Investors land in the path of progress for diversification

[Jay Hinrichs]

AS we all get focused on one or two types of Investment properties  IE  cash flow is the only thing to invest in or buying for appreciation is better or the combination of both..  However for truly passive long term wealth I feel that searching out those path of progress properties  and either paying cash for them or financing them can lead the sharp investor to massive wealth and returns without ANY other involvement other than stroking a check annually for tax's and maybe hiring a farmer to keep the grass mowed..

example is one I close yesterday  37 acres the family bought 27 years ago for 199k  .. we closed on it yesterday for 7.2 million cash to them.. they did not even 1031  just going to pay the tax and call it a day.. 

now I don't know if 199k invested in say a few rental houses over 20 or 30 year run would equate to an exit like this.. but for this family it cant get any more passive.  

I have also seen this with Timberland Holders as well.. HUGE gains with no real work on the property.. they use it to hunt and fish and ride quads etc.. so personal enjoyment while those trees just keep growing.

seems like a nice diversification to ones long term retirement strategy..   And one we have implemented ourselves.. we have a path of progress property in Sonoma county ( Rohnert Park ) that just got brought into the city.. we paid under 30k for it 25 years ago and value today is about 3mil.. and we have another big play in Hillsboro Oregon 117 acres we optioned for 5.5 mil in the bottom of the recession of 09.. once brought in to the city this would be worth way north of 50 million.. So if it is not something that I will partake in at my age my heirs are going to be very happy.. and collage will be paid for all the grandkids..  

Just some thoughts for all you investors who are sharp and may be able to identify areas were towns will Have to grow.. the biggest money I see made is the farmers selling to us the developers.. at least biggest money with basically little to no work and Risk is just time.