Do NOT be STUPID!
In this video, I cover why you should NOT close on raw land with development potential without the development approvals in place.
There are a few reasons why someone might:
1. They aren't paying development values. I would do this too if I like the piece. We look at this as more of a "land bank" strategy.
2. They are uneducated and shouldn't be playing in the space because they are making bad/ "STUPID" decisions.
3. They are extremely motivated - like the clock running out on a 1031 exchange.
At the end of the day, we strongly suggest you never pay development values on raw land without the development approvals in place... it's not developable until approved!