10 acre land in north west miami dade..

10 acre land in north west miami dade..

Investor · Miami, FL · Member since 2017 · 3 posts · 1 vote

Goodmorining all,

I Purchased a 10-acre property in north-west Miami Dade in 2005 (think Okeechobee rd and the turnpike extension).It has 40 horse stables and a 2-acre nursery. We rent out the stables, and I had the nursery rented but the tenants fell behind on payments and were evicted. recently the area has been gaining a lot of traction with the demand for truck parking and very little space left for it. I have since cleared land and rented out a few of the acres generating me significant monthly income about 8k monthly.  I have gotten all too used to driving to the property to collect checks and seeing my tenants.

My property is currently outside of the urban development boundary, I am zoned agriculture/ residential. most the neighboring properties have cleared the land and all are parking trucks. long gone are the nurseries and ranches in the area, it's all commercial trucks / yards. since I don't have a license on the property to park the trucks I live in fear that the county will one day make me remove the trucks. which will make me lose a huge portion of that monthly income. my attorney says in the meantime the county will not enforce any laws because there is simply no place to put all the commercial trucks.

I have been steady receiving phone calls from realtors asking if I would be interested in selling and that they have an interested buyer looking in the area. I always listen as you never know ,  but I haven't thought about selling for real. but lately, the offers keep looking more and more appealing. 

should I try to convert the property and go to a legal truck parking? From speaking with current landowners in the area who have done so, the process is very expensive. and dependent on who you know. many are just selling and going elsewhere with the $$$$

I own the property outright no loans or liens.  so getting a loan against shouldn't be too hard. but I would be scared of not being able to make payments towards a loan if my circumstances would change with the parking situation 

 I'm looking for some guidance and peace at night when I sleep. if I sell I would be looking at over 2M to work with. This is everything and all I have. I feel like I have to make my next move my best move.

i like being a landlord and don't mind driving around checking on properties, maybe buy SF,MF deals ?? 

should I hold on to the 10 acres and just keep pushing the land is only getting more valuable? 

maybe if I can get someone else perspective on what they would do.  thanks

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Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes
8y

Yes, provided you can qualify

See this reply in the discussion

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  • Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    8y

    It may very well depend on what buyers are looking to do with the land, if they hope to develop it to its highest and best use that may not be something you specialize in and wish to sell.  On the other hand what would happen if the county cracked down on truck parking, to me it seems like you may have all your eggs in a single basket of questionable legality.  Also look at the math, what return could you get if you deployed the money, others will encourage you to leverage to the hilt, but I would look at what your return would be if you bought residential properties with the cash from the sale for an apples to apples comparison, because you would likely use a 1031 exchange.  I think the most important thing is to figure out why people are willing to pay so much for the land, and possibly employ the highest and best use if possible.  Hope that helps.

  • Real Estate Investor · Clarksville, TN · Member since 2017 · 46 posts · 8 votes
    8y
    Ray, think about the long term sustainability as well. You could keep it and hope things go in your favor long term, or you could sell for $2M and put that into multifamily. That’s an $8M apartment deal you could do yourself or invest with a syndicator for something even larger. Just remember, people always need a place to live, and multifamily will never been regulated out or not be in demand. Maybe it’s time to put that $2M into something you can start building on long term and with certainty. You can always sleep well at night owning multifamily.
  • Investor · Miami, FL · Member since 2017 · 3 posts · 1 vote
    8y

    " I think the most important thing is to figure out why people are willing to pay so much for the land, and possibly employ the highest and best use if possible."

    I believe it has something to do with all these large land purchases in the area/ mall planned?

    https://therealdeal.com/miami/2016/01/11/lennar-pa...

    https://therealdeal.com/miami/2016/01/26/lennar-ad...

    https://therealdeal.com/miami/2018/04/25/american-...

    https://therealdeal.com/miami/2016/12/20/codina-pa...

    https://therealdeal.com/miami/2016/12/28/lennar-bu...

    https://therealdeal.com/miami/2015/12/19/graham-co...

    land in this area is going for 500k+ an acre, just 3 years ago one could buy the same land for $250k an acre

    "what your return would be if you bought residential properties with the cash from the sale for an apples to apples comparison, because you would likely use a 1031 exchange."

     I would most likely use a 1031 exchange since I will probably make about 1M on the deal if i sell 

    " you could sell for $2M and put that into multifamily. That’s an $8M apartment deal you could do yourself or invest with a syndicator for something even larger."

    would I be able to get financing for such a large deal, if I don't have a proven track record of buying apartments? 

     syndicators are new to me, I'm looking to build new relationships and learn as much as possible, I was once young and too quick to pull the trigger hence how I got myself wrapped up in this property.  

  • Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes
    8y

    What you need is a Commercial Mortgage LOC (Line Of Credit) of up to 1,400,000 on the land and it could be the right financing "Tool for the Situation."

    This would allow you access to your equity, but only have an I/O payment on it in the interim time until you draw the full amount if needed.

    Also, qualifying is much easier on this type of program

  • Investor · Miami, FL · Member since 2017 · 3 posts · 1 vote
    8y
    Originally posted by @Account Closed:

    What you need is a Commercial Mortgage LOC (Line Of Credit) of up to 1,400,000 on the land and it could be the right financing "Tool for the Situation."

    This would allow you access to your equity, but only have an I/O payment on it in the interim time until you draw the full amount if needed.

    Also, qualifying is much easier on this type of program

    my property is zoned agricultural/ mix use residential, would I still be able to qualify for a commercial mortgage LOC?

  • Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes
    8y

    Yes, provided you can qualify

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