In this episode, Tom and Tim Dosch put ChatGPT to the test, generating ten thought-provoking land-related questions that spark a deep dive into the world of real estate’s most foundational asset: dirt. What follows is a dynamic conversation covering five critical areas—land investment strategy, development and entitlements, market trends, legal risks, and long-term wealth-building—packed with insights only seasoned investors can provide.
The brothers break down why land is a smarter investment today than it was a decade ago, how to underwrite raw land without relying on traditional comps or utilities, and why the highest and best use often trumps recent sales data. They also highlight the hidden risks that trip up new investors from surprise carrying costs and floodplain complications to zoning mismatches and reveal why staying in the ETJ (Extraterritorial Jurisdiction) can sometimes be more advantageous than being inside city limits.
Ever wondered how entitlement delays and infrastructure uncertainty can make or break a deal? Or how rising interest rates are reshaping land financing? Tom and Tim tackle these questions head-on and explain why institutional investors still shy away from raw land for now.
Whether you're a seasoned player or just breaking into Texas real estate, this episode delivers actionable, battle-tested advice from investors who are actively navigating the market.
Do you have a burning land question? Send it to texaslandguys@dmre.com, and it might just fuel a future episode.
Key Takeaways
AI as a Land Tool: ChatGPT isn’t replacing brokers—but it’s a surprisingly sharp tool for research, planning, and ideation in real estate.
Why Some Land is a Great Investment: Timing, location, tax strategies, and low carry costs are driving value, especially in Texas.
No Utilities, No Deal: Without water or sewer (or even capacity), land often becomes unusable for development and dramatically less valuable.
Don’t Rely on Comps Alone: Market demand, cost of capital, and developer assumptions matter more than past sale prices.
Hidden Costs That Kill: Floodplain mitigation, wetlands, easement access, tree ordinances, and holding costs can destroy returns if ignored.
Entitlement Pitfalls: Zoning misalignment with a city’s future land use plan can quietly doom a deal before it starts.
Institutional Inertia: Land remains underutilized by large funds due to its complexity, lack of cash flow, and difficulty in modeling.
Zoning vs. ETJ: Staying in the ETJ can increase land value by avoiding zoning restrictions and city taxes if utility access is secured.
In This Episode:
[00:00] Introduction
[00:41] Call for questions and using ChatGPT to generate land-related topics
[01:29] How AI tools like ChatGPT are being used in land brokerage
[03:32] What makes land a great investment today vs. a decade ago
[06:49] How to underwrite raw land with no comps or utilities
[11:40] The biggest hidden costs in land deals that catch new investors off guard
[15:52] The most common reasons land entitlements fail or get delayed
[19:33] Infrastructure risk: what developers look for before buying
[25:10] Texas markets seeing the most aggressive land price growth and the reasons why
[29:03] Tom’s take on pricing in the Dallas infill market: pre-COVID vs. post-COVID
[31:35] How land deals are being structured differently in a high-interest-rate environment
[34:13] Biggest legal risks landowners face in Texas today
[36:40] How zoning changes and city annexation affect land value
[39:00] Why, as a seller or landowner, it's better not to be in the city and be in an ETJ
[42:29] Why institutions still avoid land and what it would take to change that
[44:20] Wrap-up and call for listener-submitted questions
Resources and Links
Podcast
Tom Dosch
Tim Dosch
