Robert Morris signed the Declaration of Independence and helped finance the American Revolution. He was one the original U. S. Senators from Pennsylvania, and from 1781 to 1784 was the Superintendent of Finance for the fledging federal government. He was one of the wealthiest and most powerful men during the founding of the nation and also was one of the first and biggest speculators in cheap land in USA for sale.
Mr. Morris was involved in various acreage speculations throughout the colonies, but especially in Georgia, New York and Washington DC. One of his biggest deals was the acquisition of the Phelps and Gorham pre-emptive right to approximately five million acres of land in Western New York. He aggressively tried to market his vast holdings throughout the United State and Europe.
The Panic of 1796, caused by Atlantic credit markets, liquidity issues with the Bank of England, and war scares between England and France, resulted in a serious economic downturn in the new nation of the United States. Robert Morris was “land rich” but “cash poor” and unable to meet his financial obligations. In 1798, he was declared bankrupt and sentenced to debtor’s prison. After release from prison, in poverty and ill-health, he lived only a few years longer and died in 1806.
So is land speculation an ill-conceived enterprise that is destined to fail? Absolutely not! In fact quite to the contrary, dealing in cheap land in USA for sale is an almost guaranteed method of making substantial sums of money IF two simple rules are followed.
Rule #1. Never buy more land than you are able to pay for from existing cash flow!
Rule #2. Be prepared to hold the land for a long enough period of time!
If you adhere to the above rules it would be almost impossible to not make money on a cheap land deal. Robert Morris, however, acquired more land than he could pay for and would have had to sell the land in a very short period of time in order to cover his financial obligations. His precarious finances, together with the Panic of 1796, did him in!