Latest / Property Profits Real Estate Podcast
Inside a $30 Million Land Banking Deal with Suraj Reddy
A builder may want thousands of future home lots without wanting to own all of them today. Suraj Reddy explains how East Avenue Investments steps into that gap by purchasing the land and giving the builder an option to take it down over time.
One Austin area example involved about 2,000 lots purchased for $30 million. The builder put up $4.5 million for the option and paid a monthly fee based on a 13.5% annualized rate on the remaining amount. The builder could then start taking down additional lots after getting the first part of the community moving.
Suraj also explains why East Avenue…
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