Our Track Record
Case Studies
Want To Know More
Here Are Some Of Our
Opportunity
Demand for vacant land outside of large metropolitan areas throughout the U.S. has been steadily increasing over the past 2 decades and it unexpectedly skyrocketed during the pandemic. Astronomical lending rates and insurmountable bank requirements have made purchasing vacant land unobtainable for most families, making their dream of land ownership unlikely.
Prime Rate has been the Highest in 20 Years
Conventional Banks Discourage Land Loans Due to Lack of Collateral
Community Banks’ Lending is Capped
Demand for Land and Owner Finance Options at an All-Time High
Default Risk High Due to Economic Uncertainty
Solution
The Sulphur Springs 40 project sought to achieve appreciation of a 37.4 acre tract through its subdivision and light development into 3 lots. Individual smaller lots are more affordable to the average family than one large tract.
Underwriting Review
The Pasture Holdings team identified this off-market opportunity in Hopkins County, TX and carefully went about our standard underwriting review process. In addition to reviewing market comps, here are a few of the items on the checklist:
Investment Terms
$250,000 Project Raise
$20,000 Minimum Investment as an Individual or Entity
Distributions to be paid upon the sale of each individual lot
10% Preferred Annual Return for investor unit holders
Pasture Management LLC will receive 2% of sales as disposition fee
85 / 15 Profit Sharing split between Pasture Management LLC and investor unit holders at the end of cycle
Target project end of cycle close-out projected at one year
Capital Sources & Use
Investment Structure
Project Summary
Why the huge difference in annualized returns?
The Pasture Holdings team identified this off-market opportunity in Hopkins County, TX, just 90 minutes from the DFW metropolitan area. The Sulphur Springs 40 project sought to achieve appreciation of a 37.4 acre tract through its subdivision into 3 lots.
Capital was raised from investors, capital improvements were made to the property and the lots were put on the market. Even though the project estimated 12 months to sell the lots, instead they sold in only 3 months, with investors’ capital returning that much quicker. Understanding the time value of money, annualized returns came back much higher as a result, and our investors were able to put their earnings and their capital back to work that much faster.