How to make a million dollars with a capital partner with subdivision entitlements

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Loudoun County Virginia

80 acre parcel

Entitlement for 30 1 to 1.5 acre estate lots and 40 acre remainder parcel with large million dollar home.

Purchase price 3.5 mil

EM deposits non refundable 50k up front 50k during

Entitlement cost ( survey, geo , water , artifacts, Soils Engineer , city fees) 350k

Capital partner ME provide all the cash up front. 450k to my client who found and prosecuted the plat

Multiple offers from all the biggest builders in that market IE Toll Lennar DR and a few regionals.

Closed today with 1.1 million cash profit PLUS the 40 acres and home value about at least 2 mil free and clear.

My fee is double my money so we made 450k today.

My client made about 650k in cash and the property free and clear..

This is the value of a TRUE capital partner one that knows development willing to take on some risk for high reward.

this is the smallest of 3 I had going with this company.. The other two are much larger with much larger investments from me and profits on one of them in the 8 figures for my clients..

My client is mid 30s just had a baby.. However is a civil engineer and worked for a big developer in NYC so very experienced.

The buyer was one of the companies named above it will hit the market for pre sales in a few months.

This is the 5th Entitlement project I have funded over the last 5 or 6 years in addition I did a 60 lot one in Orlando for a developer there and a 110 lot one in the Atlanta area for a build to rent developer who then sold to Lennar for build to rent .. On those I actually bought the land and they paid for the entitlements and then they paid me off my return on those was not 100% per annum like these but it was north of 30% per annum.. These deals have so much meat on the bone that paying a capital partner is a no brainier..

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Henry ClarkPro Member

Developer · Member since 2020 · 4k+ posts · 4k+ votes

Anyone reading this post.
Dont start with a large project. Buy a house with 5 or 10 acres then split and sale. Move up to 10 to 40 acres and split up into large lots. Dint do small lots. Then stay about the same size and then do small lots. Start with a country subdivision versus a city one. Go for rock roads and no water drain or septic systems. When you move up to concrete roads and sidewalks. Water drain and septic pipelines the cost almost doubles.
Learn location value first before doing a large project. Be on the side of town towards the next largest town. Near a school or towards a rec area. People line trees, water, walkouts, boulders. Try not to pick flat farm ground. Look for cheaper waste ground with trees, ditches which can be converted to ponds, sloped ground for walkout basements, views.

Above all else make sure you have sweet ground water if in the countryside. Good cell phone reception and internet.

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
Goals lol. Well done! Love hearing your stories and perspectives
1 Reply
Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Caleb Brown:

Goals lol. Well done! Love hearing your stories and perspectives

It was pretty cool meeting this young entrepreneur.. he made one post on BP looking for this kind of investors to help him and of course NOT many will do what I do.. I responded to him before his post got taken down for self promotion :).. Liked what I heard Booked a flight out to Washington DC spent 2 days with him kicking the dirt. Going through existing developments and going through zoning codes with him ( I wanted to read the actual codes so I knew we could get from A to B without major issues.

Its a skill set he enjoys and I can recognize talent when I see it.. this is how I do bizz I dont have a lot of clients that I provide capital to.. But when I find one I am on the plane and I go do my due diligence in person.. Cant do these deals sitting behind a desk and your computer.

And you have to kiss a log of Frogs to find a prince no doubt. but with my personal background in development it really helps. Keep in mind deals do price for risk there is risk in what we do.. But hey there is risk in everything RE related .. the good news is we dont borrow any money and everything is cash in this niche and the buyers are the top 10 builders in the US that just stroke checks when you have a project they covet. But it needs to be through the entitlement stage. They will pay a premium when the site is de risked from the Government approval aspect.. Also keep in mind these companies can put up 100k to 200k 300k non refundable and released to us But then at the end just walk. So to protect our cash we also need to be in a position to close on the underlying dirt..
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Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
@Don Konipol Don this relates to your thread we were talking about this morning.
this is the highest risk stuff I do.. but I mitigate it pretty well or at least I think I do..
So happy for this young man and his young family.
One of my bizz partners years ago and mentor.. ( he was President of a fortune 500 company) we belonged to the same country club in Napa.. him in his mansion on the Hill me on my house down in the low lands.. But he told me his job was to make those who worked for him to enable them to move up the ladder and in my business he said my goal should be to help your clients become millionaires and they will drag you along with them. :)
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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
1y
Smaller but similar process.
Bought 75 acres of farmland with 50 farmable. At auction. $9,000 per acre. $675,000
Engineer $20,000
Surveyor $20,000
Road $100,000
Electric $140,000
Fiber $60,000
7% sales commission.

