LAND TO LEGACY · EPISODE 65
Building Wealth at Your Pace
What will you do if the project does not sell at the price in the pro forma?
Kevin “KAYR” Robinson joins me to talk through a problem every underwritten sale should address: what happens when the expected price is no longer available?
We discuss taking a lower price, holding the property as a rental, keeping enough cash to wait, conservative underwriting, ownership structures, refinancing, and investor expectations.
MAIN POINTS
What to take back to your team.
- 01
Write down the fallback before assuming the expected sale price will be there.
- 02
Cash reserves can keep a delay from turning into a forced sale.
- 03
Underwriting has to cover the neighborhood, occupancy, financing, exit options, and target return.
- 04
Moving at a disciplined pace can be safer than expanding faster than the balance sheet can support.
QUESTIONS FOR YOUR TEAM
Questions raised by the episode.
01What happens if the project does not sell at the underwritten price?
02How many months of delay can the reserve plan absorb?
03Would a rental hold work under current financing and operating assumptions?
04Which return measure best reflects the actual decision and time horizon?
CHAPTERS
Jump to a section.
01:09Kevin “KAYR” Robinson joins Land to Legacy08:03The three forms of capital behind a first purchase11:26Buying personally versus through an LLC14:11Conservative underwriting and cash-on-cash return20:09Market, neighborhood, and zip-code filters25:26What if the project does not sell?27:30Reserves, patience, and downside protection31:41The negotiation gap that cost much moreFREE WORKING GUIDE
Work through your own project.
Use the worksheet to write down the owner's goal, the assumption that needs testing, who will check it, and the result that would make the team continue, pause, or stop.
This conversation is for general information and does not constitute investment, legal, tax, lending, or insurance advice.
Next episode guide: Protect What You Build