All Forum Posts by: Matthew P.

Just comparing options of developing land to building lots or building actual homes. To subdivide down to the minimum 1.5 acres or keep it to 3-5 acre properties and go with a higher end single family builds with detached garage above accessory dwellings. The land is gorgeous wooded area that would make great private estates.

Based on some of the points I posted, there are concerns with it making enough return in a acceptable amount of time. In Utah, we have a very hot growth and jobs market here. Developing this kind of land here, would be a no-brainer. I still would plan for a 5 year exit. With this land in Wisconsin, I don't know if it could be done in 10 years. That is what I am looking for some feedback or what the general interest level is on something like this is.

What direction to develop for the best ROI

BP Community,

I have had a opportunity presented to me through a small talk conversation that I transitioned to the person asking me what I would do with a large piece of acreage in Door County, WI. I asked what that individuals goals were with the property. They opened up that this 80 acre property had been in the family for over 100 years and the most important part that they wanted to keep was the 20 acre part that had the original farm house on it. I said I would look at having some sort of 5 to 10 year passive income plan with this tied to offering the other 60 acres for a development opportunity for free, being paid back to him in an equity share partnership of 10 to 20% post development or post subdividing of the property, making it build ready for sale. 

This had never been considered by the individual, but he was very interested in thinking this option over. He inquired about my building/limited developing back round from 10+ years ago. The next time I saw the guy he asked if I would be interested in taking this on, and that he talked to another long-time family friend who had 80 acres that would be interested in the same kind of structure deal.

My opportunities to find how to make this work or if it is a viable investment for a partnership.

1. I live in Utah with a full-time W2 job working towards F.I.

2. I have extended family that live about 2 hours from the proposed location, all of them say they would love vacation homes in this area, but that polar vortex that comes each year is COLD!

3. I need a large equity share partner to take the majority of this project on.

4. The 140 acres is great summer vacation history, but has an annual declining full time resident population growth.

5. From what I can see, the median home values $204k vs $167k for the state of WI ( 4% value growth over the previous year ) and 78% of the county own vs 63% national average.

6. Household median income is $54k ( increased over the previous year ) with a poverty level of around 7.5% (94% ages 45-54 ) 

7. The vacation population inflation is shorter then other destinations, due to the longer winter season.

8. These properties are split on both sides of the main highway running through the county on the Green Bay side of Lake Michigan. From what I can see, they are Zoned to subdivide no less than 1.5 acres per parcel.

9. Come up with a a development strategy that brings the most cash on cash return and have a CORE FOUR on the ground. Looking to take a Jr position to add value to someone else for the experience on this big of a scale.

10. Negotiate a win win equity structure for all parties involve, giving us the answer if this is a investment worth doing.

Currant water and sewer set up is for Wells and Septic Tanks, but there are main roads to access direct from properties.

I tried to keep this as simple, condensed, and informative at the same point for some BP Feedback/Advise/Interest.

Thanks in advance for any help with this

I know that there have been a few cities in Utah Co and Salt Lake Co that have been modifying their laws regarding STR or vacation rentals in the last couple of months. Even with the changes, they still have not allowed less then 30 days ( reading between the lines ). Does anyone currently have any push back from the cities in these counties for your STR? I appreciate any feedback on this. I have searched past forms specifically for Utah and not much covered recently.

I appreciate being challenged, it's what makes us dig deeper to find and understand the truth. Thank you for your engagement of conversation. I really am asking for help to understand how to access what your talking about. I think of a NC loan like a personal line of credit, because that has been what I have applied for in the past. I have only been able to get about $40k available doing this with out collateral. I would love to learn more about the NC loans your talking about and how and where to get them, this would help me jump up to a higher level of entry to RE. I've been trying to work these deals with in the realm of finance I currently have in place i.e. HELOC.

I haven't taken money out yet, still sending offers out with my realtor on multiple properties. I have been offering two months with no takers, so the HELOC has been great not paying interest or fees for it to sit there waiting until I get a deal. I see your point, if you have a stream of properties under contract with upcoming closing dates. I am just not at that point yet. I would love to know the criteria for these NC loans, because I do see the "down the road benefits". Who is giving these $500K NC loans?

Can anybody point me in the direction who gives these monster NC loans out and what is the criteria? When I have the deals all lined up to do this, I will go that route, but I pay nothing right now on the HELOC trying to lock down a deal.

Sandy, UT about 8600s and 1500e. Great location, but starting tear out of the whole house for the land is 10 to 12k with no complications. I have seen the number increase dramatically before in other situations. The retail price for the land may have been 220k cleaned and ready to build on, this was far from that. The building requirements from the street and around the property would have been hard to build a bigger footprint than the current house size.

@Joe Villeneuve I never pay anything for my lines of credit when not actively using them nor pay fee when I use them. Any credit loan you get, you pay the moment you sign up for it. Just confused with your comment you take a charge every time you use a credit line vs one time fee on a loan. Also, there is generally an origination fee with loans vs nothing for lines of credit.