Land Banking Explained - How to Build Wealth with Real Estate in 2023

Land Banking Explained - How to Build Wealth with Real Estate in 2023 Land banking is the process of buying land inexpensively that is strategically placed in the path of growth and then holding it for a period of seven to ten years until it is sold to a developer at a higher price. The speaker, Brad Warren, who is a certified teacher and a real estate coach, advises that it is important to distinguish land banking from land speculation. Land speculation is simply buying land in the hope that its value will appreciate. However, land banking involves buying land in areas experiencing tremendous growth on the periphery, not in the downtown areas. Warren’s company researches the areas they invest in and buy land ranging from one acre up to 30, 40, 50, 60, or 100 acres. The land acquired is within a 60-mile radius of downtown Los Angeles, and the company buys the land for the investors. The minimum investment is $25,000, and investors can acquire green energy real estate that is likely to go to an energy company to build a solar farm. Warren explains that his company has a full research and acquisition team that researches all the projects in the area and attends city council meetings to hear about upcoming developments. Once they identify an area with a potential project, they buy the land of whatever size and sell it to investors. Warren’s company ensures risk mitigation by having a 16-point comprehensive analysis checklist. Every piece of property they consider buying has to meet 16 criteria or they reject it. They buy only one out of every 30 properties they look at, and they ensure that their investors hold onto the land for seven to ten years to get returns of three to seven times their investment. Warren advises investors who want to do due diligence to visit the area to verify its potential. However, he notes that the company’s team knows the area well, and they even get called by the city and county of Los Angeles when there is a land use issue. Are you a real estate investor or business owner looking to expand? Book a discovery call with Beau to learn all the ways he can help you - http://bookwithbeau.com/ Join my new Business Ownership Academy community on Skool - http://businessownershipacademy.com/ Timestamps: (00:16) - Beau introduces Brad Warren on the show and talks about his credentials (01:06) – What is land banking and its concept (02:45) - Types of land purchased, process, land size, and location (04:20) - Recommendation for first-time investors and due diligence for buying properties (06:45) - Listing some cities in the LA area where Brad and his team are investing (07:19) - Selling land for marijuana grow facilities and discussing the automated process involved (09:00) - Free Tuesday night webinars to all investors (11:20) - There is no first right of refusal for the seller; the buyer owns the property and can do what they want with it (12:22) - Different types of properties available for investment, how the investment process works, and how investors choose a property (13:01) - The process for investors to ensure they are a good fit for the investment (14:05) - Finding properties for clients, including inventory and property profiles. (14:48) - Overview of the normal process for clients to acquire a property and the high closure rate due to education and trust. (16:16) - Gathering information about new and upcoming projects in the area (18:25) - The hotbed cities for investments right now (19:00) - Most of the growth is occurring in area one, where all the solar farms are going right now. (21:09) - Use of cannabis for medical purposes (22:20) – Brad discusses how laws, such as Proposition 61 and SB 100, have influenced their land banking decisions and strategy (24:18) - It’s land banking, not land speculation (24:31) - What attracted Brad got into the land banking business (26:30) - Brad discusses his own journey from investing for his own wealth building to becoming a land banker to help others build generational or legacy wealth (28:46) – The attractiveness of land banking and the potential for profit with patience and discretionary funding. (29:34) - Where to go to find out more about Brad (30:33) - Consider investing in land, and contact Brad for more information. 💥 Thanks for watching 💥 #landbanking #landinvesting #land About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending. 🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance your all your projects. About the Channel: Want to structure your investments in the right and secure way? Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.