By Jim Hynes
Rockspring Capital has a successful 40-year history of making land investments in Texas.
The company has historically provided its investors safety and growth by strategically acquiring land sites with all cash and then completing any necessary entitlements or other improvements that add tremendous value before an ultimate sale to an end-user.
The income component is derived from a number of very creative investment strategies to deliver upwards of a five percent annual distribution paid quarterly. These investments include:
- Acquiring non-performing mortgages at discount and then accepting a pay off;
- Issuing first-lien mortgages to borrowers at low loan-to-value and high interest rates on a short term basis with land as the underlying collateral; and
- Buying residential lots in bulk then selling them to builders on a monthly takedown.
A couple of these investments have already been made by the company this year (see the next article by Michael Ross) with many more in our acquisition pipeline.
With investors today seeking safety, growth and income in their portfolio, Rockspring Capital delivers on every one of these attributes in a very impressive Texas land strategy, which maximizes opportunities in the nation’s most stable, growing and safe-bet economy. And with traditional lending institutions still on the sidelines, especially for land, market experts with the ability to close quickly with cash, like Rockspring Capital, are free to invest at very attractive prices.