Will be 18 lots for a total of $2.2mm

This is a cash deal on our part. You still need to consider interest cost. Our first project sold out in 11 months but a great location. This one will take 5 years to sell all of them.
There is another location I found after we had purchased this. It is in a better location and would sell out in 3 years. But we did not buy. Don’t want to much of a good thing in the same market.
1 Reply
Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
1y
On another post someone mentioned you can only do the above with lots of cash.
Start small and Make Your Big Mistakes Early.
1. Buy Texas offlist property tax properties for $8,000 and sale for $200,000 just mowing the grass. $10,000 sale for $50,000. Start your cash snowball.
2. In your neighborhood. Buy an old farmhouse with 10 or 20 acres and subdivide.

Then start to scale.
Basically the same questions no matter how big the project. Road access, lot sizes allowed, water, sewer, utilities, subdivision rules, best way to divide lots- more is not always better, multiple road accesses is better, people like water/trees/walkouts/views/boulders. Be on the side of town towards the next major town, etc etc.
1 Reply
Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Henry Clark:

Smaller but similar process.
Bought 75 acres of farmland with 50 farmable. At auction. $9,000 per acre. $675,000
Engineer $20,000
Surveyor $20,000
Road $100,000
Electric $140,000
Fiber $60,000
7% sales commission.

Will be 18 lots for a total of $2.2mm

This is a cash deal on our part. You still need to consider interest cost. Our first project sold out in 11 months but a great location. This one will take 5 years to sell all of them.
There is another location I found after we had purchased this. It is in a better location and would sell out in 3 years. But we did not buy. Don’t want to much of a good thing in the same market.

Henry,

I take it these lots are sold to owner builders who want to build their own home .. Or do you get a few builders that will tie up a lot or two then try to presell.. Or do builders buy them and do specs ? Since you have no debt I suspect you will do some form owner financing while folks either wait to build or go through the permit process.. ( permits depending on market can be as quick as 30 to 45 days or 6 months to 12 months).

So 120k lot value what will be built there.. 500 to 700k houses?
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JLH Capital Partners51 Review
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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
1y
Quote from @Jay Hinrichs:

Quote from @Henry Clark:

Smaller but similar process.
Bought 75 acres of farmland with 50 farmable. At auction. $9,000 per acre. $675,000
Engineer $20,000
Surveyor $20,000
Road $100,000
Electric $140,000
Fiber $60,000
7% sales commission.

Will be 18 lots for a total of $2.2mm

This is a cash deal on our part. You still need to consider interest cost. Our first project sold out in 11 months but a great location. This one will take 5 years to sell all of them.
There is another location I found after we had purchased this. It is in a better location and would sell out in 3 years. But we did not buy. Don’t want to much of a good thing in the same market.

Henry,

I take it these lots are sold to owner builders who want to build their own home .. Or do you get a few builders that will tie up a lot or two then try to presell.. Or do builders buy them and do specs ? Since you have no debt I suspect you will do some form owner financing while folks either wait to build or go through the permit process.. ( permits depending on market can be as quick as 30 to 45 days or 6 months to 12 months).

So 120k lot value what will be built there.. 500 to 700k houses?

All options except we don’t finance. Although that would be easy to do.
These are country lots 25 miles to major metro. 2 to 6 acres each. Rock driveways and country roads. When you move to concrete driveways your lots have to be way smaller to support the cost.
A specific market. Not your traditional subdivision. Very hard to find small acreages in the countryside close to a metro area.
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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
1y
Yep. $500 to $700k. Our subdivision rules require minimum 2,000 square foot on main floor.
Our first one though had a 3,500 and a 6,000 Square foot home- with 2,400 pool house.
0 Reply
Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
1y
Killing time at my favorite place in the world doing BP post. Spending some of that subdivision profit.
5 Reply
Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Henry Clark:

On another post someone mentioned you can only do the above with lots of cash.
Start small and Make Your Big Mistakes Early.
1. Buy Texas offlist property tax properties for $8,000 and sale for $200,000 just mowing the grass. $10,000 sale for $50,000. Start your cash snowball.
2. In your neighborhood. Buy an old farmhouse with 10 or 20 acres and subdivide.

