip rap where the dam water outlet and spillway will hit. This is to prevent erosion. It does not have "rebar" in it, which is not allowed by our DNR group.

Lot 6 we are spicing up. Did the entrance noted above. Then it has a great view down the lake and is one of more expensive lots. One of our local store's had excess landscaping rock in front. Decided to buy some of these limestone blocks. They are normally used to make retaining walls, But we made into a sitting area with fire pit (tractor rim). Simple thought. The stones are rough, but kind of elegant. Put Engineering fabric underneath so no weeds or dirt, mixing with the Pea gravel on top, which we need to finish spreading.

With the good always comes the bad.

The downstream neighbor filed a "Flood Plain" complaint. Not a big issue, since dams always help floods. Also I have seen the worst flood we had and it would go over this dam, and still be about 50 feet away from their house.

Another concern might be if we use up all of the water from the stream which won't happen. All water will continue to go downstream except whatever evaporates from a 2 acre pond in a day. Stream has about 2,500 gallons per minute flow. We might lose 20,000 gallons per day in evaporation on this 2 acre pond, not offsetting for evaporation from the stream itself.

We previously checked with the County conservation group and the State DNR group and no permit was needed due to the relative small size. Based on the onsite visit, the DNR person said anything over an acre is considered a construction site and we need to do a SWPPP permit and plan for Soil silt and erosion. Have done this before on our latest Storage facility, so not a big deal. Next task after this post, is to document an erosion plan. Keep a log of action steps.

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07/16/2021

Just back from Belize. Some times you have to remember why your pushing and what Storage can do for you. Maracas in Orange Walk on the river. Its lobster season. These dishes are lobster. Ceviche, rolls, tacos and quesadillas. Actually didn't sell whole lobster.

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Teak seedlings from last year are doing great. About 5 feet tall. Same as the replacement ones in the pickup, the original planting was I believe around October of last year. By December the old trees should be about 15 feet tall, from their current 5 feet. Had a historic flood last year due to two back to back hurricanes and killed about 2/3 of the seedlings, thus replacing.

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07/22/2021

Attached are highlights of the Storage location this Subdivision is being used to Collateralize.

Will be 220 drive up units on 5 pads. Along with an Office/home (30x40). This location is actually for one of my brothers. He just sold his house and will live in his office (downsizing). He actually is going to love it. Wants to downsize and reduce house investment and yard work. This frees up about $300,000 for him.

We are financing the development stage and rent up phase (till about 40% occupancy) for reasons. Then he will do an SBA loan purchase.

He is already tickled pink. Cost will be $1.5mm and recent appraisal is $2.1mm when constructed and $2.4mm at full occupancy. I told him to expect this positive disparity before we started, but he still couldn't stop smiling when we got the appraisal. I am just selling to him at cost, so yes he smiled. Even with this "Happy Outcome" don't do this with your relatives or friends. We have the ground cleared, leveled, and Phase 1, or the three largest pads completed. Building and erection crew to show up September. Its a great location from both Customers and from future potential competition.

An existing 40 x 80 Metal building was already on the property. Rented for $3,000 within one month of taking possession. Bought the 3 acre property for $200,000. Had to do no Re-Hab. If we weren't done building new locations, I would work with him to expand where he is at. But he can do that after this one is done, with the experience. Spent 3 days driving around analyzing the market/land and talking with realtors and owners. Came up with 3 good locations and then started deal making. Once he gets settled and builds equity on this location, he can approach the other two locations if still available.

The renter is a Car mechanic and really made the building shine. Last time I was down, there was a mobile barbecue wagon along the road on the property. The mechanic set it up for them to come on a Thursday. Cars were flying in from 4 to 6 and they sold out. Great advertising. Didn't cost anything. Mechanic got free bbq. He said these types of popups usually pay $300 per day to park at a good location like that. My brother might do this as a free value add.

