Land banking is a real estate investment strategy in which investors purchase large parcels of undeveloped land intending to hold it for the long term and then sell at a profit or work with the county to rezone the property for future development.

Location, location, location. If the location has been wisely chosen, land banking can be very profitable. We can hold the land parcel for the long term while the property appreciates in value and generates income to pay for financing and in some cases, land parcels may generate positive cash flow. Once the land is developed and sold, profitability could be substantial. Income-generating, self-sustainable, and transitional land is the best form of investment.

No one can destroy or steal your land, which is why it is an excellent investment choice. Owning land also requires minimal effort on your part, and you do not need to maintain the land, renovate it, or protect it, as you would have to do with a physical asset like a house.

Land banking has little maintenance costs. The land parcel can be ag-exempt and pay very little property taxes and insurance. The land parcel can be leased to Agriculture/Cattle, and income generated thru leasing is more than sufficient to pay bills.

If you are looking to make a quick profit, you should probably buy stocks instead of land. Owning land is a long-term investment. Most investors don’t pay much attention to this opportunity because they don’t have patience. People want their money now; they don’t want to wait for a decade to realize their gains.