Hunter Estess of New Orleans has a proven record of accomplishment in the real estate industry.
Before getting on any deal, every serious investor in real estate should ask and answer a number of questions not only about the property, but also about the surrounding area. Do rent prices in the area keep up with inflation? Is the area stable, changing for the better, or deteriorating?
One of the best places to look for great real estate deals is the areas that are not very successful themselves, but are located close to very successful properties and areas.
The strategy of investing in land or properties with the assumption that they will significantly go up in value in the future is called land banking. Land banking is a smart approach in many cases, especially with areas that have strategic locations. It can bring exponential returns if the investment is made in the right project.
However, before the property goes up in value, you will still need to pay taxes and other charges on it. If the property brings in no income, taxes and charges need to be added to the investment amount. This is why it makes sense to keep using the property as currently intended while you wait for opportunities to arise.
For example, in New York City land banking may include an investment in an existing parking lot. The goal may be to build something on the property, but in the short term it may make sense to continue using the property as a parking lot to have incoming revenue. That is what many experienced real estate investors like Hunter Estess do with their projects.