What is Arbitrage?
What is “arbitrage?” It is a very willing buyer and a very unwilling seller. Let me give you an example. In 1987, an investor bought 1.25 acres of land for $25,000 in Lancaster, CA at Lancaster Blvd. and 27th Street West. In 1996, McDonald’s/Chevron needed the land so badly, that they paid the owner $1.2 Million!
In real estate transactions, there is no central auction market that dictates and controls prices. Also, there are no two real estate parcels alike. These “market imperfections” allow for arbitrage, placing control over sales price and return on either side.
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About
I’m so grateful you are visiting my blog. I think you’ll find it intriguing and that it will be valuable to your financial future.
I grew up just outside of Dallas, Texas in a city called Arlington. My parents, Chris and Debbie Burch, as well as my sister, Shannon Cox, have always inspired me to be a positive light to those around me. I grew up as a dancer and enjoying school with particular interest in biology and mathematics. After going to undergraduate school at Southwest Texas State University, I was accepted into a Physical Therapy program in the Netherlands at Fontys Hogeschool Eindhoven where I met my husband, Anthony Abrajano. We married in 1999.
While working as a Pediatric Physical Therapist, I had two children, Cate and Charley. After 10 years in the field of PT while raising my small children and moving to California, I had a paradigm shift. While PT is rewarding and I adore children, I wanted to find a way to invest in my family’s future and feel secure about it. Everyone told me to invest the max in my 401K, and I did. Boy, was that the wrong choice! I lost so much money in my 401K in 2002 by listening to this mainstream advice. Fortunately, I made almost all of it back very slowly over the next couple of years.
Then preparation met opportunity. My friend, Yuko Rodriguez, told me about Southern California Land Banking. Land banking is investing in pre-developed land in the path of growth based on growth factors such as population growth, affordable housing and large diversified job base.
“All a man has to do to get rich in America is find out where people are going, get there first and buy land.” General Douglas McArthur
OK, well obviously that was long ago; and women can also tap into this form of investment. So I became a land banker. I have invested in three parcels of land at this point and plan on becoming an all American Land Baroness!
Surely, you have many questions which I plan to cover in my blog site. Please feel free to contact me at my personal e-mail address if you’re ready to invest or just would like to further explore land banking: tkcabrajano@sbcglobal.net
My Favorite Charities
I worked at Texas Scottish Rite as a pediatric Physical Therapist for 2 1/2 years, mainly on babies with foot demormities. This hospital provides whatever medical care necessary 100% free of charge to children with orthopedic and neurologically related deformities regardless of ability to pay. I would still be working there if I lived in Texas. If you are looking for a fabulous organization to donate to, please click on the crayon.
The Vick House Project is an opportunity to make a good ending to a sad story. For much of this past year, Americans have heard about the tragic tales of mistreatment and abuse to dogs for the purpose of dog fighting. Please click on "Tank" above to visit the Vick house Project.
[...] There is NO headache in land, and it works for you 24-7. At the end of the day, when the bell rings in the stock market, $10 is $10. 100 shares of IBM are all alike. However, not one parcel of land is alike; and you have the beautiful potential for arbitrage. [...]
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[...] that dictates and controls prices, hence market imperfections. This is why the opportunity of arbitrage is available in land [...]
Pingback by 5 Steps to Land Banking Success « Savvy Mom Investor | November 29, 2007 |
kelly, enjoyed your web pages, id say its just a matter of time and this valleys about to take off,been here 50yrs seen it change,I have a busyness trying to make me jump on a easment 47′ down one side 330′ with threts,yet i know of a easment 12′ x 4 for sidewalk across from a development the easment went for 50,000 so what do you think i should ask plus a nusance factor ..and the second developer is 660′ a parcel away. bringing all utilitys and industeral manufacturing. thanks don
I would have to speak with you and know exactly where your land is located to determine how you may want to move forward. Thank you for your comment.