The #1 Mistake Real Estate Developers Make Buying Land
And how we buy land and instantly increase the value by developing luxury storage on it
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When I first started out in real estate development, I thought the key to success was finding the perfect piece of land.
Land that’s zoned exactly for what you need.
The perfect size—no more, no less.
In the perfect location, with easy access, great visibility, and all the right infrastructure.
But after years of developing millions of dollars in luxury storage, I’ve learned something different.
Perfect land doesn’t exist.
And when it does, it’s either:
Too expensive to make the deal worth it
Already locked up by someone who understands something you don’t.
I stopped looking for perfect land. Instead, I started looking for opportunity—and learned that control is worth more than the perfect parcel.
This is what separates the small-time builder from the strategic developer.
Let me show you how I approach land, how I create value where others don’t, and why I always aim to control more land than I need.
The First Mistake: Thinking Too Small
I’ve met a lot of developers who only think about the land they need right now.
They find a 10-acre site, know they need 10 acres, and buy it—done deal.
But here’s what happens:
A year later, they realize they want to expand. Or worse, someone else buys the parcel next door and builds something that kills the value of their project.
Now they’re stuck. No options. No leverage.
I’ve seen it over and over again.
When I look at land, I’m not just thinking about today’s project.
I’m thinking about:
What’s next?
Who’s going to be my neighbor?
How I can shape the area around me to add value, not take it away?
That’s why, whenever possible, I lock up more land than I need.
How I Learned the Value of Control
One of the first luxury storage developments I worked on really drove this home.
We needed about 10 acres for our facility.
But the seller had 20 acres available—and like most sellers, he wanted to sell the whole thing.
At first, I thought: "Why tie up more capital? We don’t need 20 acres."
But then I took a step back.
What if we bought 10 now, and locked up the other 10 with an option?
We’d have the right—not the obligation—to buy it in the next couple of years.
That gave us time to:
Get our entitlements done.
Build phase one.
See how the market responded.
Decide whether to expand, sell, or bring in a complementary business.
We took that deal.
And as soon as we got the first 10 acres entitled for storage, the value of that land nearly doubled.
But here’s the kicker: that extra 10 acres?
We had multiple people approach us wanting to lease or buy it—RV dealers, small contractors, businesses looking for parking space. Suddenly, the land we didn’t "need" became one of the most valuable pieces of the project.
Because we had control.
And that’s when I knew—locking up more land isn’t a risk, it’s a strategy.
Creating Value Before You Build
Let’s talk about entitlements.
Most people underestimate how much value you can create just by taking land through the entitlement process.
Raw land is just dirt.
Entitled land? That’s potential.
I’ve taken land from $3 per square foot to $6 or more, just by getting the zoning and approvals done. No construction yet. No tenants. Just paperwork—and a vision.
Some developers flip land after entitlements and make a living off that alone.
For me, I like to build. But I want to be involved from day one, because that’s where the value is created.
Think Beyond the Project—Think About the Ecosystem
When you lock up more land, you don’t just give yourself room to expand.
You give yourself control over your environment.
Let’s say you’re developing storage. What would happen if a hotel popped up next door? Or a shopping center that didn’t align with your business?
What if you could prevent that?
Better yet—what if you could shape the area to boost your business?
In some of our developments, we’ve used extra land for:
Parking lots for small business tenants.
Selling parcels to RV dealerships that drive traffic past our facility.
Developing light industrial flex spaces that rent from us and need storage.
Now we’re not just building one business—we’re creating a network of businesses that support each other.
What Happens When You Don’t Think Big Enough
I’ve seen developers lose money because they didn’t think long-term.
They bought only what they needed, and when expansion opportunities came, they had to:
Overpay to buy back neighboring land.
Watch competitors move in next door.
Miss out on profits from complementary businesses.
Control protects you from all that.
And the best part? You don’t have to buy it all at once.
You can structure deals with options.
Buy what you need today. Lock in the right to buy more tomorrow.
That’s smart.
A Lesson from Grant Cardone
One of my early mentors, Grant Cardone, used to talk about buying control.
"I’ll overpay for a building if I know I’m getting control of the one next door."
Why?
Because control means:
Lower costs (shared management).
Bigger assets (combined properties).
Higher value (compressed cap rates).
Grant wasn’t just buying buildings. He was buying leverage.
And that’s exactly what land control gives you.
Practical Advice for Real Estate Developers and Investors
If you’re serious about building wealth through development, here’s what I’d tell you:
Stop looking for perfect land.
Look for land you can add value to.Learn the entitlement process.
This is where most of the hidden value lies.Always ask: What’s next door?
Who’s your neighbor? Could they help—or hurt—your investment?Think in phases.
Phase 1: Buy what you need.
Phase 2: Control what you might need.
Phase 3: Use that control to expand, partner, or profit.Don’t be afraid to lock up more.
Options are your friend. Control first, decide later.
Final Thoughts
Most people in real estate are just trying to finish the deal in front of them.
But the ones who build real wealth think differently.
They think about the land they control, not just the land they own.
They think about how to shape the future, not just react to it.
And they use every piece of land, every relationship, and every opportunity to create something bigger than just one project.
This is how I’ve built my business—and how you can build yours.
Control the land. Control the deal. Control your future.
Unfollow the herd.
That’s all for today. Drop your questions in the comments!
Marc Kuhn,
CEO at MAK Capital
P.S. If you want to learn how accredited investors build passive wealth with multifamily & luxury storage real estate — check out our projects and reach out here to learn more.