Then start to scale.
Basically the same questions no matter how big the project. Road access, lot sizes allowed, water, sewer, utilities, subdivision rules, best way to divide lots- more is not always better, multiple road accesses is better, people like water/trees/walkouts/views/boulders. Be on the side of town towards the next major town, etc etc.

One of the guys I fund is a land flipper all over the US.. we just put into contract a really nice 47 acre track in NE Washington state .. he can do a 4 way split by just survey and record.

I am funding 180k all the purchase price he is going to pay for the survey work.. lots will sell for about 100k to 120k each.. And given my charges he stands to make about 60% of the of the net profit and I will make the remainder for providing 100% financing for him.. so 100k to 120k for him with maybe 10k out of his pocket. this is just one of about 20 I fund for him per year young guy making bank with a capital partner like me.. Plus i know land :)
Podcast Guest on Show #222
JLH Capital Partners51 Review
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Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Henry Clark:

Yep. $500 to $700k. Our subdivision rules require minimum 2,000 square foot on main floor.
Our first one though had a 3,500 and a 6,000 Square foot home- with 2,400 pool house.

2 to 3 million dollar homes out of our way..
Podcast Guest on Show #222
JLH Capital Partners51 Review
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2 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
1y
Quote from @Jay Hinrichs:

Loudoun County Virginia
80 acre parcel
Entitlement for 30 1 to 1.5 acre estate lots and 40 acre remainder parcel with large million dollar home.
Purchase price 3.5 mil
EM deposits non refundable 50k up front 50k during
Entitlement cost ( survey, geo , water , artifacts, Soils Engineer , city fees) 350k
Capital partner ME provide all the cash up front. 450k to my client who found and prosecuted the plat
Multiple offers from all the biggest builders in that market IE Toll Lennar DR and a few regionals.
Closed today with 1.1 million cash profit PLUS the 40 acres and home value about at least 2 mil free and clear.
My fee is double my money so we made 450k today.
My client made about 650k in cash and the property free and clear..
This is the value of a TRUE capital partner one that knows development willing to take on some risk for high reward.
this is the smallest of 3 I had going with this company.. The other two are much larger with much larger investments from me and profits on one of them in the 8 figures for my clients..
My client is mid 30s just had a baby.. However is a civil engineer and worked for a big developer in NYC so very experienced.
The buyer was one of the companies named above it will hit the market for pre sales in a few months.
This is the 5th Entitlement project I have funded over the last 5 or 6 years in addition I did a 60 lot one in Orlando for a developer there and a 110 lot one in the Atlanta area for a build to rent developer who then sold to Lennar for build to rent .. On those I actually bought the land and they paid for the entitlements and then they paid me off my return on those was not 100% per annum like these but it was north of 30% per annum.. These deals have so much meat on the bone that paying a capital partner is a no brainier..

Dope, love me some land deals.........When I built the family house i'm living in now, I went and bought 30 acres for about $200k...Some wooded but mostly Farmland. Spent another $215kish building a Cul-De-Sac, getting subdivision planning / approval, engineering....etc and made 3 lots out of it....A 22, a 6 & a 2. Kept the 22 and built my house, sold the other 2 lots for a total of $405k or so. It's in the school district the wife wanted and we've got all the space and privacy one could need. I've never seen 22 acres on a Cul-De-Sac before so we couldn't be happier with how it all penned out.

5 Reply
Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
1y
Quote from @Jay Hinrichs:

Quote from @Henry Clark:

On another post someone mentioned you can only do the above with lots of cash.
Start small and Make Your Big Mistakes Early.
1. Buy Texas offlist property tax properties for $8,000 and sale for $200,000 just mowing the grass. $10,000 sale for $50,000. Start your cash snowball.
2. In your neighborhood. Buy an old farmhouse with 10 or 20 acres and subdivide.

Then start to scale.
Basically the same questions no matter how big the project. Road access, lot sizes allowed, water, sewer, utilities, subdivision rules, best way to divide lots- more is not always better, multiple road accesses is better, people like water/trees/walkouts/views/boulders. Be on the side of town towards the next major town, etc etc.

