I have seen The Yorkton Group all over the city selling land in northeast edmonton saying an area structure plan is being put in place by the city of edmonton to change the use of the land from agricultural to medium industrial and that these land investments will be a 3-5 year timeframe with potentially substancial returns. Has anybody got any info on this and has anyone looked into the validity of these land investments with Yorkton Group ? Also has anyone here actually invested with them ?
Yorkton Group
- Thread starter behardner
- Start date
- Joined
- Oct 7, 2007
- Messages
- 699
QUOTE (behardner @ Jul 23 2009, 12:15 PM) I have seen The Yorkton Group all over the city selling land in northeast edmonton saying an area structure plan is being put in place by the city of edmonton to change the use of the land from agricultural to medium industrial and that these land investments will be a 3-5 year timeframe with potentially substancial returns. Has anybody got any info on this and has anyone looked into the validity of these land investments with Yorkton Group ? Also has anyone here actually invested with them ?
Under current economic conditions, I would be leary of any land-based investments, unless you are dealing with a very highly capitalized and reputable company. We have used a lot of our idle, under-performing RRSP funds to invest in these types of land investments in the past and have reaped some fairly significant returns, however, times have changed and there are some things to think about when choosing a project to join, and more importantly the track record of the people behind the company doing the syndication.
Important factors influencing profitability in land syndication projects include:
-The original price of the raw land - Some companies take a very large "lift" or profit off of the start, I have seen as much as 300-400%
-The cost of financing the services needed to create the building lots - banks are not currently lending on raw land
-The skill of the management team - What is their experience and track record? There are many of these new companies popping up almost daily claiming to be land "experts". Essentially there are only a few that have the know-how, financial backing and experience to make your investment a success.
- What approvals are in place? - some projects will take many more years than expected because the approvals drag on forever. No approvals = higher speculation = higher risk
-The sale price and demand for the building lots in the community - will the project sell within projected timeline.
- There is typically NO cashflow
- Some offer a fixed bond return plus profit sharing
Ideally the land should:
- border a city that is growing quickly and has a strong economy, minimizing the time it takes to be annexed or rezoned
- have proximity to existing sewer lines and other services , the closer the land is to services the cheaper and sooner the land can be converted into lots
- be attractiveness in regards to the geography and topography
- have surrounding developments (be close to amenities that will attract home owners to the area such as golf courses and shopping malls)
- have good potential lot density (the more building lots per acre the higher the profits)
In my opinion, there are better options out there right now than land based investments, that have the opportunity to reap good returns with much less risk. Check out apartment based funds such as Prest Prop, Evolve, InvestPlus among others and do your own due diligence. Either that or buy an income producing property yourself or do a JV with an experienced real estate investor.
Hope this helps a bit. Any questions, feel free to contact me anytime.
Regards,
Under current economic conditions, I would be leary of any land-based investments, unless you are dealing with a very highly capitalized and reputable company. We have used a lot of our idle, under-performing RRSP funds to invest in these types of land investments in the past and have reaped some fairly significant returns, however, times have changed and there are some things to think about when choosing a project to join, and more importantly the track record of the people behind the company doing the syndication.
Important factors influencing profitability in land syndication projects include:
-The original price of the raw land - Some companies take a very large "lift" or profit off of the start, I have seen as much as 300-400%
-The cost of financing the services needed to create the building lots - banks are not currently lending on raw land
-The skill of the management team - What is their experience and track record? There are many of these new companies popping up almost daily claiming to be land "experts". Essentially there are only a few that have the know-how, financial backing and experience to make your investment a success.
- What approvals are in place? - some projects will take many more years than expected because the approvals drag on forever. No approvals = higher speculation = higher risk
-The sale price and demand for the building lots in the community - will the project sell within projected timeline.
- There is typically NO cashflow
- Some offer a fixed bond return plus profit sharing
Ideally the land should:
- border a city that is growing quickly and has a strong economy, minimizing the time it takes to be annexed or rezoned
- have proximity to existing sewer lines and other services , the closer the land is to services the cheaper and sooner the land can be converted into lots
- be attractiveness in regards to the geography and topography
- have surrounding developments (be close to amenities that will attract home owners to the area such as golf courses and shopping malls)
- have good potential lot density (the more building lots per acre the higher the profits)
In my opinion, there are better options out there right now than land based investments, that have the opportunity to reap good returns with much less risk. Check out apartment based funds such as Prest Prop, Evolve, InvestPlus among others and do your own due diligence. Either that or buy an income producing property yourself or do a JV with an experienced real estate investor.
