“The best investment on earth is earth.” –Louis J. Glickman
Why Land?
It is common knowledge that real estate investing has created more millionaires than any other business or
investment strategy. Most have heard of several real estate investment strategies such as buying and renting homes,
tax liens and deeds, foreclosures, apartment buying, etc. This can become very confusing and now after the “housing bubble”
some may question if real estate is even a prudent investment.
In real estate there are only three main stages: undeveloped, pre-developed, and developed. It is important to
understand the cost and profit potential within each of the three categories.
Undeveloped raw land has a very low cost and also a very low profit potential. Undeveloped areas have very small
population, limited infrastructure and are often overlooked by large developers [large housing developments, large
commercial shopping centers, etc.] and other economic stimulus. Undeveloped areas are typically not in the path of
growth and it could take many decades if ever to be developed and profitable.
Developed land is expensive to acquire and the profit potential has begun to level off when you factor in all of the
cost associated with development. A developed area although seen as most attractive by the novice real estate
investor is actually the most expensive to purchase and the most difficult to earn large gains.
Pre-developed land, although more expensive than undeveloped land, has a relatively low cost and a high profit
potential. Pre-developed areas have a growing population, growing infrastructure, growing developments and
several other sources of economic stimulus. As population growth places an overwhelming demand on a declining
finite supply of available land, the remaining parcels of land become exponentially more valuable. All 10 Key Growth
Indicators must be present to confirm a successful investment.
Land banking is the practice of buying land in the path of growth; more specifically, buying pre-developed land. In a
pre-developed area, as major developments complete land investors can find themselves in a unique position to
profit substantially. There is no surprise why the majority of America’s ultra-wealthy are land owners. Land banking is a
proven safe and high profit real estate wealth creation investment strategy.
investment strategy. Most have heard of several real estate investment strategies such as buying and renting homes,
tax liens and deeds, foreclosures, apartment buying, etc. This can become very confusing and now after the “housing bubble”
some may question if real estate is even a prudent investment.
In real estate there are only three main stages: undeveloped, pre-developed, and developed. It is important to
understand the cost and profit potential within each of the three categories.
Undeveloped raw land has a very low cost and also a very low profit potential. Undeveloped areas have very small
population, limited infrastructure and are often overlooked by large developers [large housing developments, large
commercial shopping centers, etc.] and other economic stimulus. Undeveloped areas are typically not in the path of
growth and it could take many decades if ever to be developed and profitable.
Developed land is expensive to acquire and the profit potential has begun to level off when you factor in all of the
cost associated with development. A developed area although seen as most attractive by the novice real estate
investor is actually the most expensive to purchase and the most difficult to earn large gains.
Pre-developed land, although more expensive than undeveloped land, has a relatively low cost and a high profit
potential. Pre-developed areas have a growing population, growing infrastructure, growing developments and
several other sources of economic stimulus. As population growth places an overwhelming demand on a declining
finite supply of available land, the remaining parcels of land become exponentially more valuable. All 10 Key Growth
Indicators must be present to confirm a successful investment.
Land banking is the practice of buying land in the path of growth; more specifically, buying pre-developed land. In a
pre-developed area, as major developments complete land investors can find themselves in a unique position to
profit substantially. There is no surprise why the majority of America’s ultra-wealthy are land owners. Land banking is a
proven safe and high profit real estate wealth creation investment strategy.
