A lot of people today have been stung by the current financial conditions, whether in the stock markets or elsewhere. And, as a result, many folks are running for cover and seeking the safest money investments they can find to shelter their assets until the economy turns around.
“Investor nirvana today would be to find low risk investments with superior profit potential”. But where is this possible?
We’re seeing many investors now moving their money into “safe” investments like CD’s and U.S.Treasury Securities such as T-bills, notes and Series E savings bonds. But these may not even keep pace with the future rate of inflation. So, although they aren’t happy about breaking even or losing money with these investments, people are settling for losing a little with these investments versus losing a lot somewhere else (like the stock market).
News Flash! Investors today don’t have to settle for break-even or money-losing investments. They can still find high yield, low risk investments if they just know where to look.
Here’s the problem: Many, if not most, people don’t know where to look to find safe investments with high yields today. They are are so ‘shell-shocked’ from the market declines that they are scared, cynical and/or skeptical when presented with opportunities that claim to earn “high yields”. So, they turn a deaf ear to offerings that they would have welcomed in better times. And, who can blame them?
But it’s a fact: Investors can still find low risk investments with superior profit potential in today’s market!
Here’s another fact: Many of the world’s wealthiest people today made their fortunes when the economy hit rock bottom. More millionaires came out of the Great Depression than went into it. These are investors who saw opportunity when others focused on despair. They recognized that economies and markets are cyclical and looked to the future.
So let’s take a moment and look to the future ourselves and see if we can’t spot an obvious low risk investments opportunity in the midst of today’s financial confusion:
There are two important realities that are public knowledge in the United States:
1. There is a finite amount of undeveloped, raw land available in the U.S.
2. The United States population is growing and projected to increase by 29{3d5275f9508c9dd4021075398e098e5db9cf49de07ee931b769af6a77a0ab5ee} between 2000-2030. (U.S. Census Bureau statistics.)
What does this information tell us?
A. We are going to have approximately 82 Million additional people in the U.S. by 2030.
B. These new people are going to require new homes, new schools, new businesses, and new communities to support them.
What low risk investments opportunities does this situation present to informed investors?
Have you ever heard of “raw land development“? If not, you should start educating yourself about it right away.
The fixed supply of raw, undeveloped land combined with the growing demand for its use (driven by population growth), presents us with a “perfect investment storm” (when all of the critical elements align for an extraordinary event).
In December of 2004, the acclaimed Brookings Institution Center on Urban and Metropolitan Policy commissioned a study titled “Toward a New Metropolis: The Opportunity to Rebuild America” by Virginia Tech University’s Urban Planning professor Robert Lang. According to this study, America’s future land development needs are approximately 209 BILLION square feet of total new construction between now and 2030. Total cost of this massive raw land development and construction explosion? $25 TRILLION. (Starting to see the makings of a low risk investments opportunity yet?) This was further documented in an article titled “The $25 Trillion Land Grab” by Paul Kaihla in Business 2.0 Magazine (November 2005).
These resources tell us that the bulk of this $25 Trillion will be spent in developing 10 major U.S. metropolitan regions, which the Brookings Institution study calls “Megapolitans”. It also tells us where these are located. And, by the way, this is taking place right now!
How can investors take advantage of this lifetime low risk investments opportunity?
1st: By educating themselves about Raw Land Development.
2nd: By researching the Brookings Institution study findings.
3rd: By investing in the companies that will drive and benefit most from this activity. And the obvious choice is: professional land developers. Why? Because they provide the essential “building blocks” for new community growth. It all starts with raw land!
Why Investors Should Consider Investing in Land Development:
I. High Profit Potential:
To take advantage of this opportunity, a proven investment option is to participate as a “silent partner investor” in a professionally managed raw land development project. Professional land developers often seek silent partners to raise capital for their projects. These investors have no involvement in the day-to-day management of the business, but they share in the net profits. [In addition to profit sharing, some land developers also pay high yield interest to their silent investors for the use of their money until the principal is returned.]
II. Low Risk Investments:
It is common practice for professional land developers to back their silent partners’ investments with project assets (e.g. the value of the land itself). This means that in the event of a major problem (heaven forbid), the land development ‘s assets could be sold and the silent parters could recoup some or all of their invested funds plus any net profits.
Also, the investors are typically placed in “first position” for the land development project’s assets and revenue. Again, this means that in the event of a problem, if the project assets can be sold and the silent partner investors are first in line to be paid. (Similar to when a bank holds the mortgage or first trust deed on a home.)
IMPORTANT NOTES:
a. Per industry average, a professionally managed raw land development project will increase the value of undeveloped land by 3-5 times it’s original cost. (300-500{3d5275f9508c9dd4021075398e098e5db9cf49de07ee931b769af6a77a0ab5ee} Gross ROI.)
b. It is widely held that real estate has created more millionaires than any other form of investment. To take that one step further: raw land development is recognized as the most profitable form of real estate investment.
c. Land development investments are typically “asset-backed”, meaning that project assets (real estate) can be sold to repay investors and debtors. Also, silent partner investors are typically in 1st position for all project assets and revenue. (Investor security.)
d. For these reasons, raw land development investments have served as cornerstones in the portfolios of many of the world’s wealthiest investors for generations.
e. Until recently, participation in these high yield, low risk investments was restricted to the very rich because of exorbitant minimum investments ($1 Million +). However, this has changed: with the tightening of the credit markets, some land development companies have reduced their minimum investment requirements, now allowing smaller-scale investors to participate in these highly profitable ventures.
