It is no secret that the greatest wealth-builder in history has always been investment in real estate. Real estate is more than just a fallback investment during a bare market. Unlike “paper” investments like publicly traded shares and unsecured debt, carefully selected income properties are value-secured by physical assets.
Additionally, investments in real estate are not subject to the volatility and wide
fluctuations common to public markets. This stability is due to real estate’s illiquidity coupled with the benefits of steady cash flow from long-term tenant leases. When properly managed, investments in real estate can provide a steady return on investment, even when the real estate market is flat.
Professional land developers spend a great deal of time seeking what is called the "Path of Growth". They research economic and population projections, and key factors such as job creation trends, to identify geographic areas with favourable growth outlooks. Then, they drill down to the community and neighbourhood levels to determine the directions of future growth and new construction. To do this expertly requires a seasoned research team and a network of external contacts, including local government officials, business leaders, real estate brokers, builders, etc., to conduct this 'due diligence' process and help locate possible raw, undeveloped land acquisitions situated in the identified path of growth.
Once raw, undeveloped land is identified in the path of growth, the land developer will negotiate favourable terms for acquiring the property. There are a number of ways that land developers acquire property, the two most common are:

a) Purchasing the property upfront.
b) Obtaining an 'Option to Purchase' agreement: the land developer obtains the rights to buy the raw land by a set date, at a set price, by offering a non-refundable deposit.
NOTE: Investors are typically sought at this stage to help fund the acquisition of the property. Plans are drafted for a proposed future economic use of the land. (e.g. Master planned communities, shopping centers, business parks, industrial complexes, etc.)
The proposed plans are submitted to the city, county, state and federal governments for necessary approvals. This is known as the “Entitlement Process" and involves all of the critical sign-offs and approvals required for the newly-proposed use of the property.
NOTE: During this step, the land developer literally 'creates' value, and this is why raw land development can be so profitable. It is this Entitlement Process that creates an average 300-500% increase in the value of raw land - often with limited associated costs for even higher profits! The increased value of the newly "entitled land" results from various important factors.
Real estate development is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings, to the purchase of raw land and the sale of improved parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property.
Real estate development is different from building. “Developing is the key word. ‘We don’t build ourselves’, Prime Funds stresses this point. ‘We buy the land, finance the deal, and then we have the best builders build under bond at a fixed cost.’”

Organizing for Development

A development team can be put together in one of several ways. At one extreme, a large company might include many services, from architecture to engineering. At the other end of the spectrum, a development company might consist of one principal and a few staff that hire or contract with other companies and professionals for each service as needed.
Assembling a team of professionals to address the environmental, economic, physical and political issues inherent in a complex development project is critical. A developer's success depends on the ability to coordinate the completion of a series of interrelated activities efficiently and at the appropriate time.