Why Land is a Great Investment Print
Written by Jack Bosch   
Friday, 26 February 2010 16:57

Why Land is the Greatest American Dream That Every Investor Should Buy Into.

If you have even a passing interest in real estate, you've undoubtedly heard one or more of the so-called "experts" advising against buying undeveloped land.  Why?  “Because it generates no income” right?  Wrong, the fact is that they're not telling you the whole story about raw land.  There happens to be another school of thought entirely.  And once you take notice and begin to analyze things clearly, you'll start to see that buying land can actually be a tremendous wealth builder, one that can generate a great monthly cash flow.

Let's think about this for a moment.  For literally hundreds of years, vast fortunes have been made in America by owning land.  This has occurred in one of two basic ways: either the owner held land that lay in the pathway of progress and growth, or the owner held land that someone else sought to buy in order to change how it was being used.  (Remember when the Disney Corporation bought the swamplands near Orlando?)  These same basic premises work just as well today.  Owning a well-positioned tract of land can return many, MANY times the amount of money invested in it. 

Aside from just buying low or in a growing area and selling the property for cash there is a whole other world that most investors overlook. People for the most part usually understand that money can be made in real estate, most people even know someone that has made it big in real estate. But the question I still always get about land investing is “How can I build a cash flow by investing in land?”. Since undeveloped land has nothing on it most people think that they will have to build a house or apartment complex on it before they can receive a monthly income stream from it. I always tell people that for years now I have been receiving a nice cash flow from my properties.

What’s my secret? Well while every other land investor in this county is either developing the land or selling it to someone else for cash, I have been selling a percentage of my properties on terms. So when someone buys a property from me they can pay me in cash or they can pay me just a down payment and finance the rest with me for a number of years. This allows me to receive checks every month for years after. I have been able to acquire hundreds of these notes over the past few years and this has allowed me to live quite comfortably even in down markets.

Jack Bosch is one of the Country’s foremost experts in Tax Delinquent Property Investing and more recently an educator in Real Estate Investment Matters.