Advice on subdivision land investment

[Elaine Hester]

I am strongly considering a new type of investment for me, which is land that is to be sold to a homebuilder. I would be partnering with others in this investment within an LLC. Each of us would have a percentage share in the net proceeds. The project managers who are putting the deals together have a long, solid history in residential land entitlement and mapping and they have shared the project particulars, costs, and projected profits. On one particular deal, we are looking at an annualized return of 35% based on a projected 18-month duration, which is more like the kind of return I've been holding out for.

I'm looking for anyone that wants to play devil's advocate and tell me what I should be looking out for or what I might be missing before going all in.

Thanks in advance!