Lola nailed it...we've seen this scenario way to many times...but in fairness I don't know Smith's deal other than the limited info mentioned by him.
It's pretty simple actually...unless you own the land or have a proper contract/lease agreement with the actual owner and you're building/spending money on someone else's property...you need to be prepared to lose that money. If you're prepared to deal with that scenario...go for it...it may turn out just fine