Are there any urgency factors you add to your offers? In our previous Q&A's, Dave mentioned you never gave any sort of expiration date to an offer. So, I was wondering if there is any type of urgency you add to secure the deal.
Iām putting together a contract with a landowner, and he owns two tax parcels which are bordering each other. Is it best practice to draft up a separate agreement per parcel or do you guys just include all APN's/legal descriptions into one agreement?
I know you advocate finding off-market properties. I'm curious why that is and is it absolutely necessary or can you find on market land deals that are profitable?
What is the proper sequence of events after getting an accepted contract? Find buyer, get TRC meeting, get engineer working?
Q&A Session Date:Ā April 5, 2022 Timestamp: 00:25:40
Which filters are good on first American title?
Q&A Session Date:Ā April 5, 2022 Timestamp: 00:32:19
Have you ever dealt with FEMA approval for land? I have been told it takes 8 months to get approval.
Q&A Session Date:Ā April 5, 2022 Timestamp: 00:33:51
Have you ever dealt with wildlife credits in Texas prior to a development?
Q&A Session Date:Ā April 5, 2022 Timestamp: 00:35:09
How can I get a buyer's contract especially when there are several options of how to approach terms?
Q&A Session Date:Ā April 5, 2022 Timestamp: 00:35:20
How do you protect yourself from the 2008 style downturn?
Q&A Session Date:Ā April 5, 2022 Timestamp: 00:35:20
About the land fund, is there information that you can provide?
Q&A Session Date:Ā April 5, 2022 Timestamp: 00:45:30
What is the feedback you are receiving from public builders right now regarding rate hikes? Is there an appetite for lots flatlining or declining?
Q&A Session Date:Ā April 5, 2022 Timestamp: 00:47:03
I own a property in Springfield, Ohio in my retirement account. I would like to discuss the best possible returns. My limitation is I cannot be personally involved in my retirement account.
Q&A Session Date:Ā April 5, 2022 Timestamp: 00:48:40
When talking to developer buyers, we are trained to ask, āDo you self-develop?ā My question is, if they aren't self-developing, then what is the developer doing? Are they outsourcing development?
Q&A Session Date:Ā April 5, 2022 Timestamp: 00:51:40
What are your most effective methods of prospecting? Are these typically long-term relationships you have to build before you do a deal? How do you find owners that actually want to sell? I assume most landowners are quite content holding their property. Would you recommend hiring a virtual assistant to help with cold calling, or should this be done personally?
How quickly do you share with an owner? We are willing to pay today's market price for their vacant land. I basically lead with it so they know I'm not bargain hunting.
A foreclosure property was presented to me. I am hearing it requires court approval to close. Have you ever bought a foreclosure land deal? Any lessons learned there?
Iāve encountered quite a few landowners who have a realtor in their back pocket that they insist on using. How are you handling landowners who are adamant on having a realtor in the transaction?
For every willing seller, how many willing sellers does it take for you to get to? And by the way, we're probably more stringent than most, but for every willing seller, how many cold calls are you guys making a day right now?
I found a title company that can help me with farming. What criteria should I use in establishing the farming list, like the size of the parcels, length of ownership, etc.?
Can you disclose what company you use for virtual assistants?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:14:50
What is the best way to present to the city? Do you have any presentation templates or guides I can follow walking through the layout and all, we are offering to make the case for sizing needs in the plan development. At what point do we return to the seller to get a price concession?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:17:52
Will they let you put driveways off of the collector road?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:21:02
If the jurisdiction doesn't allow APD, I know I've heard some local developers doing, you know, paired homes or town products and doing condos just because you go to a state level for approvals there and you get to supersede the municipal approvals, how does that work for a public?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:25:00
Would they be open to condos?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:26:23
Are there national full service engineering firms or will they vary by jurisdiction?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:27:03
I saw that you guys offer 10% of profit to wholesalers. Do you offer any other partnering opportunities if people want to stay involved and add more value and share risk?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:30:30
Beyond VAs to cold call or conduct due diligence, what type of hires should we be thinking about to level up?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:32:28
A public homebuilder told me they are willing to pay for entitlements but would need to secure their interests with the deed of trust. Is that common?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:36:47
How do you get a true sense of how good the market absorption is in an area?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:41:24
Are properties located in floodplains worth considering?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:42:04
Do you ever commission a market study to make sure the area actually needs more development?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:44:28
Can you elaborate on the rezoning of an agriculture or vacant lot if the engineer handles the entire process, if any? How engaged are you in the rezoning process?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:46:05
Would they allow a rezone on that piece? And if so, what different zoning options would they allow you to do?
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:47:05
While speaking with the D.R. Horton Land Acquisition Manager, he advised me that although he can't purchase projects at preliminary plant approval, he prefers to purchase them as finished lots because it penalizes his division, the form of interest carrying costs with purchasing paper loss. I was under the impression from previous coaching calls that the general trend was moving in the direction of the larger public self developing. Do you think it varies from one developer or builder to another, or might this just be an anomaly with this particular division of D.R. Horton.
Q&A Session Date:Ā May 3, 2022 Timestamp: 00:47:26
When I go to market land, how quickly should I be engaging homebuilders and when should I expect to have details on what the location will yield?
Q&A Session Date: May 17, 2022 Timestamp: 00:17:36
How do you find the right people to talk to at these building companies?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:19:40
Can you further define what pre-app is? Is this before you apply for the land use approval?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:22:28
How much have you spent and what has been done at that point?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:23:56
How about landowners? Has anyone used LinkedIn to connect successfully?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:24:23
Can you walk us through a typical deal? I'm just curious what happens after we get a property under contract. We have 90 days for feasibility, so we need to get started on that right away. That will cost maybe $15,000 to $20,000 if we don't want to put that money, I guess we need a buyer lined up pretty quickly. Correct?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:25:06
How do you find the right people to talk to you? And then how do you present ourselves as credible so they want to talk to us?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:27:34
How are you getting Kimberly Horne to do a layout for a pre-app on existing base data? We keep getting bids for 15 to 30 grand for due diligence.
