Realty World – Alliance

Land Banking is the proven wealth building strategy of acquiring pre-developed land in the growth path of a major metropolitan center; waiting for its value to mature, and then selling it for a significant profit.
Advantages of Land Banking
Land Banking is Smart, Simple and Secure. If you follow the definition of Land Banking as 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, your risk is very low and your potential for return has been proven to be historically very high.
The risk is very low, because you receive a grant deed, fee simple title with insurance when you purchase a parcel of land for Land Banking. I recommend only purchasing land with cash or self-directed retirement, HSA or educational funds. Borrowing money for to purchase land is not Land Banking—it then becomes “Land Speculating”.
The key words to yielding high 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
It has all 10 Key Land Banking Indicators below:
1) Land is usable and relatively level.
2) There are abundant resources in the area.
3) The area is easy to reach by car, train or plane.
4) Utilities are in place to accommodate rapid growth.
5) Close to an ever-expanding major metropolitan area.
6) Current industries and commercial base is growing.
7) Existing residential development and low cost housing.
Higher education institutions nearby and more planned.
9) Regional studies projecting healthy population growth.
10) Master plan for streets, roads, sewer, electric and gas.
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 made it by Land Banking. Land Banking has been used effectively since the 10th Century to protect and build family wealth.
This wealth building strategy has been used because Land Banking has and continues to be basically immune to 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 and in most cases increasing in value.
Risks of Land Banking
The risks associated with Land Banking if practiced as intended a long-term appreciation strategy, the risks are very, very low. However there are some risks that should be taken into consideration prior to making a purchase:
Land Banking is not a readily liquid investment. I suggest that you plan ahead as to when you may need to sell your parcel of land. It may take 6 to 12 months to sell a piece a property for its full value.
Since your purchasing pre-developed land, often without zoning or entitlements in place; cities, counties and planning commissions can modify master plans or create on foreseen obstacles—potentially decreasing the value of your property.
High property taxes can impact your cash flow and reduce your return on investment. Make sure your Land Banking in an area that has historically has had low taxes assesses on undeveloped or predeveloped land.
Like any investment strategy, diversifying your portfolio over multiple items hedges your opportunity for loss or benefit. I suggest, resource permitting, that you purchase two or three parcels in different areas.
There is no such thing as a perfect investment, but Land Banking does have one key advantage over most others which is best expressed by Mark Twain “Buy land, there not making it anymore”.
Web Reference: http://www.greendeed.com/Introduction  (English Version)
http://www.greendeed.com/GreenDeedChn/Introduction  (Chinese Version)

If you are an individual who has considered getting into the Real Estate business, you have probably asked yourself a hundred times, if NOW is a good time to become a licensed Realtor. Everyone around you is probably telling you NO, but if you asked any successful Realtors, they would probably tell you different.
If you asked any successful Realtors they would tell you that NOW is in fact the perfect time to become an agent. How is this possible you might ask? Upon asking many successful Realtors if NOW would be a good time to become a Realtor, they would presumably tell you that if you can survive and make money in this market, when the market takes a turn for the better, you will reap the benefits of all the hard work you put in during the not so easy market.
Keep in mind, if you are considering getting into the market now, you will have to work much harder than you would, and you will have to affiliate yourself with a Company that can offer you the Management support, the training, and the high tech products and services that the Consumers want these days. As a new Agent, training and Broker Manager Support should be at the top of your list because this will be the key to your success.
Many of the agents, who have been in the Market since it was at its peak will most likely tell you to reconsider Real Estate and not get involved at this time. The truth is this market has taken a toll on these agents, causing a lot of them to give up, finding new careers or an easier ways of making money. Back in the 1990’s, it seemed like properties sold themselves, and agents just got buyers in the door, people would come to them. Now days, the agent has to seek out the client, put in actual work, so to speak. Most of them are not used to this, and just don’t put in the effort they should and consequently they end up out of the Business.
Being an agent takes a certain type of person. You have to keep a positive attitude no matter what kind of market it is. I know that becoming a Realtor in this Market can work for a new agent. Being educated on the market conditions and the high tech products and services that the Consumers want will help you to become a successful agent, if not now than when the Market picks up again. Hard work in this business really pays off, no matter how rocky the real estate market may be. Just like in a good market, you only get what you put into it.
Therefore, if you are considering becoming an agent, simply because you think it’s a lot of money, for so little work then now is not a good market for you. You have to be willing to put in the hard work in order for it to payoff the way you expect. Even in a good market, the harder you work, the more successful you will be. I often remind my Fellow Agents and Broker that Real Estate is the highest paying hard work and the lowest paying easy work.
The “Market” should never determine how successful you will be in any given market. Don’t let the media and all these news reports on the Market scare you. Take all the necessary training classes and speak with your Broker or Manager anytime you start to feel frustrated. If you work with the right Company you always have the support that you need right at your finger tips.
So the next time you ask yourself , if NOW is a good time to become a licensed Realtor, the answer to this question is YES! Take a chance and reap the benefits of this lucrative Business that we call Real Estate. I did!