Entitle and Flip in Action: Once an underutilized vacant lot. Now a boutique hotel. This isn't where you start...but this could be where you go!
Sometimes you don't need a subdivision to accomplish your goals. A Lot Line Adjustment is the process that is used to change property lines of existing parcels. The process can be used to do a number of things, such as: combine up to specific number of adjacent parcels into one (1) parcel, alter the boundary between parcels, or reconfigure the shapes of parcels. The City or County will have a limit to the number of lots that can be included in a Lot Line Adjustment (typically four), however in all cases, the resulting map cannot result in more lots than what was originally there. So, you could go from 4 lots to 4 lots or 4 lots to 2 lots, but you couldn't go from 4 lots to 5 lots for example. Lot Line Adjustments are useful when settling boundary line disputes or a tool that can be used in lieu of easements. The final resulting map will create new lot lines. It's important to note that Lot Line Adjustments can only be done with lots that were legally platted or subdivided. But that's a story for another day.
Oooooh, what's that?? I think that used to be what they call an "underutilized property", rare in some cases but quite valuable!
People often ask me what an underutilized property is. I don't know that there is a specific definition that applies industry-wide, but the way that I define it is this; an underutilized property is a property that is not meeting its highest and best use based on its current zoning.
In the picture below, this was originally a residential neighborhood that, over time, saw demand for commercial uses. So, the city rezones the property along the corridor to commercial. In doing so, they created a situation where the residential uses were grandfathered in and future commercial uses would be allowed subject to specific development standards. In this case, office uses, such as real estate offices, insurance offices, etc. were allowed to locate within these buildings. This is a very relatable example but it happens at all different scales. Imagine if these structures weren't so attractive and they begged to be redeveloped. What if you were able to locate these opportunities and profit from them?
If this kind of next-level investing interests you, I ask that you take a couple of minutes and take a look at what we have to offer. We have a new Done For You service and separate coaching program that you may find helpful as you grow your business.
I recently had the absolute pleasure to be a guest on the "Real Estate Mindset Podcast." Check out the full podcast with Eric Nelson from Wild Oak Capital.
Full podcast can be found here.
Show notes: This week we get together with Mike Marshall of Tolosa Property Group to discuss land flipping. Mike has considerable experience working with land investors and has learned the value of persistence, patience, and maintaining relationships. In our conversation with Mike, we discuss the most important considerations that come with buying and selling land. We hear about Mike’s work with navigating entitlements for land, learn how entitlements add certainty and why that greatly benefits property value. Tuning in you’ll hear Mike outline his advice for what to avoid in land investment, like why you should always avoid rezoning a property wherever possible, as well as how to avoid city council evaluations. In our mindset section, Mike shares his morning routine and unpacks what he gained from doing a multitude of courses early in his career. You'll also discover the typical timeline for land flipping and gain insight into the wild variations that occur between different states, not just in pricing, but also in potential profits. Tune in today for an exciting look at land flipping and much more!
Key Points From This Episode:
It's been a great first week for our Entitle and Flip Coaching Program. We are working with some amazingly intelligent and driven people that are working on some exciting, forced appreciation opportunities. If you're looking to build your skill base, differentiate yourself from the competition and flat out make more money without touching the property in any way at all, come join your fellow land collogues and see what it's all about. No long-term commitment required.
When working with investors, I am often asked what kind of home builders an investor should look for to buy their entitled lot. There are a lot of options to consider but I often recommend going with a smaller custom home builder rather than the big names that you're used to seeing. Chances are that the project you're working on is too small for the big guys to consider. See the article in the link below from one of those kind of home builders where they talk about the difference between building on a rural lot versus an infill lot. I'm not advocating for this builder specifically, but these are the type of builders you should be looking for. These are your buyers! Get to know them well.
With the very recent release of our new Entitle & Flip coaching program, I've had the pleasure of speaking to a lot of you about where you're wanting to take your business. I've heard from many investors that they're ready to up their game, take their business to a new level and our Entitle & Flip strategy can do just that. Maybe you feel like competition in the land investing space is getting tighter, the Entitle & Flip strategy will help distinguish you from others by giving you a skill set that most others just don't possess.
There are a number of ways we can work together to get you going in the direction of entitlements. Check out the graphic below, visit our website, and contact me with any questions about how we can move forward in your investing business together.
I am blown away by the response we've received so far with the interest in our coaching program. I am honored to be working with so many of you and can't wait to see where all of this leads for all of us. Happy Friday and happy investing!!!
ICYMI: Recently I had the pleasure to sit down and speak with Seth Williams with Retipster.com about all things land entitlements and how you can add a ton of value to a property without every touching it! Check out Seth's podcast here and let me know if you have any questions!
This is a creative way to use the entitlement process to add value to an existing RV Park. Currently this RV Park has a Conditional Use Permit that restricts the length of stays to two weeks. Then the owner of the RV has to move the coach offsite for at least three days. The owner believes he could lease more spaces if there wasn't a time limit on at least some of his spaces. In order to do that, he needs to modify the existing conditions of approval to allow for his extended stay spaces. If the request is approved, revenue and therefore value increases. All it takes is a little knowledge and some persistence. This is exactly the kind of strategy we teach in the Entitle and Flip course and coaching program. You could do the same thing!
Recently I had the pleasure to write an article about all things land entitlements for my friend Seth Williams at REtipster.com. We were also able to sit down and talk about it. EVERYTHING you'd ever want to know about land entitlements is there. You can check out the article, and video, here.
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