Our land development partners extensively research regional economic and population projections to identify metropolitan areas with favorable growth outlooks, and then further compile detailed information focused at the community and neighborhood levels to forecast the likely directions of growth and new construction. Within these strategic markets , our relationships and networks afford us preferred access to potential acquisitions on which we perform initial due diligence and economic analysis. Only those select projects that demonstrate superior potential advance to the next stage of the process.
When a market and property are determined to be undervalued and in the path of growth, therefore demonstrating superior economic potential , our team then negotiates favorable terms for acquiring the land. Inspection periods, deposits, options, conditional offers and elements of seller financing are utilized to structure each transaction in a way that minimizes our exposure to possible market shifts. Once properties have been carefully evaluated , they are integrated into a secure , structured investment offering . This innovative capital structure, described in greater detail in our Live Investor Seminar presentation, provides many benefits to investors while allowing the development team greater bargaining power through acquiring property in "cash" rather than via institutional financing.
Once the land is secured by contract , value is created through obtaining entitlements, approvals required for more intensive use of the land . Obtaining entitlements creates an average two-to-five-fold increase in the value of raw land, with even greater potential in some cases. This increased value results from several factors:
- The approval process requires time, experience and the ability to manage competing desires for the land.
- Entitling what was once raw land results in build-ready property with access to utilities, sewer, municipal water, roads and other infrastructure.
- Completing the entitlement removes the uncertainty that community or governmental objections might prevent the development of the property.
- Fully entitled real estate is available for immediate development, giving builders and developers the benefits of accelerated cash flow and returns.
Our involvement in some projects will go beyond entitlement and may extend to full implementation of the infrastructure.
After the land's value has been increased through entitlement and other development activities, lot sales begin as pre-arranged with our regional and national home-builders. In some cases the land is strategically held for a period of time to maximize returns for the investors. By selling entitled lots, we generate revenue that is significantly higher than would be achieved if the property were sold as a single unit. By concentrating on the entitlement process rather than home construction we are able to create the most value in the shortest timeframe and return the principal investment and project profits to our investors powerfully and efficiently.