One of the guys I fund is a land flipper all over the US.. we just put into contract a really nice 47 acre track in NE Washington state .. he can do a 4 way split by just survey and record.

I am funding 180k all the purchase price he is going to pay for the survey work.. lots will sell for about 100k to 120k each.. And given my charges he stands to make about 60% of the of the net profit and I will make the remainder for providing 100% financing for him.. so 100k to 120k for him with maybe 10k out of his pocket. this is just one of about 20 I fund for him per year young guy making bank with a capital partner like me.. Plus i know land :)

Land is not so much my skill set. After reading your post, I think I need to brush up on learning more about it. :-) any pointers for learning more about land?
2 Reply
Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @James Wise:

Quote from @Jay Hinrichs:

Loudoun County Virginia
80 acre parcel
Entitlement for 30 1 to 1.5 acre estate lots and 40 acre remainder parcel with large million dollar home.
Purchase price 3.5 mil
EM deposits non refundable 50k up front 50k during
Entitlement cost ( survey, geo , water , artifacts, Soils Engineer , city fees) 350k
Capital partner ME provide all the cash up front. 450k to my client who found and prosecuted the plat
Multiple offers from all the biggest builders in that market IE Toll Lennar DR and a few regionals.
Closed today with 1.1 million cash profit PLUS the 40 acres and home value about at least 2 mil free and clear.
My fee is double my money so we made 450k today.
My client made about 650k in cash and the property free and clear..
This is the value of a TRUE capital partner one that knows development willing to take on some risk for high reward.
this is the smallest of 3 I had going with this company.. The other two are much larger with much larger investments from me and profits on one of them in the 8 figures for my clients..
My client is mid 30s just had a baby.. However is a civil engineer and worked for a big developer in NYC so very experienced.
The buyer was one of the companies named above it will hit the market for pre sales in a few months.
This is the 5th Entitlement project I have funded over the last 5 or 6 years in addition I did a 60 lot one in Orlando for a developer there and a 110 lot one in the Atlanta area for a build to rent developer who then sold to Lennar for build to rent .. On those I actually bought the land and they paid for the entitlements and then they paid me off my return on those was not 100% per annum like these but it was north of 30% per annum.. These deals have so much meat on the bone that paying a capital partner is a no brainier..

Dope, love me some land deals.........When I built the family house i'm living in now, I went and bought 30 acres for about $200k...Some wooded but mostly Farmland. Spent another $215kish building a Cul-De-Sac, getting subdivision planning / approval, engineering....etc and made 3 lots out of it....A 22, a 6 & a 2. Kept the 22 and built my house, sold the other 2 lots for a total of $405k or so. It's in the school district the wife wanted and we've got all the space and privacy one could need. I've never seen 22 acres on a Cul-De-Sac before so we couldn't be happier with how it all penned out.

nice work Jim.. I hope you have a house cleaner for your wife !!! thats a monster pad.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Joe S.:

Quote from @Jay Hinrichs:

Quote from @Henry Clark:

On another post someone mentioned you can only do the above with lots of cash.
Start small and Make Your Big Mistakes Early.
1. Buy Texas offlist property tax properties for $8,000 and sale for $200,000 just mowing the grass. $10,000 sale for $50,000. Start your cash snowball.
2. In your neighborhood. Buy an old farmhouse with 10 or 20 acres and subdivide.

Then start to scale.
Basically the same questions no matter how big the project. Road access, lot sizes allowed, water, sewer, utilities, subdivision rules, best way to divide lots- more is not always better, multiple road accesses is better, people like water/trees/walkouts/views/boulders. Be on the side of town towards the next major town, etc etc.

One of the guys I fund is a land flipper all over the US.. we just put into contract a really nice 47 acre track in NE Washington state .. he can do a 4 way split by just survey and record.

