132: The Unique Niche of Buying Land in Bulk and Subdivided Flipping with Douglas Smith

Big Mike Fund Podcast
Big Mike Fund Podcast
132: The Unique Niche of Buying Land in Bulk and Subdivided Flipping with Douglas Smith
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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.

CONNECTING WITH THE GUEST

Email: doug@hawthornecapital.com
Website: https://hawthornecapital.com/

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