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 acquire profits.
Land has been and always will be one of the most sought after purchases to many types of competition. Yet before we actually get into the whole “competition” dissection of your investing business. I hope you seriously believe this is a business. Simply put if you are an individual you have the business of securing your future financial stability.
This stability is crucial for your future for times when you are too old to play catch up with your finances as well as having the security of knowing your able to stay of the costs of living for you and your family. Also for the reasons that you can build a foundation for your family and future heirs.
This may not be your exact why, you may just have a goal of being financially independent to pay for your lifestyle as you grow older. Having figured out your biggest reasons as to why you want to secure your future is something only you can do.
Creating the sense of urgency and importance is my job. I don’t use tricky scare tactics, I use facts and pointers form real life experiences both my own as well as that of others who generously input their own experiences into my life. In return I hope to save you all the grief of not planning and mapping out exactly where you both want yet more importantly need for your life as you grow older.
This in its self should be enough of a compelling reason to start securing your future by utilizing a little known strategy for creating financial security in your life. If it’s not, then you will surely begin to see why you must hurry by the time you finish reading this article.
You see competition isn’t related to just other investors as one may think, you have many outside influences to compete with who are naturally going to be more educated, more adapt to conceptual thinking, also they are probably better funded than many of you and they have more experiences with buying predeveloped land for profit.
Let me begin by asking you a question, “have you ever driven by a plot of land day after day, wondering why it is so vacant in an area, then one day out of no where a giant superstore or chain retailer suddenly appears?” Do you really believe that these stores recently made a purchase to build there because new growth was in the area?
The answer to the second question is No! These stores have done research dated 10, 15 even 20 years prior to the development. They use land banking as a standard business practice for several reasons. Some of the biggest factors are they knew the growth of these cities were coming, they also knew the value of the land would significantly increase.
With that said they have the ability to fund the deal by leveraging the equity of the asset and only accumulate enough debt for the build out and construction, Once completed it’s business as usual, just as a homeowner handles expenses and debt so do the retailers.
This is just one of your many competitors, you also have Government agencies that use land banking for the same reasons, wealthy investors who know the value of owning real estate in a major path of growth. Also you have builders and developers who land bank for the entire business model.
Asset acquisition firms as well as hedge funds use land banking as a tool to resell shares for profit and return as the projects begin their development phase. Education institutions, banks, corporations. You see until you are tuned into the entire of why land banking these issues wouldn’t come to mind.
The most important thing to remember is that these competitors are also your best friend because when you beat them to the purchase they become your newest buyers. If you have enough desirable land for the building project you may be able to earn profits from leasing, renting, joint ventures and partnerships.
Use your intelligence and sources to find out how to start beating these big fierce competitors at their own game so you can win and profit in the end. Why recreate the wheel use a proven business method to create wealth and financial security in your life.
Land banking is one of the oldest forms of real estate investors, I recently started a great read called “Pay Dirt” It takes the science of land banking and puts you the reader in the drivers seat for education. You receive first hand knowledge on the reasons for land banking and how not to get taken in with scams, shams and worthless real estate.
I would advise you to read the book, contact me after viewing the webinar on land banking and then and only then will you truly understand why land banking in California is one of the most profitable real estate vehicles for creating consistent,proven returns on your purchase.
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