Many people today have been affected by current financial conditions, whether in the stock markets or elsewhere. And as a result, many people are seeking safe haven and looking for the safest money investments they can find to protect their assets until the economy picks up.
“Today’s investor nirvana would be to find low-risk investments with superior earning potential.” But where is this possible?
We are seeing many investors now moving their money into “safe” investments like CDs and USTreasury Securities like T-bills, Series E notes and savings bonds. But these may not even keep pace with the future rate of inflation. So while they are not happy about breaking even or losing money on these investments, people are content to lose a little on these investments rather than lose a lot elsewhere (like the stock market).
Breaking news! Today’s investors don’t have to settle for break-even or money-losing investments. They can still find high-return, low-risk investments if they know where to look.
Here’s the problem: Many, if not mostpeople whose know where to look to find safe investments with high returns today. They are so “shocked” by market declines that they become frightened, cynical, and/or skeptical when presented with opportunities that claim “high returns.” So they turn a deaf ear to offerings they would have welcomed in better times. And who can blame them?
But it is a fact: investors can Keep finding low-risk investments with superior earning potential in today’s market!
Here’s another fact: Many of the richest people in the world today made their fortunes when the economy bottomed out. More millionaires came out of the Great Depression than entered 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 ahead and see if we can spot an obvious low-risk investment opportunity amid the current financial turmoil:
There are two important realities that are public knowledge in the United States:
1. There is a finite amount of undeveloped land available in the US.
2. The population of the United States is growing and is projected to increase by 29% between 2000 and 2030. (U.S. Census Bureau Statistics)
What does this information tell us?
IN. We are going to have approximately 82 million additional people in the US by 2030.
b. These new people will require new homes, new schools, new businesses, and new communities to support them.
What low-risk investment opportunities does this situation present for informed investors?
Have you ever heard of “raw land development“? If not, you need to start educating yourself about it right away.
The fixed supply of undeveloped land, combined with the growing demand for its use (driven by population growth), presents us with a “perfect investment storm” (when all the critical elements line up for an extraordinary event).
In December 2004, the Brookings Institution’s acclaimed Center for Urban and Metropolitan Policy commissioned a study titled “Toward a New Metropolis: The Chance to Rebuild America” by Virginia Tech University Professor of Urban Planning 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. The total cost of this massive explosion of raw land development and construction? $25 BILLION. (Are you beginning to see the ingredients of a low-risk investment opportunity?)This was documented in more detail in an article titled “The $25 Trillion Land Grab” by Paul Kaihla in Business 2.0 Magazine (November 2005).
These resources tell us that most of this $25 trillion will be spent developing 10 major US metropolitan regions, which the Brookings Institution study calls “Megapolitans.” It also tells us where these are located. And by the way, this is happening right now!
How can investors take advantage of this? lifetime low risk investment opportunities?
1st: Educating themselves on raw land development.
2nd: By investigating the results of the Brookings Institution study.
3rd: Investing in the companies that will promote and benefit most from this activity. And the obvious choice is: professional property developers. Because? Because they provide the essentials”building blocks” for the growth of a new community. It all starts with the virgin land!
Why Investors Should Consider Investing in Land Development:
YO. High earning potential:
To take advantage of this opportunity, a proven investment option is to participate as “investor silent partner” on a professionally managed raw land development project. Professional land developers often look for silent partners to raise capital for their projects. These investors are not involved in the day-to-day running of the business, but 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 property developers to back their silent partners’ investments with project assets (eg, the value of the land itself). This means that in the event of a major problem (God forbid), the land development assets could be sold and silent participants could recoup some or all of their invested funds plus net proceeds.
In addition, investors are generally placed in “first position” for assets and income from the land development project. Again, this means that should a problem arise, if the project assets can be sold and the silent partner investors are the first to get paid. (Just like when a bank holds the mortgage or first deed of trust on a house.)
TO. Based on the industry average, a professionally managed raw land development project will increase the value of undeveloped land by 3-5 times its original cost. (300-500% gross ROI.)
b. It is widely believed that real estate has created more millionaires than any other form of investment. To take it one step further: raw land development is recognized as the most profitable form of real estate investment.
against Investments in land development are typically “asset-backed,” meaning that the project’s assets (real estate) can be sold to pay back investors and debtors. Additionally, silent partner investors are often in the top 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.
my. Until recently, participation in these high-return, low-risk investments was restricted to the very wealthy due to the exorbitant minimum investments ($1 million+). However, this has changed: with the tightening of credit markets, some land development companies have lowered their minimum investment requirements, now allowing smaller-scale investors to participate in these highly profitable ventures.