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The Business of Home Building

From Speculation to Strategy How Smart Investors Build Real Estate Wealth Excerpt from Dirt Rich

By

By Jose Berlanga

Every successful real estate investor starts somewhere, and it’s often with more questions than answers, more uncertainty than confidence. In my own journey, I discovered that the true game-changers are not flashy deals or quick wins, but the overlooked opportunities hiding in forgotten neighborhoods and undervalued parcels of land. What begins as speculation can, with vision and preparation, evolve into strategic wealth-building. At the heart of it all lies one timeless truth: the money is made when you buy.

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Hidden gems and untapped opportunities often go unnoticed. Initially, I navigated real estate transactions with tentative and uncertain steps, guided by a desire to profit without fully understanding how. Through the years, I developed a strategy focused on transforming old neighborhoods and capitalizing on great locations that had been forgotten. In my early real estate days, I built homes, a story detailed in my previous book. The essence of this tale lies in the properties I stumbled upon, which redefined 37 entire neighborhoods and transformed my finances. I realized that land itself, the soil beneath our feet, held immense value and potential. While I didn’t fully grasp the rapid increase in property values at the time, hindsight revealed the power of land appreciation. Imagine acquiring properties with the right vision, Imagine acquiring properties with the right vision, letting time pass, and watching them appreciate with minimal effort. Land speculation, especially in certain neighborhoods, offers the highest probability of rapid returns.

It’s a testament to the power of land, which is a silent yet potent force capable of elevating you to financial magnificence. Land is the core of superlative returns, and its potential for doubling or tripling your investment is unmatched in the real estate world. Power of Strategic Selection Ultimately, the primary goal of our business is selecting the right property. The question is, how? This decision shapes your strategy and objectives as an investor. Understanding your purpose for the land and estimating the time for the investment to reach its development potential is critical.

During this process, you will make choices that reflect the potential and characteristics of your goals. Let me illustrate this with the beginnings of my own real estate career. In the mid-1990s, my brother and I started a real estate venture with a clear purpose, which is essential for making all the pieces fit together. Our objective was to build houses at the lowest possible cost, providing a rare opportunity for consumers to purchase new homes near downtown areas at an affordable price. This involved speculative aspects: finding land cheap enough to build inexpensive houses while ensuring they remained desirable for buyers. Easier said than done! At that time, inner-city neighborhoods were rundown, contrasting with the beautifully designed suburban communities. Yet, a new opportunity seemed feasible.

What now seems like an obvious choice—to invest in early twentieth-century inner-loop neighborhoods—didn’t make much sense then. Remarkably, you could acquire lots for just a dollar or so per square foot. You had to have vision, as it seemed likely that your investment might stagnate indefinitely without appreciation. That was a significant risk. Some properties we purchased in various pockets and subdivisions took longer than others to gain traction. While we made some smart acquisitions, others weren’t immediately profitable. For example, we acquired several properties in an area known as the First Ward, which had stunning downtown skyline views, but it took over ten years to see any real appreciation. This illustrates that real estate involves time, risk, and potential for error. You need to be prepared for that. Just as you might strike oil on your first try, you could also face long periods without progress. However, the advantage with land is that you’re unlikely to lose your principal, especially as you gain experience and secure the right tenants.

Consider a property bought at land value for $100,000 with a $25,000 down payment. A tenant covers the property’s expenses, ensuring positive cash flow. Now, envision the area’s potential unfolds, and your dollar-per-square-foot investment grows to four dollars per square foot. Your $100,000 investment is now worth $400,000. With an initial $25,000 down payment, your investment has increased thirteenfold. Even if the value only doubles to two dollars per square foot, your $25,000 equity grows to $125,000—a fivefold increase. This is the power of leverage in land investment. These transformations in land speculation are not everyday occurrences, but they have a significant financial impact when they happen. I share this not just as a success story but as a real possibility.

Fast forward, and the properties I acquired cheaply now represent substantial value increases, currently worth $100 or more per square foot. This demonstrates the power of recognizing trends and capitalizing on societal changes. If I had known the extent of these returns, I would have held on to more properties instead of developing them for modest returns. Investors who waited patiently profited far more than we did as builders. Who could have known? In the future, we will discuss spotting and even creating trends to drive such transformations. This pattern has always existed; the key is recognizing potential pockets and aligning with a community’s metamorphosis.

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Let’s face it: within the realm of real estate, as with most investments, the timeless truth remains: “The money is made when you buy.” Success is determined upfront. Your investment’s outcome becomes more certain as you better understand what you’re buying. True wealth in real estate is created not by chance, but by deliberate choice, grounded in growing knowledge and strategic planning. This philosophy mirrors the ancient military strategies of Sun Tzu, who emphasized that the battle is won before it is fought. Similarly, in real estate, victory comes from thorough preparation and informed decisions.

