Underwriting the site to be acquired

Must be in a class A school district

Must have less than 10k population

No Flood zone on site

Utilities- Water/Sewer/Electrical must be within .5 mile from site

Unzoned or “No zoning restrictions”: must be in the ETJ

Topography (Within a Variance of 2-3M: ie “Pretty Flat” no hills) Click here

Drainage (if there is a pond it must be towards the back of the property)

Comping against the site to be acquired

Step One: MLS

Only “Closed” transaction that occurred within the past 0-730 days
(Sub property type) "Unimproved Land"
Exact Land Size (within 20% of prospective land size)
Relevant Comps within a 5-10 Mile Radius

Step Two: Google Search

List similar towns that have Equivalent school district rating: Class A
Equivalent population size (under 5k or under 10k)

Email Template

____,

Please see our attached LOI.

Buyer is able to either:

Close quickly with cash
Accept seller financing for an even higher sales price and lower interest rate of 3.5% + 20% down

We've attached all closed comps from past 2 years:

Equivalent school district: Class A
Equivalent population size (under 5k)
Similar acreage size 6-7 ac & 5-8 ac
Within 10 miles

Market Pricing: $______ or $36,590.40/ac ($.84/sf) = $247,829.34 (for 6.77 acres)

Our Cash offer: $______/ac $39,204/ac ($.90/sf) = $266,420.10 (for 6.77 acres)

Our Seller finance offer: $______/ac $48,787.20/ac ($1.12/sf) = $330,777.22 (for 6.77 acres)

Grateful for your consideration.

Regards,

Your custom S&P signature

Pro Tip

In order to convert acreage to psf or $/sf "Price per square foot" which is most common in the commercial world: we take the number of acres, for example: 10 acres X 43,560 = 435,600 sf (This is because for every acre there is 4 35-year olds doing 60 mph lol (In other words: there are 43,560 sf in an acre).

If the cost of the land is listed at $630,000 for 18 acres we can divide $630,000 by 18 to get our cost per acre= $35,000/ac or (divide $35,000/43,560 sf = $.80/sf) or .80 psf

It will take some practice but once you've run this conversion 20-30 times you'll have it down no problem!