LandBanking vs.
Improved Real Estate

    LandBanking Defined              vs. Improved Real Estate                         vs. REITs                  In Your IRA
    Self-Directed IRAs                 LandBanking Opportunities             High Yield Investment          Resources
 
What makes LandBanking different from other real estate investments?
 
For most people, "investing in real estate" means first buying a property - house, apartment, condo, vacation home - and then either renting or leasing it, or reselling it for (hopefully) a profit. In all these cases, of course, what we're talking about is improved land - real estate that has already been developed.

"Developed" Usually Isn't Developed Enough.
The problem is, becoming a property owner is a lot more complicated than becoming a land owner. Unless your investment is in a newly-built property, you'll have a good bit of improving to do to your "improved" property before you can put it back on the market for rent, lease, or sale.

So You Want To Be A Landlord...
Here's where things start to get complicated. Whether you're doing a "rehab", and getting a property in shape to sell, or fixing up a property for rental, you're entering an area so involved that there are countless real estate courses offered just to show you how to do it correctly - and legally.

Lead Paint? Mold? What Happened To Real Estate?
The list of things a property owner has to worry about never seems to stop growing. In the last few years, localities all over the country are making it harder and harder for both landlords and property sellers to comply with lead paint issues. And next on the horizon is mold.

Getting all the certificates you'll need before you can move forward can be difficult - and expensive.

Contractors, Tenants, Buyers...Oh, My!
Unless your brother-in-law's one of the guys from "This Old House", you'll likely need to hire a contractor (or several!) to rehab your property. And, you'll need one that shows up on time, stays on schedule, stays within your budget, and follows your plan. Next, you'll need to find a tenant who'll pay on time (including the utilities), and not cut out on his lease early and leave you to track him down, take him to court, or absorb the loss yourself. If you plan to sell outright, you still have to find a buyer who can meet your price, secure a mortgage, etc.

LandBanking - Real Estate the Easy Way
Since LandBanking involves only unimproved land, it can be a hassle-free way to invest in real estate. LandBanking is a passive investment -- no driving around for weeks looking for a good rental or rehab property - no contractors, tenants, or buyers to track down. And, no landlord worries - no insurance premiums coming due, no damp basements or leaky roofs.

Is LandBanking The Only Option For Passive Real Estate Investing?
One popular choice for investors who want to pursue the potential profits of real estate without the complexities of building ownership is the Real Estate Investment Trust. We'll cover that topic next. 


NEXT: LandBanking vs. REITs
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