Land Development & Subdivision
Buy raw land, subdivide, and develop into residential lots or properties
Overview
Land developers can make $50,000-$300,000+ per project subdividing and developing land.
Completing 1-3 developments annually generates $200,000-$1,500,000+ depending on project size.
In 2025, buying raw land, obtaining approvals, subdividing, installing infrastructure, and selling lots to builders provides substantial profits.
Process involves identifying land in growth paths, evaluating feasibility (zoning, utilities, environmental), acquiring land at $10,000-$50,000 per eventual lot, obtaining subdivision approvals (6-18 months), installing infrastructure (roads, water, sewer, electricity - $25,000-$75,000 per lot), and selling finished lots to builders ($75,000-$200,000+ per lot depending on market).
Successful developers understand zoning and entitlements, navigate government approval processes, manage infrastructure installation, build relationships with builders and Realtors, and select growth markets carefully.
Highest risk: entitlement denials, unexpected development costs, market downturns during development.
Requires significant capital ($500K-$2M+ for small subdivisions).
Can start smaller with lot splits (dividing single lots into 2-3 lots) requiring less capital and time.
Most complex and capital-intensive real estate investing.
Required Skills
- Land Development
- Zoning & Entitlements
- Project Management
- Civil Engineering Basics
- Real Estate Finance
- Government Relations
Pros and Cons
Pros
- Very high profit potential per project
- Creating valuable real estate from raw land
- Multiple exit strategies (sell lots or build homes)
- Forced appreciation through development
- Can become known developer in market
Cons
- Very high capital requirements
- Long timeline (18-36+ months typical)
- Entitlement risk (denials, delays)
- Complex process with many moving parts
- Market risk over extended timeline
How to Get Started
- Study land development, zoning, and entitlements
- Build relationships with civil engineers and planners
- Identify growth markets with development opportunities
- Find land suitable for subdivision
- Perform feasibility analysis and due diligence
- Secure financing and obtain development approvals
- Install infrastructure and sell lots to builders
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