All Forum Posts by: Jim Stout

One of my companies has done very well buying raw land and taking it through the entitlement process with the local municipality to achieve the "highest and best use" of the land. We typically look for land in area where we can get the zoning we need for single family or townhome developments.  We then sell the land to my development company at around a 14% typically just barely over the one year mark so we only pay long term capital gains. Then we develop the land into a subdivision and sell it to one of many national track home builders for the remaining profit in the project. Although it's not a passive income investment structuring it this way gives our investors a really great 1 year return of 12-18% with a lower tax rate than taking it through the entire 2 year plus process of having to raise more funds to complete the actual development. There are a lot of moving parts to get the land through entitlement, but if you do your homework before closing on the purchase of the land it sure bears waiting 3-7 years for a multi-family property investment to mature in order to sell and cash out. However, we do also acquire passive income properties, as well. Not saying those aren't great investments, too. Just answering the question that Amy Rogers put out there in this thread. Land development is my answer. It's a hidden gem that if you have the experience to take it on has huge payoffs.

Mark anyone telling you to spread the risk over multiple properties or multi-family/small apartment building is giving you good advice.  With $550k (20% down) you could buy a $2.75mil multi-family/apartment and have $50,000 left for improvements to get your rents up some early on. You could buy 7 nice houses in Central FL with 20% down.  Read as much as you can on Bigger Pockets and watch podcasts related.  Best of luck!

We purchase 20 to 100 acre land tracts and develop them out for lots for national home builders. We've been working mostly in FL, GA and NC because I am a licensed real estate broker in those 3 states, but we are open to anywhere in the country as long as the demographics and home prices support new construction for large builders. With the market this hot it is hard to find land with Future Land Use of medium density residential. Does anyone have sources for finding land for sale besides, Loopnet, Lands of America, Land Century, Landflip and LandWatch websites?  I've been successful over the years find large tracts on the local property appraiser GIS maps then writing letters to the owners.  Usually get a response from about 1 out of every 10 letters.  Just looking for some new ways to find raw land with the potential for residential development. Any feedback would be greatly appreciated.  Would love to meet with any of you with similar interests in New Orleans this year at BPCon21.

Thank you. I have been looking for the low or no money down video, as well.