The Best Real Estate Strategy You've Never Heard Of - Landbanking

I've been investing in real estate since the early '80s.price, it would be hard to find a better or safer
I've done rentals, rehabs, some wholesaling, and someinvestment for your money. Some of the wealthiest
lease options. I've done rent-to-owns and raised andthroughout history have used Landbanking to start or
repaid over a half million dollars in private capital to fuelgrow their wealth. Today, Donald Trump owns one of
my efforts.the last large undeveloped land parcels in Manhattan -
And I've learned some valuable lessons along the100 acres along the Hudson River between 59th and
way...72nd streets. Bob Hope owned thousands of acres
I've learned that real estate investing is a lot of work,near Palm Springs, Phoenix and Malibu and 10,000
with no shortage of pitfalls, and that rentals aren'tacres in San Fernando valley when it was little more
nearly as passive as I thought they'd be. In short, realthan orange groves. Howard Hughes also held large
estate investing can be a real mine field and navigatingamounts of land in or near Los Angeles and Las
through it takes considerable time, knowledge andVegas.
resources.If you think those opportunities are gone, think again.
At least I thought it did.Until the US population starts to decrease, or the
In 2006 I was researching pre-construction condos andamount of land starts to increase (hope you're not
condo conversions when I stumbled onto LandBanking.holding your breath for either of those), the law of
Landbanking? I thought I knew all about real estate --supply and demand will continue to push land prices
but I'd never heard of this before. So my antennaeever higher. With few exceptions, most metropolitan
went up and I began learning all I could aboutareas in the country have been growing. And that
LandBanking.means the land around them is becoming more
What is it? Well, it has nothing to do with safe-depositvaluable.
boxes full of sod. And, it isn't new, though the termIf you like the idea and the potential of LandBanking,
may be. In fact, the basic LandBanking strategy is asbut lack the time or financial resources, you can still
old as civilization and private property rights. It's asparticipate by partnering with a professional. This is
proven a strategy as any real estate strategy can be.where the hassle-free part comes in. There are
In a nutshell, the strategy is to locate land in the path ofcompanies in the US that specialize in acquiring tracts
near future development, buy it, then wait forof land for LandBanking and share the opportunity with
development to approach and developers to offer youwould-be LandBankers who lack the time and financial
a whole lot more for the land than you paid for it.resources to go it alone.
If the metropolitan area where you live has beenInstead of needing countless hours and millions of
growing, I'm sure you've seen this in practice. Farmersdollars to LandBank independently, you can become a
typically will sell some or all of their fields to developersLandBanker with a couple hours of due diligence and a
who will then build commercial or residential units on thefew thousand dollars. Not much more time or effort
land.than investing in a mutual fund. No searching out quality
So what makes this the best real estate investmentland (that's already done), no negotiating (already done),
strategy? Three things - the tremendous appreciationno tedious and complicated closings (a few simple and
potential, the absence of all the hassles andstraightforward documents), no tenants, no
headaches normally associated with real estatecontractors. In short, no headaches and no hassles -
investing and the ability to go it alone or partner withjust the ability to passively and affordably become a
experienced professionals.LandBanker and claim your share of LandBanking
If you have the interest, time and financial resources towealth.
find these valuable land parcels and negotiate their