Introduction
In our latest episode of the Cash Flow Fight Club Podcast, we had the pleasure of sitting down with Brad Warren, a seasoned land banking specialist. With over 40 years of professional experience that includes coaching and speaking engagements across 19 countries, Brad shifted his focus towards land banking in 2018. This blog post will delve into the insights shared by Brad on how patient investors can build generational wealth by strategically investing in land that sits in the path of growth.
What is Land Banking?
Brad Warren explained land banking as a long-term investment strategy where patient investors buy land strategically placed in the path of growth. Essentially, the concept revolves around purchasing land, holding onto it for an average period of 7 to 10 years, and then selling it to developers for projects such as solar farms, shopping centers, or residential complexes. This model of buy, hold, and sell can yield very generous returns for investors who are willing to wait.
The Journey into Land Banking
Brad shared his personal journey into land banking, which began in 2011 when he realized his retirement savings weren’t where he needed them to be. After consulting with Marcella Silva, a land banking expert, Brad decided to invest in his first property in 2012. Over the years, he expanded his investments, understanding the potential of long-term growth. By 2018, Brad had transitioned fully into the field, obtaining a real estate license and joining a team dedicated to the practice.
The Land Banking Process
The process begins with Brad and his team, who conduct extensive research and due diligence to acquire strategically positioned land. Investors then choose from available properties based on their investment goals and budget. The minimum investment starts at $25,000. Investors watch thorough presentations explaining the land’s potential before purchasing. Once acquired, the land is held until it reaches the desired market value, at which point it is sold to a developer.
Risks and Patience in Land Banking
While land banking offers significant returns, Brad emphasized the importance of investor patience. Many investors may become impatient due to the hold period, but Brad stressed the value of waiting for the right opportunity to maximize returns. He shared stories where meticulous waiting led to impressive profits, illustrating the need for investors to have a long-term view.
Who Benefits from Land Banking?
Brad discussed how land banking isn’t just about financial gain; it’s about contributing to the growth and development of communities. Developers, investors, and even governmental entities benefit as part of this process, effectively making it a win-win situation. Whether it’s through the construction of renewable energy projects or housing developments, land banking plays a crucial role in infrastructural growth.
Final Thoughts
Brad Warren’s insights into land banking reflect a strategic, patient, and potentially rewarding investment approach. His deep understanding of the market dynamics and commitment to helping investors navigate this terrain was evident. For those interested in land banking, Brad can be reached via email at brad@bradwarren.com for more information.
At the Cashflow Fight Club Podcast, we believe that mindset, coupled with action, can unlock powerful financial opportunities. Stay tuned for more episodes and insights on achieving financial success. And remember, “The best investment on earth is earth.”
Resources
Watch the full episode with Brad here on our Life: Elevated YouTube channel
Or you can listen in wherever you get your podcasts – iTunes link
website: https://www.bradwarren.com/
Email: brad@bradwarrent.com
