581: Buying Land To Sell To Developers Generates Big Returns Without Huge Capital Outlays

Although prices have come down as much as 30% or even higher on Class B and C Value-Add multifamily, they haven’t come down enough for most seasoned investors to want to jump back in. There still needs to be further concessions to make the deals pencil, and to be worth the risk entailed with value-add. Buying and selling land in growing markets, however, can generate very attractive rates of return at far lower capital entry points. John Cohen, Founder of Toro Real Estate Partners, sold off most of his portfolio of 4500 multifamily units from 2020-2024, and has been acquiring land and selling to single family builders.