Land Banking is the practice of buying and holding pre-developed land in the direct path of present and future development where growth is forthcoming. Historically, some of the largest fortunes have been made in Land Banking by Donald Trump, Bob Hope, Henry Segerstrom, Howard Hughes, Roy Sakioka and many others.

Donald J. Trump understands the value of land banking
The tale of how Donald Trump became the quintessential American Success Story is fascinating and impressive. It’s hard to believe that in 1990 Trump was $900 million in debt. Unlike the average person who throws in the towel at the first sign of adversity, Trump did not he hung in there and made an astounding comeback, and is now sitting on a sizable fortune. In an interview with Wall Street Week on July 26, 2002, Trump said: "I just love real estate. It’s tangible, it’s solid, and it’s beautiful." The Trump Tower on 5th Ave. was his original crown jewel. Today he owns many other Manhattan properties that include the Trump World Tower, and the Trump Palace. Yet, if you were to ask Mr. Trump what property excites him the most these days? Well, it would be his prime undeveloped land parcel, the old West Side Rail yards in Manhattan. This amazing, undeveloped 100-acre plot goes from 59th to 72nd streets along the Hudson River, and is one of the last remaining large land parcels left in Manhattan and estimated to be valued in the millions. Donald J. Trump understands the value of land banking. He realized that if he just buys and holds the land, he would position himself to make a fortune. When fully developed, this 100-acre parcel will be called Trump Place. If Donald Trump has one regret it’s that he didn’t buy and hold more land in New York City when he had the chance.

Howard Hughes had vision and foresight in land banking
Howard Hughes was a visionary who purchased and held land in Southern California and the Las Vegas Valley. He was a steadfast advocate of land banking his properties. In Los Angeles, California, Howard Hughes is well known for Playa Vista - the 974-acre, former site of the Hughes Aircraft Company. This property extends from the Pacific Ocean to the San Diego Freeway, between Marina del Rey and Los Angeles International Airport. There are big plans for the site that include 13,000 residential units, 6 million sq. ft. of commercial space and 1,000 hotel rooms. In the early 1950s, Howard Hughes acquired a 22,500-acre parcel of land located along the western rim of the Las Vegas Valley, well outside the Las Vegas city limits. Today, this area is known as Summerlin, and regarded as one of the most sought-after and impressive master planned communities in Nevada. By 2015 Summerlin is projected to be home to approximately 160,000 residents in 30 distinct villages. Howard Hughes� land holdings made him vast fortunes during his lifetime. Would you care to guess what the 974-acre Playa Vista property in Los Angeles would be worth today?

Bob Hope was a serious land banker in Southern California
Bob Hope was a firm believer in land banking in Southern California. According to the Associated Press, 7-29-03, Bob Hope became one of the wealthiest people the entertainment industry ever produced, investing his money in Southern California land when it was little more than orange groves and scrubland. At one point he owned at least 10,000 acres of land in the San Fernando Valley. Combined with other land holdings, this made him the largest private landowner in California. According to a Time Magazine Report in 1967, Bob Hope owned "8,000 acres in Palm Springs, 4,000 to 5,000 acres near Phoenix, more than 7,500 acres in Malibu," and more. Hope was thought to have enough land to make a principality nearly 50 times the size of Monaco, with just as fine a climate. In 1978, his property-tax bill to the state exceeded $1-million (U.S.). With the recent passing of Bob Hope, reports of his immense wealth are flying once again. "As much as $500 million," reported the St. Petersburg Times. "$400 million to $700 million," declared The Dallas Morning News. Fox News Channel's Terry Keenan said, "You can bet it is in the hundreds of millions, perhaps maybe $1 billion.".