All Forum Posts by: Shema Cochrane

Hey @LaNaesha Toles sure, I'd love to shed some insight wherever I can. You can dm or email me. I'm actually not on here that much. Not sure if I can post my email in the comment section but it's in my profile.

Hey Peter,

You’re spot on land you buy usually gets counted under COGS since it’s essentially inventory. When you sell it on terms, each payment you collect typically gets split between principal (which just lowers your note balance) and interest (which is the taxable part).

I’m not an expert on the accounting side, but I do try to stay open to learning more about these things as they come up, especially as I dig deeper into different parts of the land business.

One tool that helps is a simple amortization calculator like Bankrate, it shows how much of each payment is interest vs principal.

Also, IRS Publication 537 is a solid starting point for understanding how installment sales get reported.

If nothing else, keeping clean notes and setting up a system early makes tax season way less painful and eventually bringing in a CPA who “gets” land notes is well worth it.

Here's various resources that could be useful to you...

Books (For Foundational Knowledge)

1. “Invest in Debt” by Jimmy Napier

Teaches the core mindset and math behind seller financing, great for understanding how to structure win-win deals.

2. “The Paper Source Book” by W.J. Mencarow

 Offers a practical blueprint for evaluating, creating, and managing real estate notes.

3. “Seller Financing on Steroids” by Dawn Rickabaugh

Simplifies seller-financed deals and shows how to set up notes that are attractive to buyers and investors.

Podcasts (For Real-World Strategies)

1. The Note Closers Show Scott Carson

Hear interviews with investors working real seller finance and note deals, including how to buy notes at a discount.

2. Land.MBA Podcast

Geared toward land investors using terms (seller financing) to scale faster with less capital.

YouTube Channels (If Your A Visual Learner)

1. REtipster (Seth Williams)

Watch step-by-step tutorials on structuring seller financing, automating payments, and avoiding rookie mistakes.

2. Pebble / REI Conversion

Learn how other land investors are building systems and handling seller-financed deals at scale.

Courses & Communities (For Deeper Learning)

1. NoteSchool, Eddie Speed

Comprehensive training on how to profit from creating, buying, and selling real estate notes. Ideal if he’s serious about the long game.

2. Facebook Group: Creative Financing with Real Estate

Chat with others doing deals using seller financing and subject-to strategies. Great for asking questions and seeing real deals get dissected.

Hey Simon,   Yeah, coming up with all that upfront cash for land and a home build can definitely be a barrier, but there are some creative ways around it.   One solid play is seller financing. If the land’s been sitting for a while, the owner might go for a low down payment and monthly terms. That gives you time to get build financing lined up after you’ve locked in the land.   There’s also land + construction loans, one-time close, covers both the dirt and the build. Not every lender offers these, but local banks or credit unions are usually your best bet.   Now if you want to get extra creative…   • Lease Option or Installment Land Contract You can lease the land for a period while you’re prepping your plans, and then convert it into a purchase. Helps avoid a big upfront commitment and gives you time to get financing in place.   • Land Arbitrage This one’s clever. You lock up the land on terms, then bring in a buyer or partner before you ever close. Could be a builder, family member, or even a co-buyer who wants to live on part of it.   • Partnership Builds I’ve seen people team up with a small builder: the builder fronts the cost of the build in exchange for a share of the profit or equity once it sells. You bring the deal, they bring the tools.   • Cross-collateralization If you already own property with equity, you can sometimes use that as leverage to secure the land or build loan. Not for everyone, but it’s an option if you’re asset-rich and cash-light.   Honestly, a lot of this depends on the land, zoning, utilities, etc. But if you’ve got a specific lot or idea in mind, I’m happy to brainstorm options with you.

Hey Jeremy

This method can definitely work with infill lots too. I’ve got a couple builders in my circle doing exactly that. They’ll put the land under contract for 60 days, create a photo render of a home on the lot, and start marketing it as a presale. Once they’ve got a buyer, they go ahead and close on the land.

I spend most of my time helping landowners figure out next steps for their property, so if I come across someone who’s ready to sell and the lot fits what one of my builders is looking for, I just connect them directly. If it moves forward and closes, I collect a finder’s fee for making the intro.

Yes, doing due diligence on the land is absolutely critical, especially if you’re planning a development project. There are so many hidden variables that can blow up a deal if missed early on (zoning, floodplain issues, access, utilities, soil conditions… just to name a few).

Over time, I built out a checklist to help myself and others avoid those surprises. I actually turned it into a free due diligence library for folks who want to run their own process or just understand what questions to ask.

Here's some critical areas ti look for...

1. Legal Access (and Type)

• Is access deeded or just visible?
• Is it public or private road access?
• If easement-based, is it recorded? Maintained?

2. Utilities Verification

• Water: Public, well, or haul-in? Any impact fees or connection costs?
• Sewer or septic: Is a perc test required? Any nearby sewer tie-in?
• Power: Is power available at the lot line or will poles need to be extended?

