| I've been investing in real estate since the | | | | |
| early '80s. I've done rentals, rehabs, some | | | | If you have the interest, time and financial |
| wholesaling, and some lease options. I've | | | | resources to find these valuable land parcels |
| done rent-to-owns and raised and repaid over | | | | and negotiate their price, it would be hard |
| a half million dollars in private capital to | | | | to find a better or safer investment for your |
| fuel my efforts. | | | | money. Some of the wealthiest throughout |
| | | | history have used Landbanking to start or |
| And I've learned some valuable lessons along | | | | grow their wealth. Today, Donald Trump owns |
| the way... | | | | one of the last large undeveloped land |
| | | | parcels in Manhattan - 100 acres along the |
| I've learned that real estate investing is a | | | | Hudson River between 59th and 72nd streets. |
| lot of work, with no shortage of pitfalls, | | | | Bob Hope owned thousands of acres near Palm |
| and that rentals aren't nearly as passive as | | | | Springs, Phoenix and Malibu and 10,000 acres |
| I thought they'd be. In short, real estate | | | | in San Fernando valley when it was little |
| investing can be a real mine field and | | | | more than orange groves. Howard Hughes also |
| navigating through it takes considerable | | | | held large amounts of land in or near Los |
| time, knowledge and resources. | | | | Angeles and Las Vegas. |
| | | | |
| At least I thought it did. | | | | If you think those opportunities are gone, |
| | | | think again. Until the US population starts |
| In 2006 I was researching pre-construction | | | | to decrease, or the amount of land starts to |
| condos and condo conversions when I stumbled | | | | increase (hope you're not holding your breath |
| onto LandBanking. | | | | for either of those), the law of supply and |
| | | | demand will continue to push land prices ever |
| Landbanking? I thought I knew all about real | | | | higher. With few exceptions, most |
| estate -- but I'd never heard of this before. | | | | metropolitan areas in the country have been |
| So my antennae went up and I began learning | | | | growing. And that means the land around them |
| all I could about LandBanking. | | | | is becoming more valuable. |
| | | | |
| What is it? Well, it has nothing to do with | | | | If you like the idea and the potential of |
| safe-deposit boxes full of sod. And, it isn't | | | | LandBanking, but lack the time or financial |
| new, though the term may be. In fact, the | | | | resources, you can still participate by |
| basic LandBanking strategy is as old as | | | | partnering with a professional. This is where |
| civilization and private property rights. | | | | the hassle-free part comes in. There are |
| It's as proven a strategy as any real estate | | | | companies in the US that specialize in |
| strategy can be. In a nutshell, the strategy | | | | acquiring tracts of land for LandBanking and |
| is to locate land in the path of near future | | | | share the opportunity with would-be |
| development, buy it, then wait for | | | | LandBankers who lack the time and financial |
| development to approach and developers to | | | | resources to go it alone. |
| offer you a whole lot more for the land than | | | | |
| you paid for it. | | | | Instead of needing countless hours and |
| | | | millions of dollars to LandBank |
| If the metropolitan area where you live has | | | | independently, you can become a LandBanker |
| been growing, I'm sure you've seen this in | | | | with a couple hours of due diligence and a |
| practice. Farmers typically will sell some or | | | | few thousand dollars. Not much more time or |
| all of their fields to developers who will | | | | effort than investing in a mutual fund. No |
| then build commercial or residential units on | | | | searching out quality land (that's already |
| the land. | | | | done), no negotiating (already done), no |
| | | | tedious and complicated closings (a few |
| So what makes this the best real estate | | | | simple and straightforward documents), no |
| investment strategy? Three things - the | | | | tenants, no contractors. In short, no |
| tremendous appreciation potential, the | | | | headaches and no hassles - just the ability |
| absence of all the hassles and headaches | | | | to passively and affordably become a |
| normally associated with real estate | | | | LandBanker and claim your share of |
| investing and the ability to go it alone or | | | | LandBanking wealth. |
| partner with experienced professionals. | | | | |