Acquiring raw land carries several distinct disadvantages, including a complete lack of immediate cash flow or rental income generation, high illiquidity, and ongoing holding costs such as annual property taxes, maintenance, and security. Unimproved land often lacks access to vital utilities like electricity, water, and sewage systems, requiring massive capital expenditures before any development can begin. Furthermore, real estate values can remain stagnant for years, and properties can be vulnerable to legal title disputes, environmental constraints, or unfavorable zoning changes.