A Transitional Real Estate Company, “bonding humans to earth”

Mission

Educate investor community about an under leveraged asset class – “Land Banking”.

WHO ARE WE?

  • A small group, passionate about land banking 
  • A Land Banking company with high-quality transitional assets across 8 states in the US
  • Aspiring to be a vertically integrated real estate company
  • Our core values are HITT – Honesty, Integrity, Trust, and Transparency

WHY ARE WE HERE?

  • To share 
    • Our story of how we turned $100K to $1M in 3 years.
    • Our journey of creating financial independence
    • A template that repeatedly worked for us, again and again
    • A template that we believe with zero downside.
  • To empower investment community with land banking knowledge and information

How we turned $100K investment to $1M ?

  • This is a story of many of our partners.
  • Example asset – 120 acres for $1.2M at $10K per acre
  • $300K investment with 30% down payment ($90K)
  • 25% share for $300K
  • Hold period 2 years.
  • EMI payment for 2 years – $30K
  • Sell for $4.2M at $35K per acre.
  • 25% share of sale – $1M
  • After loan repayment – Cash on Cash 800% return
  • This is not an exception. Many of our properties have these kinds of returns.

How we turned $100K investment to $1M ?

  • Wholesale buyer – volume pricing
  • Ample buying power
  • Off market deals
  • Average purchase price – $8K to $15K per acre 
  • Bargain deals with aggressive closing and high earnest money
  • Leverage agricultural banks.
  • Income generation through leases
  • Partial sale to reduce debt and cost basis.
  • Relentless focus on value creation

Our Due Diligence checklist

  • Property in the growth path
  • Income producing, partial sale, and flipping possibilities. 
  • Flood Plain, Wetlands
  • Pre-App Meeting with the county on future possibilities
  • Density, Current and Future zoning
  • Setbacks, Water, Septic, and Electric Easements review
  • Alta Survey
  • Phase-I Inspection
  • Title Commitment Review
  • Soil Testing
  • Mineral Rights Review 
  • Water Rights Review
  • And…,  shortlisting low maintenance investors 🙂

Project Life Cycle

Entity/Asset Maintenance tasks

  • .Very Low Entity/Asset Maintenance Costs – 0.5% per year vs industry standard of 1.5% to 2%
  • Site visit Travel Expenses (accommodation, flight, car, & meals)
  • Issue Operating and Contribution agreements.
  • Utility Payments
  • Repairs & Maintenance
  • Renewing permits etc
  • Liability Insurance & renewals
  • Audit compliant Accounting/Bookkeeping
  • Filing Entity Taxes (tax filing fees included)
  • Maintaining Ag Exemption
  • Issuing K1s
  • Issuing Fair Market Value reports
  • Manage child entities audit compliant bookkeeping-optional service.
  • Explore lease options.
  • Software licensing costs.

Rao Bondalapati