Engaging in a transaction should only occur when success has been meticulously planned and the desired outcome is clear. Victory in real estate transactions lies in a series of intricate and carefully calculated steps aimed at achieving the projected win. Decisions driven by emotion and impulse, though sometimes guided by instinct, are insufficient for securing profit. I’ve made this mistake—relying on gut feelings instead of thorough evaluation. While I’ve had mixed results, relying on luck rather than facts is not a sustainable strategy.

Guessing lacks the detailed thought process and meticulous planning required for success. Beware of the enticing allure of cheap prices, reduced listings, or hot markets that can make every transaction seem like a home run. However, buying based on price alone isn’t wise. Instead, purchase because it makes sense and because the potential is evident through a thorough evaluation of the property’s fundamental economics. Soon, we’ll delve into what these fundamentals entail. While none of us can predict the future, the more I navigate the business world, the more I see history and commerce intertwine. Despite differences, past cycles offer 41 valuable lessons and data.

Business logic and philosophy evolve, but human behavior remains driven by fear and greed. Acting analytically, using common sense and information, can lead to wealth. Have you noticed that everyone buys property when the market is booming? This trend stems from our emotional nature rather than pragmatic analysis. The best deals often occur when the market is quiet—that’s when fortunes are made—yet few take advantage of this. We are emotional beings, prone to reactive decisions rather than proactive evaluations. I’ve made this mistake too, reacting to market trends instead of analyzing them, which led to failures.

A clear vision of your intentions, combined with working the numbers according to your specific objectives, is indispensable. When I started, I focused on whether a home’s final sales price would attract buyers. This valuation was key to my exit strategy. Numbers tell a story and become the blueprint for your goal and strategy, guiding you toward success. Becoming the architect of your results is the ultimate mission. A speculator’s goal is to narrow the gap between luck and certainty, reducing the margin of error. Opportunities in real estate are endless, but mastering this approach requires knowledge and skill, which I aim to share through this book. The main advice here is to conduct thorough research and make educated decisions. The key to success is to act based on data, not impulse.

Real estate wealth is not built on chance, it’s forged through deliberate strategy, clear vision, and disciplined preparation. While hot markets and bargain prices may easily tempt investors, lasting success comes from analyzing fundamentals, running the numbers, and buying with purpose. Just as Sun Tzu taught that battles are won before they are fought, real estate victories are secured long before the closing table. With patience, foresight, and informed decisions, overlooked land can become the foundation of extraordinary financial growth and long-term security.

DIRT RICH: EXPLORE THE WORLD OF LAND INVESTING AND DEVELOPMENT

Jose M. Berlanga

Berlanga Explores Land as the Foundation of Civilization and a Powerful Path to Wealth

In an era of rising interest in real estate, investment, and sustainability, Dirt Rich: Explore the World of Land Investing and Development (September 16, 2025; $19.99) offers a fresh and powerful perspective on land, not just as an asset, but as the foundation of modern life.

Written by entrepreneur and investor Jose Berlanga, Dirt Rich draws on his decades of experience in land speculation and real estate development to illuminate the hidden blueprint behind the everyday, including the streets we drive, the neighborhoods we inhabit, the cities we build. With both practical insights and personal storytelling, Berlanga reveals how understanding land can unlock not only financial freedom but a deeper connection to the world around us.

“Have you ever wondered how your city came to be? From its industries and layout to its flow and function, nothing was accidental,” Berlanga writes. “This book reveals the hidden blueprint behind the everyday and how understanding it can empower you to shape your own corner of the world.”

Part entrepreneurial memoir, part field guide, and part cultural meditation, Dirt Rich is a timely and accessible read for aspiring investors, real estate professionals, and anyone curious about the forces that shape our environment. It challenges readers to see land not simply as dirt, but as opportunity, responsibility, and legacy.

Topics covered include:

  • How to evaluate, acquire, and develop land
  • The importance of due diligence and feasibility studies
  • Land use, urban planning, and community design
  • Real Estate tax Strategies, new design, construction and investment trends
  • Investing with purpose and vision in a rapidly changing world

“Land is not just a commodity. It is the raw material of civilization,” says Berlanga. “Dirt Rich is for anyone who wants to build something lasting, contribute to their community, and grow generational wealth.”

In a market filled with transactional advice, Dirt Rich: Explore the World of Land Investing and Development stands out for its heart, humanity, and big-picture vision. It’s not just about making money. It’s about making meaning.

