The risk wasn't the floodplain. It was the seller.

[Harveer Singh]

Was looking at a small acreage deal in North Texas recently.

At first I thought the main risks would be the usual stuff. Floodplain, utilities, access, septic, that kind of thing.

Turns out the most interesting part of the deal had nothing to do with the land itself.

The seller had bought a much larger tract and was splitting it into smaller lots.

Nothing wrong with that. Happens all the time.

But it got me thinking about the exit.

If I bought one of those lots and wanted to resell it later, who would I be competing against?

The same investor who split the property in the first place.

And unlike me, they had bought the original acreage at a much lower basis.

That completely changed how I looked at the deal.

Not because it made it a bad property. It didn't.

It just made me realize that sometimes the biggest risk isn't on the parcel. It's understanding who you're buying from and what their incentives are.

Anyone else run into something similar?