99% chance you are substantially overpaying for the dirt. You'd be surprised the deals available out there for land that is already entitled for a shopping center.
Let's take an example ... I run around an buy up tear down homes for as cheap as possible, let's say $50,000 each. Each one is sitting on a 10,000 SqFt lot. By the time I get the land trully assembled, the homes removed, environmental, engineering, etc. I am into the land for let's say $7/SqFt ... guess what that old grocery store down the street just went out and the 20,000 SqFt building is now owned by the bank. Bank wants $600,000 for the building and the two acres it sits on. That's $7/SqFt.
Jan 22, 2010