Had about 50 oak trees on the property. He said, looks like a lot of work cutting them down. Told him we weren't going to use a chain saw or touch by hand any of the trees. He had a lot of fun digging and pushing them over. We cut the logs up and left next to the road for free firewood. Within two weeks it was gone. About 10 dump truck loads. We burned the limbs and stumps.

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08/11/2021

Lot 6 pending sale. Offer/Counter offer. Forget whether the below is right or wrong, just wanted to show you the give and take, and thought process.

This lot was originally priced at $180,000. Once I decided to build the pond I moved it to $200,000. In the next three weeks once the pond was filled, I was going to move it to $220,000. This land cost about $42,000 about 13 years ago.

Offer came in as follows:

1. Sunday night, with a Monday 5pm response time. I received the offer around 10 am Monday, but did not check on it till around 12am.

2. Offer: $160,000. They can get all of our previous Subdivision data. They could see the price had moved from $180,000 to $200,000. They could see we had been allowing the offers and counter offers to come in about $10,000 below list.

3. This is a shared driveway with lot 7. They wanted me to go through the process to get an easement recorded with lot 7 for the shared driveway usage.

4. They wanted a subject to a good well being drilled.

5. Pond work to be completed by xx/xx/xx date.

Additional Info:

This is small town USA. So even if you don't know them, you can check on them. This family has a massive building to play with cars and vehicles. Thus they have money.

Once the pond is in, people can't resist "water".

This offer was out of the same real estate office as my realtor. They have been re-enforced, "We do not need to sale" and when we send our counteroffer and sale firm/final; we don't take counter offers.

There is no inventory of homes or lots available in our area.

You can look at the lot and subdivision, googling the subdivision. What makes this spot special is 4 lane highway 1/4 mile away, hard surface road, perfect walk out building site, 100 year old oak trees, pond, stream, back yard abuts our creek and pasture where no one will ever build, 13 year old oak and evergreen trees around the property, boulder landscaping, 1 mile from the town and events, 5G internet coming this fall.

Counter offer:

1. Our counter offer was good till 11 am the next day. I wanted to leave it at 5pm, the same day. I was a little pissed being given only the next day 5pm, as a squeeze play by the person. The Realtor and I completed the counter offer at 4pm. Plus, I actually didn't want to sale, because at $160,000 this will sale all day long. If we waited till the pond was filled, it would be worth another $20,000 at $220,000.

2. We came back at $190,000. $10,000 reduction to show some good faith bargaining. Decided $190,000 with a known buyer, was better than $220,000 for a possible future buyer at say $210,000.

3. Shared driveway, I did not allow the requirement for an easement. The new buyers can do it. Or they can just add another 5 foot to the width of the existing driveway on their side. Did not want this minor point slowing down the close.

4. Water well drilling, gave them both a deadline date and also a defined "good" well of 8 gallons per minute. Lot 8 about 100 yards over got a 15 gallon per minute well drilled.

5. Pond work, non issue since we will be done in about 3 weeks.

So we had 9 lots originally. We have sold 5 lots since about February, when we opened. After we sold the first two lots we started raising the prices on the others, since the ball was rolling. We have two lots we want to sale, and the two remaining lots we have priced at extreme prices, because they front or tough our homesite and we don't want neighbors, unless someone pays those crazy prices we set.

The last two lots we want to sale, I plan to transplant more evergreen trees this fall and do more rock/boulder landscaping over the next two week.

Again we are sending all funds to our bank and paying down existing Self Storage unit loans. Basically converting assets that have reached their value peak, for assets that will create even more wealth generation.

The tax implications will be offset by the new storage location early depreciation write off of roads, fences, electric, security, etcetera.

This property was originally bought with a 1031 tax exchange, but we decided to pay our taxes on this property sale.

************ 08/25/2021

Overall update. Lots 6/7/8/9/10 are sold. Although we took a $10,000 price reduction from List on every property, just so "we were working with them" we had increased the price about $20,000 across the board after we made the first sale and got the ball rolling.

