Title: First (and Possibly Last) Day Ever to Make Half a Million in a Single Day
Three years ago, at a government auction, I acquired a 1/7 stake in an LLC that owned 84 acres of agricultural land. On a per-acre basis, the price was about $2,000, while comparable farm land nearby typically sells for around $9,000 to $10,000 per acre. With zero liquidity but a low entry price, I viewed the investment as not very risky. My 1/7 stake equates to 12 acres, with no active involvement beyond the obligation to deposit a small dividend check around Christmas.
The LLC was owned by siblings, and the 1/7 stake I purchased was seized by the government and sold to me at a mail-in bid auction that no one attended. The property had been seized from a wayward brother who neglected his affairs and alienated the other siblings with the mess he created. The auction itself was difficult to decipher, making it unsurprising that my bid was the only one submitted.
Over time, the LLC finally accepted me as a LIMITED partner with economic rights, but with zero management rights and no voting authority. I did not hire any attorneys. I recognized the risk of being a minority partner without management rights, but my share was only 1/7th of seven owners, so I reasoned it would be more troublesome for others to cheat me out of money than to simply treat me honestly. It was a high-risk wager, but I believed the price was right. I approached the purchase as a “forever” investment to generate dividends and eventually pass the stake on to my children.
An LLC member urged me to sell my shares, but I consistently declined in order to avoid souring relations with the others.
Until recently, I hadn’t considered this agricultural land from a broader perspective. It happens to be located in a prime area: flat terrain near a major interstate, connected to a strong Class II truck route, and close to a highway exit. This reality slipped my mind—even though I run a trucking business—until the latest development.
Yesterday, I received notice from the LLC’s director that the land is being sold. A large national property developer, known for building warehouses for a specific client or on speculation, has extended an offer. The proposed purchase price is over $45,000 per acre, which means I stand to receive roughly half a million dollars before taxes. The developer is well-capitalized and experienced, and I expect the city would welcome a substantial employer and property tax contributor rather than an agricultural field, so I would assume that typical contingencies would not derail the deal.
I’m excited about the potential to time my investment approximately 20x over just three years.
At the same time, I have mixed feelings. On one hand, it’s a successful outcome, but on the other hand, I recognize I was largely unaware of how such an opportunity could unfold. It’s tempting to view this as genius-level insight and to start making more aggressive real estate moves, but I know that life rarely works that way.
Thanks for listening.
