How fill plots are our biggest loser

What I’m thinking: The two biggest losses in our business over 5 years were filling lots, and how the price per acre becomes a dangerous trap when dealing with packages under about 2 acres.

Even though we have achieved great success in filling the plots, the threshold for my pursuit is high. Sometimes, the scar needs to be dug deeper and the pain is more thorough to fully learn the course.

$35K Lakeside Loss: When Advanced Features Become a Pricing Trap

Our biggest loss to date is the lakeside covering two acres west of Dallas. The purchase price just over $200,000 – our biggest investment at the time (end of 2023).

I visited a lot myself. Spectacular scenery, custom houses everywhere, wildlife and flora and fauna walking around. I would consider owning the property myself.

The batch is the largest in this breakdown, about twice as many as most supplements. Prices per acre analysis show that based on smaller lakeside packages selling for about $2 million, we will exit north of $400,000. The top real estate agents in the area agreed.

We have a few months of cricket. After eight months of price cuts, we sold for just under $200,000. With commissions and settlement fees, this is Hate ~$35K lossplus the opportunity cost of large capital.

Perhaps most importantly, Huge black labels on our early records A property with a higher price, if we eat another loss, it may collapse.

The pressure is on.

Damage control strategies actually save our deal

• Photos of fresh drone after winter (original photos show barren trees)

• 6 months later, the number of days the convert broker resets to the market
• Mail neighbor letters, as well as nearby LLC property owners and local builders (and call them)
  • It should be noted that the end buyer comes from our direct mail campaign.
• Renegotiation committees will save thousands of exports (because the buyer comes from the postal service

Critical, Price per acre means nothing When the market wants a plot of about $2 million, not a plot of $400,000+, no matter the size.

The second loser: Tennessee rural filling and “upper” lake view

In the second half of 2024, we are eager to acquire after selling most of our portfolios.

Classic mistakes that even the most impactful investment company – When the opportunity cannot be justified invest.

~ 2 acre parcel with beautiful lake views (Although not by the lake), based on Comps’ conservative valuation of $55-60K, based on contract at $35,000.

We expect superior features to outperform the market. Instead, we bought a bigger impact in most markets before the 2025 real estate downturn.

Red flags we ignore:

• Soil testing in the late 1960s
  • Even if the local planning/zoning department confirms that it is still feasible, we know from previous investments in TN that most buyers usually require state septic tank approval.
• Common boom reversal affects Tennessee
• Deep rural locations have minimal activity, making the previous point more complex
• Clear market differences, filling batch transactions at the bottom of the market are close to about $30,000

A neighbour in jurisdiction feared a $55,000 cash buyer who signed a contract with us early, claiming that our parcels were not built (Proof with zero, well…)

Afterwards, the activity died. And follow After recording nine price cutswe’re listing for $30K and are still trying to find the bottom.

Fortunately, after using the reset timer strategy for the aforementioned few days and getting fresh drone photos, we received two offers in the week of relisting, including Full price $30,000 cash discount Depend on septic tank approval.

Net $10K loss expected (Think it will be worse), assuming it is closed.

6 $45K Filling Batch Failed 6 Brutal Courses

For parcels under about 2 acres, the price per acre is meaningless (No matter what the size, the price per acre usually makes no sense). Smaller fill batches tend to maintain consistent value regardless of characteristics. Unless there is an overwhelming precedent, the betting premium feature is a trap (Even then, double check your assumptions).

If a problem arises, there is no right of recourse for the filling plot. Only residential buyers are important. If there is a constructability problem, or if the rebuilder market will dry out, then you may be hurting the world. Larger packages offer multiple buyer types and exit strategies, even if something is missing during the coverage period.

Downside protection must be extreme. Assume you only sell at the lowest selling price in the area. Excellent characteristics rarely justify the quality pricing of small packages. ((Similar to the first class, but worth repeating bears, can’t hammer the house enough).

Reset jobs in the market for a few days. Refreshing the listing to refresh the timer helped both properties sell (we also did this for another lakeside fill plot in the GA, which gave us a quote within the week of relisting, which, fortunately, was a considerable profit). Combined with fresh photos (Especially if it’s the green season) You can also resurrect the death list.

Treat (potential) losers, such as 5 alarm fires. I personally cooled each builder several times within two hours after I was on TN Property. When facing a bad exit, you (or your most capable team member) have no tasks under you. Your business may depend on it, especially in a tough market/economy.

Market timing destroys the filling plot strategy. COVID BOOM RETRESS makes former popular markets like TX or TN such as small packages rely on residential buyers.

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PS Silver lining update: Merger export from TN auction properties (we Previously covered), this TN fill plot will be somewhat profitable, rather than Potential total loss is about $60-70K We’re facing. Sometimes persistence, intelligent damage control and healthy luck can put disasters into split situations.