Top five reasons to own pre-developed real estate in a down market

Many investors are rushing in to swoop up the great deals in real estate with our current state of economic trends. With many foreclosures on the market and more arriving there everyday. However with all of the great deals on the market there are tons of profits to be made.

However the largest profits in history have been made by farmers and land owners and the rules today have not changed just the technology and the location of these hidden profit centers. Land owners have always been the major centers of wealth. Farmers were some of the richest men in history not because of their hard work tilling the soil and planting crops but because of the hidden treasure at their feet.

The secret of land

If you really think about it land holds tons of hidden treasures depending on the area it’s located in. Precious metals, gem stones, oil, rich soil for planting crops and untold treasures of history have all wound up buried in the sand or the ocean. Imagine all of the treasures hidden in the soil at the bottom of the sea. Anyway as we start down the reasons why you can already see the resources and values in the land.

Next we take a look into the top ten reasons why to buy pre developed land.

One: pre-developed land has more profit potential than any form of real estate. Pre developed means just that. It’s the land that has been allocated for future development. This means the research has been done to ensure proper measures have been taken to ensure all resources will be available for the future growth.

Two: pre-developed real estate has the ability to bank profits (land banking for investment), over the holding period you watch out lying communities & cities grow around you.

This is where the profits come from. When you buy pre-developed real estate and the growth happens from the outside influences; this drives up the value of your property due to two main factors. 1) growth drives up value, supply become more limited as development happens.

Three: pre-developed land has the several benefits that no other piece of real estate can offer, the two T’s no trash and no tenants and no maintenance. If you weigh the benefits of owning real estate types this is the best reason for me as an investor. Sure there is no cash flow from the property unless you set up some creative ways of leasing pieces of the property.

Four: pre-developed real estate is the most sound piece of your investment portfolio. No loss of cash flow, you can sit on it for years and not have to worry about whether your investment is wearing out, The longer you hold the real estate the more profitable it becomes for you as an investor.

Five: pre-developed real estate has often been overlooked by investors for it’s lack of cash flow; for most investors cash is king and the allure of quick profits makes pre developed real estate not the diamond in the rough for most investors. This means more potential for you as an investor and more opportunity to compete in a less crowded marketplace.

Sure there are many, many reason to own real estate such as the profits, wealth generation, tax advantages and the ability to create a legacy for your family. Pre-developed real estate is the highest profit margin in the field of investment real estate.

• Twitter me this "What's in it for me if I choose you for business" Recently I read a twitter post that triggered some deep profound thought on my part [especially since it was 2:10 in the morning and I had been up for some 19 1/2 hours. I was happily digging my way around and starting to follow some new twitter folks when this......
• Rolling your IRA or 401(k) into Real Estate When it comes to getting a handle on your retirement your first priority would be to roll your IRA or 401(k) plans into a truly self directed type of account. One that let's you handle all forms of investments...real estate, stocks, bonds, mutual funds and any other form of......
• Why land banking is far less risky than traditional real estate Not to say that all real estate doesn't carry some form of risk to the owners of the property, sure there are always risks associated with any type of investment. This reflection comes from recent events that took place in San Francisco, CA. City building inspectors had been saying......
• Steps to take when your contractor walks away. The remodel of the kitchen is going great . The new appliances are sparkling the granite counter tops will look great. Your new mahogany cabinets are glossy and smooth. The shine reflects like a mirror. Your new tile floor is almost complete and a few finishing items and viola......
• Who's your competition when it comes to land banking for profits According tot the title of this article you do have some competition in this unique niche of real estate investing. Land banking is usually used for the purpose of acquiring land in the path of growth of a major metropolitan city and holding that property for the long term to......

• Seeking Real Estate Joint Venture Got a possible deal?  Partner with us and make some cash now. Now is the time to invest in real estate.  If you consider yourself to be an investor, part or full time, you should be making purchases to buy and hold or flip to other investors or end buyers.  The market is literally......
• Free Seven-Part Educational E-mail Series on Residential Real Estate Investing With all the interest in flipping houses, I thought this was interesting.  Basically, you sign up to receive an e-mail every other day for 14 days.  This company, Atlanta Investing, specializes in foreclosures.  To get more info, or to sign up for the emails, head on over to Atlanta Investing.......
• Passive Income—The Goldmine of Commercial Real Estate Investing [/caption] Passive income is the money generated from real estate or business transactions in which the investor is not actively involved. There are several ways to generate passive income from investments in commercial real estate. To understand the value of passive income, it is important to understand how income is......
• How I Started Investing In Real Estate src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> In September 2000 i caught the flu and while I was probably well enough to go to work, I decided to take a week off and relax. I spent a whole week sitting in Barnes and Nobles reading all sorts of business and investing books. That week I......
• Keeping Your Money Safe in Economic Turmoil While many are reacting to the news of bank failures and bailouts badly, there are a few people that are taking the time to assess the situation and figure out what they can do to stay on top, and keep their money safe. Panic is an ugly thing, especially when......

Tagged with: Bank Profits • Bottom Of The Sea • Crops • Current State • Economic Trends • Farmers • Foreclosures • Future Development • Gem Stones • Hidden Profit • Hidden Treasure • Hidden Treasures • Holding Period • Precious Metals • Profit Centers • Proper Measures • Rich Soil • Richest Men • Swoop • Top Ten Reasons

Filed under: case study • education • family • finance • making money online • money • money management • psychology • real estate investing • refernce

Like this post? Subscribe to my RSS feed and get loads more!

Possibly related posts