Investment Strategy #7: Land Development/Construction

We're making more babies, but we're not making more land for them to live on. Thus the worth of land keeps going up.

So how do you make money with land? You can wait for the value of the land to go up by itself, or you can make improvements to the land. If you buy a tract of land and then have it subdivided into lots for houses or commercial buildings, the worth of the land goes up. If you work with the city to get roads and electricity and plumbing delivered to a piece of land, the worth of that land goes up. If you put a building on that land, the worth of the land goes up. If you buy a piece of land, subdivide it, sell some of the lots to get money to build on the other lots, build on the other lots and sell some of those to pay for the rest of the buildings you've built, you can find yourself with ownership of a very nice piece of property in a well developed area. Not too bad from starting out with a piece of bare land.

Land development can take years to complete, but when it's done the investors usually walk away with millions.

<< Go Back