Unlocking Value Through Land Infrastructure and Water Rights

This Skull Session is a discussion with David Baker, Chief Investment Officer of the Land Value Alpha Fund (@LandValueAlpha on X), focused on land investing, infrastructure development, and water rights as a source of return. 

Land Value Alpha Fund: How Returns Are Driven Through Land and Infrastructure

The conversation outlines how the fund targets undervalued land and enhances value through active improvements rather than passive holding. While the current fund is new, David brings a proven track record, delivering 42% gross and 33% net audited returns over nearly seven years in his prior fund. He is now targeting a minimum average annual return of 20%.

From Stock Market Roots to Building Land Value Alpha Fund

Baker described his background in investing, including experience in small-cap funds, startups, and real estate, before shifting toward land-focused strategies. He explained that his approach combines financial modeling with on-the-ground infrastructure work such as building roads, installing power, and drilling water wells. These activities are intended to create an additional layer of appreciation beyond baseline land value increases.

Inside the Land Value Alpha Fund Strategy Deck and Value Creation Model

The strategy centers on three components of value creation. Passive appreciation comes from long-term land price trends, while active appreciation is generated through infrastructure and development preparation. A third element, described as a reset in valuation, occurs when previously remote land becomes more accessible or gains nearby development activity.

Executing the Land Value Alpha Fund Playbook: Roads, Power, Water, and Process

Water rights were highlighted as a key driver within the model. Baker explained that drilling wells and securing water rights can significantly increase land value, with returns tied to both usability and scarcity. The fund also evaluates factors such as aquifers, well logs, and basin data before acquiring land, and may generate additional income through leasing water rights or other resource-based activities.

Who Buys Land Value Alpha Fund Properties and Why It Matters

The discussion also covered operational execution, including the need for local presence and project management. Baker noted that infrastructure work such as road construction, power installation, and water systems requires hands-on oversight and cannot be managed remotely. The fund structure targets long-term holding periods, with capital deployed across multiple properties and exits planned over several years.

Capital Deployment, Portfolio Scaling, and Land Value Alpha Fund Targets

The conversation concluded with examples from a completed project, where land value increased following infrastructure work and water development. Baker emphasized that the model is designed to scale across multiple properties, with returns driven by a combination of land selection, execution, and resource optimization.

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