How to invest in land

I have a friend who recently landed a good land deal. I introduced him to this money engineering stuff a year ago.

So he started saving aggressively. He started investing in unit trusts and treasury bills. He also ramped up his savings in the staff SACCO.

His ambition and passion has always been real estate. To close good deals you need to have liquid cash. Recently a distressed land owner came to him. He had a family emmergency and needed a buyer who had immediate cash. He had heavily discounted the land below market value because of the pressures.

The land was a few meters from a newly tarmacked road in a growing urban area. My friend quickly realised the opportunity. He liquidated some of his funds in the unit trusts. He also borrowed some cash from the staff SACCO. He was able to close the deal in a day or so.

 A week later a broker called and informed him that someone wanted to buy the land at a price way above what he had invested. Within a week the investment had appreciated by almost 50%.

Not bad at all!

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s