Show Notes
There is a market for people buying land in bulk and then turning around and selling each individual piece at a profit. It's a fundamentally sound business because lands don't depreciate, especially because land does not depreciate. Land assets actually appreciate over time, so the process is simple. Buy land in bulk and sell it at a higher price by adding improvements like roads and utilities. By creating subdivisions where there previously were none, Douglas Smith has built a successful business from this principle. His fund hit on such a solid and unique niche and we just had to have him on the show. As always, Big Mike dissects it all with his high-level breakdown. Watch the episode where he talks about buying land in bulk and a bit of coke to start it all.
HIGHLIGHTS OF THE EPISODE
01:26 - A quick coke story from Doug 02:17 - Buying and subdividing lands 04:10 - What kind of financing is involved 07:35 - Use cases of buying rural lots 08:52 - How many acres typically 10:52 - The odd niche of timber asset 12:03 - Margins of subdivided piecemeal acres 14:30 - Fundamentally solid business 15:07 - Three elements of the business model 18:24 - Land price outlook and the migration 20:13 - Inflation and the rise in rural land value 24:54 - https://hawthornecapital.com/
Thank you for joining us in another episode. We are committed to inviting more guests that give value to our real estate journey. Stay tuned for more episodes. To learn more, visit our website at www.tempofunding.com as well as our YouTube Channel.
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Email: [email protected] Website: https://hawthornecapital.com/