3. Floodplain or Wetlands

• FEMA Flood Zone status
• State/local wetland restrictions (these can kill builds quick)

4. Slope/Topography

• Is the land buildable “as-is” or will grading be required?
• Are retaining walls or soil stabilization needed?

5. Environmental Constraints

• Is there an environmental site assessment required (ESA)?
• Any nearby protected species, conservation overlays, or contamination history?

6. Easements & Encumbrances

• Utility easements, pipeline rights, etc.
• Any deed restrictions, CC&Rs, or HOA rules?

7. Title Red Flags

• Ownership clean?
• Any liens or back taxes?

8. HOA / Community Restrictions

• Some areas look rural but still fall under strict HOA rules
• Check for architectural control committees, rental restrictions, etc.

9. Local Building Moratoriums or Water Moratoriums

• In parts of California, Arizona, and Texas, you can own land that’s “zoned right” but under a building moratorium due to water, fire, or infrastructure constraints.

10. Drive-Time to Services

• Especially for resale or rental, how far is the property from:
  
• Hospitals
• Fire stations
• Schools
• Major roads/highways?

Hey Cathie, totally understand wanting to keep things simple and just list it as-is. But since you mentioned subdivision earlier, I wanted to share this real quick in case it helps with your decision:

There can be major upside to moving forward with the subdivision (even if you don’t plan to develop it yourself). That process is part of what’s called the entitlement process, where you work with the county to get the property "build-ready" by securing things like lot splits, zoning approvals, utility plans, etc.

Why does this matter? Because the more build-ready a piece of land is, the more attractive it becomes to developers and builders. You’re not just selling land at that point, you’re selling time saved, red tape skipped, and project momentum. That’s huge, especially for buyers who don’t want to wait a year just to break ground.

Even getting partway through the entitlement process (like securing a tentative map) can boost your value and open doors to a different kind of buyer.

If you want to chat more about it or need help figuring out what steps are worth tackling, happy to help however I can.

Also how did the call go with the AG department? Any update on the WAC?

Most people think of property lines as fixed and respected. But if you’ve ever rented land, or let someone else use yours, you know it’s not always that simple.

Tenants (even well-meaning ones) can slowly creep over boundaries in ways that cause legal headaches, survey disputes, or even permanent loss of land rights if not handled early.

Here are a few ways it usually happens:

1. Putting Structures Just Over the Line

That little shed? The chicken coop? Even a fence? If it crosses the property line, even by a few inches, that’s encroachment. Some renters build without checking lot lines, especially in rural areas where things feel more “loose.”

2. Clearing or Using Land That Isn’t Theirs

Some tenants start clearing brush, grazing animals, or even parking vehicles on land that technically isn’t theirs, especially if there's no fence or obvious boundary.

3. Extending Utilities Without Permission

Water lines, drainage pipes, or even electric poles can sometimes get extended across parcel lines “because it was easier.” Tenants may not realize it’s an issue, until the neighbor complains or demands removal.

4. Treating Adjacent Land Like It’s Part of the Lease

Sometimes the tenant just assumes land nearby is fair game, whether it’s for a garden, a fire pit, or expanding their living area.

Land Consultant’s Note:

If you're renting out land, especially rural acreage, I know it’s easy to assume things will go smoothly. But a little clarity upfront can save you so much stress later.

Here’s what I recommend:
- Get it surveyed (even a basic one helps)
- Mark the boundaries, physically, not just on paper
- Put it in writing, your lease should make it clear what’s included (and what’s not) 
- Check in regularly, not to micromanage, but to protect what’s yours

You worked hard to acquire that land. Just taking these small steps can help you avoid situations where you’re forced to give up ground, literally, on something you invested your time, money, and vision into.

@Patrick O'Sullivan Absolutely, Patrick! Relationship building is at the core of what I do. I mainly focus on land suited for low-density residential, but I love connecting with people who help bring those projects to life.. in all stages. Would be great to stay in touch, especially if I come across opportunities where having a solid leasing or management partner adds value on the backend.

@Deon White Hey Deon! Sorry for the late response. Totally open to connecting tho. I haven’t worked in Ohio specifically, but Florida’s come up a few times in my land convos and I’ve done some business out there before. The fundamentals still apply across markets, so I’m always down to exchange ideas and see where there’s synergy. 

Hey Ivan, appreciate you sharing this..

Since you’ve got your eye on a few lots already I’d just recommend making sure they line up with your build goals zoning wise and access wise before diving into partnerships. I’m a land consultant and I’ve seen people skip the homework and end up wasting time or money. Just something to keep in mind.

Now on the JV and funding side this is where putting yourself out there really matters. Nobody knows you’re building if you’re not talking about it. You’re doing good by posting here but I’d go further. Look up lenders, agents, small developers even. Reach out and introduce yourself as someone with a vision not just someone who needs help.

I built a little circle around me with people like a permit specialist, notary, etc. That way I’ve got real support and it makes it easier to move on the right opportunities. You don’t need a big team just start sharing what you’re working on and being intentional with your connections.

If you want to talk through anything land related I’m around.