 Not actual property image |
LandBanking Opportunity
This featured property is located in Southern California and requires $3,000 down for purchase and is available for as little as $20,000.
For more information, please complete the information
request form
|
LandBanking Opportunity
This featured property is located in Southern California and requires $3,000 down for purchase and is available for as little as $20,000.
What is LandBanking?
“LandBanking” is the process of buying and holding land for future sale or development. Owning land that can be built on or otherwise put to profitable use, and that is in a good location, is a historically proven path to wealth.
Smart LandBanking is a Safe Venture
All ventures entail a degree of risk. One reason why purchasing in raw land in the direct path of urban growth is a relatively safe acquisition, is that good land isn’t subject to the volatile market fluctuations for commodities such as precious metals. Nor, for that matter, of stocks. Good land is not just “good as gold,” but better than gold. This is because good land is finite. There is only so much of it. More cannot be produced. There is no substitute for it. And unlike any corporation — whose products or services can become outmoded, or bested by an aggressive competitor, destroying its stock value — good land will always be a part of the economy.
Pitfalls to Avoid When Buying Land
- Buying on sheer optimism. Just owning land won’t yield a profit. Only raw land that can be developed, and that is situated where a developer or other buyer will need it, will appreciate in value.
- Buying without visiting a property. “Sight unseen” often translates into “profit never seen.”
- Buying without having completed a thorough investigation. Proper due diligence includes researching who owns the land, its legal description, zoning, overall market value, location in the path of growth, and general plan for its area by the local government.
- Buying to get rich quick. LandBanking typically requires patience — waiting for a market to peak. This usually happens after development appears within eyeshot of the property, and developers (who compete fiercely with each other) grow eager to buy the property. This can take three, five, seven or 10 years, or even longer.
Keys to Hitting Pay Dirt
The savvy LandBanker searches for parcels in the path of growth of a burgeoning urban area, such as a medium-size “bedroom community. ”Signs that a parcel of pre-development land could be a good investment:
- The property is within a city’s sphere of influence, where its borders (and services) are projected to reach.
- National retailers such as Wal-Mart have announced plans to move to the area.
- The property is being sold near the bottom (recession) of the four-phase economic cycle. Therefore, the value will rise as the cycle heads toward its top (prosperity).
- The property (as revealed by due diligence) suffers from no legal, environmental, zoning or engineering problems that would prevent it from being developed.
For more information, please complete the information request form.
Please note that all prices, building costs, interest rates, and appreciation
rates are subject to change without notice. NREI Club is not responsible
for losses, damages, or changes in the market conditions. Investors are
urged to perform their own due diligence investigations before entering
into any real estate transaction, or other contractual relationship, and
prior to making a purchase decision.
