Land Banking

Land Banking is a time-tested wealth accumulation that been used by wealthy individuals, large corporations and governments for years. Only in the last 10 years has this proven strategy taken hold in mainstream American. Land Banking is the strategy of acquiring pre-developed land in the growth path of a major metropolitan area, and holding (or banking it) to sell for significant profit in the future. Typically your risk is very low and your potential for return has been historically very high.

Land Banking is considered a safe and secure alternative because you receive a grant deed, fee simple title with insurance when you purchase a parcel of land. Green4Wealth typically recommends that you purchase land with cash or self-directed retirement, HSA or educational funds. When you borrow more than 50% of the purchase price it typically no longer is Land Banking, and in fact may become “Land Speculating”.

The key words to yielding higher returns are “acquiring pre-developed land”. Pre-developed land is:

  • An area that has already been Targeted for Growth,
  • Located in the Growth Path of a Major Metro Area,
  • Has a diversified economy,
  • Jobs and affordable housing; and
  • ALL 10 Key Land Banking Indicators are present.

At Green4Wealth we recommend Land Banking as long-term appreciation strategy for individuals that have both a sufficient income to sustain their current lifestyle and can comfortably wait five years or more to reap its benefits—making Land Banking an ideal way to prepare for a retirement, save for a college education, or build a lasting legacy.

We have all heard the saying that “most millionaires in America made their fortune in real estate”. That is a partially correct statement— the truth is that most multi-millionaires actually accumulated the bulk of their wealth through Land Banking. Land Banking has and continues to be basically immune to most economic cycles. While the value of both residential and commercial properties have been hit hard over the past couple of years, properly selected pre-developed land has remained steadfast or still modestly increasing in value near most large metropolitan area.

To find out how and where Green4Wealth recommends to Land Bank, contact us today.

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