I own the land, now what? Seeking advice about an exit strategy
Member since 2024 · 29 posts · 8 votes
I own the land, now what? Seeking advice about an exit strategy
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesQuote from @Chris Seveney:
Quote from @Tina Swanson:
Hello! I just recently acquired 2 plots of land in St Cloud Florida in a gated townhome community from a tax deed auction. I own the 2 units at the end of an 8 unit block. 3 of the plots are still county owned and the remaining 3, 2 are owned by out of state companies and the 3rd by a single gentleman. My original plan was to build the 2 units then sell them. But the site is currently unbuildable especially without owning all the lots in the block. I am trying to figure out what my exit strategy is at this point. Any suggestions or insight would be greatly appreciated!
There was a reason these went to tax sale and no one wanted them. Hopefully you did not pay too much for them but basically your best bet isto let them go to tax sale again and eat your losses.
When buying at tax sales due diligence is key. You could have avoided this with the research.
Common sense also prevails in many instances where if there is land in a townhome community - why did the original builder not build there as townhomes are not built by individual owners.
agreed the exit is either the greater fool theory or contact the adjacent owners and make a deal they are probably in the same boat you are in.. I have seen some in FLA ( I had one client in particular that I funded there) that actually did pretty good buying low value land and flipping it.. She made so much money that she left me to go on her own.. Also she was a lawyer or law student who had not taken the bar so she could do her own quiet title work big advantage to her.. Smart lady that one. I sure hated to see her go ..
8 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Tina Swanson:
Hello! I just recently acquired 2 plots of land in St Cloud Florida in a gated townhome community from a tax deed auction. I own the 2 units at the end of an 8 unit block. 3 of the plots are still county owned and the remaining 3, 2 are owned by out of state companies and the 3rd by a single gentleman. My original plan was to build the 2 units then sell them. But the site is currently unbuildable especially without owning all the lots in the block. I am trying to figure out what my exit strategy is at this point. Any suggestions or insight would be greatly appreciated!
There was a reason these went to tax sale and no one wanted them. Hopefully you did not pay too much for them but basically your best bet isto let them go to tax sale again and eat your losses.
When buying at tax sales due diligence is key. You could have avoided this with the research.
Common sense also prevails in many instances where if there is land in a townhome community - why did the original builder not build there as townhomes are not built by individual owners.
7e investments53 Reviews- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Chris Seveney:
Quote from @Tina Swanson:
Hello! I just recently acquired 2 plots of land in St Cloud Florida in a gated townhome community from a tax deed auction. I own the 2 units at the end of an 8 unit block. 3 of the plots are still county owned and the remaining 3, 2 are owned by out of state companies and the 3rd by a single gentleman. My original plan was to build the 2 units then sell them. But the site is currently unbuildable especially without owning all the lots in the block. I am trying to figure out what my exit strategy is at this point. Any suggestions or insight would be greatly appreciated!
There was a reason these went to tax sale and no one wanted them. Hopefully you did not pay too much for them but basically your best bet isto let them go to tax sale again and eat your losses.
When buying at tax sales due diligence is key. You could have avoided this with the research.
Common sense also prevails in many instances where if there is land in a townhome community - why did the original builder not build there as townhomes are not built by individual owners.
agreed the exit is either the greater fool theory or contact the adjacent owners and make a deal they are probably in the same boat you are in.. I have seen some in FLA ( I had one client in particular that I funded there) that actually did pretty good buying low value land and flipping it.. She made so much money that she left me to go on her own.. Also she was a lawyer or law student who had not taken the bar so she could do her own quiet title work big advantage to her.. Smart lady that one. I sure hated to see her go .. - Rental Property Investor · Edinburg, TX · Member since 2015 · 10 posts · 1 vote1y
Quote from @Jay Hinrichs:
Quote from @Chris Seveney:
Quote from @Tina Swanson:
Hello! I just recently acquired 2 plots of land in St Cloud Florida in a gated townhome community from a tax deed auction. I own the 2 units at the end of an 8 unit block. 3 of the plots are still county owned and the remaining 3, 2 are owned by out of state companies and the 3rd by a single gentleman. My original plan was to build the 2 units then sell them. But the site is currently unbuildable especially without owning all the lots in the block. I am trying to figure out what my exit strategy is at this point. Any suggestions or insight would be greatly appreciated!
There was a reason these went to tax sale and no one wanted them. Hopefully you did not pay too much for them but basically your best bet isto let them go to tax sale again and eat your losses.
When buying at tax sales due diligence is key. You could have avoided this with the research.
Common sense also prevails in many instances where if there is land in a townhome community - why did the original builder not build there as townhomes are not built by individual owners.
agreed the exit is either the greater fool theory or contact the adjacent owners and make a deal they are probably in the same boat you are in.. I have seen some in FLA ( I had one client in particular that I funded there) that actually did pretty good buying low value land and flipping it.. She made so much money that she left me to go on her own.. Also she was a lawyer or law student who had not taken the bar so she could do her own quiet title work big advantage to her.. Smart lady that one. I sure hated to see her go ..Thanks for posting, Tina. Out of curiosity, would you elaborate on what makes the land unbuildable? I didn't fully understand why not owning all lots on the block limits the ability to build.
- Member since 2024 · 29 posts · 8 votes1y
I thank you both for your insight! It really lit a fire and gave me the push to go out and find a solution. I finally have the properties under contract! I took a hit on them, but I'm happy to have had the learning experience! I look forward to make many more mistakes in the future because it just made me fall in love with real estate even more!
- Member since 2024 · 29 posts · 8 votes1y
The site plan for that section is for an 8 unit block of town homes. I own the 2 lots on the end of that block. The owners of all 8 lots would have to want to build and pay for it upfront. Then it would be able to be built upon. As far as I can tell, 3 of them are owned by other people and the rest is still in the builder's name. I decided to sell off the properties to another investor and move my money into my next investment.
- Rental Property Investor · Edinburg, TX · Member since 2015 · 10 posts · 1 vote1y
Quote from @Tina Swanson:
The site plan for that section is for an 8 unit block of town homes. I own the 2 lots on the end of that block. The owners of all 8 lots would have to want to build and pay for it upfront. Then it would be able to be built upon. As far as I can tell, 3 of them are owned by other people and the rest is still in the builder's name. I decided to sell off the properties to another investor and move my money into my next investment.
Wow! Got it, thanks for sharing. I hadn't realized it was possible to lock land owners into such an arrangement. I have family that bought and developed land in a gated villa community in South Texas where all of the villas are technically standalone structures, however they're built right next to each other so that they look like connected townhomes. I wonder if such an option exists in your case.
Either way, sorry you had to experience this and glad you're learning from it.
- Developer · TX · Member since 2024 · 42 posts · 21 votes1y
These kinds of situations can open up possibilities with the right approach.
Since the county owns some of the surrounding land, it might be worth seeing if there’s room to expand your footprint. I’ve actually reached out to a Florida county’s real estate division before about a parcel they owned, and they agreed to sell, which helped make the site more viable for a builder we were working with. So it’s definitely something that can be done with the right alignment.
You could also explore whether neighboring owners might see value in acquiring a piece, or if the site could be marketed as a bundled “longer play” opportunity.
If you’re open to it, I’d be glad to take a quick look out of curiosity. Sometimes another perspective helps surface options that aren’t obvious right away.
- Member since 2024 · 29 posts · 8 votes1y
I have since put the parcels under contract with another investor and should be closing in a couple weeks. I took a little bit of a hit on them, but I want to start investing in my own backyard in IL. Thank you so much for reaching out and offering your help, I really appreciate it!
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