Buying development land, closing it fully approved.
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[{"id": "gn2h1z7", "text": "Please provide more details and/or clarify because you mention land and mall income. Location is also helpful.", "replies": [{"id": "gn317s6", "text": "It\u2019s currently a strip mall providing 4% return based on their asking price. \n\nLocated in HCOL city in Canada.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gn44fk4", "text": "Definitely missing some details here. Where's the approval process at? What's the projected cost to finish? Is the seller leasing out the property at full occupancy until closing?\n\nWhat makes you think it's priced at 30% less than FMV? Assuming the seller has been operating the property for some time and started the entitlements, I have to imagine they know a lot more about the remaining costs and future market position than you do. Is that 30% discount equivalent to the cost of the remaining entitlements and fees? You sure there's no cost bust on 50' deep utilities or off-sites that make this unattractive? I'd bank an a development cost issue.", "replies": [], "depth": 1}]