SERVICE 04 — REAL ESTATE DEAL SOURCING
How does nSCALE find off-market land for affordable housing?
Through direct outbound sourcing. nSCALE runs mail, phone, text, and email campaigns plus referrals to find off-market land and value-add opportunities, screens each one for net present value, and — where the numbers work — makes an offer, forms a developing entity, and records a memorandum of agreement to gain site control before running a full feasibility study.
02 — THE SOURCING PROCESS
What does the sourcing process look like?
- 01
Sourcing
Lead generation, marketing campaigns, and direct outreach to identify off-market land and value-add opportunities.
- 02
Quick NPV screen
We run a fast net-present-value analysis on each candidate to filter out deals that don't pencil before we spend time pursuing them.
- 03
Offer
We calculate the maximum allowable offer based on the NPV screen and submit it to the property owner.
- 04
Developing entity formed
We create an LLC or partnership entity to hold the site and structure the deal.
- 05
Purchase agreement and recorded memorandum
We execute a purchase agreement and record a memorandum of agreement to gain site control during due diligence.
- 06
Tiered feasibility study
We run the full nSCALE three-level feasibility study to verify the deal before committing to closing.
- 07
Partner or proceed
If the numbers hold, we bring in partner capital or proceed independently to develop the site.
03 — OUTREACH METHODS
What outreach methods does nSCALE use?
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Lead generation
We build pipelines of off-market candidates from public records, tax rolls, and proprietary data.
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Marketing campaigns and strategy
We design and run targeted campaigns — mail, phone, text, and email — to reach owners who haven't listed.
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Skip-tracing, cold-calling, texting, and direct mail
We use skip-tracing to find contact information, then reach owners directly through multiple channels.
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Financial analysis for maximum allowable offer
We underwrite each deal to determine the highest price we can pay while still hitting return thresholds.
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Contract negotiation
We negotiate purchase agreements, option agreements, and memoranda that protect our position and give us time to study the site.
04 — PRINCIPAL RISK
Does nSCALE take principal risk?
Yes. nSCALE is not a pure service provider in land sourcing — we take principal risk. We invest our own time and capital in the sourcing process, and in some cases we contribute equity to the developing entity. Projects that meet our return thresholds may become eligible for partner capital, which can reduce or replace the client's upfront cash requirement. We are in the deal with you, not just billing you for the work.
05 — COMMON QUESTIONS
Common questions about land sourcing
What kind of land does nSCALE source?
We focus on off-market land and value-add opportunities suitable for affordable housing, mixed-use development, and catalytic community projects. That includes vacant parcels, underutilized commercial sites, tax-foreclosed properties, and land held by owners who haven't listed but would sell at the right price. We screen every lead for development potential before we pursue it.
How does off-market sourcing work?
We run direct outbound campaigns — mail, phone, text, and email — plus referrals to reach owners who haven't listed their property. We skip-trace to find contact information, screen each property for net present value, and make an offer where the numbers work. If the offer is accepted, we form a developing entity and record a memorandum of agreement to secure site control.
Does nSCALE take equity in deals?
Yes. nSCALE takes principal risk in sourcing deals — we are not a pure service provider. We invest our own time and capital in the sourcing process, and in some cases we contribute equity to the developing entity. Projects that meet our return thresholds may become eligible for partner capital, which can reduce or replace the client's upfront cash requirement.
What geographic areas does nSCALE source in?
We focus on Ohio, New York, and North Carolina, with particular depth in the Columbus, Cleveland, and Charlotte metros. We can source in adjacent markets where we have relationships. If you have a specific target area, ask — we'll tell you honestly whether we have the local knowledge to be effective there.
What is a memorandum of agreement?
A memorandum of agreement, or MOA, is a recorded document that gives us equitable interest in a property without transferring title. It prevents the owner from selling to someone else during the due diligence period and gives us the standing to entitle and study the site. It is the mechanism we use to gain site control before committing to a full feasibility study.
Can nSCALE help me find land for my own project?
Yes. If you have a program and a target area but no site, we can run a sourcing engagement on your behalf. We'll identify candidates, screen them, and bring you the best options with a quick NPV analysis. If you want us to take principal risk alongside you, we can do that too. The structure depends on your needs and the deal.