How To Become a Land Developer

Real estate markets can be very volatile, which means land developers can make or lose a lot of money relatively quickly. Buying at the bottom and selling at the top most certainly applies to real estate as well as financial markets, but unlike stocks that sometimes never recover, real estate markets are cyclical and eventually begin to bounce back. Successful land developers understand the cyclical nature of markets, and trying to find the ideal parcel of undeveloped land in an area about to experience rapid growth is the name of the game.

  1. Investigate the requirements for a real estate license in your state if you do not already have one. Although it is theoretically possible to hire real estate agents when making land transactions rather than representing yourself, in the long run it is almost certainly worth the time and trouble to take the courses and pass the exam to earn your real estate license.

  2. Arrange financing. Unless you are independently wealthy or already have a significant credit line established at a bank, it is a good idea to have made some financing arrangements in advance. That way you can move swiftly on a good deal when you find one. Making an on-the-spot cash offer is one of the best ways to close a deal fast.

  3. Find some ideal undeveloped tracts of land to purchase. Finding undeveloped land in an area that is ripe for growth is the holy grail for land developers, but it is obviously easier said than done. Commercial land developers might find individual undeveloped lots or run-down areas in cities where they can buy up lots for near- or medium-term development, but residential developers typically buy tracts tracts in suburban areas outside of cities.

  4. Create a long-term development plan for your land. Most larger residential and commercial developments are undertaken in two or more phases. This makes it easier for developers to arrange financing and reduces the risk for all parties. Make thoughtful and informed choices when considering architects, contractors and construction companies.

  5. Tip

    Develop your personal network. Land developers need contacts everywhere from city hall to the lumberyard, so consider volunteering or serving on a non-profit board to develop your reputation in the community.

2016 Salary Information for Real Estate Brokers and Sales Agents

Real estate brokers and sales agents earned a median annual salary of $46,810 in 2016, according to the U.S. Bureau of Labor Statistics. On the low end, real estate brokers and sales agents earned a 25th percentile salary of $30,850, meaning 75 percent earned more than this amount. The 75th percentile salary is $76,200, meaning 25 percent earn more. In 2016, 444,100 people were employed in the U.S. as real estate brokers and sales agents.