Real estate value can increase before a single dollar of cash flow shows up.
That starts with entitlement.
A piece of land may begin as an agriculturally zoned property with limited use.
Once the approvals are in place to build hundreds of units, the same land can become far more valuable.
Nothing physical has changed yet.
No building has gone up.
No concrete has been poured.
The value changed because the legal right to build changed.
This is an important part of development that investors can easily miss.
Value can be created long before the property starts producing cash flow.
How would you evaluate a real estate deal differently if you looked at value creation before cash flow?