Hope this helps a bit. Any questions, feel free to contact me anytime.
Regards,
QUOTE (C2Ventures @ Jul 23 2009, 04:28 PM) Under current economic conditions, I would be leary of any land-based investments, unless you are dealing with a very highly capitalized and reputable company. We have used a lot of our idle, under-performing RRSP funds to invest in these types of land investments in the past and have reaped some fairly significant returns, however, times have changed and there are some things to think about when choosing a project to join, and more importantly the track record of the people behind the company doing the syndication.
Important factors influencing profitability in land syndication projects include:
-The original price of the raw land - Some companies take a very large "lift" or profit off of the start, I have seen as much as 300-400%
-The cost of financing the services needed to create the building lots - banks are not currently lending on raw land
-The skill of the management team - What is their experience and track record? There are many of these new companies popping up almost daily claiming to be land "experts". Essentially there are only a few that have the know-how, financial backing and experience to make your investment a success.
- What approvals are in place? - some projects will take many more years than expected because the approvals drag on forever. No approvals = higher speculation = higher risk
-The sale price and demand for the building lots in the community - will the project sell within projected timeline.
- There is typically NO cashflow
- Some offer a fixed bond return plus profit sharing
Ideally the land should:
- border a city that is growing quickly and has a strong economy, minimizing the time it takes to be annexed or rezoned
- have proximity to existing sewer lines and other services , the closer the land is to services the cheaper and sooner the land can be converted into lots
- be attractiveness in regards to the geography and topography
- have surrounding developments (be close to amenities that will attract home owners to the area such as golf courses and shopping malls)
- have good potential lot density (the more building lots per acre the higher the profits)
In my opinion, there are better options out there right now than land based investments, that have the opportunity to reap good returns with much less risk. Check out apartment based funds such as Prest Prop, Evolve, InvestPlus among others and do your own due diligence. Either that or buy an income producing property yourself or do a JV with an experienced real estate investor.
Hope this helps a bit. Any questions, feel free to contact me anytime.
Regards,
Thanks alot Monte,
as far as I know the land is located within a couple kms of the new northeast Anthony Henday to be completed in 2011 and already has two homes on it and it has 34 street frontage. Not sure if that means it should be sound , but you definately seem to know what you are talking about so I will take your word on what you are saying !!
Kris
Important factors influencing profitability in land syndication projects include:
-The original price of the raw land - Some companies take a very large "lift" or profit off of the start, I have seen as much as 300-400%
-The cost of financing the services needed to create the building lots - banks are not currently lending on raw land
-The skill of the management team - What is their experience and track record? There are many of these new companies popping up almost daily claiming to be land "experts". Essentially there are only a few that have the know-how, financial backing and experience to make your investment a success.
- What approvals are in place? - some projects will take many more years than expected because the approvals drag on forever. No approvals = higher speculation = higher risk
-The sale price and demand for the building lots in the community - will the project sell within projected timeline.
- There is typically NO cashflow
- Some offer a fixed bond return plus profit sharing
Ideally the land should:
- border a city that is growing quickly and has a strong economy, minimizing the time it takes to be annexed or rezoned
- have proximity to existing sewer lines and other services , the closer the land is to services the cheaper and sooner the land can be converted into lots
- be attractiveness in regards to the geography and topography
- have surrounding developments (be close to amenities that will attract home owners to the area such as golf courses and shopping malls)
- have good potential lot density (the more building lots per acre the higher the profits)
In my opinion, there are better options out there right now than land based investments, that have the opportunity to reap good returns with much less risk. Check out apartment based funds such as Prest Prop, Evolve, InvestPlus among others and do your own due diligence. Either that or buy an income producing property yourself or do a JV with an experienced real estate investor.
Hope this helps a bit. Any questions, feel free to contact me anytime.
Regards,
Thanks alot Monte,
as far as I know the land is located within a couple kms of the new northeast Anthony Henday to be completed in 2011 and already has two homes on it and it has 34 street frontage. Not sure if that means it should be sound , but you definately seem to know what you are talking about so I will take your word on what you are saying !!
Kris
- Joined
- Oct 7, 2007
- Messages
- 699
Hi Kris,
Just following up to see how you made out with your investment decisions...hope the information helped you make a more informed decision.
Regards,
Just following up to see how you made out with your investment decisions...hope the information helped you make a more informed decision.
Regards,