How Do You Make Money From Undeveloped Land?

June 30, 2025 | Kristi Kandel

ASK:

What’s the step-by-step process for raw land development?

ANSWER:

You’ve got land, but what now? Whether you inherited it, bought it, or have been eyeing a vacant lot in your town, raw land holds serious potential when you know how to unlock it.

At Local Real Estate Developer (LRED), we teach you how to turn raw land into a valuable, income-producing property without getting buried in guesswork or red tape.

Making money from undeveloped land can be done by following a proven process that helps you evaluate, design, and build something that your community actually needs.

Here’s the step-by-step roadmap we walk you through at LRED:

1. Understand Your Zoning: What’s allowed on your land? Can you build residential, commercial, industrial, or mixed-use? Knowing this upfront saves you from expensive surprises.
    

2. Complete the Due Diligence (DD): What will it cost? How much time will it take? Are there infrastructure or utility limitations? DD gives you a clear-eyed view of what’s actually possible before spending real money.
    

3. Start the Entitlement Process: This is where you get approvals from the city and secure the permits to move forward. It’s all about knowing the steps, the paperwork, and how to keep momentum.
    

4. Build Your Capital Stack: You don’t need to fully self-fund your project. You can combine lenders, investors, grants, and seller financing to fund your deal.
    

5. Develop the Property: Whether it’s a single-family home, duplex, small retail space, or maybe adding an ADU, you’ll coordinate with your team (architect, engineers, contractors) to bring the project to life.

You don’t need to rush or go it alone. At LRED, we help you break this down into doable steps starting with learning, then spending.

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KEY TAKEAWAYS:

• Raw land is a starting line. Your job is to unlock its potential with a solid plan.
   
• Zoning and feasibility come first. Always know the rules and the numbers before you start.
   
• You can build the right capital stack to fund your project. It’s not about using all your own money.
   
• LRED’s real estate development education gives you the step-by-step process to confidently develop raw land.
   

PEOPLE ALSO ASK:

How do you make money from raw land?

• At Local Real Estate Developer (LRED), we show you how to add value to raw land through zoning research, site development, and strategic partnerships. You can earn income by building rental units, selling to other developers, or creating spaces your community needs.

What is the first step in developing raw land?

• The first step is understanding your zoning and site feasibility. LRED helps you figure out what you can legally build and whether the site has access to utilities, roads, and the infrastructure you need.

How much does it cost to develop raw land?

• Costs can vary based on location, site conditions, and project type. LRED helps you understand how to run a high-level feasibility check to understand land prep, permitting, utility connections, and construction budgets early in the process.

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