About the Author:

Jose M. Berlanga is a seasoned entrepreneur and real estate investor with over 35 years of experience in land development, residential construction, and strategic investing. A co-founder of Tricon Homes and a native on Mexico City, he combines backgrounds in business, economics, and philosophy to offer a thoughtful, visionary approach to building communities and wealth. Jose is the author of The Business of Home Building and now his latest book, Dirt Rich. He mentors aspiring developers through writing, workshops, and consulting, earning a reputation as a trust voice in real estate and leadership.

Title:                Dirt Rich: Explore the World of Land Investing and Development

Author:           Jose M. Berlanga

Publisher:       Writers of the West

Price:               $19.99

On Sale:          September 16, 2025

ISBN:               9798280221468 (Softcover)

Land – The Investor’s Greatest Secret

By

By Jose Berlanga

Every real estate venture begins with the same indispensable ingredient: land. Long before walls are raised or businesses open their doors, the ground beneath it all is fixed, finite, and full of potential. Land is the foundation; it’s the permanent fixture on which every possibility rests. While buildings deteriorate, markets fluctuate, and styles fade, land endures. Its permanence, scarcity, and resilience make it one of the most powerful wealth-building assets available to investors.

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At the very core of every real estate venture lies the piece of land on which it is built. Whether it’s a residential property, a commercial complex, or an industrial facility, every project begins with the acquisition of land. Land is the starting point, the foundation that holds the potential for endless possibilities. While improvements and structures may come and go, the land remains a permanent fixture, undeterred by the ravages of time. Unlike buildings or structures, land is unique and irreplaceable. Each parcel of land possesses distinct characteristics, from its location and topography to its surrounding environment.

This uniqueness contributes to its scarcity and, in turn, adds to its value. The law of supply and demand comes into play, especially in urban areas where available space is limited, driving up its desirability and potential for appreciation. Investing in land also offers certain tax advantages. Property taxes on land are typically lower than those levied on developed properties because taxes on improvements are separate and added to the taxes on the land they occupy. In some areas, there are even strategies to further minimize or eliminate property taxes altogether, which we will discuss later.

Additionally, the appreciation of land often outpaces the taxes, making it a financially viable investment in the long run. Land is often considered a long-term investment asset. While buildings may depreciate over time and become obsolete, land retains its value and, unlike structures, tends to appreciate with increasing demand and urban expansion. Savvy investors recognize the potential of land as a valuable asset that can serve as a stable and profitable long-term investment. The real estate market is subject to fluctuations and economic downturns, which can affect property values and investor confidence. However, land is less susceptible to such market volatility. Its intrinsic value remains more constant, less influenced by shifts in trends or economic cycles. This stability offers investors a sense of security and a reliable investment option.

Contrary to the common notion that real estate investment necessitates immediate development, owning land opens up various profit-making opportunities without the need for extensive construction or renovations. Strategic land acquisition can result in substantial profits through land flipping or holding for appreciation. Land stands as a headache-free asset, offering investors and developers a stable, low-maintenance option. Its uniqueness, limited supply, and long-term investment potential make it an attractive choice for maximizing returns and unlocking the true value of this timeless asset. Here’s the thing: while it’s true that all real estate appreciates, land appreciates faster than all other real estate components. Improvements—such as buildings or structures—are integral to most investment models, but they do not hold the same level of unique importance as land itself. Improvements can always be replaced, removed, updated, or remodeled, but land cannot. The scarcity of the surface where these improvements sit is unparalleled. No piece of land can be replaced or replicated in exactly the same location, as each one possesses its own unique characteristics.

It’s safe to say that in every real estate investment, the portion that experiences the bulk of appreciation percentagewise is the land. While we tend to think of entire properties—houses, apartments, commercial or office buildings—as appreciating, it’s primarily the land that drives this appreciation, especially due to location.

For example, a house built in a thriving, up-and-coming inner-city neighborhood will appreciate exponentially faster than the same structure built in a remote area with low economic growth. Now let’s discuss what improvements represent. Improvements require constant upkeep and maintenance. You regularly need to spend money just to keep them in good shape. I’m not suggesting that improvements are a burden or that they aren’t a great investment—because they are. The point is that they require more active involvement than land itself. Their value and function revolve around the importance of the land they sit on. And unless you reinvest a portion of the income generated by improvements, those improvements will depreciate due to wear and tear.

This is why improvements are considered depreciable assets in both accounting and taxation. One of the most attractive aspects of land ownership is the minimal maintenance it requires. The list of perks of owning land is long: you don’t have to worry about theft, break-ins, damage, termites, foundation problems, or structural issues. There’s no need for roof replacements, new air conditioning units, plumbing repairs, electrical upgrades, or replacing hardware. You won’t get calls from tenants needing urgent repairs, nor do you need to worry about flooding, natural disasters, or casualty insurance.

