Investor Overview
We acquire undervalued rural acreage in Central Utah, split it into 5-acre agricultural lots, and sell to buyers seeking recreational, retirement, or homestead property. Seller financing creates a performing note portfolio.
The Spread
| Project Area | Bulk Cost/Acre | Retail Lot Price | Effective/Acre | Spread |
|---|---|---|---|---|
| Spring City (current) | $7,083 | $135,000 | $27,000 | 3.8x |
| Juab County | TBD | $35,000 | $7,000 | — |
| Delta (pipeline) | $1,000 | $25,000 | $5,000 | 5.0x |
| Cedar City (pipeline) | $1,094 | $30-35K | ~$6,500 | 5.9x |
Performance
Four projects to date. All numbers from Seth's direct account and verified documentation.
Sanpete County · ~160ac
Sanpete County · ~245ac
Juab County · 220ac
Sanpete County · 120ac
Financial Model
Spring City Phase 2 — the current active project
| Line Item | Amount |
|---|---|
| Acquisition | $850,000 |
| Road | $50-60,000 |
| Power | ~$100,000 |
| Total Basis | ~$1,010,000 |
| Metric | Value |
|---|---|
| Total Lots | 24 |
| Cost per Lot | $42,000 |
| Sale Price | $135,000 |
| Gross Revenue | $3,240,000 |
| Less 6% Realtor Commission | ($194,400) |
| Projected Profit | ~$2,036,000 |
$8,417
Basis / Acre
$27,000
Revenue / Acre
$93,000
Gross Margin / Lot
~8 lots
Basis Recovery
Spring City Phase 2 — range of outcomes
| Bear Case | Base Case | Bull Case | |
|---|---|---|---|
| Sale Price / Lot | $108,000 | $135,000 | $155,000 |
| Months to Sell | 36 mo | 18 mo | 12 mo |
| Lots Sold (of 24) | 18 | 24 | 24 |
| Gross Revenue | $1,944,000 | $3,240,000 | $3,720,000 |
| Projected Profit | $817,000 | $2,036,000 | $2,516,000 |
Note Structure
The note structure is the economic engine that turns a land sale into long-term income.
| Term | Detail |
|---|---|
| Down Payment | Equal to basis (covers cost of lot) |
| Interest Rate | 8-9% |
| Term | 5yr interest-only + balloon or 10-15yr amortization |
| Credit Check | None |
| Security | First-position trustee note |
| Default Rate | 0% |
| Prepayment | Allowed |
Every dollar after the down payment is pure return.
Market
Who buys 5-acre lots in rural Utah, and why do they pay?
Partnership
| Role | Contribution |
|---|---|
| Investor | Provides acquisition capital |
| Operator | Provides execution (sourcing, splitting, selling) |
| Return of Capital | Investor capital returned first from initial sales |
| Profit Split | 50/50 after capital return |
| Relationship | Long-term capital partner |
Proof of Concept: Seth is open to proving the model on the Delta project ($80,000 total acquisition) before pursuing larger deals. This provides a low-capital-at-risk entry point for a new investor partner.
Disclaimer: This page is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Any investment involves risk, including the possible loss of principal. Past performance does not guarantee future results. Consult your own legal, tax, and financial advisors before making any investment decision.
Process
From acquisition to note income, the workflow follows a tested sequence. Seth lists lots for sale before road work is complete — the market moves that fast.
Surveyor hired first. Full parcel surveyed. 5-acre boundaries designed. Plat map recorded. ~$4,000-5,000 per project.
Lots go on market immediately. Same realtor for all listings (6% commission). Listed on Land.com, Zillow, MLS. Lots sell before roads are cut.
Dirt road down the middle. No curb, gutter, or utilities. 66-foot easement off county road. On recreational properties, Seth does his own bulldozer work. ~$50,000-60,000.
Mix of cash and seller-financed. Cash buyers close quickly. Financed buyers put down cost basis per lot. ~2 months from acquisition to first lots sold.
Seller-financed notes originated. First-position trustee note recorded. Monthly payments collected. Note portfolio grows with each project.
Pipeline
120ac + house
80ac
640ac
| Total Acreage | Capital Needed | Est. Lots | Proj. Revenue |
|---|---|---|---|
| 840ac | $2,280,000 | ~167 | ~$7,530,000 |
Disclosures
Counties could adopt stricter subdivision or agricultural-split regulations, requiring formal approval processes or limiting the number of allowable splits per parcel.
Rural land values are subject to market fluctuations. A regional economic downturn or rising interest rates could reduce buyer demand and sale prices.
Lots may take longer to sell than projected, extending the holding period and increasing carrying costs on investor capital.
The business relies heavily on Seth Wright's local relationships, market knowledge, and operational execution. Loss of the key operator would significantly impact operations.
Access to water shares and well-drilling viability varies by county and can be unpredictable. Water issues can delay or prevent lot sales.
Seller-financed notes carry default risk, though historical default rate is 0%. First-position liens on the land provide security in the event of non-payment.
Regulatory
County-level rules determine how parcels can be split. The agricultural split provision is the key regulatory advantage.
Agricultural splits allowed, 5-acre minimum. No county approval for the split itself. County involved at building permit stage only.
First 4 splits = minor subdivision. After 4 splits = major subdivision process required.
Agricultural split, recreational properties near national forests. Strong demand for bug-out and off-grid parcels.
Septic passes easily in dry climate. Power is buyer's choice. Water via shares system (varies by county and availability).