You never know exactly why someone buys a property or what they plan to do with it. Some investors buy land to hold it based on speculation of future values and others buy land to develop a specific property type, such as multifamily or hotel properties. Some people even buy land and lease it out, knowing that their family will inherit the property in the future to use it as they please.
If you are a developer of a specific property type, say multifamily, land prices can rise throughout the development cycle, making it very difficult to achieve desired returns. This problem can often be worked out by doing a joint venture with a land owner. The land owner can contribute the land for a piece of equity in the deal. If the development goes well, everyone is happy, and the land owner will actually make a lot more than they would have by just selling their land (or not selling it if the price is too high). If everything works out well, the land investor and the developer can both use their specific skill sets to generate value from the property. In essence, the sum is greater than the parts.
So, if you are a real estate developer, how do you go about finding a potential joint venture opportunity? Site Identify can help by allowing developers to search for properties based on common ownership. By conducting these searches, developers can get a sense of who the big land owners are, and how to approach them about partnering on one of their multiple properties.
The official Site Identify blog
David Morin (co-founder)