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:31:45
What does the conversation look like when you're talking to a developer about what they're willing to spend on lots perhaps during the research phase?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:33:15
What do they figure their development costs are?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:38:22
How do you get to a point of getting the builder to say that basically what they'll pay you at approval, there's no profit in the land development for them. How do you make that happen?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:41:05
Are you seeing builders interest in certain types? They're interested in certain types of land minimum acreage, minimum lock count, proximity to large metros, etc?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:46:24
Are you seeing any reduced interest from builders given rising rates and economic uncertainty?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:50:32
How many team members is reasonable to work on one deal? Is there an industry standard for that and what's reasonable on how many hands on the deal?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:53:39
I've been flipping vacant land for about five years and you've mentioned KPIs on one of your videos out there. And so I kind of know what my KPIs are. And I was just wondering what they are on this side of things?
Q&A Session Date:Ā May 17, 2022 Timestamp: 00:59:51
Do builders ever buy on market land through brokers? If not, why?
Q&A Session Date:Ā May 17, 2022 Timestamp: 01:01:53
Any more words of wisdom on how to ask for offers from developers to get the highest and best like Cody does?
Q&A Session Date:Ā May 17, 2022 Timestamp: 01:04:58
In my state, which is here in Florida, every title company Iāve ever worked with basically makes you fund the deal to do a double closing so they donāt let you use the buyerās money to fund the seller unless itās an assignment. Basically, everybody gets the same closing statement and then they see what youāre making. If you want that to be hidden, they call it a double blind HUD, youāve got to come up with the money. For example, if Iām buying from the seller for a million bucks, Iām selling it to the buyer for 2 million in order for everybody to not see what Iām making. Iāve got to come up with $1,000,000 at closing, even if itās just for one day. Have you encountered that before and if so, what do you think the best option is in a scenario like that for temporary funding?
Q&A Session Date: May 31, 2022 Timestamp: 00:05:54
How do you negotiate without taking title to the property?
Q&A Session Date: May 31, 2022 Timestamp: 00:21:52
Based on what you said about carrying costs, do you find that typically youāre getting better returns when youāre dealing with the bigger builders?
Q&A Session Date: May 31, 2022 Timestamp: 00:50:08
How often do you actually talk to developers?
Q&A Session Date: May 31, 2022 Timestamp: 00:51:50
Iām looking at a small city that is exploding in size, and the city planner says there are 43 large developments in process that will add 70,000 to the population. Do you recommend looking for opportunities in this environment, or is it actually too busy and slow to get approvals behind so many other projects?
What do you think of this approach? I meet with national builders in my area and ask them, where do you want to build, and I will help you get the entitlements using this double closing agreement.
One of the projects weāre looking at in the San Antonio MSA, itās technically in a county but thereās no zoning at the county or the nearest town. Is this typical? Or how do you typically look at it when there is no zoning?
Can I ask a question about building to rent underwriting? How different are your numbers when youāre backing into your paper lot values from finished lot values with build to rent developers? Are you seeing a different product type theyāre wanting to build to maximize rent, but minimize build cost?
If the property is not currently zoned, do you not know what lot sizes are appropriate? At what point are you comfortable estimating lot sizes to submit an LOI?
I am getting close to opening escrow on my first deal and when I spoke to my escrow agent about how the deal would be structured with the simultaneous close, she told me that if my funds to purchase the land are coming from the proceeds of the transaction with my buyer, then I would need to disclose this to my seller. Is disclosing this to sellers typical of the deals Allied does or is there another way to structure/present this to escrow so that disclosure is not necessary?
Are there any options/creative ideas if the city that you are tying up land in is taking longer to turn around neighborhood plats than what you can option for on your land?
On any given project, how do you allocate and estimate the total budget going in? For example, if you think itās going to cost $300k, how much of that do you allocate to attorneys, engineers, sub consultants, etc as a percentage of your budget?
For someone that is beginning to just reach out and make contacts, do you think itās a good approach to make those contacts with builders before even looking at what land is available just to see what the demand is and what they're looking for?
Weāre working on a deal where we basically get six months (jurisdiction length) and then we have a six-month extension added on. Theyāre taking that long. Is that out of the norm or is that reasonable?
Properties show up in the searches I run for residential parcels greater than 20 acres, but when I drill down to the zoning map and zoning code they frequently turn out to be AG or some other Rural Restricted lower density zoning designation (even though theyāre abutting an existing subdivision). I know In the course and on some coaching calls getting rezones are discussed and was wondering how that would work as part of the partnering with Allied Development model, if at all. I assume the parcel would have to not only meet all the usual criteria but be a very desirable project to make the added step of getting a rezone (which may not pan out) worthwhile. My question is if I find an AG zoned parcel and have an interested seller, then call the jurisdiction and they verbally advise they may be open to rezoning, would Allied Development consider partnering on it or does Allied only want project submissions on currently zoned or future land use zoned property?
From start to finish to feasibility all the way through construction drawings, I assume the customer youāre going to sell to whether thatās DR Horton or Lennar. They're getting more and more involved in the process. What does that look like when you're in your land use application versus when you're in your construction drawing? Can you walk through those steps and are they getting more involved, are they not?
What would make you want to go use their earnest money route and then I assume put up some sort of personal guarantee on an A&D loan versus kind of the risk position of maybe only being out 20% and theyāre going to fund everything else?
Initially, Iām planning to just work the acquisition side. How much do I need to work with a seller to determine things like net usable land, utilities access, how the parcel fits into the cityās planning, etc before I flip the opportunity to Allied? Or do I just need to find the willing/able seller and flip to Allied and Allied works all the initial lbs qualifying questions?