Land doesn’t suffer from deterioration, doesn’t need new coats of paint or insulation upgrades, and won’t go out of style or feel outdated. Unlike structures, which inevitably experience wear and tear, land requires none of this. Landowners are spared the headaches of ongoing repairs and maintenance that often plague property owners. And there are even ways to generate income without any of these hassles by leasing land for various purposes. To make my point clear, under certain circumstances and in some particular cases, once you understand the business, you can even buy land without actually ever stepping foot on it.

I have purchased tons of properties and constantly continue doing so without visiting them, seeing them or even driving by them. There is simply no need because there are no structures of value to inspect. Looking at them on a map and understanding the location is enough. Additionally, land itself may provide other valuable assets, such as water rights, mineral rights, and outdoor space. Land offers flexibility for future uses, allowing you to capitalize on potential changes down the road. Leasing land has become more popular than ever for activities such as farming, commercial ground leases, storage, recreational purposes, and more—all of which can generate profits without the headaches associated with traditional property management.

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Land is the most tangible asset—one that will never disappear or evaporate like a bad stock pick or a company that went out of business. There are even innovative ways to profit from land while helping the planet through “green leasing programs,” using farmland for windmills, water conservation, solar panels, and capturing and storing carbon dioxide. Land gives you options, and as populations grow, demand increases. This simple statement alone can make you money, as the money supply increases and wealth grows, but land remains constant.

At its core, real estate wealth is not about bricks, beams, or blueprints. It’s about the ground they stand on. Improvements may bring short-term value, but they also bring expense and eventual decline. Land, by contrast, requires little, depreciates not at all, and steadily grows in worth as populations and demand rise. For those seeking lasting wealth, the true treasure is not in what’s built, but in the land itself, fixed, finite, and forever valuable.

DIRT RICH: EXPLORE THE WORLD OF LAND INVESTING AND DEVELOPMENT

Jose M. Berlanga

Berlanga Explores Land as the Foundation of Civilization and a Powerful Path to Wealth

In an era of rising interest in real estate, investment, and sustainability, Dirt Rich: Explore the World of Land Investing and Development (September 16, 2025; $19.99) offers a fresh and powerful perspective on land, not just as an asset, but as the foundation of modern life.

Written by entrepreneur and investor Jose Berlanga, Dirt Rich draws on his decades of experience in land speculation and real estate development to illuminate the hidden blueprint behind the everyday, including the streets we drive, the neighborhoods we inhabit, the cities we build. With both practical insights and personal storytelling, Berlanga reveals how understanding land can unlock not only financial freedom but a deeper connection to the world around us.

“Have you ever wondered how your city came to be? From its industries and layout to its flow and function, nothing was accidental,” Berlanga writes. “This book reveals the hidden blueprint behind the everyday and how understanding it can empower you to shape your own corner of the world.”

Part entrepreneurial memoir, part field guide, and part cultural meditation, Dirt Rich is a timely and accessible read for aspiring investors, real estate professionals, and anyone curious about the forces that shape our environment. It challenges readers to see land not simply as dirt, but as opportunity, responsibility, and legacy.

Topics covered include:

  • How to evaluate, acquire, and develop land
  • The importance of due diligence and feasibility studies
  • Land use, urban planning, and community design
  • Real Estate tax Strategies, new design, construction and investment trends
  • Investing with purpose and vision in a rapidly changing world

“Land is not just a commodity. It is the raw material of civilization,” says Berlanga. “Dirt Rich is for anyone who wants to build something lasting, contribute to their community, and grow generational wealth.”

In a market filled with transactional advice, Dirt Rich: Explore the World of Land Investing and Development stands out for its heart, humanity, and big-picture vision. It’s not just about making money. It’s about making meaning.

About the Author:

Jose M. Berlanga is a seasoned entrepreneur and real estate investor with over 35 years of experience in land development, residential construction, and strategic investing. A co-founder of Tricon Homes and a native on Mexico City, he combines backgrounds in business, economics, and philosophy to offer a thoughtful, visionary approach to building communities and wealth. Jose is the author of The Business of Home Building and now his latest book, Dirt Rich. He mentors aspiring developers through writing, workshops, and consulting, earning a reputation as a trust voice in real estate and leadership.

Title:                Dirt Rich: Explore the World of Land Investing and Development

Author:           Jose M. Berlanga

Publisher:       Writers of the West

Price:               $19.99

On Sale:          September 16, 2025

ISBN:               9798280221468 (Softcover)