The Golden Rule of Land Investing

Before we get started, just one quick administrative detail for Dirt Report readers who have been trying to get in touch with me.

Just this week, we were notified that our main telephone line had not been re-ported correctly after switching service providers. And it’s been playing a type of telephone Russian Roulette with my callers… for the past FOUR months.

What does that mean?

It means that anyone trying to reach us at (702) 657-5111 either got through, got a busy signal or was told that the number was disconnected.

How’s that for quality service?

Whenever someone from the Las Vegas area tried to call, they could generally get through. Outside of Las Vegas? Forget it.

Bottom line… the problem is resolved. I’m still here doing what I do.

OK, enough of that. Let’s get started…

Can a Free Newsletter
Help You Make Money?

So what is the purpose of the Dirt Report?

Two answers:

1. Just think of the Dirt Report as another set of eyes and ears, (a very experienced set of eyes and ears) making sure you know the kind of stuff you need to know to become a smart land investor. There’s nothing out there like this… at all. That’s why I’m doing it. (And note: it’ll ALWAYS be free.)

2. To shed light on what I feel is the best niche market in real estate: vacant land. I wouldn’t have done it for the past 25 years or so if I didn’t think that.

But don’t think that you should just read an issue or two of the Dirt Report and then set off to invest in raw land.

It takes more knowledge and experience than that. You can either develop that yourself or work with someone who’s already got it. We provide that experience to our clients.

In upcoming issues of the Dirt Report, we’re going to really go deep into some of the questions I get asked most by clients and customers who subscribe to the Land Investing InfoBank.

Stuff like:

-Exit strategies…
-How to know if you’re getting a good deal…
-Creative financing ideas…
-Private money and how to get it…
-What to look for to discover good areas to invest…

And I’ve got quite a few interviews planned with some of the movers and shakers in this industry. Guys and gals who KNOW what they’re doing… and that will share their tips and strategies with YOU.

You’ll learn a lot.

Now it’s time for meat:

The Golden Rule
of Land Investing

They’re still mining gold…

They’re still printing money…

And I’m sure the money wizards on Wall Street will eventually hatch a new type of black hole to suck the money of Mom and Pop America into their back pockets.

But they’re not making any more land, ANYWHERE. That’s what I call the Golden Rule of Land Investing.

Now despite the fact that the government has the printing presses running overtime to print the amount of money they need to bailout anyone with his hand out, let’s consider a hypothetical situation.

Generally, when the supply of money (or anything else) decreases, the value of that money increases.

I’m not an economist here, so if there’s some little known rule that makes this a poor example, please don’t let me know. I’m dealing with economics 101 here.

That’s all I’ve needed for the last 25 years

I don’t need to know more than that. I’m in the dirt business, and economics 101 is pretty much all you need to do well.

The reason I’m bringing this principle up (again and again) is simply to counteract what is probably one of the strongest forces KEEPING you from success in your life.

That force is something I call:

The Art of Profiting
from Doom and Gloom

Turn on your TV. I challenge you to find any news report that could be classified as 100% genuine GOOD news. The type of stuff that can help you.

I’m not talking about those “last feature of the night” stories where the news anchor gets that grin on her face and gives you the funny 15 minute segment about a cat getting rescued from a tree by a 101 year old granny.

That’s not good news, that’s just fluff.

Instead, we’ve got a constant supply of death, destruction and general chaos. Especially when it comes to talk about the economy.

I’m talking about REAL good news. Stuff like, “despite the number of layoffs, here’s one story of someone taking charge and starting their own business… here’s how they’re doing it.”

Wouldn’t that do a little bit more to motivate people in the RIGHT direction? That’s our goal with each issue of the Dirt Report.

Over the past few issues of the Dirt Report, I’ve been talking about life and death. The death of my friend, Rhett, the birth of another friend’s new son… born on New Year’s Day, 2009 of all days.

Life and death are two sides of the same coin.

In the world of land investing, there are also two sides of the success coin.

One side is problems or challenges. The other side is opportunity.

Two sides… same coin. Which one you get depends on how you’re looking at the coin.

Savvy investors know that spotting problems (aka, opportunities in disguise) is how you make the largest gains in the shortest amount of time.

That’s ANOTHER reason I publish this e-Letter. To do my best to counteract the Doom and Gloom media machine with information you can actually USE.

Here’s one example… this is an article printed on January 16 in the Las Vegas Sun titled:

“Industrial Land Shortage Could Have Adverse Effect on Las Vegas Economy”

Take a minute to read this article and then come back.

OK, now most people would read that article and say, “Oh, yeah, that IS a problem… what are we going to do?”

Doom and gloom.

But I read that article and say, “There’s opportunity right there folks.”

Remember, “problem” = opportunity for the savvy investor.

This article is a pretty good example of the “Golden Rule” I mentioned: no matter which way the market goes, no one is making any more land.

So if you have TIME on your side, then chances are better than not that you’re going to be OK.

*********Highly Recommended*********

Have a question about land investing?

Get answers to 56+ (and growing) frequently asked land investing questions.

And get answers to YOUR specific questions as well!

Get the details here.

(I get a LOT of phone calls and emails asking me questions about investing in raw land. I found a better way than trying to answer each one individually. That’s why I created this service.)

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Get Used to
Looking for Clues

If you’re going to be a savvy land investor, then you have to put on your detective hat and start noticing clues that you can use to make smart decisions.

