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How you can enter the Entitlement and Land Development Space and increase your income with six and seven-figure profits
even without prior experience

In 2022, I began exploring the world of Land Entitlement and Development. I had decided to stop pursuing large multifamily deals since the numbers just weren’t adding up anymore. I had already sold my 1,000-unit portfolio and tasted financial freedom with six and seven-figure profits. But what was my next step? I pondered. Should I go back to buying and selling single-family homes? The thought wasn’t appealing to me; I’d left that space in 2017 for “bigger and better things”.. So, what could I do, where could I go and make substantial profits per deal?
 

I did some research and learned from the National Association of Realtors that the U.S. was facing a housing shortage of 5.5 to 6.8 million units, with the gap between supply and demand widening each passing year. 

 

How many of you knew that?      

Mind blown!

Understanding that real estate thrives on supply and demand, I decided I needed to focus on the supply side. So, basically, I had three options: supply newly built houses, deliver fully-developed finished lots to builders, or create fully-entitled land ready for development.

Initially, I considered building and selling houses, but rising interest rates raised concerns about selling them quickly enough. Through my research I discovered that the National Home Builders continued constructing homes, even during the 2008-2010 recession. 

This made me realize that they had the infrastructure in-place to build and sell no matter market conditions, I decided I wanted to entitle and develop land and I needed to find a way to work with them.

 

News Flash: I lacked the experience and knowledge on how to find, entitle, and develop land…

 

As a real estate coach and mentor from Israel, I’ve been assisting Israeli investors entering the U.S. real estate market since 2012. I knew I needed someone who could not only teach me how to find, entitle, and develop land; but, could also guide me through the process and prevent costly mistakes. I spent months searching for a coach or a mentor but found none who could or would be truly committed to my success.

 

Despite these set backs, I decided to proceed, learning as I went, trying to avoid significant and costly  errors. Using the basics I’d gleaned from others, I began analyzing land listings, searching for property with development potential, but I felt lost. I couldn’t find land worth making an offer on, and I wasn’t sure if I was even underwriting the deals correctly.

 

Then, one day, I stumbled upon a piece of land that I just knew had potential. I still had doubts since I’d never done this before, I was aware of the many factors to consider; but didn’t want to make a catastrophic mistake. I decided to consult with a local civil engineer, risk some capital, and see where this effort might take me. I posted a request for a recommendation on a Facebook group, and a seasoned civil engineer, David Hansen, offered his help, FREE.

 

Within 24 hours, we were on a call, and not only did David correct me about the land’s profit potential (around $2.5 million, substantially more than I though), he taught me how to thumb-nail underwrite the deal, showed me a nuance in the Zoning Ordinance that could increase the by-right yield by 3.5x, and I learned more in an initial phone call than in the past five months of trying to figure it out on my own. I offered him a joint venture, he would apply his experience, I would fund the deal, we would share the profits. He also offered to teach me so that I could eventually run developments on my own.

 

Sadly, the deal didn’t go through. At the time we agreed the risk in settling without approvals outweighed the potential benefit of substantial profit. No matter, in a short period I learned a lot from David: proper underwriting, sound negotiating with sellers, management of expenses during the study period, and accurate verification of maximum potential. Not bad for a first attempt!

 

Following our initial experience, we are continuing to work on deals together. David continues to coach me and I him, everyone has a strong suit, no one is proficient at everything. We more have several pending projects with potential for multi-seven-figure profits. David Hansen, with 35 years of experience as a civil engineer and land planner, is my HACK, a virtual key to land development. We’ve partnered to create a win-win situation, I am focusing on finding deals and securing funding while David manages the process. Together, we are a Better Stronger Team.

 

We are grateful to have found each other and we want to help others break into Land Entitlement and Development, perhaps becoming a guide. If you have experience in finding land and want to learn how to entitle and develop it, reach out to us. We would love to help maybe we can become your beacon…

 

Yours,

Rafi Mizrahi

If you have or found land with Residential Development Potential and would like us to help you develop it, leave your information bellow and we will get back to you