| I've been investing in real estate since the early '80s. | | | | to find these valuable land parcels and negotiate their |
| I've done rentals, rehabs, some wholesaling, and | | | | price, it would be hard to find a better or safer |
| some lease options. I've done rent-to-owns and | | | | investment for your money. Some of the wealthiest |
| raised and repaid over a half million dollars in private | | | | throughout history have used Landbanking to start or |
| capital to fuel my efforts. | | | | grow their wealth. Today, Donald Trump owns one |
| And I've learned some valuable lessons along the | | | | of the last large undeveloped land parcels in |
| way... | | | | Manhattan - 100 acres along the Hudson River |
| I've learned that real estate investing is a lot of | | | | between 59th and 72nd streets. Bob Hope owned |
| work, with no shortage of pitfalls, and that rentals | | | | thousands of acres near Palm Springs, Phoenix and |
| aren't nearly as passive as I thought they'd be. In | | | | Malibu and 10,000 acres in San Fernando valley when |
| short, real estate investing can be a real mine field | | | | it was little more than orange groves. Howard |
| and navigating through it takes considerable time, | | | | Hughes also held large amounts of land in or near Los |
| knowledge and resources. | | | | Angeles and Las Vegas. |
| At least I thought it did. | | | | If you think those opportunities are gone, think again. |
| In 2006 I was researching pre-construction condos | | | | Until the US population starts to decrease, or the |
| and condo conversions when I stumbled onto | | | | amount of land starts to increase (hope you're not |
| 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 antennae | | | | ever higher. With few exceptions, most metropolitan |
| went up and I began learning all I could about | | | | areas 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 | | | | valuable. |
| safe-deposit boxes full of sod. And, it isn't new, | | | | If you like the idea and the potential of LandBanking, |
| though the term may be. In fact, the basic | | | | but lack the time or financial resources, you can still |
| LandBanking strategy is as old as civilization and | | | | participate by partnering with a professional. This is |
| private property rights. It's as proven a strategy as | | | | where the hassle-free part comes in. There are |
| any real estate strategy can be. In a nutshell, the | | | | companies in the US that specialize in acquiring tracts |
| strategy is to locate land in the path of near future | | | | of land for LandBanking and share the opportunity |
| development, buy it, then wait for development to | | | | with would-be LandBankers who lack the time and |
| approach and developers to offer you a whole lot | | | | financial resources to go it alone. |
| more for the land than you paid for it. | | | | Instead of needing countless hours and millions of |
| If the metropolitan area where you live has been | | | | dollars to LandBank independently, you can become a |
| growing, I'm sure you've seen this in practice. | | | | LandBanker with a couple hours of due diligence and |
| Farmers typically will sell some or all of their fields to | | | | a few thousand dollars. Not much more time or |
| developers who will then build commercial or | | | | effort than investing in a mutual fund. No searching |
| residential units on the land. | | | | out quality land (that's already done), no negotiating |
| So what makes this the best real estate investment | | | | (already done), no tedious and complicated closings (a |
| strategy? Three things - the tremendous appreciation | | | | few simple and straightforward documents), no |
| potential, the absence of all the hassles and | | | | tenants, no contractors. In short, no headaches and |
| headaches normally associated with real estate | | | | no hassles - just the ability to passively and |
| investing and the ability to go it alone or partner with | | | | affordably become a LandBanker and claim your |
| experienced professionals. | | | | share of LandBanking wealth. |
| If you have the interest, time and financial resources | | | | |