Land Banking

[Tom Devost]

Hi,

I have been a BP member for some time now. I generally read the posting and will sometimes reply. Today I am looking for some opinions.

I have been investing in SF flips in Florida and Phoenix for the last 1.5 years and it's been pretty good, but it's getting harder and harder to find good deals. I have been looking at another market and it was suggested to me that I may want to consider some land banking. I have found some SF lots in a very nice location close to the ocean. The original developer lost the project a few years back and now there are some lots for sale again. There is some new construction going on in that sub division, all the amenities are there and I think the location i great. I am planning on buying a couple of lots and just sitting on them for 8-12 months. I am very confident I can make a decent profit on them

I was wondering what people's thoughts are on this strategy and if anyone is currently doing this. Are there any pitfalls I should be aware of etc...

[Tom Devost]

There are some lots left, I'm not exactly sure how many. The development was sold out back in 2006-07 and a lot of people bought lots as a speculation using financing, then the market tanked and the banks would not refinance the properties so they lost them. Some of the lost on the intracoastal went for 400K+, there are some available now for around 100K. I don't think there are any moorings available, but the community has a shared dock