Many people interested in land banking investment are going to Canada to invest their money. Canada has few companies that offer exposure to land banking investment. These companies purchased large quantities of raw land located in high population growth areas that they know it will be developed. They keep 10% to 15% of the land and sell the rest to potential investors, who each get a title deed.
The company then works with engineers and planners to get the land approved for building and developing. Once the land is ready to be developed, it is sold to the developers. Although this may often take several years for the value to be increased higher enough to warrant a profit, the investors usually walk away with a profit of 15% to 20%.
Canada is very popular place for investors interested in land banking. Certain parts of Canada, such as Alberta and Ontario, many acres of raw land is being bought up by companies offering land banking, with an almost guaranteed profit margin. In spite of the rising and falling markets, investors are still able to have guaranteed returns. The important thing to understand and realize about land banking is that the investors have got to be willing and able to “ride it out” and hold to the land until such time as they will get a nice profit.
Getting Rich From Land Banking
One of the main reasons why people invest today in land banking is for their future or the future of their family. They invest in land that has a low value, knowing or believing that it will increase in value through the years. To make a noticeable and worthwhile profit, the land has to be kept for several years. Many parents are now investing in land banking as a future investment for their children and their future.
Although the goal of land banking is not to get rich, many self-made millionaires have made a ton of money from land banking investment. Millionaire Donald Trump has very successfully practiced land banking and made a lot of money from the land. Right now he owns a 100-acre plot that is one of Manhattan’s last remaining large land parcels. It will be called Trump Place when it’s full developed. This is one of many land banking investments made by Trump. Other famous people that have made millions off of land banking investment include
Bob Hope, Roy Sakioka, Howard Hughes and Li Ka-Shing. If they can do it, you can do it too.