Land Deal In Hawaii - Very Lucrative If You Have The Cash
Hi all,
Have an opportunity to acquire a piece of land zoned for 5 acre agriculture (can put a house on, but have to get a tax key from the county 6-18 months up to 36 months max)
It was rezoned in the future plan to URBAN meaning could be rezoned formally and urban lots of 1/2 acre to possibly smaller possible.
This acreage is quite large, over 500 but not priced cheaply either at 21k approx. per acre. The development next door was approved including 2000 units on over 3000 acres including retail, etc.. This is right across the street from the most expensive resorts in all of Hawaii. 3 of them. The new buyers next door would want this as well as me wanting it!
Issue is, the sellers want a 30 day due dilligence with a 30 day close. I am raising capital for this project.
How would some of the more experienced handle this? I have an offer in for full price w/ 60 day due dilligence and 60 day close. They might require proof of funds.
Gil
Oh, for anonymity, I am keeping the CCIM analytics out of this post for purposes of keeping the deal on the down low.
The IRR is over 30% either subdivided and sold, subdivided + built + sold, rezoned + subdivided + built + sold etc...
Is there any way you can pay for an option on the property for the 5 year rezoning? There is a lot of risk in that long of a time period. You never know what could happen in 5 years. Anti-development municipalities get elected, economical problems, ecological, etc...
I meant to say, in the last post, the Option is worth trying.
Man, I got to read these before I hit submit!
Gil
Thanks man! That is cool. I agree, and will keep pitching. So many deals, so little time.
Gil