
Open Dummy Project
Landing Banking Case Study
Background:
A public homebuilder, mandated by corporate to become balance sheet light by the end of their fiscal year, sought our assistance. We stepped in and successfully closed on over 120 lots in Central Texas within three months.
Key Benefits
Strong Conviction on Valuation: Our underwriting indicated that the lots were priced 40%-60% below replacement cost, providing a significant value advantage that we believed would continue to appreciate over time
Well Capitalized Counter Party: Financially strong homebuilder with significant capital and investment-grade borrowing power
Well Established Communities: Consistently some of the top-selling communities in Central Texas
Land Banking 120+ Finished Lots
Deal Summary:
We have a deep understanding of the Central Texas market, we identified the deal as a low-risk alternative to other shorter-term cash flowing instruments such as Money Market Funds, CD’s and Treasury Bills. An important part of the decision calculus was the valuation of the lots. If the builder walked, we were confident that we could sell the lots within 30-60 days at a substantial profit to numerous builders as the lots were located in communities that had strong sales track records.
Driving Outstanding Success for Clients & Investors
Our Strategy: Partner with experienced, well-capitalized homebuilders in communities with solid residential demand and appropriate pricing.