What is a land development group investment?
Land development generally involves buying raw land and developing it for commercial or residential use. A syndication is a structure in which the developer raises money from investors in order to fund the project. Land development can be very complicated, and can take years to complete. Investors should only consider working with highly experienced developers.
Here are some of our syndications that are closed to new investment, but development is still in process:
Prescott Ranch – Residential Development
# of RealWealth Investors: 211
Investor Preferred Return: 15%
Property Location: Belgrade, Montana (near Bozeman)
We acquired 153 acres of raw land near Bozeman, Montana. Our plan was approved for 601 lots in 2018. We finished the model homes and have started 20 homes. Sales are ahead of schedule as housing inventory is low in Bozeman and more people are moving to remote locations due to Covid-19. Learn more about Prescott Ranch here.
Discovery Ridge – Residential Development
Total Raise Amount: $8,200,000
# of RealWealth Investors: 121
Investor Projected Return: 24% (IRR)
Property Location: Park City, UT
We acquired 69 acres of entitled land near Park City, Utah, just 25 minutes from the Salt Lake City airport. 22 acres will be developed with 97 single family residences. The remaining acreage will remain open space. Horizontal construction began in 2018, and the townhomes in Phase I are sold out. Phase II and III are coming soon! Learn more about Discovery Ridge here.
Little Lane – Residential Development
# of RealWealth Investors: 194
We acquired 21 acres walking distance from the State Capitol Building and downtown Carson City, NV with the intention of building detached townhomes. Our map was approved for 149 homes in 2019. COVID-19 shutdowns have delayed construction, but has begun to open up now. Demand for these homes has been strong as they are being offered at the median home price of the area, and there is currently a shortage of homes.
Argos – Residential Development
# of RealWealth Investors: 275
Property Location: Reno, NV
We purchased 100 acres of entitled land just 15 minutes west of Reno. We finished out the lots and contracted to sell a portion of the property to a 3rd party for the same price we paid for the entire subdivision. The proceeds from that sale will fund the construction on the remaining lots. Investors are expected to begin to receive their initial capital back in early 2021. Learn more about Argos here.
Quest – Residential Development
# of RealWealth Investors: 191
We purchased 172 lots just 15 minutes west of Reno. The Grand Opening was in June 2019. There is a severe shortage of homes in the area, and buyer interest is high. Investors are expected to receive their initial capital back in 2021. Learn more about Quest here.
RISE Costa Rica – Residential Development
We partnered with a NYC developer to build an eco-friendly residential community and spa retreat center on 800 acres near one of the fastest growing cities in Costa Rica. A new international airport is slated for development within 20 miles of the property.
The land has already been entitled, earth work has begun, a luxury “glamping” site was in operations – until COVID hit and the borders were shutdown. We have hired an experienced consultant to help us assess the project based on today’s demand. The update should be ready by November. On a positive note, demand for sustainable, off-grid living in nature has increased in 2020. Learn more about RISE Costa Rica here.
Cannon Ranch – Land Entitlement and Finished Lots
# of RWN Investors: 55
We acquired bank-owned land with 4200 residential lots for $16M in 2013. This same land had been in escrow for $160M in 2006. The project has been renamed the Mirada, with the golf course redesigned as a Crystal Lagoon feature. We have already sold several bulk lots to national builders and are in contract for several more large lot sales as this is the fastest growing metro area in the U.S. Learn more about Cannon Ranch here.
Dublin Challenge Dairy Project
Total Raise Amount: $1,600,000
# of RealWealth Investors: 29
Investor Return: 20%
Property Location: Dublin, CA
During the Dublin land entitlement project the developer ran into a problem. One of the tenants in the commercial building was the administrative offices for a local company called “Challenge Dairy”. They did not want to relocate their offices and had a long term lease in place. The city of Dublin also wanted Challenge Dairy to stay in town so they were motivated to find a solution as well. The developer we partnered with came up with a solution that was a win for all parties involved. We decided it made the most sense to build the tenants a new 14,000 sq ft office on site. A separate company was formed and funds were raised to develop the commercial piece of property. Investors in this project earned 22% IRR.
Total Raise Amount: $3,000,000
# of RealWealth Investors: 53
Minimum Investment: $50,000
Property Location: Portland, OR
We partnered with a developer to purchase 27 waterfront town homes that sat incomplete when the bank financing their construction failed in 2009. The FDIC took over the project and the developer was able to purchase the property for $3M. We finished construction on the condos and sold them to retail buyers in 2010. Investors earned over 20% IRR.
Are you interested in investing in a land entitlement project?
We don’t have these specific types of projects available all the time, but when we do they usually sell out quickly.
The SEC has a lot of rules about who we can and can’t discuss group investments with when they are available. Most of the time you need to be an accredited or sophisticated investor. To see if you meet those qualifications and to view any available projects that you qualify for, login to the investor portal or join here. If you haven’t already filled out our investor intake form you will be prompted to do so.