I am funding 180k all the purchase price he is going to pay for the survey work.. lots will sell for about 100k to 120k each.. And given my charges he stands to make about 60% of the of the net profit and I will make the remainder for providing 100% financing for him.. so 100k to 120k for him with maybe 10k out of his pocket. this is just one of about 20 I fund for him per year young guy making bank with a capital partner like me.. Plus i know land :)

Land is not so much my skill set. After reading your post, I think I need to brush up on learning more about it. :-) any pointers for learning more about land?

if your serious happy to help
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
2 Reply
Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
1y
Quote from @Jay Hinrichs:

Quote from @Joe S.:

Quote from @Jay Hinrichs:

Quote from @Henry Clark:

On another post someone mentioned you can only do the above with lots of cash.
Start small and Make Your Big Mistakes Early.
1. Buy Texas offlist property tax properties for $8,000 and sale for $200,000 just mowing the grass. $10,000 sale for $50,000. Start your cash snowball.
2. In your neighborhood. Buy an old farmhouse with 10 or 20 acres and subdivide.

Then start to scale.
Basically the same questions no matter how big the project. Road access, lot sizes allowed, water, sewer, utilities, subdivision rules, best way to divide lots- more is not always better, multiple road accesses is better, people like water/trees/walkouts/views/boulders. Be on the side of town towards the next major town, etc etc.

One of the guys I fund is a land flipper all over the US.. we just put into contract a really nice 47 acre track in NE Washington state .. he can do a 4 way split by just survey and record.

I am funding 180k all the purchase price he is going to pay for the survey work.. lots will sell for about 100k to 120k each.. And given my charges he stands to make about 60% of the of the net profit and I will make the remainder for providing 100% financing for him.. so 100k to 120k for him with maybe 10k out of his pocket. this is just one of about 20 I fund for him per year young guy making bank with a capital partner like me.. Plus i know land :)

Land is not so much my skill set. After reading your post, I think I need to brush up on learning more about it. :-) any pointers for learning more about land?

if your serious happy to help

Yes sir I’m very serious!!! I’m also working with my 20 year-old son and trying to point him in the right direction as well.
0 Reply
Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Joe S.:

Quote from @Jay Hinrichs:

Quote from @Joe S.:

Quote from @Jay Hinrichs:

Quote from @Henry Clark:

On another post someone mentioned you can only do the above with lots of cash.
Start small and Make Your Big Mistakes Early.
1. Buy Texas offlist property tax properties for $8,000 and sale for $200,000 just mowing the grass. $10,000 sale for $50,000. Start your cash snowball.
2. In your neighborhood. Buy an old farmhouse with 10 or 20 acres and subdivide.

Then start to scale.
Basically the same questions no matter how big the project. Road access, lot sizes allowed, water, sewer, utilities, subdivision rules, best way to divide lots- more is not always better, multiple road accesses is better, people like water/trees/walkouts/views/boulders. Be on the side of town towards the next major town, etc etc.

One of the guys I fund is a land flipper all over the US.. we just put into contract a really nice 47 acre track in NE Washington state .. he can do a 4 way split by just survey and record.

I am funding 180k all the purchase price he is going to pay for the survey work.. lots will sell for about 100k to 120k each.. And given my charges he stands to make about 60% of the of the net profit and I will make the remainder for providing 100% financing for him.. so 100k to 120k for him with maybe 10k out of his pocket. this is just one of about 20 I fund for him per year young guy making bank with a capital partner like me.. Plus i know land :)

Land is not so much my skill set. After reading your post, I think I need to brush up on learning more about it. :-) any pointers for learning more about land?

if your serious happy to help

Yes sir I’m very serious!!! I’m also working with my 20 year-old son and trying to point him in the right direction as well.

Ok can set up a call .. just ping me.. will do what I can to cut your learning curve just dont tell anyone I offered this :)
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
2 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
1y
Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Loudoun County Virginia
80 acre parcel
Entitlement for 30 1 to 1.5 acre estate lots and 40 acre remainder parcel with large million dollar home.
Purchase price 3.5 mil
EM deposits non refundable 50k up front 50k during
Entitlement cost ( survey, geo , water , artifacts, Soils Engineer , city fees) 350k
Capital partner ME provide all the cash up front. 450k to my client who found and prosecuted the plat
Multiple offers from all the biggest builders in that market IE Toll Lennar DR and a few regionals.
Closed today with 1.1 million cash profit PLUS the 40 acres and home value about at least 2 mil free and clear.
My fee is double my money so we made 450k today.
My client made about 650k in cash and the property free and clear..
This is the value of a TRUE capital partner one that knows development willing to take on some risk for high reward.
this is the smallest of 3 I had going with this company.. The other two are much larger with much larger investments from me and profits on one of them in the 8 figures for my clients..
My client is mid 30s just had a baby.. However is a civil engineer and worked for a big developer in NYC so very experienced.
The buyer was one of the companies named above it will hit the market for pre sales in a few months.
This is the 5th Entitlement project I have funded over the last 5 or 6 years in addition I did a 60 lot one in Orlando for a developer there and a 110 lot one in the Atlanta area for a build to rent developer who then sold to Lennar for build to rent .. On those I actually bought the land and they paid for the entitlements and then they paid me off my return on those was not 100% per annum like these but it was north of 30% per annum.. These deals have so much meat on the bone that paying a capital partner is a no brainier..

