1. First of all, you need to get good sound advice from real estate (land) investment practitioners on where (which country?) and when to invest. Visit the library and go to the local news stand to find out information of land opportunities around your area.
2. Understand the risks involved in the real estate (land) investment. You need to know how long can you hold on to this investment without you liquidating and what sort of rate of returns you are want out of this investment
3. Next, look around for a reputed and good real estate (land) operator and manager to manage your real estate (land) investment.
4. Does the operator and manager of the real estate (land) investment have a solid and consistent track record of yielding good returns for investors?
5. Are their investment returns audited by a third party reputed auditor company?
6. Inquire about the Returns of Investment (ROI) and the length of the investment.
7. By applying the Rule of 72 invented by Albert Einstein to determine if the compounded returns per annum for the length of the investment is reasonable
8. Examine the current projects available and ask their sales staff how long before the projects are all filled by investors.
9. Be aware of the amount of tax levied on capital gains needed to be filed for the returns to determine your net profit.
10. Does this investment offer you any protection like for example land title insurance or capital protection?
11. Overall, does this investment meet your mid to long term financial objective?
How to Pick a Good Real Estate Land Investment Through a Land Banking Company
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