News broke out a few days ago that the Douglas Channel LNG project has been taken over by a consortium. This group of investors includes Calgary-based energy company Altagas Ltd. This is a high profile land investment project in the area. The consortium estimates that it will in the long term be able to produce 550,000 tones of natural gas, under the project, per year. This, together with the newly acquired long land and water leases on the site, makes the $100 million initial investment a bargain.
The take over of the Douglas Channel LNG project is good news for ROI Land Investments, Ltd. The company recently purchased 225 acres of land in the Town of Evans, Colorado, which has over the years been home to various oil and gas companies's drilling operations. So, what are the strategies that the company can use to find more land investment opportunities like the Douglas Channel LNG project?
Knowledge of zoning restrictions
ROI Land Investments, Ltd is known for avoiding areas with unreasonable zoning restrictions when purchasing land. This must continue for the company to make larger profits this year. Areas with difficult zoning restrictions are usually hard to flip due to the little increase in value of the land. Consequently, there is always need for an investment company to have in depth knowledge of the rules and regulations concerning zoning in potential areas for land investments. Failure to do so may result in land development taking several years, if not decades, to commence due to countless paper work.
Location, Location, Location is one of the most common words in land investment. This term may sound mundane but it has served investors well in the past, and will continue to do so in the future. ROI Land Investments Ltd must focus on opportunities that have the following factors:
Accessibility. Land with easy accessible routes to transportation systems, as well as important services required by people will always be highly valuable. The best advantage of such land is the convenience it offers to potential buyers to accommodate their various needs; access to work (mainly to do with transportation), and available routes to urban centres, just to mention a few.
Urbanization. ROI Land Investments, Ltd must focus on investing in land that is near highly urbanized areas. Due diligence is needed to ensure that the land is near features such as sewer systems, entertainment centers, transportation systems, as well as other urban features.
Environmental concerns. Global warming is a major problem worldwide, and as such companies are being encouraged to go green to conserve the environment. This applies to land investment firms like ROI Land Investments, Ltd as well. Government policies globally are made to protect land regarded as a natural heritage site, home of wildlife or land having national sentimental value. As such, ROI Land Investment Ltd must go for land opportunities with no environmental concerns. In addition, proper research should be done to avoid buying contaminated land (when land was in the past used as a gas station, mechanical shop, or any other venture known to pollute natural resources).
Consider potential profits
The takeover of the Douglas Channel LNG project shows that there is still valuable land out there ready for investments. This is good for ROI Land Investment Ltd as the company gears to further acquire, develop and sell land for a profit. However, though land investment opportunities look promising, there is need to ensure that accurate potential profits are calculated first before any purchase of land. Factors such as yearly property tax, current value and intended use of the land in the future must also be considered.
The above strategies can greatly help ROI Land Investments Ltd to further exploit available land investing opportunities. As the Douglas Channel LNG project has shown, there are plenty of land investment opportunities out there available when the correct strategies on investing and developing land are used.