A Legitimate High Yield Investment: Buying Investment Property

In today's chaotic economy, whether it's verbalized or not, a main topic on investors' minds is: "Where can I find a solid investment opportunity without a lot of risk, but with high yields?"

Is this a fairy tale or can investors still find high yield safe investments?

This article will provide answers to these questions. It will explain why and how savvy investors should consider buying investment property (real estate) in the form of "raw land development projects"; exactly what is involved; and what makes them "legitimate" high yield investment opportunities.

First, some background:

Many of the richest families in the world today made their fortunes when the economy and markets were in dire straits. These folks looked for opportunities in the midst of the rubble, while the masses focused on their worries.

So, what can we learn from this? Is there an obvious wealth-building investment opportunity available to investors today in the midst of this financial chaos? Here's a thought starter:

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.

As a result, with today's tightened credit markets, professional land developers are in need of private investors to help them acquire raw land at these "bargain basement" prices. [Plus, they're often willing to pay handsome interest rates for the use of their investors' money.]

5. The United States population is projected to grow +29% from 2000-2030. (According to U.S. Census Bureau statistics.) 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.

Where are these new homes, schools, stores and communities going to come from? You guessed it: Raw land development! The "building blocks" of all new community construction.

So, that summarizes what makes buying investment property a "legitimate" high yield investment opportunity.

About the author:

John Hanlin is an Independent Investment Consultant specializing in high yield safe investments secured by real estate. He is a seasoned investor of over 25 years. Mr. Hanlin is the owner of the investors' website: http://www.JohnHanlin.com Click on this link for a copy of John's FREE Special Report titled: "The Safest High Yield Investments You Can Make Today".