Two of the lots dug wells at 90 feet and got 18 and 20 gallons per minute. A decent well is 8 to 10 gallons per minute. Part of our sales agreement is they must get a decent well. We have some wells going 300 feet in our county. If you ever do a well, do a Cistern well. Even if you get a Bad well of say 4 gallons per minute, the Cistern normally holds 1,500 gallons. You will never run out of water, even with a bad well GPM.

Once we decided to build a pond, we raised the price another $20,000 on those lots.

Forget whether the above was smart or not smart; originally underpriced or not; the take away is our area has virtually no houses for sale, and there are very few lots available in the surrounding farming community. That put more pressure on these lots which are available for market, on hard surface road (bmw/mercedes/harley no rocks and dust), near a 4 lane highway, 1 mile to town, yet in the country, and 5G coming through. Every time I call the broker, he thinks I'm going to raise the price again.

We live in Lot 5 which is below 4 and not listed, since we don't want to leave. We have artificially raised lots 1 and 4 to unreasonable levels, because we don't want anyone living in front of us or to the side. "BUT" decided to list in case someone decided they wanted. Lot 4 for example is 21 acres for $350,000. Its a great lot, but an unheard of price in our area. But $350,000 for 21 acres is chump change for people coming out of other markets, who want a great lot. Should we have listed? I decided since we are doing the work, put them out there.

Lots 2 and 3 are the only lots we really want to sell. Again all of this land has been paid for, thus no bank loan pushing us.

Lots2/3 do not have as good of a nature backdrop to them, but still great locations. I have done some easy/minor landscaping and will plant about 20 more evergreen trees this year, about 8 to 10 feet tall. Just really need to sit back and wait. Also 5 G will be coming through this fall.

If we wanted to, could go back and subdivide again and replat to 1 acre lots to lower the entry cost, but for more in total. Instead of $130,000 for 2.3 acres; could convert to two lots for $90,000 for 1 and 1.3 acres as an example. Less land, but lower entry point. Total dollars $130,000 versus re-subdivide $180,000.

Our county smallest lot is 2 acres, but we are within the 1 mile range for city rules, which would allow 1 acre lots.

Will hold off doing this play.

100% of the funds are going to our bank and paying down on Self Storage debt. Not holding out any for taxes, since we are building new Self Storage and doing year one write-offs on roads/fences/electric/security/etc to offset Subdivision profits.

Was this a good decision? Taking land purchased for $585 per acre or $7,000 per acre; selling for around $60,000. Paying off Self Storage debt at average 4.8% interest rate on 5 year term/20 year amort.

a. I don't see land/housing market to come back to this level at anytime soon in the future. Low interest, low inventory, high demand.

b. Don't see the land value from $585 or $7,000 up to $60,000 occurring again. It would have to go from $60,000 up $540,000 per acre to achieve the same return levels in the next 30 years.

c. Don't see my son both hitting the same market and also having the same Financial/RE skillset to do this project for another 20 years of maturing. If we decided to let him sale in the future.

d. Paying down debt with 4.8% interest rate on an asset like Self Storage that cash flows and funds itself is not a wise decision. REI is about leverage.

e. Basically we have taken an asset we did not need anymore, that we did not think would perform at a high level in the future and "convert" it to Self Storage which will outperform this land going forward.

f. This was really about Risk aversion. We had the land which is at a high level and the "needle" is pointed more towards a loss than higher gains. We had Self storage debt which was better "kept", but we did not want to move the Subdivision money to Stocks/Bonds or other investments where we did not feel a better than 4.8% after tax return was possible, or with less risk.

Forget whether we are right or wrong, this is our thought process and market evaluation. Luckily Self Storage is a very "liquid" fixed asset and can be converted to Cash very easily if we need it in the future. Plus we have taken care of the tax impact on the Subdivision land on our own timing.

******************** 09 21 2021

Pond is still being dug out. Getting closer. Its amazing how much dirt is in a place. The Driveway down, is starting to get narrowed down. They are starting to pull up more of the dirt out of the bottom. Then I need them to go back down in, and dig some really deep holes.

