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Land Arbitrage
Unlock Profits with Land Arbitrage: Affordable Investments in a Growing Market
Why Land Arbitrage?
As demand for land continues to surge, driven by the rising trend of people seeking refuge from urban sprawl, land arbitrage has emerged as a highly lucrative investment opportunity. Recreation land values are skyrocketing, with a remarkable 20% increase year over year. Affordable and accessible, land offers a relatively low cost per acre and total price, making it the perfect investment for those looking to capitalize on the growing market.
Explore the potential of land arbitrage and secure your piece of this booming market today!
Investment Summary
31.9% Target IRR / 2.05x Equity Multiple
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Class X shares are available with a minimum investment of $50k and provide a 6% monthly preferred return with a 12% annual preferred return catchup, yielding 28.0% IRR at a 1.90x EM.
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Class Y shares are available with a minimum investment of $100k and provide a 6% monthly preferred return with a 15% annual preferred return catchup, yielding 31.9% IRR at a 2.05x EM.
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Return of capital is projected to be returned within 4 years with no effect on basis.
Introducing the Operator - Digital Nomad
*Disclaimer: The figures shown in the illustration are projected/targeted estimates only and not guaranteed outcomes. Binding terms will be detailed in the relevant investor documentation. See full disclaimer for details.
Case Studies
Case Study #1 (Average)
Location: Clark County, AR
Purchase Price: $36,000.00
Hold Time: 217 Days
Sales Price: $80,000.00
Net Profit: $35,021.95
Annualized ROI: 158%
Case Study #2 (Above Average)
Location: Pine County, MN
Purchase Price: $24,500.00
Hold Time: 50 Days
Sales Price: $55,000.00
Net Profit: $22,118.06
Annualized ROI: 599%
Case Study #3 (Worst)
Location: Seminole County, OK
Purchase Price: $18,500.00
Hold Time: 179 Days
Sales Price: $25,000.00
Net Profit: $1,622.21
Annualized ROI: 18%
Track Record
Historical average profit margin exceeds 136%.
Our Average Property
Size: 19 Acres
Purchase Price: $33,000
Sales Price: $76,000
Net Profit: $34,000
Track Record
Amount of Property Purchased: $15M+
Average Days Held: 149 Days
# of Properties Purchased:
2021: 34
2022: 82
2023: 71
Total: : 187
2024 YTD
** Annualized ROI is greater than 500,000%
Proven Process
Buy Box
Property Characteristics
Underwriting Criteria:
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Property must have high level of usability/versatility and in demand
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Main Considerations:
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Utility Consideration (Power, Water, Sewer, Internet, Cell Service)
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Size (Typically 2+ Acres)
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Buildability (Contours/Soil)
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Floodplains/wetlands
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Access
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Zoning
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Demand data (comp days on market, Mom price changes, realtor opinion, etc.)
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We don’t buy just any piece of land…
Property Financials
Underwriting Criteria:
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Minimum Net Profit: typically 20k
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This makes sure it is worth our time, effort and focus
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Minimum Retail Price: typically 50k
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Helps ensure we are working with quality properties
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Estimated Hold Time: typically <6 months
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This is another indicator of the demand of our property
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Annualized CoC ROI: Typically 100%
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Maintaining a high CoC amount ensure there is plenty of margin if things don’t go exactly as planned.
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Our primarily used profit center = INSTANT EQUITY
The numbers have to be just right!
Investor Returns Projections
Example: Class Y investment: $100,000
IRR: 31.9%
Equity Multiple: 2.05x
Deal Timeline
Internal Due Diligence Completed
Capital Raise Kick-off Digital assets, Fund Documents Ready
Deal Kickoff for FM
DUE DILIGENCE
CAPITAL RAISE
KICK-OFF
50% of Capital Raised and Wired for each FMs Capital Commited
Backfill As
Needed
50% $ IN BANK
BACKFILL
Sep 20
TBC
July 19
July 22
Aug 09
Aug 23
Sep 06
GO NO-GO
90% SOFT COMMIT DOC SIGNED
100% $ IN BANK
Go-No-Go Call for Deal
Legal Documents Signed by Investors for Each FM
Capital Raised Completed 100% Raised and Wired
FAQs
Ready to Soft Commit?
Are you ready to take the next step? Schedule a time that works for you using my Calendly calendar below. Looking forward to connecting!
Still have questions?
Your time is precious and you just have a brief question. Send us a message and we’ll get back to you with an answer.
LEARN MORE
DISCUSS IN PERSON
HOW IT WORKS
Speak to Clive Capital today about investing in a current or future property.
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