Once you've completed
the forms, and set up and funded your SDIRA, you'll be ready to
really diversify your IRA investment portfolio. And, once you've decided that LandBanking is right for you, you'll need to find a real estate investment suitable for LandBanking.
What Makes A Good LandBanking Investment?
There's no single answer to that question. But there are some general principles: you'll want to locate a parcel of land that's not improved yet (nothing built on it, just real estate), but that's located in a place where someone's going to want to build on it in the near future. You're looking for undeveloped real estate outside of a city - maybe miles from the current city center. But, ideally, it's real estate that sits squarely in the path of future development. If you've done your homework - a rapidly-growing population center, plenty of employment opportunities, lots of housing starts - you can count on the value of your investment growing rapidly.
LandBanking Help Wanted
Of course, just like picking stocks to invest in, you need to know what you're doing in
order to go it alone. For most investors, finding a good stockbroker to
do the legwork for you is a safer approach. And LandBanking investors can also turn to knowledgeable real estate investors for help.
LandBanking Made Simple
Today, there are LandBanking investment opportunities with many of the advantages of a
REIT (remember those?). |
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Land investment experts look far and wide, then locate and acquire undeveloped real estate with maximum growth potential - the kind that's perfect for LandBanking. They then sell shares of a specific parcel to
individual investors, at affordable prices, until the entire parcel is
spoken for. Like a REIT, you can enter the investment with limited funds
- and your participation is strictly passive...hassle-free. But unlike a REIT, you can choose up front whether the real estate in question is something you want to invest in. And if it isn't, then you don't invest. Simple.
Go West, Young LandBanker
Perhaps no area of the country holds as much growth potential for LandBanking investors
as southern California. In an area just a fraction of the size, the greater Los Angeles basin alone, is home to more people than the combined populations of the eight surrounding states. And it isn't going to get any larger, at least in terms of real estate. But its population will grow by an additional 7 million people by the year 2020. Supply and demand pretty well dictates what that will do to real estate values in the LA Basin in the coming years.
Next Steps
Of course, the facts about LandBanking you've learned here are only the
beginning of your "due diligence". There are any number of information
sources competing for the investor's attention. We'll mention a few of
these next.
NEXT:
The Perfect High Yield Investment? |
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