Herman's Corner

I'm happy to announce that we have returned 100% of all investor capital plus points and interest on this deal.

The Original Plan

This was supposed to be a quick land development opportunity. Buy, add utilities, sell for more and we were going to make a killing in less than 3 months.

Market Reality

With the interest rate hikes the prices for buildable lots dropped to a point that made the lots less appealing to buyers. In addition to the general loss of appetite from investors, builders, and buyers in the market. 9 months later, plan D worked.

The Team

I'm so grateful for the awesome builder, real estate agent, and lenders I worked with on this deal. Couldn't have been a success without them.

What This Project Represents

This project represents my first land development deal. And my first "multi-family" deal even though we didn't build it all the way out. The structure I used to purchase this deal made it profitable even in the new break even market conditions.

The Real Value

The #1 reason I am grateful for this deal though is that it gave me confidence to get in the room with land developer giants in the industry. I am now partnered with a very seasoned land developer and stellar real estate attorney. Since December I started working with them on much larger land development projects I have learned loads about what I could have done better on this 3 lot development.

Alas, I have no regrets because of the trajectory this deal has put me on.

What's Next

We have some exciting projects in the works. More details on those deals forthcoming.

I'll post more specifics about this deal at a later date.

Key Lessons Learned

In summary: do your homework, listen to professionals, partner with honest people better than you, go for it, and don't give up.

• Market timing matters - be prepared for changing conditions
• Structure deals to be profitable even in challenging markets
• Build strong partnerships with experienced professionals
• First deals open doors to bigger opportunities
• Persistence pays off - sometimes plan D is the winner