Mr. Peng of Pengxin Corp in Shanghai wanted to drop by Las Vegas to learn how we acquire quality assets at bargain prices. A successful businessman in China, Mr Peng has grown his construction company Pengxin Corp to be a formidable force in Shanghai. Given the timing of his arrival, we decided to bring him to the BLM Land auctions which take place twice a year. Here we bid for “raw” un-entitled land parcels, which the government puts up for public auction. Buyers here include investors, homebuilders and institutional scale private equity funds who will try to outbid each other while trying not to go too far/high due because significant risk to the value of the land remains when no hard-zoning has been completed. Essentially, the government is trying to encourage development by enticing buyers with low prices to shoulder the risk of obtaining zoning approvals.
For those that want to participate in BLM Land auctions in Las Vegas, the first step most investors take is to register a local Nevada entity to hold title to the land parcel.
Step 2, is to determine what parcels are coming up for bid. These can be found at the BLM auction website, any simple Google search will yield the most current link.
Step 3 is once the list of parcels is published for a specific auction, to consult our local engineers and land use consultants on what can be done on said parcel.
Step 4 assuming all your homework is complete up to this point, ensure you have enough cash to make the required deposit, which is usually 20% of the winning bid price.
Step 5 is to show up at the auction (mail in bids are also acceptable) and battle with your competition to actually be the highest price to win a parcel or two. Assuming you do win a parcel, for BLM auctions in Clark County, you have 6 months to pay the remaining 80% balance due.