When partnering/referring a deal to Allied, what does the compensation structure look like? Is it tiered based on how long I remain in the deal before assignment (particularly if it is already under contract). What does it look like if I only sent a lead instead of a contracted deal?
Is it harder to wholesale the land to buyers like it was in the past 2 years to make quick paydays? What does it mean for new people getting started? Does that mean we need to start thinking about developing instead of wholesaling to the end nationwide homebuilders?
What are the top 5 markets that Allied Development is doing the most volume in and what are the major deal making aspects and deal killing aspects for some of those markets?
When trying to build a relationship with new builders/developers in my markets do you have a few go-to intro lines that help build credibility and differentiate you from a typical wholesaler?
When it comes to negotiating with your buyers, do you typically use the Allied purchase and sale agreement (same doc used with sellers) or is it typical that the national builders require you to use their contract documents?
Any tips for getting in touch with land acquisitions with some of these bigger national homebuilders? I am having a tough time getting through to the right people.
Can you clarify if we should be working with brokers/agents who might have pocket listings or deals or might have established relationships in working with builders/develops etc.
If I start looking at areas for publics and I find that nobodyās building there or no publics are, does that mean I should go back and find new jurisdictions?
How do you price the different exit strategies, p-plat, CD and finish lot value? Do you try to make a profit? Like if you spend money on construction drawings, do you have an amount of spread you want to make on that when you price that to the builder?
Before you had a team, how did you create a system, so to speak, of constantly finding new deals, getting land control, initiating the process without outrunning your headlights?
Does DR Horton pay on the lot yield or by the lineal foot? Should I go with maximum density, 30 foot lots or a mix of third acre, 75 foot lot, 60 foot lots?
Once we have submitted a deal to Allied Development and itās been accepted, what kind of involvement or learning opportunities do we have in that process, should we stay in the deal until completion?
How do you typically handle transactions that include a third party? Is there a way they could be "bought" out of the transaction and how would that scenario play out?
Iām brand new, but Iāve already finished the training. Coming from the wholesaling/flipping world, it looks like you target specific properties rather than blanket an area or filter through the deals that present themselves. Is that a fair statement?
One of the biggest asset classes that weāre in need right now is affordable housing. In partnering with Allied, how are the buyers/builders and developers that youāve established a relationship with providing solutions to whatās clearly crisis in this country?
Any advice for getting small development deals done? I have one under contract right now that is 16.37 acres that can either be 20 lots without zoning change or up to 50 lots for rezoning. Iām having a tough time getting a builder onboard, but Iām using Alliedās formula for running numbers and the deals checks out on all fronts. I just keep getting weak interests on the deal.
When you pay a seller earnest money deposit outside of escrow, how do you protect your interest? Do you simply record a notice of interest in the county records?
On that first ask and then you're going back and talking to them, kind of figuring out how theyāve come up with their number. Can you give their typical reasons for going in, but more importantly, what is it that you're going and looking at and where do you find most success in your counter-offer and your story? What are you focusing on most? What are those best points that you're hitting that you see the most success with?
On that first ask and then you're going back and talking to them, kind of figuring out how theyāve come up with their number. Can you give their typical reasons for going in, but more importantly, what is it that you're going and looking at and where do you find most success in your counter-offer and your story? What are you focusing on most? What are those best points that you're hitting that you see the most success with?
Where are you at in acquisitions when you're doing this disposition negotiation? Have you gone through your due diligence? Do you have engineering complete? Where do you typically step in?
I was actually watching one of your videos and one of your videos came out and was talking about land that's already gone through the process and just having a developer go in there. So I found one, 68 acres, x amount of homes, x amount of single family homes. How would I go into negotiating with that? Or is it even worth it for me to go look at it?
I really appreciate this course. It's been very timely for me. I just met with Dr. Horton this morning. I was literally in the parking lot reviewing the Scott Martin call on 2X speed for the fifth time before going into talking to these guys. So anyways, I just wanted to ask you about what they proposed. I own 36 acres in a market here in Texas, in North Texas that would be a new market for them and they're interested in it. What they proposed was taking down 36 acres. They wanted to take down just 50 lots in phases. And then they were going to put 10% earnest money released for me to go get my A&D loan. And they said they would do the horizontal construction for me, make no money on the development, but all the risk is mine. They're going to release their 10% earnest money. And so I just wanted to know, would you do that deal?
How do you usually approach a situation where a property is in the ET and the two neighboring cities have a boundary agreement and the city refuses to release the property from the ET? So you can annex into the other?
If we're talking to a potential property owner, do we mention that weāre partnering with Allied? Just so transition is smoother, what do you guys prefer as a good transition period?
If we're talking to a potential property owner, do we mention that weāre partnering with Allied? Just so transition is smoother, what do you guys prefer as a good transition period?
Could you talk about the market? I've talked to a couple of the cities and I'm in Idaho where I thought the market was really hot, but builders have not been applying for all the processes. I think there are builders that have properties that they own, but they're not actively trying to start their subdivisions and stuff like that. So is that good or bad? Are builders still looking for properties right now?
I live in Atlanta and we don't use title companies. All real estate transactions go through a closing attorney. In your experience what are the best options for making connections to get data?
Can you review what you were saying about new home price? Am I looking in the wrong market? Does my subdivisions need to allow for nicer, larger homes?
My biggest bottleneck is finding the appropriate contacts for builders/developers. Do you have any recommendations for getting in touch with the right person for the national builders?
What do you guys do with these leads that don't make sense with your business model, but it still has development potential. Do you have other developers you send it to? What do you guys do? Because you don't want to waste these leads, right?
I know Cody recommends markets with at least three nationals. My market actually has two. Would you recommend trying to bring in the third one? If so, how would you go about that?