Dope, love me some land deals.........When I built the family house i'm living in now, I went and bought 30 acres for about $200k...Some wooded but mostly Farmland. Spent another $215kish building a Cul-De-Sac, getting subdivision planning / approval, engineering....etc and made 3 lots out of it....A 22, a 6 & a 2. Kept the 22 and built my house, sold the other 2 lots for a total of $405k or so. It's in the school district the wife wanted and we've got all the space and privacy one could need. I've never seen 22 acres on a Cul-De-Sac before so we couldn't be happier with how it all penned out.

nice work Jim.. I hope you have a house cleaner for your wife !!! thats a monster pad.

lol, it's a bit more to clean than the 988 sq ft house we were living in when we bought our 1st duplex.
0 Reply
Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Loudoun County Virginia
80 acre parcel
Entitlement for 30 1 to 1.5 acre estate lots and 40 acre remainder parcel with large million dollar home.
Purchase price 3.5 mil
EM deposits non refundable 50k up front 50k during
Entitlement cost ( survey, geo , water , artifacts, Soils Engineer , city fees) 350k
Capital partner ME provide all the cash up front. 450k to my client who found and prosecuted the plat
Multiple offers from all the biggest builders in that market IE Toll Lennar DR and a few regionals.
Closed today with 1.1 million cash profit PLUS the 40 acres and home value about at least 2 mil free and clear.
My fee is double my money so we made 450k today.
My client made about 650k in cash and the property free and clear..
This is the value of a TRUE capital partner one that knows development willing to take on some risk for high reward.
this is the smallest of 3 I had going with this company.. The other two are much larger with much larger investments from me and profits on one of them in the 8 figures for my clients..
My client is mid 30s just had a baby.. However is a civil engineer and worked for a big developer in NYC so very experienced.
The buyer was one of the companies named above it will hit the market for pre sales in a few months.
This is the 5th Entitlement project I have funded over the last 5 or 6 years in addition I did a 60 lot one in Orlando for a developer there and a 110 lot one in the Atlanta area for a build to rent developer who then sold to Lennar for build to rent .. On those I actually bought the land and they paid for the entitlements and then they paid me off my return on those was not 100% per annum like these but it was north of 30% per annum.. These deals have so much meat on the bone that paying a capital partner is a no brainier..

Dope, love me some land deals.........When I built the family house i'm living in now, I went and bought 30 acres for about $200k...Some wooded but mostly Farmland. Spent another $215kish building a Cul-De-Sac, getting subdivision planning / approval, engineering....etc and made 3 lots out of it....A 22, a 6 & a 2. Kept the 22 and built my house, sold the other 2 lots for a total of $405k or so. It's in the school district the wife wanted and we've got all the space and privacy one could need. I've never seen 22 acres on a Cul-De-Sac before so we couldn't be happier with how it all penned out.

nice work Jim.. I hope you have a house cleaner for your wife !!! thats a monster pad.

lol, it's a bit more to clean than the 988 sq ft house we were living in when we bought our 1st duplex.