Starting to fill the temperatures drop and Fall in the air. Getting antsy to get the pond done, sides seeded down, fish stocked, plant some wild pond plants; sit back and watch the wood ducks fly through in the evening.

************09 27 2021

Look who pulled in the driveway. Building manufacturer three trucks showed up at 8 am. Rented Telehandler loader was dropped off at 9am. Contract Erector crew of 4 showed up at 10 am and started unloading. There will be three buildings. Two of them were delivered for now. Fence and gate is already in place so they can lock down the jobsite. This is not our project. Helping my brother get started in Self Storage.

The building erected below is a 40 footer. The support posts are 5 feet apart with 5 feet on each side. Have a separate post "Day in the Life, building a Storage location" that shows all of the detail of building a location. So won't go in detail on this location.

The three buildings should be erected in 6 weeks.

Had to pay the "delivery payment" to the trucker before they unloaded.

In the background: Working on contracts, ordering unit numbers, order locks, set up security system, find insurance company for storage units, have one during construction already.

Bought a separate building for office and house. Paying a contractor to assemble this, versus us doing it.

************* 09 28 2021

Day two. Building one. The folks are flying. They should put on the door jambs and headers on the other side. Ends. Then they will put the doors in next, before they do the roof. Easier to stand above the doors to both lift/maneuver and to bolt in. Inside walls will normally go in last, so they can move easier putting on the doors and roof first. Putting on the roof depends if its too windy. The light weight insulation is hard to put up in the wind.

Beautiful Texas sky.

************** 10 18 2021

Decided to plug the pond and let it start to fill in. Actually the excavator guy messed up and placed to much fill and concrete chunks over the drainage end of the temporary tube and the dirt and concrete constricted the temporary pipe and it silted in. He decided to dig it out and just fill the temporary drain way in. You can see all of the bare dirt next to the drainage culvert, from him digging the temporary pipe out.

Pond is starting to fill in. Will probably take about 2 weeks unless we get a rain. This pond is being fed by a year round stream.

Just ordered mores Shiners and minnows to receive this Friday. Will get Bass, blue gill, hybrid blue gill, redear, and Channel catfish next week. Might get a few hybrid stripe bass for fun and next spring get 2 or 3 Paddlefish from a hatchery for a conversation piece. They won't re-produce in this pond.

One year from now?????? Probably not. Salmon don't grow this far south.

***********11/21/2021

Pond finally filled in. Took about two, 2-3 inch rains. Looks really beautiful. Still need to move out about two large piles of dirt to finish. Had new aerial photos taken to help sell lot 4, 20 acres, which has access to the pond and will look down on it. Wish I had built the pond first. It really catches peoples eyes from the road above.

Ordered fish in last week.

Hybrid Bluegill can get up to 3 pounds, bluegill, bass, yellow perch, walleye, albino catfish; plus tons of minnows and crawfish.

***********11/21/2021 A

Lot 3 just sold last week. Had listed for $130k. Sold for $122k. Since the other lots had sold so fast. About 3 months ago, raised this price by $20k. Lot 3 is pending. All of the lots I had non-refundable deposits required $5,000 up to $20,000. This has reduced the amount of "Chatter" and only have had to deal with serious buyers, who have financing in order.

Really only have Lot 2 left to sale. Lots 1 and 4 we have listed at extreme prices since they are next to or on the way to our house and we don't want neighbors. "BUT" if they pay the price, then neighbors are okay. Lot 4 which is 20 acres and priced over the moon, has actually had some interest. It has a great View and now access and View of the pond. Both interested parties were from the West coast, we are in Iowa.

Now lots 3 (pending), 6, 7,8,9,10 are sold. This is truly about Location/Location as the underlying story.

************11/28/2021

Happy Thanksgiving.

Lot 4, 21 acres just sold. Our old neighbors were visiting their daughter's family across the street. My wife and I went over to visit and watch Monday night football. Had a great visit. The Daughter and her husband just sold their property 2 weeks ago. Still wanted to stay in this area, but need to find someplace to build. They had already looked at Lot 4 since they wanted a "View" which this has 360 Degree. Plus they have both access and a view of the pond we just finished.

