Posted by Tony Colella on March 18, 2006 at 18:00:07:
The term “Land Bank” is one that Scott and I have basturdized (this site won’t allow me to post the true spelling of that word) from traditional Real Estate terminoligy.
The way we use it and is often used here at this site is to describe how we obtain cash to grow our portfolio.
In the book we show how we buy a doublewide land/home package property at wholesale cost, rent it for a year (creating a nice income stream) and then refinance the property to pull some (but not all) of our equity out under favorable financing terms.
We use this cash to create greater income through the purchase and/or improvement of other properties.