Real Estate
Land Investing
Raw land, entitlement plays, and lot splits. Lower entry cost and no tenants — but longer timelines, limited financing, and a completely different evaluation framework.
Common Approaches
- • Wholesale land: Buy rural parcels below market from motivated sellers, flip to other investors or buyers
- • Entitlement: Buy raw land, go through permitting and zoning, sell to developers at a premium
- • Lot splits / subdivision: Divide a larger parcel into multiple sellable lots
- • Infill lots: Urban or suburban vacant lots for new construction
What to Evaluate
- • Zoning and allowable uses — this is the most important variable
- • Access (road frontage or easement) and utilities availability
- • Topography, flood zone, soil quality for intended use
- • Comparable sales of similar parcels in the area
- • Municipal appetite for development and entitlement timelines
Financing Reality
Land is hard to finance conventionally. Banks are reluctant — there's no structure to collateralize and no income. Most land deals use cash, seller financing, or hard money. Seller financing is especially common with motivated rural sellers who want monthly income.
What Kills These Deals
- • Zoning restrictions that don't allow intended use
- • No road access or landlocked parcels
- • Environmental issues (wetlands, contamination)
- • Overestimating development demand in the area
Looking at a land deal? Let's think through the zoning, comps, and exit before you move.