I do have a question about the percent that we get paid. It says in one of the intro videos that it's 10%. But the breakdown videos, it's not anywhere near that. It's significantly less. Can you clarify?
I know the model is to contact owners directly, but do you ever find property on the MLS? If so, do you interact with the realtor any different than an owner?
Regarding "farm" data request via title company: (1) Criteria to include residential zoning only, or other zonings?, (2) What criteria in addition to acreage or zoning?, (3) Geography defined as the entire county, city jurisdiction only, or other?
Why the push back on listed property? The benefit of listed land deals is that you have a ready, willing and able seller which is 1/2 the battle. The next challenge is if it meets VestRight purchase criteria. If it checks out why the push back in moving forward?
What are your guidelines on Primary/Secondary/Tertiary markets? For instance, I'm in the Seattle area, which I researched would be typically considered a "secondary" market, but Kitsap county (on the other side of Puget Sound) has been seeing EXTENSIVE growth. Would you consider this area to be secondary, or tertiary?
If a property is in farm deferral, how do you handle the recapture of taxes with the seller and with your buyer? The jurisdiction won't calculate or pursue the recapture until after the final plat is recorded.
What are your typical strategies for bringing MULTIPLE offers/options to the landowner (i.e. "cash-out" after feasibility, "cash-out" after entitlements, "seller carry-back" after feasibility, Joint Venture, etc.)?
What are some worthy considerations when building out a CRM as an LPU enrollee solely focused on outreach/prospecting/lead-gen, and how would you define or name your deal/pipeline stages?
Can you clarify the timing on finding a buyer relative to the feasibility study? As in, is the goal to "lock in" a builder buyer before our feasibility period is complete? How would we accomplish this with their feasibility period running on a different timeline to our own?
When you mentioned the presale that means before land use approval and all of that stuff, you mean selling the deal before knowing that everything's good to go?
When comping land, like when you're about to submit your offer, how do you know that you're offering the right price when you don't know what the new norm is going to be, let's say 12 to 21 months from now?
When you say presell, are you saying the land acquisition specialist taking the fast action exit strategy versus post approval entitlement exit strategy?
In situations where we want to utilize our buyer's capital to fund the entitlement costs, either preliminary plat or CDs. How do we implement having the cost paid by the buyer? Do the invoices go through us or do they go straight to the buyer? What other strategies could we employ? Is it customary for the buyer to utilize some sort of a security instrument?
Do you all use or can recommend a virtual assistant to help with putting together the partner proposals or help with doing any of the other legwork or administrative tasks to help free up time?
In Fort Bend County, Texas, there are many developers that are built in unincorporated areas of the county to provide utilities. A well is drilled, a self-contained wastewater plant is built, and stormwater retention infrastructure is built to suit. Is Allied interested in deals that require these standalone island developments?
What is the LPU post submission process? We submit a deal. In what amount of time do we expect a response? And if the deal is deemed to be promising, what would happen next?
Could you please give us a range per acre we should consider? Or after finding out about the sewer capacity, how do I tell if it's possible to cover the new development?
Is there a probability of agricultural land being accepted by Allied Development or solely residential? The course stated between ten and 100 acres. Is this amount the limit or can there be more acres in our searches?
Does that 1 mile rule still include if it's like, a ten acre? I mean, is that still enough to be potentially worth it, or is that really only if you're talking about big properties that it's worth even a mile?
Do you find it easier to go after nationals and locals first to see what they want? Do you think they like to talk about their workload or how many projects they've planned to build in a year? Is it easier to do that than to go prospect land?
Are you guys looking for anything specific in the national market, like on average what's the acreage? What are the zoning rules you guys are looking for in this area?
What is your recommendation to find builders other than Zillow? (Is that to find for developments in the area, or is that to find builders to actually sell the project too?)
How many deals does Allied look at for every successful exit or disposition? In other words, what is your close rate if closed? Such one equals any successful exit or disposition divided by all deals reviewed.
Are you able to give us a list of markets where you manage most of your buyers? This way the ones who are interested in partnering with Allied can have more clear targets.
How do you guys handle a scenario where you're looking to do business in a new jurisdiction, somewhere that you are not located physically, and the jurisdiction wants you to come before them in person? Whether you're trying to get a straight rezone or approval for a PD, they want you to come in person and do the concept planning process and all of that. How do you handle that? If they want to see a vision and you've not passed it off to the builder?
I started looking at going into a new market in the Seattle MSA, near Kirkland Redmond and south of everett. New home values for the very modest homes are $1.3M and tiny lots are going for $350K+. Talked to a broker about it and he said it takes over a year and $30K+ to get entitlements through. Is that normal?
The land is owned by a trust, but the trustee that's managing the land is a realtor and part of the trust. So he has it on market, but I'm talking directly to essentially the manager of the land. So how does Allied view that?
There isn't any manufacturing or big companies around, but there are two Walmart, two Targets, Costco, but a lot of houses being built within the last five years. Does that meet the criteria if it's not near the city or urban?
What defense/contingencies should we be including in the PSA with their landowners such that we're not being forced to close, or we're trying to find a buyer on an indefinite timeline? Are you still including quotations closed no later than language in your PSA?
Reading title reports can be tricky. Sometimes the exceptions don't make any sense, and other times they're easements mentioned, but the location doesn't make sense to a reader or meets and bounds arenāt specified. What's the most efficient way to get through this?
Do you ever find that jurisdictions are leaning on developers to take on some of the infrastructure build cost or expecting developers to do actual work?
Is the best current land search for single family houses, or is multifamily ideal as well? If multifamily is also highly attractive, what is the deal acreage/unit count to be worthwhile?
