Why Rich People Buy Raw Land"

One of my clients turned me on to the Land Grab. He owns one of the largest Orange Juice Farms in Brazil. I did my first Land Grab in 2001 and it has proven to be one of my best-performing assets in my portfolio. While most Billionaires purchase in America I have chosen South America And Europe

so why is it that more people are buying

raw land in the United States than ever

before the answer will surprise you and

look it's not just the rich and the

wealthy although they're snatching up a

lot of property right now it's the

average person just like you and I that

are diversifying their financial

portfolio perhaps they have concerns of

their other assets making a stable rate

of return in the coming years but that

said it's hard not to notice the likes

of Bill Gates Jeff Bezos and Ted Turner

to name a few of the big names that

people know that are investing in land

and these guys just those three alone

have millions of acres of land so

leading the pack of that is Ted Turner

no relation to me nothing I'm aware of

he owns CNN by the way and also TBN

Turner Broadcasting Network the next one

is Jeff Bezos Jeff Bezos owns close to

half a million acres and then Bill Gates

he owns a lot of Farmland close to 300

000 Acres so what does that mean for you

well first of all they're not making any

more land what's here is pretty much

here and lands right there next to gold

and silver which happened to be at the

peak of their value right now and

there's one more thing that's also at

the peak of its value and that's real

estate but why is it that the wealthy

are buying so much land for one we must

consider profitability they're not

making any more land and as population

grows and people need food and groceries

and all that sort of thing land can be

used for lots of different things

they're not making any more land so why

not invest in land something that goes

up in value very similar to gold and

silver it's also really important to

know all of the things that land can be

used for Timber ranching farming grazing

and Mining however there is a new use

for land a lot of people are buying

property buying land it can be as small

as five acres and they're actually doing

what they call a land BNB an Airbnb

based on land so here's what you do you

buy five acre track of land and you post

it that people can actually go camp out

on your land see a lot of people like to

do just what they call Backpackers

packing backpacking where they

physically just go they jump in their

truck they go to a track of land with a

tent and they just camp out it's almost

like just going to a private camp for

two or three days on someone else's

property yes it's true people will rent

your place for a day just to get away

but look it's important to know that

land is not like the stock market it is

not traded on the stock market and it's

really the stock market has no effect on

land land is in a financial class all by

itself so when stocks and bonds and

mutual funds and all that go up and down

land itself is pretty stable now

inflation is high right and treasury

bonds are some of the safest you can

invest your money in but they're only

yielding 2.4 percent and they can't keep

up with inflation perhaps that's why

more fund managers are diversifying

theirs and others portfolios and into

raw land so here's a question for you do

you own raw land have you ever bought

land have you sold land have you made a

profit with land would you consider

buying raw land I mean I know dudes we

like to hunt we like to fish we like to

get out in the outdoors and maybe if

it's just a few Acres five or six here

and there there's something about

trekking through the woods and walking

through where it's quiet and peaceful

when no one can bother you no one can

tell you what to do it's just your

little piece of Earth now as I mentioned

fund managers are advising people to

diversify their financial portfolio into

land now fund managers are not the same

as property managers fund managers what

they're dealing with are the assets and

the risk allocation when it comes to

diversifying a person's portfolio and

it's not just raw land it's commercial

land residential land but they're

showing people that you can actually

invest in real estate and actually come

out pretty good and not just pretty good

real good most land right now is earning

people around 10 percent a year on their

investment land can be a really good

investment

but unfortunately

there's a dark side you see when you buy

raw land it's not making you any money

there's no passive income there's no

mailbox money as they call it there's no

checks coming in you just took your

money and bought a piece of Earth

however the good news is you just bought

a piece of land you can do anything with

you can grow stuff on it you can sell

stuff on it you can do anything you want

to with it so this brings me back to

farming ranching timbering mining among

a few things and of course you also

can't forget about short and long-term

rentals of just the land and of course

there's also wind farms and solar Farms

that you can actually create on your

property to generate electricity now

when it comes to land you can't forget

about the absolute most important

resource and that is water so a lot of

people watching this video probably

aren't aware that there's a water table

under our Earth and fun fact when they

found oil they actually were not digging

for oil they were digging for water and

found this crazy black substance so look

why not dig a well in bottled water last

year alone there were 15.3 billion

gallons of water sold just through

bottled water the average cost of a

bottle of water is a dollar and fifty

cents that's a 20 ounce bottle of water

so when you have 128 ounce gallon of

water there's six and a half 20 ounce

bottles per gallon that means that a

gallon of water is actually 9.60 cents a

gallon yeah so you're probably like me

you just discovered it wow a gallon of

water is twice as much

than a gallon of gas so what are the

rich doing with their land what is Bill

Gates and Jeff Bezos and Ted Turner

doing with the property that they own so

with Bill it's farmland and he actually

Farms vegetables he Farms potatoes which

are then sold to the McDonald's

corporation to make those good old

French fries Bezos land is Farmland as

well but he also has 165

000 acres in Texas that he uses to test

Rockets now it's interesting to know

that these guys aren't really Farmers

they actually lease the land to Farmers

and here's the reason why 39 of the 931

million Acres of Farmland farmed in the

United States is farmed by farmers who

lease their land that's right these

Farmers don't own the land they Farm on

now Bezos and Bill they own less than a

million Acres between them but here's a

little fun fact that you know that 30

million Acres of United States land is

owned by Foreign investors that's the

size of the state of Pennsylvania now if

you're wondering how much land that is

that's only two percent of the Farmland

in the United States that's right 30

million acres is just two percent of the

land in the United States now that said

there are government restrictions on

where foreign investors can buy land and

how much land they can hold so as the

amount of U.S Farmland decreases each

year the opposite can be said for the

world's population you see farmers can

sell their crops to anybody whoever they

want to anywhere in the world so what

would stop the farmers in the United

States from selling their crops to say

another country and then have that

country sell their crops that they

purchase from them back to us now the

average cost of an acre of land in the

United States runs about twelve thousand

dollars but that really just depends

because if you've got a smaller track of

land say one two three 12 15 30 Acres it

may run you anywhere from twelve to

fifteen thousand dollars acre however

when you start purchasing acreage in the

hundreds if not thousands of tracks at a

time that price goes down that price

goes down between thirty five hundred

and forty five hundred per acre now as

I've always said and I tell everyone

real estate is hyper local you're going

to have higher building costs higher

land costs higher everything in certain

parts of the United States than in

others so an acre of land is 43 560

square feet and to put that into

perspective so you can compare that to a

football field is 57 600 square feet so

a football field is one and one-third

acre of land now if you're considered

buying land it's important to know there

are some tax benefits to it you can

actually deduct the interest that you

pay to a bank or mortgage company for

loaning you the money to purchase the

land now I'm no CPA but that's called

investment interest and you're able to

itemize that on your taxes to deduct

that as a personal expense so regardless

of how you use the land the most

consistent and stable way to the land's

value is the land itself simply holding

the land While others proceed to acquire

it increases the demand for property

which increases the value perhaps we're

seeing another Rush on land right here

in the United States