What is Land Banking?
In the simplest of terms, land banking is buying land in the path of development. Buying land as an investment is not a new idea for many wealthy investors such as Leland Stanford, Warren Buffett, and John Rockefeller; however it is quite foreign to most middle-income investors. Many are discouraged by the commonly-held misconception that it requires millions of dollars to buy investment real estate property in the United States. Fortunately, there is affordable land for sale in the path of development in California.
Who can be a land banker?
Anyone. Certainly we know of success stories such as Donald Trump and Bob Hope. However, middle-income investors who are distressed by the volatility of the stock market and frustrated with low bank rates are also becoming land bankers like Trump and Hope. Here is an example of land bankers investing in land today:
- Working college students with $5,000 to put in a Roth IRA
- Physicians with private medical practices
- Single individuals with cash in a 1% bank account
- Families looking ahead to a college education for their children
- Individuals with an inheritance
- Retirees on a fixed income with CDs, annuities or old IRAs
- Nurses taking a loan out from their company-sponsored IRA
- Successful business owners who want to retire comfortably and enjoy life
All of these individuals can be and are land bankers.
Becoming a land banker is easy.
The process of buying land is quite simple compared to developed real estate. To start, you should educate yourself to see if investing in a long-term, tangible asset that is not liquid is a good idea for your financial situation. Next, you should to do your research to ensure that you are doing business with a reputable company. Furthermore, you should ensure that you are buying property that is thoroughly researched, free of conflict of interest, and in the path of growth. Stay away from cheap deals on the internet or “for sale by owner” properties. In general, features that may make the property “a lemon” or not saleable in the future may not be apparent to the inexperienced investor. Please, don’t let Uncle Joe or your tax advisor talk you OUT of buying land. We advise you to do your research and make up your own mind to see if land banking is a good fit for your financial goals.
The time to find out about Land Banking is now.
Are you ready to learn about land banking from the professionals? Consider these questions:
- Are you getting the returns on your cash or IRA funds that you need to retire in confidence?
- Do you have faith in the stock market?
- Do you have rental properties that are giving you headaches with tenants and trouble?
Most people we talk to, no longer have the confidence to open their IRA statements. Many land lords are losing sleep over bad tenants, high repair costs and get little cash flow when all is said and done.
Take an hour or more to educate yourself about land as an alternative investment. Talk to a qualified land banking specialist who is also INVESTED in land where you would invest.