What are some of your tips and tricks for some of those jurisdictions where you're trying to find out sanitary sewer capacity or off sites and you're just kind of getting the run around and push between departments and engineering and maybe you're in the county and they're telling you you need to go through the city and the city keeps pushing you back to the county. How do you finally get down to Brass Tax to find out if we can really develop something?
I'm coming across a lot of properties in the farm that are owned by "USA." How does this work with finding a property owner or is that property owned by the government? If it's owned by the government is that something that can be purchased for development and what would the process be?
How do we work together once I submit a deal to you? Are you guys submitting the purchase agreement to the seller or how do we work together to communicate with the seller?
When making an offer, do you contract for a per lot price rather than per net developable acre? Then, if the lot count goes up or down, the price may change.
Have you ever structured to deal with back end seller participation? For example, seller gets paid in full. We get paid to cover costs and small profit then a percent of the sales price of each home as future mailbox money.
On one of the calls Cody mentioned having the property locked up so hard that the seller couldn't back out. Is that something in the contract or an additional recorded affidavit? We had a seller back out this week. (Not a national home buyer situation.)
How can we know when we are looking at the maps and looking at probably empty lots or things like that, that specific area, it's a capacity for sewer lines and things like that, how can we actually tell?
I have a few off market deals that were offered to me to purchase. If I become the landowner in these deals, will this create any complications? How would this change things?
When you send site information to national builders, do you use the same format that we use to send information to you? Is there anything that you include in your subject line or overall email?
During that time, if I submit a deal to Allied, obviously I've confirmed that that seller is interested in selling. Am I still in communication with that person or am I handing them off to you to do all of the negotiating?
If there was a 5-acre subdivision that you were going to get 10-15 lots and more of a boutique, small development, are the engineering costs still about a quarter million bucks regardless of size?
In that same scenario where you are not discussing price with the owner, at what point will you be? Because they're going to know how much will be possible for them at what price they're selling. When you are working with your civil engineer, you're calculating how many lots can actually fit in that land. At what point is a good time to have a conversation? Or do you just have to wait until it's ready for development?
Asking a few title companies in Texas for farms, and they basically said they could look stuff up on REI source, but that they wouldn't be able to search by zoning. Is there a different or better way to ask or something different and how it works in Texas?
What are the challenges and reasons Allied doesn't like deals in California? How would a deal need to be structured to have Allied take it seriously in California?
Looking at a piece of land, it's a smaller piece. I mean so looking at potentially subdividing it into like three or four lots, selling it to a local builder. The property does not have water and sewer on it right now, but it abuts an existing subdivision that has water and sewer and all the utilities. I know you guys are doing a much larger scale so it's different, but when it comes down to easements, if those easements are on people's property because I did see in some of the title work, things like that, there are some easements but we're talking about having to potentially cut through people's property and that existing subdivision. Have you all ever encountered that and where you are able to kind of negotiate that with the property owner?
I started a simple advertising campaign and moving into digital advertising with emails and texting because I had most of my stuff set up from a company that invests in real estat anyway. So I got a response back from I guess a long term generational owner who owns about 300 acres up north close to Bulverde. And my question is so I can run the numbers through the system, I'm a finance major but how specific do you guys want me to be when I'm talking with these guys? Because you guys are going to step in at some point and have a different price. I mean, do I just kind of leave it as floating saying it could be this amount depends on how many acres we can actually develop, that kind of thing.
Weāre seeing a lot of good traction from that initial contact with somebody, just to say letās set up a time to chat through using Launch Control, which is a texting service that I was against in the beginning. How does that work with large acreage? Like, we have a certain segment that I've gone after with, like, spec homes and spec lots and infill lots and things like that. How does that kind of work, like, with acreage, just broadly speaking?
If my business model is to try to sell to developers and spend no money on entitlements on deals that Allied doesn't want, what should I be looking for as a fee? 10-15%, just like Allied?
If my business model is to try to sell to developers and spend no money on entitlements, on deals that Allied doesn't want, then what should I be looking for as a fee? 10% to 15%?
David mentions Fidelity National title in the LDR module on entering a new market. He says there are people in the company dedicated to helping developers. Can you provide a contact there?
How does opposing counsel usually redline your agreements? For instance, earlier EM payments (5 days after effective date) and lack of clarity surrounding the outside date in the contract have come up regularly for us.
Is it common to not really understand comprehensive plans for some, if not most, cities, towns, counties? Or is there an approach to go directly to what we are looking for?
We have a piece of property located in an upper end area. For a different venture we submitted a conditional use permit that was turned down. All of the neighbors joined together against us. We'd like to try to develop a small subdivision there. I know we will get push back from people with a lot of pull, but the zoning is on our side. What factors should I consider when making the decision on whether or not to move forward with the project?
The jurisdiction I picked was Vegas and as I go through the map, I can see that everything that is available around the Vegas area has been split into five acre lots. And whatever is not that is 20 acres or more, it's still property of the US or Las Vegas or Henderson. In my mind, almost all of the lots that have been subdivided into five acres are owned by LLCs and stuff like that. So what's your experience with that kind of work? I can see the prices that they have been sold for $2 million, $3 million, $600K, depending on the year that they were bought. How do you go about those lots? Or do you have any experience with Vegas?
Are builders still willing to pay some or all of the entitlement costs in todayās market, with the understanding that I will handle the logistics of getting the approvals from the jurisdiction?
I made contact with a landowner today and within a couple of minutes I was able to find out that he is in the process of getting it rezoned. However, he has not listed the property as of yet. What do you suggest I do to get him to consider working with me versus listing the property with the realtor?
Considering a JV with the wholesaler, how would Allied manage that deal submission? Would I submit the deal with both our names? Do you have a contract agreement I can have them sign to protect my interest?
Once I approach a potential prospect, how do I ensure or reduce the chance of that prospect going to a realtor and put it for sale sign on the property?
After I find a market, I want to work on, what is the best way to learn what other projects are currently in planning such approval stages in the area?