We had priced Lot 4 thru the Moon, since it is next to us and we didn't want any neighbors. Our north windbreak is about 30 year old evergreens so we can't see each other. Decided to make them an offer since they were interested. This lot would be harder to sale since it requires about a 1/4 mile drive, 1/4 mile electric and then a well drilled away from the potential home site (no water on top of the hill).

Cut the price significantly as a one-time offer just to their family, thus we know who will live next to us (about 1,200 feet away). Also know the type of house they will build. Will have a shared driveway with them for about 200 feet on the front hill. We were able to "Afford" to make a decision like this since we only had about $10,000 in the 21 acres. If we had financed the whole project using today's land values, would not have made this low offer to them. Add some stipulations since this offer was extremely lower than list:

a. They had to start building within a year. Or we can buy the lot back. Don't want them re-selling the lot, since we did lower far below what I consider market price.

b. They have to live at this house for two years or the price goes back up to the original listing.

c. Confidentiality, if we heard on the street the price we offered just them, then the offer was rescinded. Don't want it to get out we were open to lowering the price so low.

d. We had access to the pond thru their ground. We can access via our ground, but we have to go through the woods. This easement ends with my Wife and I.

e. Their house doesn't close till the end of January. So we put a Non-refundable deposit amount and our close will be after their close.

The pond picture below is looking up the hill to where they would build. Have lots 1 and 2 left. We will not sell Lot 1, since that fronts our home. Lot 2, I think we will raise the price a second time, another $20,000 since there is very little land that can be bought or subdivided in our area.

********12/03/2021

Trying to catch up. Starting tomorrow is Season 1 deer season, so will be out for the next 5 days running around.

Hey, thought everything was supposed to be Rosey on all projects? Lot 9 which is in CRP decided not to have the contract "Succeed" to them. Even though this was part of both the covenants and contracts they signed. My lawyer recommended putting this in, thoughtful lawyer. Got a letter from the Soil group saying I owed them $5,000 since the contract did not "succeed" to the new owners, thus I was on the line. We are in year 8 of a 10 year contract. I will have to pay back all payments, interest, penalties and planting costs. The buyers have not started building yet. They could have not built for 2 years. Bought out 1/4 acre out of the 4 acres and just built the house.

Got my lawyer involved. Having her put a lien on the property for the $5,000; her estimated fees and another $1,000 for my aggravation. Lawyer sent them a letter explaining the situation and they need to pay the $5,000; take the CRP contract; or they will have a lien on their property. Although I will be out $5,000 for a while; this is actually the best of a bad thing. They won't be able to finance and the contractor they selected if they get wind of it, probably won't start building. A lot of leverage without going to court.

Update:

Look back at 7/16/21 content on this post. Trees two weeks ago are now around 20 to 25 feet tall since July. Had the guys start knocking leaves off. This will reduce wind load on the trees so they don't grow crooked, but will also slow their growth down since less leaves.

****************03 27 2022

Lot 2 is the last lot that we want to sale.  To spice it up, plus I got bored waiting, put in a boulder retaining wall for a Shed location.  Don't want to do anything where they might build their house, so picked a piece of ground that was sloped and had a small footprint.  Dug out and used the ground to level and make a larger footprint.  Bought 100 tons of boulders.  About 70 tons of large and 30 tons of small.  The small boulders were used to fill in the gaps in the larger boulders to lock the wall together.  Just need to plant some River Birch trees on the corners and put some Juniper bushes next to the rocks for contrast.  Grass seed and grass mat on the side hill slope.   A 40 by 60 shed should be able to go there.  This is a 2 acre lot, so that should be ample size.  This added both cost and value to the property.  Plus it may reduce the number of buyers, but it will increase the higher dollar buyers wanting the property.  Doing this "Country" subdivision I have learned the following items "Sell"; water, trees, location, and Rocks.  We added the pond, location was already great, had trees we moved around, and we added boulders on some of the lots.

Start small and Make Your Big Mistakes Early.