Land for Sale in Oklahoma

Land for Sale

Land for sale in Oklahoma can offer some exciting possibilities for astute real estate investors and speculators. In the eastern part of the state a person can still purchase beautiful rolling hills with trees, streams, and ponds for $2,000 to $3,000 per acre. There are very few bureaucratic rules or regulations pertaining to subdivisions, so dividing land into smaller parcels for resale is quite simple.

Let’s compare the purchase of 1,000 acres in eastern Oklahoma located on a county road, for $2,000 per acre, that will be subdivided into 10-acre lots for resale at a price of $49,995 each—with the development of a 210,000-square-foot industrial building on 10.5 acres in Orange County, California (This exact development was recently announced in the February 13, 2012, edition of the Orange County Business Journal.).

According to the announcement, the cost of the 10.5 acres was $26 per square foot or $11.8 million. On top of that would be the costs of plans, site preparation, and the construction of the 210,000-square-foot building. The total cost of everything might be approximately $30 million. After operating expenses, insurance, property taxes, loan payments, and an 85% occupancy rate, net income on the $7.5 million of investment equity might be approximately $750,000 annually.

The 1,000 acres of land for sale in Oklahoma would cost $2 million with a 15% down payment, or $300,000. The cost to survey the 1,000 acres into 100 lots would be $30,000, or $300 per lot. Cost to blade a few dirt roads connecting all the lots to the county road might be around $200,000, and marketing costs would be around $1,000 per lot, or $100,000.Thus, the total cash investment would be $630,000. Each 10-acre lot would sell for $49,995 with $1,995 down and $480 per month. When all 100 lots were sold, there would be net receivables of around $3 million (after covering the underlying $1.7 million purchase note), resulting in a net cash flow of $30,000 per month, or $360,000 annually.

So the question is, “Would you rather invest $7.5 million in an industrial park development in Orange County, California and receive back 10% annually ($750,00), or would you rather invest $630,000 in an Oklahoma rural subdivision and receive back 57% annually ($360,000)?” With a little luck, hard work, and perseverance, you can still find land for sale in Oklahoma that can produce astonishing financial results!

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