Here’s just one of them:

Look at this study completed by ZipRealty on 2008’s most searched zip codes for U.S. Home Buyers.

Take a look. The Reader’s Digest version is that they found Phoenix, Irvine and Las Vegas to be the hot markets.

That means that these markets received some of the MOST searches by prospective home buyers looking online.

That’s a CLUE. Not for what’s going to happen this month or even next month.

It’s a clue for where people are looking to invest in the future.

These are the types of things you’ll get in the Dirt Report… issue after issue after issue.

Remember, in the land business, what you’re looking for is land in the path of GROWTH. Growth and TIME are the ingredients you need.

See you next week,

P.S. Take a look at these three pictures. These are photos I took, just a few days ago, of the coming construction to widen Route 93 - the road leading up to the Hoover Dam.

You’ve got:

1. A construction trailer.
2. A BRAND NEW Texaco station along highway 93… approximately 35 miles south of Hoover Dam. In the picture it sure does look like it’s in the “middle of nowhere.” But when the bypass is complete, they’re estimating over 17,000 cars per DAY passing by that Texaco.
3. A LOT of traffic control equipment.

Signs of growth. Clues for profit. These clues are everywhere. So keep your eyes peeled.

No Sour Grapes for Smart Land Investors

Before we get started, let me just take a minute to wish
everybody a happy and prosperous New Year. We’ve got a lot of
profitable information coming your way in 2009.

So make sure to check your inbox for each and every issue of the Dirt Report.

Today’s issue is going to be a short one. Here’s why:

I have something pretty special for you to hear and I want to get to it as fast as I can.

In the last issue of the Dirt Report, I told you about the passing of my client and good friend, Rhett.

While I’m sad to see him go, it reminds me of a quote by Robert Frost that I think is pretty powerful. And it’s a quote that has a LOT to do with the point of today’s issue.

Here’s the quote:

“In three words I can sum up everything I’ve learned about life: it goes on.”

And so it does…

Tick, Tock, Tick, Tock

While Rhett’s story comes to an end, other stories are just beginning.

Take a friend of mine who just had a new son. He was born on January 1, 2009. What a way to ring in the New Year.

New lives coming in, and old lives going out.

Time just keeps marching on.

Heck, a few decades ago, Las Vegas didn’t even exist.

Then they built the Hoover Dam…

Now they’re building the bridge OVER the Hoover Dam.

As much as things change in this world, there are two things that pretty much stay the same: LAND and TIME.

And in the land business, TIME provides the magic that turns dirt into profit.

Without TIME, you don’t have much.

As the economy is going through its gyrations, with TRILLIONS of dollars just disappearing into thin air, land investors know that they’ve got the “magic” on their side.

Because no matter WHAT happens, “IT GOES ON.”

TIME goes on. And TIME heals all, as they say.

Okay… let’s jump into the real MEAT of today’s issue…

Turning Dirt into Wine into Money

Now I don’t know a whole lot about wine. I know that I like white better than red. And Chardonnay is pretty high on my list.

But other than that, I don’t really care if my wine is barreled in oak or cedar or balsa wood.

What I DO know is that to get wine you need grapes. And to get grapes you need…. DIRT.

Today’s featured guest knows about wine AND dirt. And he knows how to put them together for profit.

His name is Josh Moffitt, but most people call him the Arizona Land Baron.

I usually tell you that investing in raw land is NOT a smart idea if you’re looking for a cashflow producing piece of real estate.

Of course you can turn raw land into cashflow once you sell, but in general… there’s not a lot of cash flowing while you’re holding your land.

Unless your Josh Moffitt.

Josh has stumbled upon a pretty smart opportunity to generate cash on his land WHILE he’s holding.

Josh invests in raw land. But he concentrates on investing in VINEYARD land in Arizona.

And thanks to some fairly recent new laws in Arizona, the wine business is growing pretty rapidly.

The More You Know, the
More You Tend to Make

Josh is a smart land investor. And he knows that SPECIALIZING in a particular area is a huge key to maximizing your profit.

A few weeks ago, I sat down and interviewed Josh and got him to explain how he does what he does.

Josh is a perfect example of why KNOWLEDGE is so important in the land investing business.

The more you KNOW in the land business, the better off you’ll be.

*********Highly Recommended*********

Have a question about land investing?

Get answers to 56+ (and growing) frequently
asked land investing questions.

And get answers to YOUR specific questions
as well!

Get the details here:

http://dirt-report.com/questions

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And that’s why a lot of the smart land investors choose to specialize in a particular area. Over time, they become the EXPERT.

That knowledge goes right to their bottom line.

I’m sure you think I sound like a broken record, coming back to this one idea again and again…

But the reason I hammer away on it is simply because KNOWLEDGE can mean the difference between you making money and you losing money.

Never forget: the more you know about a particular area, the better your chances will be to profit.

In this land investing interview, you’re going to hear how Josh got started in the land business (when he didn’t have a ton of cash).

And he’s going to walk you through one of the first deals he did. You’ll hear him explain how he acquired a 120 acre property, subdivided it and then sold off some of the pieces.

In Josh’s example, he was even able to sell one of the pieces before he closed escrow, and then use the proceeds to help fund the entire deal. He used something called a simultaneous close.

That’s smart investing.

The interview is almost 20 minutes long, and it’s filled with MEAT from the beginning to the end.

Just be sure to turn up your speakers and have a pen and paper ready to take notes. You can hear it by clicking on the link below:

Hear the interview…

That’s it for today. Be sure to listen to that interview.