5 Land-Buying Mistakes That Make Smart Investors Go Broke

If you’re buying land without a strategy, you’re already overpaying.

May 25, 2025

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Most new real estate developers make the same mistake.

They search endlessly for the “perfect” piece of land—zoned, entitled, and ready to build.

But the truth is:

If land is shovel-ready, it’s already overpriced.

The best margins in development come before the first shovel hits the ground.

I’ve been a contractor for 15 years and a vertically integrated developer for the last several. I build luxury storage projects across the country and raise millions from LP investors. One of the biggest value levers in our model isn’t what we build.

It’s how we buy land and create value long before construction.

Here’s how we do it—and how you can too.

1. Stop Looking for “Perfect” Land

Most developers are afraid of raw land. It’s messy, risky, and complicated.

But the truth is, there’s no perfect parcel. And if there is, it’s already priced at a premium.

Instead of overpaying for perfection, we buy land that can work—and make it work better through entitlements, zoning, and creativity.

We look for:

Access to major interstates
5–20 acre sites (our luxury storage must be single-level)
Minimal left turns (easier navigation = better performance)
Light industrial zoning—or the path to get there

Sometimes we only need 10 acres. But if 20 are available, we’ll lock up all 20—with a purchase option on the second half.

Why? Because control = leverage. And when you control the land, you control the upside.

2. Lock It Up, THEN Entitle It

Here’s our golden rule:

Don’t close on the land until the entitlements are complete.

Back in 2020, people were buying first and asking zoning questions later. Debt was cheap, and it was the Wild West. That’s not the game anymore.

Now, we:

Lock the land under contract
Run the entitlement process (6–18 months)
Create value through zoning
Buy only once it’s ready

A $3/sq ft parcel can double in value to $6/sq ft just by entitling it for storage use. We’ve done it repeatedly.

This is how you go from speculator to value creator.

3. Buy More Land Than You Need

This is where most developers leave money on the table.

You don’t just want the land for your development. You want the land around it too.

Here’s why:

Optionality: You can build on it later—or not.
Control: You decide what goes next door.
Value: You can sell or lease the extra land to complementary businesses.

We’ve added RV parking, sold parcels to dealerships, or subdivided for small business flex space.

Even if you don’t build, the right neighbor increases your value. The wrong neighbor can kill your project.

4. Think Like an Ecosystem Builder

Luxury storage isn’t just a bunch of units and roll-up doors.

It’s a platform for small business owners. Our tenants are contractors, ecommerce sellers, tradesmen—all outgrowing their garages.

By adding complimentary uses like:

Parking lots
Flex office space
Condo shops
Retail-adjacent land pads

We increase value for everyone involved—and future-proof our investments.

5. Scale Like a Pro

In a Grant Cardone mentorship, I learned this lesson:

“I’d overpay for a building at a 4.5% cap if I was also buying the one next door at a 6.5%. One management team runs both. Lower costs. More scale. Higher value.”

It’s the same with land.

More land = more scale = better operations.

We’ve turned 150-unit sites into 300-unit powerhouses by thinking bigger from the start.

Don’t wait for the “perfect” parcel.

Instead:

Find land with potential
Create value through entitlements
Lock up as much as you can
Build an ecosystem, not just a building

That’s how you separate yourself from the herd.

That’s all for today. See you next week!

Marc Kuhn, CEO at MAK Capital

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