Silver Springs Subdivision

[Henry Clark]

Investment Info:

Other commercial investment investment in Glenwood.

Purchase price: $675,000
Cash invested: $300,000
Sale price: $2,200,000

Developing our 2nd Country Lot Subdivision. Bought at auction 75 acres of farm ground with only 50 acres farmable. Waste ground trees, ditches, water ways are great for lots. Have platted out 18 lots ranging from 2 to 6 acres. Has taken a long time to get thru the Country subdivision process. Will to market spring of 2025. See post on this. We just develop the lots, and do not build homes for sale. Our first subdivision sold out in 11 months. Location, Location.

What made you interested in investing in this type of deal?

This is our 2nd country Lot subdivision. We look for 100% to 150% COC return in 3 to 5 years. 1st subdivision sold out in 11 months. Location, location.

How did you find this deal and how did you negotiate it?

Bought at a farm auction.

How did you finance this deal?

Cash. Subdivisions are
Dangerous if you are using funding right now. 2025.

How did you add value to the deal?

Surveyed, platted, roads, entrances, underground electric, fiber optics.

What was the outcome?

Sold 2 of 18 lots in first 3 months which is great. See how it does.

Lessons learned? Challenges?

Took 2 years to get zoning approved. Small town USA where few subdivisions are done. You need to drive the process.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We were overseas and had our realtor bid for us at the auction. He is handling the lot sales.