Friday, October 3, 2008

A bargain if you have the money - entitled residential dirt

The Journal is reporting about some raw land sales of entitled land in the suburbs and exurbs for pennies on the dollar. The motivation? Taxes, taxes, taxes. Developers see a chance to take the losses and offset them against profits, which will give them refunds (and money).

The fact that the land is entitled makes the lawyering easy. But you have to figure out when or if your entitlements expire, so make sure you have good land use counsel take a look at these deals.

One last hurdle is finding cash or money to buy this land. This is a speculative play probably made all right by the super cheap acquisition price. But if you need someone else's money, be prepared to pay a premium....