land development can have its own frustrations dealing with bureaucrats at the county level.
They can be just as savage as bad tenants.. pick your poison right
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JLH Capital Partners51 Review
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Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Loudoun County Virginia
80 acre parcel
Entitlement for 30 1 to 1.5 acre estate lots and 40 acre remainder parcel with large million dollar home.
Purchase price 3.5 mil
EM deposits non refundable 50k up front 50k during
Entitlement cost ( survey, geo , water , artifacts, Soils Engineer , city fees) 350k
Capital partner ME provide all the cash up front. 450k to my client who found and prosecuted the plat
Multiple offers from all the biggest builders in that market IE Toll Lennar DR and a few regionals.
Closed today with 1.1 million cash profit PLUS the 40 acres and home value about at least 2 mil free and clear.
My fee is double my money so we made 450k today.
My client made about 650k in cash and the property free and clear..
This is the value of a TRUE capital partner one that knows development willing to take on some risk for high reward.
this is the smallest of 3 I had going with this company.. The other two are much larger with much larger investments from me and profits on one of them in the 8 figures for my clients..
My client is mid 30s just had a baby.. However is a civil engineer and worked for a big developer in NYC so very experienced.
The buyer was one of the companies named above it will hit the market for pre sales in a few months.
This is the 5th Entitlement project I have funded over the last 5 or 6 years in addition I did a 60 lot one in Orlando for a developer there and a 110 lot one in the Atlanta area for a build to rent developer who then sold to Lennar for build to rent .. On those I actually bought the land and they paid for the entitlements and then they paid me off my return on those was not 100% per annum like these but it was north of 30% per annum.. These deals have so much meat on the bone that paying a capital partner is a no brainier..

Dope, love me some land deals.........When I built the family house i'm living in now, I went and bought 30 acres for about $200k...Some wooded but mostly Farmland. Spent another $215kish building a Cul-De-Sac, getting subdivision planning / approval, engineering....etc and made 3 lots out of it....A 22, a 6 & a 2. Kept the 22 and built my house, sold the other 2 lots for a total of $405k or so. It's in the school district the wife wanted and we've got all the space and privacy one could need. I've never seen 22 acres on a Cul-De-Sac before so we couldn't be happier with how it all penned out.

nice work Jim.. I hope you have a house cleaner for your wife !!! thats a monster pad.

lol, it's a bit more to clean than the 988 sq ft house we were living in when we bought our 1st duplex.

my 3rd house in Palo Alto CA was 900 sq ft 3 and 1 this is were location location determines value I paid 185k for it in 1985.. and sold it in 92 for 500k doing nothing to it.. And it last sold for 3.2 million now they did add a little in the back and added a bathroom.. 684 Encina Grande Palo Alto CA.. lots are worth 2 to 3 mil.. improvements not so much. :)
Podcast Guest on Show #222
JLH Capital Partners51 Review
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
1y
Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Loudoun County Virginia
80 acre parcel
Entitlement for 30 1 to 1.5 acre estate lots and 40 acre remainder parcel with large million dollar home.
Purchase price 3.5 mil
EM deposits non refundable 50k up front 50k during
Entitlement cost ( survey, geo , water , artifacts, Soils Engineer , city fees) 350k
Capital partner ME provide all the cash up front. 450k to my client who found and prosecuted the plat
Multiple offers from all the biggest builders in that market IE Toll Lennar DR and a few regionals.
Closed today with 1.1 million cash profit PLUS the 40 acres and home value about at least 2 mil free and clear.
My fee is double my money so we made 450k today.
My client made about 650k in cash and the property free and clear..
This is the value of a TRUE capital partner one that knows development willing to take on some risk for high reward.
this is the smallest of 3 I had going with this company.. The other two are much larger with much larger investments from me and profits on one of them in the 8 figures for my clients..
My client is mid 30s just had a baby.. However is a civil engineer and worked for a big developer in NYC so very experienced.
The buyer was one of the companies named above it will hit the market for pre sales in a few months.
This is the 5th Entitlement project I have funded over the last 5 or 6 years in addition I did a 60 lot one in Orlando for a developer there and a 110 lot one in the Atlanta area for a build to rent developer who then sold to Lennar for build to rent .. On those I actually bought the land and they paid for the entitlements and then they paid me off my return on those was not 100% per annum like these but it was north of 30% per annum.. These deals have so much meat on the bone that paying a capital partner is a no brainier..

