Does anyone know, or have a good idea, about the difference in returns on entitling & developing the land for each scenario, with final objective to sell to a builder to build and sell the structures him/herself.  

Wouldn't hurt to consult a tax pro just to make sure there isn't a more tax effective strategy but I don't think lending provides any tax shelter.

What effects would you expect to see from this legislation change?

we need our own forum for this concept. I'd argue that there are very select zip codes where this strategy works. You need to find a zip code where land values are 10% of less of after built value. You have to find a ...

Assuming you want to aim for syndication, you sort of need to learn how to develop a pro forma that ties the return to an IRR/XIRR. 

Experienced developers, could you tell me how the process/financing works?

Quote from @Dominic Mazzarella: I would ask this, when raising capital for a real estate syndication, what strategies have you found most effective for building trust and credibility with first-time passive investors?

Gross Margin is an important calculation for developers/builders.Gross Margin = Gross Profit / RevenueWe shoot for a 20% gross margin on our New Construction HomesReal #’s:Home Sales Price: $374KClosing Cost: $18,700Cost of Construction: $258KLand Cost: $30KGross Profit = $67K$67K/$374K = 17.9% Gross MarginCame slightly short of our goal of 20%Homes Values and Build Costs are constantly fluctuatingI wish we had a crystal ball

U have to find developments that are purpose built for investors..

They should also have proposed or preliminary site plans approved for the remainder of the development.