Land Development Pros and Cons

Land development investing pros and cons: it’s not for the faint of heart. 

There's a lot to it, especially if you're dealing with raw land. If you deal with raw land, you've got to make sure that you've got the infrastructure. You've got to make sure that you've got the proper zoning for the use that you intend. In addition to that, you've got to make sure that you've got the demand. 

Very few people should build on speculation or spec. What you're doing is you're hoping that if you build it, they will come. This can be a very risky proposition. 

In addition to that, it takes a long time. By the time you find land, get it designed and entitled, you could find yourself missing the marketplace. 

But what are the pros? 

Well, let me tell you, this is where the big bucks are made. If you do it right, you get to own an asset. You get all the tax benefits of the depreciation and you're a creator. So the pride of ownership in this business is off the charts. 

But again, you don't want to go in blind. So make sure that you get a good engineer and a good architect to help you through this process. It'll make the entitlements go so much smoother.