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Why isn't land securitization yet a thing?

There are hundreds of millions of acres of beautiful, arable...
house-broken roommate native
  08/18/18
you mean like REITs?
fantasy-prone national telephone
  08/18/18
No I mean private equity investment in physical assets, land...
house-broken roommate native
  08/18/18
likely because the return would be trash vs. an index fund. ...
fantasy-prone national telephone
  08/18/18
I am describing an institutional investor with a portion of ...
house-broken roommate native
  08/18/18
every investment is viewed against market return. and a rati...
fantasy-prone national telephone
  08/18/18
Like an MBS?
fragrant spruce parlor nowag
  08/18/18
Like an MBS, sure, but perhaps a collection of more illiquid...
house-broken roommate native
  08/18/18
Oh. Because it’s not a good investment.
fragrant spruce parlor nowag
  08/18/18


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Date: August 18th, 2018 3:29 PM
Author: house-broken roommate native

There are hundreds of millions of acres of beautiful, arable, rich land in the U.S. that sit unsold by regional podunk commercial RE firms. Can't help but think that someone sophisticated could/should approach the owners, securitize some of these assets and market them to global institutional investors seeking a food/water security play in the U.S. in states where this sort of thing is permissible. Does this exist?

(http://www.autoadmit.com/thread.php?thread_id=4054940&forum_id=2#36639648)



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Date: August 18th, 2018 3:39 PM
Author: fantasy-prone national telephone

you mean like REITs?

(http://www.autoadmit.com/thread.php?thread_id=4054940&forum_id=2#36639689)



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Date: August 18th, 2018 3:41 PM
Author: house-broken roommate native

No I mean private equity investment in physical assets, land/rights to water, minerals, food, etc. ,

(http://www.autoadmit.com/thread.php?thread_id=4054940&forum_id=2#36639693)



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Date: August 18th, 2018 3:43 PM
Author: fantasy-prone national telephone

likely because the return would be trash vs. an index fund. any such land would have 0 trouble finding capital even without a securitization scheme assuming the upside existed.

agriculture and commodities are crazy cyclical, competitive and capital intensive. i’ll just buy fang stock instead.

(http://www.autoadmit.com/thread.php?thread_id=4054940&forum_id=2#36639699)



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Date: August 18th, 2018 3:46 PM
Author: house-broken roommate native

I am describing an institutional investor with a portion of their portfolio/mandate dedicated to alternative/illiquid assets - these types of investments would never be considered alongside something like an index fund or stocks.

(http://www.autoadmit.com/thread.php?thread_id=4054940&forum_id=2#36639710)



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Date: August 18th, 2018 3:47 PM
Author: fantasy-prone national telephone

every investment is viewed against market return. and a rational investor would require a substantial premium for investing in an illiquid instrument.

a trash value proposition is a trash value proposition any way you slice it.

(http://www.autoadmit.com/thread.php?thread_id=4054940&forum_id=2#36639719)



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Date: August 18th, 2018 3:41 PM
Author: fragrant spruce parlor nowag

Like an MBS?

(http://www.autoadmit.com/thread.php?thread_id=4054940&forum_id=2#36639694)



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Date: August 18th, 2018 3:44 PM
Author: house-broken roommate native

Like an MBS, sure, but perhaps a collection of more illiquid assets with different/unique sources of income (sales from livestock, aquifiers w/ right to bottle/tap water, etc.,)

(http://www.autoadmit.com/thread.php?thread_id=4054940&forum_id=2#36639703)



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Date: August 18th, 2018 3:49 PM
Author: fragrant spruce parlor nowag

Oh. Because it’s not a good investment.

(http://www.autoadmit.com/thread.php?thread_id=4054940&forum_id=2#36639724)