As a result of the impending crisis in the housing market there exists a unique opportunity in purchasing land on a discounted basis. Many homebuilders public and private alike, are seeking to sell many of their land holdings in order to create liquidity and improve the negative position that land has on their books.
As a result of MLI’s strong reputation in land investment and development, most homebuilders and land owners seek to work with the MLI team in these instances because there is a trust that exists between the principals and the rest of the development community.
The projected investment horizon is 3-5 years and will require more conservative leverage. MLI predicts that there will be a shift from homebuilders taking down large tracts of land as they have done in the past, to taking smaller parcels on an ongoing basis.
As a result, MLI will be very disciplined in seeking distressed parcels in strong submarkets where the land sits in the next logical developable area where sewer and water is currently available. MLI will prioritize parcels that are currently zoned and entitled, as well as those properties that have at least some finished lots. MLI will also prioritize those properties that can easily sell off smaller pods if necessary as opposed to the entire property.
There is a great opportunity that does not come around very often and the MLI team is the logical choice to take advantage of the current real estate environment.