Do you run the risk of losing a deal if your proforma number is too high and they get a buddy that says, oh, that's way too high? And how do you explain that? What education efforts do you make to the owners?
My county FIS site is selling premium access for $10k per year. They show big civil engineers as paying subscribers. Is something that would be useful for us?
On a previous call, you mentioned you send out six, seven letters over six months. Does it make sense to do skip tracing, get a phone number and start making calls after two to three letters?
When you're sending out a mailing, do you try to screen for properties that are already developed? If you're doing a search like, hey, I'm going to search this county for everything that's 20 acres or above, you still might end up with like a shopping center or something fully developed. How do you screen for that?
At this time of year, is there a tax angle that works? Because the time it takes to do a deal wouldn't solve a tax problem for somebody. But does that get people to call because taxes are coming in?
You touched on mailer branding. How important or critical do you think it is to have an official development company letter versus personal if I don't have a registered business at the moment?
What is the best way to discover the fastest growing direction a jurisdiction is experiencing? And once known, how far out do you target properties from current expansion in progress?
In the case one is not a licensed agent, what are some ways that said person can be compensated for finding a deal for another party? Could you call it a consulting fee or something else? And like with Allied offering 10% of their profits to others who submit a deal that closes, how are those agreements arranged to individuals who are not licensed agents?
What we all want is a list of properties that have a preliminary precursory likelihood of being developable and we'd like to have all those owners names, phone numbers and emails accurate. Are you going after the list first and getting hand raisers and then determining if it's developable, or are you going after your preliminary filters, building that list of what looks like from a quick glance would be developable and then building that list and skip tracing and trying to call?
When you're starting out and you don't have all the resources to have the cold calling team, the mailing team, basically you're the one man shop doing all that. I'm doing the blast marketing. I sent out 500 ringless voicemails yesterday, sending out mailers and stuff. And so I'm just around two areas. I just expanded to another market. How do you know when it's time to maybe just rest on that market because it's not necessarily yielding that many results?
So I've been reaching out to Tennessee owners, got a few on the line. I've noticed builders, at least in some of these markets, are looking just for engineered lots. And in Charlotte, they're much more open to paper lots. I guess it depends on the area. Nashville and Charlotte feel pretty similar in terms of hotness, like in terms of builders wanting to be there. It's been interesting to kind of see, I donāt know maybe I just haven't hit the right builder. But if they're going like, engineered lots is what another quarter million in, I guess, due diligence costs to kind of get it to the engineered level?
Is it also something that you'd be open to if, say, there are several deals already under contract that need to get to engineering and we've already got it to P-plat to take it to engineering? Is that something you'd come in part way through that process?
The calculator makes complete sense. I get it. Except for toward the bottom when you get to the finished lot value, that makes sense. The next three lines are the land developer profit, obviously figured out whatever percentage of the finished lot value, the cost to develop the land. I get that. Then it spits out a value per lot to landowner/seller, but wouldn't the value per lot to owner/seller line actually be the price you're paying for it? Because if the developer is supposed to make that profit and he's going to spend X amount of dollars to develop the lot, he's only going to pay what that number is right there, the value per lot to land owner and seller, right? My question is, how do we sell it for more than that to the developer, yet expect him to still make his profit, put in the money to develop the lot and end with the finished lot value of what's read here in the calculator?
So on the calculator, there's one line that says entitlement cost and then there's another line that says cost to develop the land. Which one of those figures is the ones that we're actually putting into the deal versus the home builder?
The money that it costs to do these deals, to get them through the approval process, if I just understood you correctly, are you saying that the builders that we're bringing these deals to, are they covering those costs for the most part?
How does the title work with the simultaneous close since you are technically completing the sale to your buyer first in order to fund the purchase from your seller?
Do horizontal land developers ever push back when you market a property to them because they typically handle the entitlements themselves and don't see the value of providing being worth half the land profit?
When working to calculate your finished lot values for a neighborhood that would have multiple size lots, should you use a single calculation sheet with an average of the lot sizes or an individual calculation sheet for each lot size?
Can it be a worthwhile use of time to scrutinize the detailed development plans on a file for neighboring or nearby subdivisions when evaluating vacant land?
I noticed that the percentage of the lot for the purchase price seems to have come down a bit, so now it's closer to 8% where it used to be closer to twelve. Are you seeing something like that as well in your market or is it just kind of market dependent?
I'm looking at an infill development. It's already platted and I'm trying to maybe cut a deal with getting some building done. And there's a ten foot deep gully that's crossing like, two or three of the lots, and it's probably the reason that it wasn't originally built. So what do you do when you've got gullies and topography problems in a section of a plat that you're looking at?
When you are dealing with sellers who want too much for the land, do you ever share your performa numbers to educate them on where your offer number is coming from?
Upon picking a good civil engineering firm, we received a recommendation from a broker. We sat down with them and they seem decent and work with some of the nationals. They do none of the third party reports in house. Is that an issue? Also, what is the best way to make sure their costs are in line with others?
Is there any reason I don't hear any deals with Allied in Southern Cal? Or am I mistaken? What disadvantages exist when doing land deals in California?
I contacted a lead seller via text message and he said he's taking offers on his lots. He provided his email and asked me to send my offer. How do I make an offer?
I read that there is a migration towards Grand Junction, Colorado by people in some of the expensive ski resort cities in Colorado. As people are being priced out of cities like Aspen, Steamboat Springs, would that be a reasonable area to search?
Is there a presence of National Home builders in the Boise metro area? Canyon and Ada counties in Idaho? Is that a whole area of interest to you or just specific cities?
How different is the entitlement process for five to ten acres versus 20 plus acres? Wondering if thereās a benefit to starting with smaller properties to learn and become proficient with the various phases of these projects.
