Who buys land lots and why?

[Rito Altamirano]

Just wondering if anybody here buys just lots of land? If so what do you do with them? Just a random curious question because im in las vegas and always see lots of land for sale or vacant and was wondering what kind of investors chase lots. 

[Neil Goradia]

Mainly developers I would think. We bought 22 acres in Indianapolis and developed a subdivision on it. It is a highly risky and political process that I'd only recommend getting into if you have the right team of experience in place. You can make some decent money doing it but home sales are never a sure thing and it could take a long time to pay off construction loans if homes don't sell as planned. I would not recommend buying land as a speculative investment if you are guessing the land will increase in value for one reason or another.