Cons of Raw land to be sold as paper lots through a 3rd party?

[Kairav Sai]

Hello,

I've stumbled upon a deal where a group of individuals are buying raw agricultural land in Waco,Texas. They are selling investments through shares and registering as LLC. They plan to buy 260 acres of land, get permits to convert it into residential land. They would get water and zonal permits and get the engineering drawings. Finally, they would sell back the land as paper lots to the developers.

The expected cost price per acre is 20k dollars. The agreement is to liquidate in 3-5 years with a promise around 2X. Could you guys share your thoughts, pros and cons of such a deal?