Is part of what youāre doing trying to balance growth with jurisdictions that are not going to take forever for the entitlements to occur? Because obviously, the closer you get to a major metropolitan area, the longer the entitlement period is going to take. Is that where you got to stay on the fringes or one of the reasons?
When we find out if a property was previously under contract, the course suggests that we do a bunch of investigative work to find out why it may have fallen through, and they ask, why not just reach out directly to the previous land developer, assuming that you can identify who they were, and ask them why the deal didnāt fall through?
Iām trying to wrap my head around the difference between a wholesale deal and a double closing deal. What are the pros and cons of each deal structure and under what conditions would each of these be applicable?
I am familiar with larger public builders in my market. Is there a good way to find smaller builders that may be willing to take down ten to 20 home sites at a time?
I have earnest money funds available. Do I know of any third party financing for entitlements? I donāt necessarily want to partner with Allied for my first deal. Iām seeking this financing rather than complicating the transaction by asking the end buyer, the homebuilder to fund the entitlements. Currently, in my market, most builders want paper lots or finished lots.
A local land broker wants to work with me and Iām trying not to share any discoveries with them, but is there a benefit to keeping in touch with the land broker?
When it comes to building rapport with a good title company for land farming, is this title company local or in the jurisdiction youāre working in at that time?
I havenāt cold called in like, three years, but what has your experience been recently? And where are you getting your call lists and your phone numbers? And are you using anything like a triple dialer? And what would you say with regards to leaving voicemails as well?
If we are offering and paying market value for land, why donāt on market deals typically work for Allied?
Q&A Session Date: May 16, 2023 Timestamp: 00:00:51
If another large investor has hundreds of already entitled parcels and theyāre asking for help finding new buyers, could I contract with them, then add value by getting construction drawings approval?
Q&A Session Date: May 16, 2023 Timestamp: 00:03:00
How expensive are the construction drawing approvals compared to preliminary plat approvals?
Q&A Session Date: May 16, 2023 Timestamp: 00:03:52
When you find parcels that look like they have development potential but find they are owned by some land development company, are you dropping efforts to reach the owner and buy that parcel? What if it was purchased years ago and still is undeveloped
Q&A Session Date: May 16, 2023 Timestamp: 00:05:17
Suggestions on how to connect with title companies to obtain farm information. If you have no title contacts, will they even talk to a new guy?
Q&A Session Date: May 16, 2023 Timestamp: 00:07:38
The technology stack that youāre using, do you have any suggestions for a three to five person office? I started using Trello as a CRM. Is there like a stack of different technologies that we use to help streamline this?
Q&A Session Date: May 16, 2023 Timestamp: 00:11:32
The course does mention the need for title companies to have certain technology builders provide farms. So is Data Tree the main one if youāre reaching out to title companies?
Q&A Session Date: May 16, 2023 Timestamp: 00:14:51
I have about six parcels, that are 50 plus acres and all owned by the city. How should I approach those conversations?
Q&A Session Date: May 16, 2023 Timestamp: 00:19:07
When reviewing downward slope for sewer lines, is there a minimum slope grade that needs to be achieved?
Q&A Session Date: May 16, 2023 Timestamp: 00:21:37
What is a zoning overlay?
Q&A Session Date: May 16, 2023 Timestamp: 00:24:10
What is product ASP?
Q&A Session Date: May 16, 2023 Timestamp: 00:26:39
The land value calculator doesnāt have a line for roads or other horizontal construction. Does the builder handle these costs later?
Q&A Session Date: May 16, 2023 Timestamp: 00:29:13
Iām based in Atlanta. So if I look at a county here, do I want to connect with a county planning division or with the city to understand where the growth goes and things like that? Because itās a city and the cityās zoning ultimately will apply to any new development even if itās not within the city limits, correct?
Q&A Session Date: May 16, 2023 Timestamp: 00:31:47
If I come across a property that is already on the market and it has development potential, can I still submit it to Allied and be considered for review?
Q&A Session Date: May 16, 2023 Timestamp: 00:39:14
Regarding connecting to these large builders like Pulte Group or DR Horton. Who do you connect to in those companies? Whatās their title? Who is the person that you want to find? And the other question is, Iāve looked around a little bit and I found, for example, in Pulte Group, they have a ton of VP of Land acquisition. Is he the person who wants to buy the property that is already with construction drawings or does he look for raw land like we do?
Q&A Session Date: May 16, 2023 Timestamp: 00:47:18
Do you have any effective campaigns that you would suggest other than just calling and sending letters and things like that?
Q&A Session Date: May 16, 2023 Timestamp: 00:49:43
Regarding on market deals, when you approach the broker, you pitch the deal and everything works out. The seller agrees to the terms and everything and you still sign the real estate form, the state approved form, and then add an addendum with these terms. How do you guys do it for on market properties?
Q&A Session Date: May 16, 2023 Timestamp: 00:56:55
For a small team starting out, what softwares would you recommend?
Q&A Session Date: May 23, 2023 Timestamp: 00:00:59
How do I source leads? How do I filter down the list we pull?
Q&A Session Date: May 23, 2023 Timestamp: 00:10:44
What are some examples of different ways to structure later payouts with builders and developers?
Q&A Session Date: May 23, 2023 Timestamp: 00:18:40
I am using DataTree to mine leads.Besides location and acreage, what other fields will be best? I am also designating the land field type as vacant and residential. Am I on the right track?
Q&A Session Date: May 23, 2023 Timestamp: 00:24:09
How would a first conversation with a Title company requesting a farm go?
Q&A Session Date: May 23, 2023 Timestamp: 00:25:19
Do you have example templates of mailers?
Q&A Session Date: May 23, 2023 Timestamp: 00:28:09
Can you help me understand what lists to pull when looking at Land Vision? Who is our Land owner we are looking for?
