The type of investor that can actually pull off a land entitlement flip is not the type of buyer whose driving this or any other market. Definitely the exception to the rule.
It remains to be seen if this investment group is that type of investor. I’d like to point out that “in escrow” is still in escrow until that escrow closes. More than one land development deal has fallen through at literally the last moment. What’s happening around the time this deal is set to close may very well kill it. I’ll bet at least some of the partners are sweating it right now.
There’s a reason land development can be so profitable and that’s because of the extra risks involved with projects that require a lot of time. The people who can make it happen really deserve to make that kind of profit for all that work and risk. Even the pros get burned sometimes, and it doesn’t take many losses to wipe out the gains.
