Land Banking
$200K for 40 raw acres, then 11 years of doing absolutely nothing. When a transit corridor and major employer arrived, the land sold for $4.6M — a 23% annual return earned by pure patience.
A real estate company bought a 40-acre parcel two hours outside the city for $200,000. The land was raw, no utilities, zoning or development plan. For six years nothing happened. Annual taxes were $3,000. Developers and industrial companies made offers. The founder said no. In 2020, the city announced a transportation corridor. Properties near transit rose 40 to 60%. He waited three more years, a major employer relocated to the area, 20,000 employees. Housing became scarce. His 40 acres were suddenly valuable. The asking price reached 4 million. Instead of selling, he brought infrastructure partners and split it into 10-acre parcels, residential on four, mixed use on two.
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