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Land
Banking
“Don’t
wait to buy land… buy land and wait!
The good Lord ain’t makin’ any more of it!”
– Will Rogers
Land
Banking is a common strategy employed by realty investors which
means
acquiring a parcel of land with the intent of realizing long term
appreciation.
When
evaluating parcels for LAND BANKING there are 10 key indicators
for
investment grade property:
1. Level,
useable land
2. Abundant,
available water supply
3. Proximity
to large population - metropolis
4. Accessibility
by freeway, train, and air
5. Master
plan for community (streets, roads, sewer,
electric and gas
6. Adequate
utilities for massive growth
7. Existing
and planned industry and commerce
8. Education
system –
primary
and college
9. Existing
commercial and residential development
10. Authoritative
population projections and studies
In
1970, Orange County and the Silicon Valley met these criteria…
In
1980, Ontario and Riverside met these criteria…
If
you knew of a place today that will replicate the returns to investors
for the next
20 years, would you invest?
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