Private Air New York

www.privateairny.com Private Air | Summer 2024 82 INVESTMENT About Eric Metzger Eric Metzger, CEO & Founder of MRLO Partners is a 25-year luxury land investing expert specializing in high-end developments around exclusive destinations across the U.S. and the globe. With a commitment to reshaping the narrative around land investment, Metzger has assisted over 8,000 high-net-worth investors in acquiring over $2.4 billion in luxury land and estates. While assessors and appraisers may be crucial, (and required in many instances), especially for your everyday mortgage broker/lender or home buyer, and for tax purposes, the reality is much different for "statement properties." In fact, it doesn't take much time or effort in the grand scheme of things to land a state property appraiser's license or certification. But is an appraiser of this ilk qualified or fully invested to truly assess the market value of the types of properties and parcels of land that will create a lasting legacy for you and your descendants? Appraisers are more like detached spectators or statistical analysts who may be precise with their numbers, but often miss the nuance of involvement or engagement with the inherent risks and forward thinking of property investment. Appraisals still rely heavily on comparables, but when it comes to statement properties, one is certainly nothing like the other. Land investment is ever evolving with a weather eye on the future and the potential. Appraisals, on the other hand, are stuck in the past and only consider then and yesterday, not tomorrow and beyond. An appraisal uses those comparables and price history to create valuation without taking the uniqueness and potential — essence if you will — of a particular parcel of land into consideration. Although precise and formal, an appraisal's use of comparables leads to a generalized valuation masking underlying assumptions and estimations. It's a facade that could lure investors into a false sense of security, veiling the risks that lurk in the shadows of unknown variables. You're not buying a house in a suburban subdivision, (that's a different discussion), you're investing in a unique parcel of land with its own landscape and topography. e vistas, the flora, the waterways, and geological formations are all uncommon. ere are no "comps," no cookie cutters. If you tell a lender or another investor, "I have an appraisal," you're saying, "I have deferred my own judgment to someone else." If you wish to convey mastery and prestige, you should be relying on your own valuation techniques. As an investor, you need to look toward unseen horizons and uncharted territories where the future of land investment lies. Discernment rather than appraisals will guide you forward. Eschewing conventional wisdom and challenging established norms while carving a path with your insight will allow you to navigate all the layers and nuance of land valuation. To that end, there are six major elements to take into consideration when it comes to investing in raw, undeveloped land — illiquidity factor, risk- reward balance, cost dynamics, approvals, macro and micro market conditions, and cash flow. As you develop the land in which you invest (if you so choose) with communities, economies, and society, you'll need to navigate zoning, parcel partitioning, land rights, infrastructure, and, of course, politics, while understanding the challenges of approval, development, and market risk. When you master these methodologies, you're not just another investor; you become a connoisseur of the finest details, a person of eminent respect and prestige in the land investment community. It's about the nuance, the discipline, and the insights that set you apart. In a world where anyone with capital can enter the market, your intellectual arsenal will make you invincible.

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