Eminent Domain as Exit Strategy - Experienced Investor Situations

[Anthony Hornbeck]

I'm curious to learn more about eminent domain situations. What is legal and is there such a thing similar to "insider trading" when it comes to eminent domain.

It seems very speculative to purchase a property in hopes of a future eminent domain situation, but perhaps with a cash flowing LT rental this could be a viable exit strategy.

I'm looking for some stories/experiences with eminent domain and some tidbits that may not be so obvious to the newer investor.

Also, is there an equivalent to "insider trading," when dealing with property and governmental development.

Let's hear it BP Nation!

[John Rooster]

My observation of eminent domain transfers in Denver is that property owners were making a profit off of it, but not a huge profit. My thought is that if one is 'connected' enough to know where government development is going to be taking place early enough in or before the development cycle to buy a property which will be subsequently acquired by the government via eminent domain, then one will also know which properties will be positively impacted by said development. And that one should buy those properties which will not be part of the eminent domain, but will be positively impacted by the development.