Have you ever taken a drive outside your city and realized areas that used to be farmland or forest are now taken up by a new highway or subdivision. Did you ever wish you had thought to buy a few acres of that land 10 years ago?
That's exactly what millionaire land banking investors do. They simply buy undeveloped land in the path of growth of rapidly developing cities and then hold onto it for a few years or develop it and sell it off for significant profits. Land banking strategies employed by the wealthy are historically one of the most conservative and secure business models in real estate today.
Why Do Millionaires Like Land Banking?
1. Consistent and High Return on Investment (10% - 30% return annually)
2. Protection of Principle (Volatile stock market is down 40%)
3. Mitigation of Risk (Real and tangible asset in your investment portfolio)
4. Educational Funding (4-year education will cost on avg. 600k in 18 years)
5. Retirement Funding (Ideal as most parcels are held for 3,5,10 years)
World-Famous,Millionaire Land Bankers
This is not a new concept - many millionaires and billionaires have used land banking as a road to riches: For example,The Rockefellers,Donald Trump,Richard Branson,Howard Hughes,Walt Disney,Robert Kiyosaki (Author of Rich Dad Poor Dad) ,Carlos Slim (World’s Richest Man) to name but a few.
When do Millionaire Land Bankers Like to Invest?
They choose to invest while prices remain affordable,where the profit potential for profit is greater and where there is still room for growth. Most times,this means buying land when it is at a pre-developed stage. Buying land when it is pre-developed is much like buying wholesale as compared to buying retail when you buy land once it is already developed.
Where are Millionaire Land Bankers Investing in Mexico?
Approximately one hour south of Cancun,30 minutes south of Playa del Carmen,lies what the LA Times called “A Technicolor Dream,Conde Naste Magazine proclaimed to be the “World’s Best Beach” and what the Mayan Kings simply named Tulum,meaning the city of Dawn. Simply put,A Mayan Eden.
It is considered by the Financial Media to be some of the Hottest Real Estate in the World:
“Hottest of the Hot Spots” -USA Today
“Spain of 20 years ago” -London Financial Times (Wall St. Journal of England)
“Hottest section in Mexico” -Wall St. Journal
“A Gold Rush” -Travel and Leisure
Although Playa del Carmen,just north of Tulum,was listed as the Fastest Growing City in the World in 2006 by the Guinness Book of World Records, Tulum real estate is projected to grow even faster.
With the rapid expansion and land rush taking place in Tulum now,land values could easily potentially double or triple over the next 12 to 36 months.
This is not unrealistic as these increases in Tulum land values have already been witnessed 3 times over the last 5 years. And some of the land is already accounted for by large wealthy developers,one such investor is rumored to be Carlos Slim,currently the richest man in the world.
For this reason,Land Banking in Tulum is a very limited opportunity (6 – 18 months) due to the availability of the finite number of lots that do not require environmental protection. This Mayan land was only recently titled and made available for ownership by non-Mexicans. Now for the first time you can own a piece of one of the most beautiful places on Earth. Yes,The Tulum takeover is already creating new Land Banking Millionaires but like most opportunities of this kind,you’d better hurry,it won’t last long.