1) Check that a project is pre-developed, meaning the land is ready to go, to speed up the construction time (as opposed to waiting a long time to get permitted residential if you are building an apartment). Building efficiency is often the biggest hurdle that can stall a project for over a year. Cherry pick these shovel-ready projects, your “velocity of money” can be very quick within and out of deals in 2-4 years, which is much faster than traditional MFH value add.

2) Tie-ins with existing infrastructure are the most complicated from a permitting and engineering standpoint because they require a specialized construction method. It’s best to do green field construction where there is no existing built environment, which simplifies the construction process. Example of a tie-in: Old office to apartment complex conversion. When you add in historical buildings it is even more difficult.

3) My earlier lessons learned were never to do anything out of the country (Belize, Caribbean, Cook Islands, Asia) because of different legal systems and a lack of debt options outside America. The development already has great returns. There is no need to leave this side of the world for less developed worlds.

What Is Pre-development?

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Conclusion and Key Takeaways

Shovel-Ready Projects Accelerate Returns – Avoid Permitting Delays
Investors should prioritize pre-developed land where entitlements and permits are already in place. These “shovel-ready” sites reduce construction time and allow for quicker capital deployment and faster exits (typically 2–4 years).

Avoid Complex Conversions – Greenfield Builds Offer Cleaner Execution
Ground-up construction on raw land (“greenfield”) is often simpler than conversions involving existing structures and increases building efficiency. Complex construction projects like office-to-apartment conversions or those with historical building structure constraints bring added engineering, zoning, and permitting challenges.

Stick to Domestic Markets – International Development Adds Risk Without Commensurate Reward
Projects outside the U.S. come with unfamiliar legal systems, limited financing options, and enforcement challenges. U.S.-based developments already offer strong returns—no need to take on unnecessary geopolitical or legal risk.

Expect Infrastructure Delays – Plan for Supply Chain and Utility Disruptions
In the construction industry, the delivery of construction materials and building components, road improvements, and municipal coordination often cause delays. Investors should underwrite timelines conservatively and verify utility timelines during due diligence.

Site Security Can Be a Hidden Cost – Protect Valuable Materials Onsite
High building material costs (like lumber spikes) can make the construction site a target. Ensure the budget accounts for temporary fencing, surveillance, and security personnel if necessary.

Engineer Capacity Matters – Inexperienced or Understaffed Teams Cause Delays
Even with great plans, poor execution by civil engineers, consultants, or the general contractor can derail timelines. Vet the project management team’s workload and availability, not just their credentials.

Neighbor and Community Relations Matter – Local Pushback Can Stall Projects
Tensions with neighboring property owners can create legal, political, and even safety issues. Early engagement and relationship-building are key to reducing resistance and ensuring cooperation.

Act of God Events Are Unpredictable – Build in Flexibility
Natural disasters like lightning strikes or weather-related incidents are outside anyone’s control. Strong insurance coverage and contingency planning are essential for development projects.e’s control. Strong insurance coverage and contingency planning are essential for development projects.

This is educational content, not tax, legal, or investment advice. We are not attorneys, CPAs, or financial planners. Please let us know if you need a referral to a 💼 CPA, ⚖️ Lawyer, or other vendor here.

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What Is Pre-development?

Conclusion and Key Takeaways

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