Land Investment Takes A Long View

Large profits can be made in land investment. A long view and patience are the keys to success. There are many stories of persons who made great fortunes by investing in land and holding that land for long periods of time. Bob Hope, who became one of Hollywood’s richest entertainers before his death, supposedly gave the advice, “Buy land, and never sell.”

Most land investments are not income producers. The investments are made almost wholly with long-term capital gains objectives, unless the land is bought specifically for development. Because of the lack of income, successful long-term land investors need separate income-producing businesses or separate sources of income. They need sources for land investment capital in order to build their businesses.

It is not uncommon to see a real estate investor or a real estate investment company operating in several real estate areas. Some have property development activities, apartment ownership or property management operations. These functions all produce profit and cash flow in the short-term. The profit and cash flow in the short term can provide a stable base for long-term land investment activities and long-term growth.

For one considering a long-term land investment program, it is essential to have a souce of funds to pay the monthly bills. Above and beyond the monthly bills, there must enough cash flow to fund land acquisitions on a continuing basis. It is possible for a person without substantial assets to start and build a successful land investment program. To do so, however, It is absolutely essential that income sources be planned and assured so that growth objectives of the land investment activities can be met. See Land Investment Pointers for more discussion.