• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Logo 2x

Vestright

Transforming Lives Through Real Estate

  • About
  • Podcasts
  • FAQ
  • Blog
  • Testimonials
  • Contact
  • LOGIN

Have We Slowed Down In This Crisis?

May 7, 2020 by David Hill Leave a Comment

Have We Slowed Down In This Crisis?

A question we’ve been getting a lot lately with this season we’ve been going through…

Are we still out there putting land deals together, given the current COVID crisis?

The answer is YES.

There are 2 reason for this:

1. We are seeing development construction costs come down right now.

2. We’re seeing seller confidence come down as well. And it’s allowing us to put deals together that maybe didn’t work 6 months ago.

So let’s talk about construction costs. For about the past 5 years, it’s been challenging to put some deals together is because the construction costs have been so high.

The reason the construction have been so high is that the demand has been higher than the supply. The 2008 recession took out a lot of contractors. And unfortunately, a large percentage of those contractors never came back. So we’ve found that there currently there aren’t enough contractors to meet the demands of construction. So there’s more demand than there is supply… and costs go up.

Now, there are some asset classes of real estate where I would suggest you hit the pause button. But with our world – single family residential development – I don’t believe that now is the time to sit on your hands. I think now is the time, from the developer’s standpoint, to be putting deals together.

With our development deals, from the time we go under contract with a piece of property, it’s a couple years down the road until we take the real financial risk of closing on the land and developing it. So we have some runway before the real risks hit.

Regarding seller confidence, we’re also seeing that come down. For the last several years, many sellers have been stubborn in their pricing. They have felt like they hold the leverage.

Now, suddenly, these stubborn sellers are starting to call us wanting to do a deal. Their confidence level has been put in check.

That allows win-win deals to be made and it’s extremely encouraging.

It’s time to make some money.

If you want to learn how to do what we do – making 5 to 7-figure returns on land deals, check out our presentation video here: https://shrtlnk.co/KuwiM

Posted by Cody Bjugan – VESTRIGHT on Wednesday, May 6, 2020

[divider]
A question we’ve been getting a lot lately with this season we’ve been going through…

Are we still out there putting land deals together, given the current COVID crisis?

The answer is YES.

There are 2 reasons for this:

  1. We are seeing development construction costs come down right now.
  2. We’re seeing seller confidence come down as well. And it’s allowing us to put deals together that maybe didn’t work 6 months ago.

So let’s talk about construction costs. For about the past 5 years, it’s been challenging to put some deals together because the construction costs have been so high.

The reason the construction has been so high is that the demand has been higher than the supply. In 2008 it was hard to make money during the recession and it took out a lot of contractors. And unfortunately, a large percentage of those contractors never came back. So we’ve found that there currently there aren’t enough contractors to meet the demands of construction. So there’s more demand than there is supply… and costs go up.

Now, there are some asset classes of real estate where I would suggest you hit the pause button. But with our world – single-family residential development – I don’t believe that now is the time to sit on your hands. I think now is the time, from the developer’s standpoint, to be putting deals together.

With our development deals, from the time we go under contract with a piece of property, it’s a couple years down the road until we take the real financial risk of closing on the land and developing it. So we have some runway before the real risks hit.

Regarding seller confidence, we’re also seeing that come down. For the last several years, many sellers have been stubborn in their pricing. They have felt like they hold the leverage.

Now, suddenly, these stubborn sellers are starting to call us wanting to do a deal. Their confidence level has been put in check.

That allows win-win deals to be made and it’s extremely encouraging.

It’s time to make some money.

If you want to learn how to do what we do – making 5 to 7-figure returns on land deals, check out our presentation video here.

Filed Under: Land Deals Revealed

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Latest Posts

How Much Does It Cost To Get Utilities on Raw Land?

When you're looking to prepare a piece of raw land for a housing developer, understanding how much it might cost…

Read More

What is Land Zoning and Why is it Important?

Land zoning is an integral part of any successful property purchase or sale. But more importantly, it’s critical to understand…

Read More

How To Find Raw Land For Acquisition With Development Potential

What we like to call “raw land” is undeveloped land without any structures or public utilities — and right now,…

Read More

How to Make Money During a Recession with Raw Land

The real estate market in 2023 is becoming increasingly uncertain, with some people fearing a recession in the U.S. housing…

Read More

The Benefits of Raw Land Investing

This is a great time to start investing in raw land with development potential. Whether you're a real estate professional…

Read More

Footer

vestright-logo

© 2023 VestRight® | All Rights Reserved
Privacy Policy | Terms Of Use

5005 Lyndon B Johnson Fwy Suite 300 Dallas, TX 75244

DISCLAIMER: The figures stated on this page are our personal figures and in some cases the sales figures of previous or existing clients. Please understand these results are not typical. We're not implying you'll duplicate them (or do anything for that matter). The average person who buys "how to" information gets little to no results. We're using these references for example purposes only. Your results will vary and depend on many factors including but not limited to your background, experience, and work ethic. All business entails risk as well as massive and consistent effort and action. If you're not willing to accept that, please DO NOT PURCHASE ANY VESTRIGHT COURSES.

Download Your FREE “7-Figure Raw Land Paydays” Playbook

Please enter your name and email below.



 






No thanks, I don’t want to download the playbook