Q&A Session Date: May 23, 2023 Timestamp: 00:27:51
When we use the profit calculator spreadsheet, it looks like 25% developer profit can disappear quickly if our development cost per lot are off by 10-20K. How can we refine the per lot development cost several months before we know who the buyer is?
Q&A Session Date: May 23, 2023 Timestamp: 00:31:36
When the land owner is a trust, is that a dead end for us? Or does it depend on what type of trust?
Q&A Session Date: May 23, 2023 Timestamp: 00:33:42
How much of the developer profit can we as the LAS keep? Are we sharing the 25% with the horizontal development company? If so, how much can we expect if we take that
Q&A Session Date: May 23, 2023 Timestamp: 00:34:47
Can you go over the average price per foot square footage you are seeing for cookie cutter homes in Washington State, North Carolina, and Oregon?
Q&A Session Date: May 23, 2023 Timestamp: 00:35:34
I have a lead that is 30 Acres in Mansfield, Texas outside of city limits. Can you explain how to work a lead that is outside of city limits?
Q&A Session Date: May 23, 2023 Timestamp: 00:38:22
The public builders want something that is in city limits so they have access to city utilities, but what happens if we canāt get a property into city limits? Who do we sell it to?
Q&A Session Date: May 23, 2023 Timestamp: 00:42:40
Is Allied Development totally against on-market land?
Q&A Session Date: May 23, 2023 Timestamp: 00:43:46
In regards to structuring our buy and sell in a place where there is a lot of rock (huge swings in development costs from property to property) how do we put that into the contract?
Q&A Session Date: May 23, 2023 Timestamp: 00:48:01
Letās say there's a 10 acre lot and the seller wants 1M and just wants 10,000 now and then you set up a two year development pay out, has Allied considered doing an acquisition like that?
Q&A Session Date: May 23, 2023 Timestamp: 00:51:08
In structuring out terms for the buy side and the sell side, when we don't know how much rock we will have to mitigate, is there any specific verbiage that we can add to the PSA?
Q&A Session Date: May 23, 2023 Timestamp: 00:54:10
Can you share some examples of a mailer template?
Q&A Session Date: May 30, 2023 Timestamp: 00:05:00
Can you talk through how deal dynamics and structure change based on when you exit and how long you cashflow the deal. Other than saying the longer you sit in, the more you will make? If a home builder will pay 20% of the home price for a finished lot, what is typical for taking it through entitlements, and what is the split if you take it through CDs?
Q&A Session Date: May 30, 2023 Timestamp: 00:18:35
What is your response rate for direct mail vs cold calling?
Q&A Session Date: May 30, 2023 Timestamp: 00:20:49
Can you provide more details on your cold calling team?
Q&A Session Date: May 30, 2023 Timestamp: 00:24:20
I have about 6 parcels that are 50+ acres that are all owned by the city. How should I approach those situations?
Q&A Session Date: May 30, 2023 Timestamp: 00:25:23
I have gone through the VestRight course and am wanting more information on how we source leads. How do I filter down the list we pull?
Q&A Session Date: May 30, 2023 Timestamp: 00:27:05
What are some examples of different ways to structure later payouts with builders and developers?
Q&A Session Date: May 30, 2023 Timestamp: 00:31:20
I am using DataTree to mine leads. Besides location and acreage, what other fields will be best? I am also designating the land field type as vacant and residential. Am I on the right track?
Q&A Session Date: May 30, 2023 Timestamp: 00:33:59
What CRM are you using?
Q&A Session Date: May 30, 2023 Timestamp: 00:36:44
Your templates introduce Allied Development as the buyer of the land. As a land acquisition specialist, do we say that we are interested in buying or what is the best verbiage?
Q&A Session Date: May 30, 2023 Timestamp: 00:38:45
Are you doing any text message marketing via Launch Control?
Q&A Session Date: May 30, 2023 Timestamp: 00:39:50
Advice on using free resources to prospect
Q&A Session Date: May 30, 2023 Timestamp: 00:41:20
Please go into detail regarding how a buyer cash flows the entitlements?
Q&A Session Date: May 30, 2023 Timestamp: 00:45:10
How would a first conversation with a title company go requesting a farm? Include parameters.
Q&A Session Date: May 30, 2023 Timestamp: 00:54:32
When we submit a form to Allied, what is the timeline we should expect to hear back?
Q&A Session Date: May 30, 2023 Timestamp: 00:56:10
Should I just be filling out your form and getting your help with this property? But for my own learning and education, how do you start thinking about the potential if its mixed use or could be commercial?
Q&A Session Date: June 6, 2023 Timestamp: 00:16:18
If one wanted to sell to commercial, how would one go about valuing that?
Q&A Session Date: June 6, 2023 Timestamp: 00:25:20
Where do you start when building relationships with builders?
Q&A Session Date: June 6, 2023 Timestamp: 00:27:33
What are some tips or additional tools on LinkedIn to help reach out to land acquisition managers?
Q&A Session Date: June 6, 2023 Timestamp: 00:33:35
Obviously cost can vary from market to market, can you provide a cost estimate from engineering to building costs to horizontal, etc
Q&A Session Date: June 6, 2023 Timestamp: 00:39:25
How to network with other people taking the course
Q&A Session Date: June 6, 2023 Timestamp: 00:53:17
Walkthrough of Alliedās partnership submission form
How would I evaluate/calculate the potential selling price of a small piece of property .6-1 acre for a developer who wants to build an apartment complex instead of SF or townhomes. The property would more than likely not be subdivided into the one lot it already is.
How does the developer find the value by the percentage of the future profits to satisfy the fee to us? I heard it mentioned on one of the training videos the developer will pay a percentage. How is that calculated specifically?
Does Allied Development accept deals from dirt dogs that were brought from a real estate agent. If so, is their commission baked into the balance at closing?
