In my decades of experience in real estate, I’ve learned that the key to long-term success lies in creativity and vision. Many investors might shy away from complex or underutilized properties, but I’ve found that those can often be the hidden gems in the real estate world. The secret? Creative land development. By identifying a property’s untapped potential, structuring the right deals, and transforming spaces with foresight, it’s possible to turn even the most challenging properties into profitable ventures.
Seeing Potential Where Others Don’t
One of the most critical skills in real estate development is the ability to see potential where others see obstacles. Take the “Christmas Tree Farm” project I recently completed off Highway 83, south of Franktown, as an example. At first glance, the 160-acre cattle ranch and former Christmas tree farm seemed like a niche, possibly outdated property with limited future value. But, after careful assessment, I saw an opportunity to subdivide the land into four 40-acre parcels that could become prime residential spaces.
What made this project profitable was not the land itself, but the potential I saw to develop it into something more. Each parcel was enhanced with stunning views of Pikes Peak, easy access to utilities like MountainView Electric, and a new county-grade road that touched every lot. These features turned what could have been overlooked land into highly desirable properties for future homeowners. The key was seeing past the surface and envisioning what the land could be with the right touch.
The Power of Subdividing
One of the most effective strategies I’ve used in my career is subdividing larger properties into smaller, more manageable parcels. This approach maximizes profitability by creating multiple opportunities for sale while increasing the overall appeal of the land.
For example, in a recent project just east of Elizabeth, I purchased a 7,810-acre ranch for $13.2 million. Rather than holding onto the land as a single large property, I creatively surveyed it into eight smaller ranches, ranging from 180 acres to 2,225 acres in size. By selling off about 80% of the land at the same price I originally paid for the whole ranch, I was able to recover my initial investment while retaining 1,500 acres of the most beautiful sections of the ranch for myself. This approach not only made the property more accessible to buyers, but it also allowed me to walk away with a significant portion of the ranch at no additional cost.
Subdividing doesn’t just apply to massive ranches. Even smaller properties can benefit from this strategy. The Christmas Tree Farm project, for instance, was a relatively small 160-acre parcel, yet subdividing it into four 40-acre ranchettes added significant value. Each smaller lot became a manageable, high-demand property, with every acre put to its best use.
Adding Value Through Infrastructure
It’s not enough to just subdivide land; to turn a property into a truly profitable venture, you need to add value in ways that are tangible to potential buyers. One of the best ways to do this is by improving infrastructure. When I worked on the Christmas Tree Farm subdivision, one of my primary focuses was making the parcels not only attractive but practical for future homeowners. I brought in power from MountainView Electric to ensure every parcel had easy access to electricity. I also oversaw the creation of a new road that gave each lot proper access.
These improvements increased the appeal of the land by making it easier for buyers to envision building their dream homes there. People aren’t just buying land; they’re buying the future they imagine on that land. By adding the right infrastructure, I made it easier for buyers to see the value of the property, which in turn allowed me to command a higher price.
Navigating Legal and Zoning Challenges
One of the most important aspects of creative land development is navigating the legal and zoning complexities that come with many properties. Developing underutilized land often involves overcoming restrictions, working through rezoning, and securing the right permits to transform the property into something more valuable.
In the case of the 7,810-acre ranch, for example, I had to ensure that the property could be surveyed into the eight smaller ranches before I even closed the deal. I worked closely with surveyors, legal experts, and county officials to ensure that everything was in place so that the sale could proceed smoothly. By doing the hard work upfront, I was able to execute a simultaneous closing for the smaller parcels, ensuring I got my investment back immediately while still holding onto the best portions of the land.
The Importance of Vision
At the heart of any creative real estate development is vision. You have to be able to look at a piece of land and not just see what it is, but what it could be. This takes imagination, but also a deep understanding of market trends, community needs, and what buyers are looking for. Every property has its unique potential, but it’s up to the developer to unlock it.
In my experience, creative land development is all about identifying that potential, structuring deals in a way that minimizes risk while maximizing returns, and adding value through thoughtful, strategic improvements. By doing this, even the most challenging or underutilized properties can be transformed into profitable ventures that benefit both the developer and the community.
Conclusion
Creative land development isn’t just about making a profit—it’s about turning visions into reality. Whether you’re working with a sprawling ranch or a small farm, the principles are the same: see the potential, add value, navigate the challenges, and create something that benefits everyone involved. With the right approach, even the most underutilized properties can become incredible opportunities.