What I’m thinking about: How double gross margin deals still exist for focused and resourceful operators, even when it seems like most of the industry has convinced itself that these opportunities are gone by 2025.
We recently financed a rural Illinois property that moved from Purchase for ~$60,000 at a cash offer of ~$127,000 within 32 hours of listing (and we closed less than 3 weeks later – hard to beat!)
This is how we did it.
Finding value where others see risk
The fundamentals were solid but not spectacular: 22 acres with mixed utility for both agriculture and hunting, with a price of $2.6 thousand per acre.
The seller had bought it a few years ago with plans to move there, but life happened and they were stuck with a mortgage they couldn’t handle. Most salespeople’s stories rhyme with each other: similar situations, different details. We would have preferred to approach the seller closer to the $50-55k purchase price based on a volatile market and limited comps, but after our broker toured the property and was impressed by the features, $5.5k per acre to go seemed reasonable.
As always, drop protection comes first. Even if we were to settle the sale with the lowest compensation we found (a $3k per acre distressed sale from earlier this year with shoddy improvements and poor road frontage), we would still break even after commission and closing costs.
Additionally, while this deal supports our thesis that the Midwest and Northeast real estate markets are outperforming, our broker warned us that this specific area had been “tough” this year, noting long days on the market. Perfect reminder that the real estate sector is hyperlocal — you go zip code by zip code or street by street, not state by state or region by region.
Immediate interest: the first 24 hours
Using solid drone photography (and trail cameras in place, always useful for hunting properties), we priced the parcel at $6,000 per acre to test the market.
Almost immediately, a cash buyer who owned 400 acres of farmland adjacent to our property called with a verbal offer: $5,000 per acre, all cash, close as soon as possible using the same title company that handled our purchase.
In today’s market, that level of immediate activity is rare enough that most traders are quick to take advantage of it, especially with this profit margin, or simply attempt a light counterattack.
We didn’t do it.
The 32 hour negotiation
This is where things get a little hectic, but let’s take it step by step:
Instead of accepting the $5,000 offer, we countered with $5,750 per acre. If there is early activity in a plot with limited market data, we will generally try to anchor higher rather than meet in the middle.
His answer: $5,400 per acre. We responded that we would accept, as long as the buyer paid all closing costs with the title.
On the morning of the next day, they agreed to pay $5,400 per acre, covering $3,000 of the seller’s closing costs. However, they set their purchase price at $118,000 as a written offer that expires at 6:00 p.m.
We did not have a study of the property and the buyer did not require it. We were referring to the county’s listed acreage of 22.11 acres for the size of the property.
Using $118,000 as a base, that would equate to a property of ~21.85 acres, at $5,400 per acre. We didn’t want to be let down, so we responded that we would need to use the correct measurement of 22.11 acres and $5,400 per acre, coming to $119,394.
This is where timing created leverage: We had another site visit scheduled that morning at 9am. Remember, the farmer’s offer would expire at 6pm. This was a perfect setup to create competitive pressure without being dishonest about our position.
When you have genuine activity and a tight deadline, you ask for “the highest and best” from both parties, assuming the site visit leader will want to make an offer. Some sellers who lack integrity will use that tactic to try to increase prices, without having a backup buyer. But in our case, if they tried to call our bluff, the losing buyer would see our contract listing that same day as proof.
Why we rejected an offer of $140,000
The site visit leader loved the property and said they would return with a “high offer” that day at noon.
Meanwhile, the farmer submitted his final offer: $5,750 per acre (which matches our original counter) plus up to $1,500 in seller closing costs (and on the correct 22.11 acres).
that made us angry approximately $127,000 total, with proof of funds already submittedd and a closing schedule as soon as possible.
The site visitor came back with a total of $140,000, but depending on whether he sold his house first. They hadn’t even listed it yet, but they thought they could sell and close on our property in 30 days.
Our broker showed us data about how slow the local real estate market was and said, “It’s pretty terrible,” and a 30-day contingent sale timeline was unrealistic. Maybe three to six months if they were lucky.
Easy decision. $127,000 in cash that will close in a few weeks versus a potential $140,000 deal that could drag us through months of uncertainty or lose a prime bird in hand?
As mentioned, the property closed shortly after, with huge profits made!
The reality of challenging markets
This agreement shows that 2X Margin Opportunities Still Exist for operators willing to maintain high standards. And our standards are as strict as they come, or so I’m told.
Are these deals harder to find? Absolutely.
Do they always move this fast? Definitely not; We were expecting a significantly longer wait time, and this will likely result in the fastest buying and selling we have ever handled.
The market is tougher, but 2x deals are there for teams that know how to find them and are ready to execute them when they appear.
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Looking for reliable financing on proven deals with 2X margin? Serious Land Capital specializes in exactly these opportunities (minimum purchase price $50k). We’ve built our entire seven-figure operation around financing deals that some people consider defunct:
Analyze your property today
Originally published in https://seriousland.capital/newsletter/ in September 1, 2025
