And consider that if they had put the money in a good MM, they would be getting 5+% right now

I would use that as a potential guidemap as to where you may need to spend some money. 

You may have to balance spending money on things today that you may not really need until later - but, they may cost a LOT more to change later.

I personally do hard money lending and investing in the city.  

Last year I barely made any money after all expenses were paid.

Anyway the point on the land basis is if you have a very low basis you have just now subjected your land equity to ordinary income and market risks on top of it.Plus personal risk on the loan if it goes bad do you have the money to pay the first off if you need to.  

Growing up in a household with 6 siblings and parents working hard to survive living in California I became very observant of what others were doing to make money.

Tax Benefits Once Built- Deduct depreciation and cost of maintaining the property - Deduct mortgage interest if a loan is taken outWhile I am not an accountant, I do not see where it would save you much, if any money at all.

I was wondering if hard money lenders or private lenders require you to be licensed as a mortgage loan Officer to find them new clients.

If you enter the market with the right approach, there is alot of money to be made.