Dope, love me some land deals.........When I built the family house i'm living in now, I went and bought 30 acres for about $200k...Some wooded but mostly Farmland. Spent another $215kish building a Cul-De-Sac, getting subdivision planning / approval, engineering....etc and made 3 lots out of it....A 22, a 6 & a 2. Kept the 22 and built my house, sold the other 2 lots for a total of $405k or so. It's in the school district the wife wanted and we've got all the space and privacy one could need. I've never seen 22 acres on a Cul-De-Sac before so we couldn't be happier with how it all penned out.

nice work Jim.. I hope you have a house cleaner for your wife !!! thats a monster pad.

lol, it's a bit more to clean than the 988 sq ft house we were living in when we bought our 1st duplex.

my 3rd house in Palo Alto CA was 900 sq ft 3 and 1 this is were location location determines value I paid 185k for it in 1985.. and sold it in 92 for 500k doing nothing to it.. And it last sold for 3.2 million now they did add a little in the back and added a bathroom.. 684 Encina Grande Palo Alto CA.. lots are worth 2 to 3 mil.. improvements not so much. :)

Lol oh ya. Anytime you're involving the govt it's a hair pulling nightmare. I had hair back when I lived in that little yellow house, no more.
I didn't do as well as you did on the Palo Alto house but did pretty good on the little yellow house too. Bought for $85k in 09. Got $16k in 1st time home buyer grants for the down payment & closing costs....$8.5k from Obama who was trying to stop the bleeding on the housing crisis and another $8.5k from the city who was doing the same. Lived there for 7 years, rented it out for $1k-$1.1k to the same tenant for another 7 years then sold it for $150k & used the money for a pool house cabana at the 22 acre crib.
1 Reply
Eric Bilderback
Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
1y
How long did the process take from walking the dirt to closing with one of the big builders?
0 Reply
Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
1y
Quote from @Eric Bilderback:

How long did the process take from walking the dirt to closing with one of the big builders?

We don’t sell to big builders but the process is the same up to that point.

Walking the land as you note could mean you already bought the ground or you are looking for ground. That would be dependent on you closing the deal.

Our project we are bringing to market will have taken us 2 years from buying to offering. As @Jay Hinrichs mentioned it can be a bear dealing with people.
Wasted 8 months with the County Auditor on the first application just arguing with her on the correct form. Finally had the board of supervisors sit down with her and correct her. So it depends on how many Subdivisions occur in your jurisdiction.
lost another 9 months combined with the Corp of Engineers and the local Soil and Conservation board.

Starting with an engineer firm will speed up the process. Will cost more.
I would say 6 to 9 months from owning the land to selling. Also depends on how much infrastructure you have to put in.
3 Reply
Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
1y
Anyone reading this post.
Dont start with a large project. Buy a house with 5 or 10 acres then split and sale. Move up to 10 to 40 acres and split up into large lots. Dint do small lots. Then stay about the same size and then do small lots. Start with a country subdivision versus a city one. Go for rock roads and no water drain or septic systems. When you move up to concrete roads and sidewalks. Water drain and septic pipelines the cost almost doubles.
Learn location value first before doing a large project. Be on the side of town towards the next largest town. Near a school or towards a rec area. People line trees, water, walkouts, boulders. Try not to pick flat farm ground. Look for cheaper waste ground with trees, ditches which can be converted to ponds, sloped ground for walkout basements, views.
Above all else make sure you have sweet ground water if in the countryside. Good cell phone reception and internet.
6 Reply
Jay HinrichsBusiness Member
OP
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Eric Bilderback:

How long did the process take from walking the dirt to closing with one of the big builders?

with this one its been about 16 months.. I have to say though its a really special site we had 6 offers.. the one we took was not the highest but it was the top builder in the entire US for luxury . Also these projects are going through the planning project as BY RIGHT in other words zoned and no variances or anything so density is by Right based on code.. Then I have to say also my client being a Civil Engineer is wildly organized as good as I have ever seen and far better than I could have done on my own thats for sure.. WE came into the picture after he had them tied up and was searching for capital for entitlements.. The other two projects we are funding for him we were there from the beginning and will take looks like 18 months.

This one that closed was so cool if the company did not buy it I would have liquidated a bunch of my stuff to take it down move out there for a few years and build it out myself.. one of the nicest sites I have ever seen and that part of the country would look like Yamhill county wine country in Oregon for perspective..

Oregon used to be really fast to when you were BY RIGHT I did a project in Lafayette Oregon 110 lots and got pre lim approvals in 120 days on that one but that was 98 or so.. :) now things are taking at best 1 year to realistically 18 months to 24 months for full approvals from what I have experienced.
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