Real Estate is A Legitimate High Yield Investment

Why should savvy investors consider buying investment property in the form of "raw land development projects"; What makes them "legitimate" high yield investment opportunities.

Can you think of a better time to purchase real estate than in a down market like we're experiencing right now? The golden rule of investing is to always "buy low and sell high" is it not?

Here are 5 reasons why buying investment property is a legitimate high yield investment opportunity right now:

1) More millionaires are said to have been created by real estate that any other form of investment.

2) Raw land development is considered the most profitable form of real estate. [Per industry average: professionally managed land development projects increase the value of raw land by 2-5 times its original cost.] And it can be much higher.

3) Land development is one of the most secure, low risk investments that an investor can make. This is because the developer will typically back their investors' capital investments with the assets of the project (the property itself). In addition, they will place their investors in "first position" for the project assets and revenue. This means, in the event of a land developer's default or other problem on a project (heaven forbid), the property can be sold and investors can recoup some or all of their principal plus any net profits. Also, it means that the investors, being in 1st position, are the first in line to be paid, if project assets must be sold. (Not unlike how a bank will hold the mortgage or first deed as collateral or security on a house.)

4) Real property prices are very reasonable right now. Buying investment property in the form of raw land is literally a "buyer's market". This is because landowners aren't any different than other folks. They have been affected by the stock markets and the overall economy like the rest of us. The net effect is that many are willing to sell their land for very reasonable prices because they need the money.

5. The United States population is projected to grow +29% from 2000-2030. That means the addition of 82 MILLION new people in America! And these new people are going to need new homes, new schools, new stores, and new communities to support them.