January 9, 2025

How Councial Glenn Found Success in Land Entitlement

In the world of real estate investing, many professionals focus on buying and flipping single-family homes or wholesaling properties. However, an often-overlooked niche with significant profit potential is land entitlement, a strategy that not only increases property value but can also help generate motivated leads. Councial Glenn, a seasoned real estate investor, shares his journey into this specialized field and provides invaluable insights on navigating it effectively.

The Journey into Land Entitlement

Councial Glenn’s real estate journey began in an unconventional way. While many investors are driven by profit, Glenn’s passion for real estate was rooted in architecture. His love for drafting and building design started in high school, where he initially aimed to become an architect. This passion transitioned into real estate after he observed contractors profiting significantly from off-market properties while he was doing work for them.

His first wholesale deal was a piece of vacant land, which, at the time, was a mystery to him. Without prior experience or resources for assessing land value, Glenn called a friend for advice on a 19-acre plot. This interaction introduced him to the intricate process of land entitlement, sparking a new chapter in his real estate career.

What is Land Entitlement?

Land entitlement involves obtaining approval from local municipalities to develop a piece of land for residential or commercial purposes. This process typically requires:

  • Rezoning the Land: If necessary, the land may need to be rezoned from its current designation to one that supports higher density or different usage.
  • Creating Engineered Plans: Detailed plans outlining the layout for homes, roads, water, sewer, and other utilities must be submitted to and approved by the city or county.
  • Navigating Regulations: Each municipality has its regulations and timelines for approval, which can vary from six months to over a year depending on the location and workload.

Once the plans receive the official stamp of approval, the property’s value increases significantly, as it becomes “shovel-ready” for development.

Key Insights for Real Estate Investors

For those interested in pursuing land entitlement, Councial Glenn emphasizes several crucial lessons:

  1. Understand the Timeframe: Land entitlement is not a quick process. Investors should be prepared for a cash cycle that could last anywhere from 9 to 18 months. Proper planning and financial readiness are essential.
  2. Evaluate Land Carefully: Always be wary of land that has been passed over by multiple builders. Glenn’s advice is simple: “If smart people have passed on it, there’s probably a good reason.” Focus on opportunities that are manageable and don’t require unrealistic changes or investments.
  3. Leverage Relationships with Brokers: Experienced brokers can provide valuable insights into land that’s listed, its zoning, and potential for development. Building these relationships can save significant time and money in the long run.
  4. Check Zoning and Utility Capacity Early: One of the first steps Glenn takes when assessing land is to verify its current zoning and the availability of utilities. He recommends reaching out to local service providers to confirm that there is enough capacity to support a subdivision. Without this, an investor could end up with a property that looks promising but is not feasible for development.
  5. Anchor Your Offers: Glenn shares a story of how price anchoring saved one of his deals. By basing his initial offer on a per-lot price rather than a per-acre price, he was able to renegotiate when the presence of wetlands reduced the number of buildable lots on the property.

Navigating Environmental and Zoning Challenges

One of the biggest hurdles in land entitlement involves environmental and zoning challenges. Glenn recounts instances where projects were significantly impacted by these issues:

  • Utility Capacity Delays: On one project, while water and sewer were available, the city lacked the capacity to support the development. It would have taken two years for upgrades to be completed. Such delays emphasize the importance of verifying both availability and capacity with service providers early in the process.
  • Wetlands and Setbacks: On another project, a creek running through the property resulted in a mandatory 100-foot setback on both sides, reducing the buildable lots from 98 to 58. Even with no direct environmental impacts, local ordinances can dictate significant land use restrictions.
  • Rezoning for Maximum Value: Rezoning agricultural land to higher-density residential zones like RS3 (three units per acre) or RS5 (five units per acre) can multiply land value exponentially. Glenn advises investors to research nearby zoning to assess the likelihood of approval.

Councial Glenn’s Most Notable Deal

One of Glenn’s standout projects involved a 27-acre plot in Shelby, North Carolina. After purchasing it for $150,000 and spending approximately $70,000 on entitlements, he secured a letter of intent for $1.4 million. This deal highlighted the potential for substantial profits in land entitlement when done correctly.

Leveraging Technology and CRM for Land Deals

For investors with existing leads, Glenn recommends using CRM systems to manage and analyze land opportunities. His team offers a service where they overlay CRM data with software to identify top land entitlement opportunities. By exporting land leads, investors can pinpoint the most profitable deals without manually reviewing every record.

This approach not only saves time but also helps investors recoup marketing costs by turning overlooked land leads into lucrative projects. For example, one investor discovered a deal with a $900,000 profit margin using Glenn’s method.

Starting Your Land Entitlement Journey

For real estate investors interested in land entitlement, Glenn’s advice is to start by researching and having conversations. Look for vacant land on platforms like LoopNet or Zillow and talk to brokers who specialize in land deals. These initial discussions can provide valuable information on zoning, nearby developments, and market trends.

When moving forward, investors should be prepared to:

  • Budget for Entitlement Costs: Plan to spend around $1,500 per lot for entitlements, with the potential for costs to rise based on the scale of the project.
  • Mitigate Environmental Risks: Ensure that the land is free from significant environmental issues, such as wetlands or flood zones, that could impact development potential.

Partnering for Success

One of Glenn’s strengths lies in partnering with seasoned investors who may come across land opportunities but lack the expertise to pursue them. He offers to lead the entitlement process while involving partners throughout the journey. This approach allows investors to maximize their profits without the steep learning curve.

Partner Up & Profit from Land Entitlement

Real estate investors looking to expand their portfolios and increase profits should consider exploring land entitlement. Start small, build relationships with knowledgeable brokers, and collaborate with experienced partners like Councial Glenn. Taking these steps can lead to successful projects and a thriving real estate business. Reach out to industry experts to help navigate the complexities and generate motivated seller leads that fuel your next big venture.