Land development and land deals are risky. The lack of cash flow is the biggest negative in my mind. There are also a myriad of costs associated with developing land. These may include architecture fees, engineering fees, municipal fees, lender fees, etc. There is big money to be made but you have to wait until the end of the deal after all of the costs have been paid. Deep pockets are required especially in the midst of a financial storm . My favorite type of real estate investment has tenants paying all of the bills and enough cash flow left over to build a contingency reserve fund.