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A lot of us get into real estate investing because we want to generate passive income and ultimately achieve financial freedom (whatever that means for you). However, most real estate investing strategies are not actually very passive…
For example, the four most popular real estate investing strategies are:
- Flipping Houses
- Wholesaling
- Long-term Rentals
- Short-Term Rentals
All of these are AWESOME, but NONE of them are truly passive.
Well, this week, I sat down with Land Banking specialist Brad Warren on my podcast to learn about a truly passive way to invest in real estate. Although I’ve been a full-time real estate investor since 2018, I really did not know much about land banking.
Here are some of the essential things I learned about land banking:
- You can invest in land along with up to 4 non-family members
- Investing in land only takes a few hours of work per year (paying property taxes and annual tax preparation)
- Land Banking takes 7-10 years, on average, from initial purchase to final sale
- Investing in land with a reputable land banking company is a relatively safe and secure investment
- The average ROI for Brad’s land banking clients is 3-7X
Overall, land banking is a great passive investing strategy for investors who want to diversify their portfolios and save for retirement.
Land banking is NOT a good investing strategy for people who want cash flow along with appreciation.
Some other passive strategies that can also serve a similar purpose and client are:
- REITs
- Syndications
If you want to learn more about land banking, you can contact Brad Warren or check out these resources:
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- 7-minute intro to land banking: https://youtu.be/_L_3VcNXjiQ
- Interview with Marcella Silva, The Land Baroness, on how we got started in land banking: https://www.youtube.com/watch?v=fL0Gj6qlrvE&feature=youtu.be