Thursday, April 2, 2009

Spring has Antelope Valley blooming with poppies and land investment

The Los Angeles Times has reported: The Antelope Valley Poppy Reserve is blooming. The reserve, 15 miles west of Lancaster at 15101 Lancaster Road, offers free guided public tours daily during wildflower season. The California State Parks website says: "The poppies are here! We don't have carpets of orange yet, but we have brilliant patches starting to fill in the south facing slopes, with blinding yellow swaths of goldfields covering hillsides and along the North Poppy Loop trail."

This area on the west side of Antelope Valley is a wild poppy reserve, which turns hectors of land bright orange. This area is great for horseback riding, and hiking, as well as off road vehicles in Fairmount Butte. Most of this area on the west side of Lancaster and Palmdale is vacant unused land, and with real estate at its ten years lows this is a great time to buy land in the part of Los Angeles County.

Homes in the valley have created a stampede of investors, where the home market has been very aggressive the last six months. Starter homes and foreclosures in Lancaster and Palmdale, Ca. have been at market lows similar to prices in 1995 when this area was in a growth phase. Many townhouses have sold for thirty five and forty thousand, and four bedroom homes have sold for less than one hundred thousand. These are market lows of a lifetime in both homes and vacant land. It is time to spring into investment when the market is at the bottom.

Wednesday, March 25, 2009

The Solar Wind is Creating Green Energy Land Investment Opportunities in Los Angeles County

There has been much talk in the news media and the Obama Administration regarding cap and trade, and global warming solutions. You may ask where this green energy momentum will take root. Well we see some indications in California which has been leading the way in the US regarding going green. We have noticed there has been growing development in Antelope Valley with Wind and Solar technologies. E-solar has acquired $130 million in funding from Google.org and Oak Investment Partners and they have signed a power purchase agreement with Southern California Edison Power to build a 245 megawatts solar plant in the Antelope Valley region of Los Angeles County. There will be a series of fully operational plants which will begin production in 2011, and targeted operational by 2012 according to news sources. There have also been large purchases of land in several parts of the Antelope Valley by Solar energy companies over the past year. It is either an E-solar subsidiary or a solar competitor. In addition, Luz Solar Partners has a fully operational solar plant at Kramer Junction near Hwy 58 and Hwy 395 in San Bernardino County for several years now.

If you drive through Tehachapi, California in Northern Antelope Valley you will see many Wind Turbines taking advantage of the heavy winds through the grape vine and Antelope Valley. This area is slowly and quietly becoming fertile ground for green energy solutions. We spoke to a recent land buyer who purchased land in Kern County and a Wind Energy Company approached them within months to lease their land to install their turbine towers.

These are real time Land banking opportunities taking place right now in Lancaster and Palmdale California and the growth appears to be just beginning. Real Estate is at market lows, and the push for the nation and globe to go green is in its infancy. Many property owners purchase land in the Antelope Valley a number of years ago if not decades ago, and they are reaping rewards today. If this area continues to be ground zero for green energy technologies then the Land banking turnaround could be much shorter.

Sunday, January 4, 2009

Land investment on the Right side of the Tracks

California voters approved a $9.95 Billion bond to build a high speed rail system from Sacramento to San Diego on the recent November ballot. It can take a passenger from San Francisco to Los Angles is 2 hours 38 minutes with an estimated cost of fifty five dollars, or Sacramento to Los Angeles in 2 hours 17 minutes for fifty three dollars. The recent bond approval by voters initially allows up to 1 billion for local and regional rail upgrades that will connect to the future High Speed Train System (www.cahighspeedrail.ca.gov). State Law requires that construction can’t begin until matching funds from outside sources are committed. In addition, it is estimated that the Federal Funding will provide $10 to $12 billion or 25 to 33 percent of the costs. This could be from the Passenger Rail Investment and Improvement Act passed by Congress in 2007. This can also be part of what President Elect Barak Obama’s administration has proposed as the “New Big Deal”. The California High Speed Rail Authority expects construction to begin by 2011. The incoming President, Congress, the California State Governor and Legislature and now state voters are all in approval, so there appears to be nothing to stop this train now other than the actual funds. With all these forces in approval it looks inevitable that the funds will be found by 2011. This will be one of the largest government projects over the next twelve years.

This yields investor opportunities in stocks affiliated with construction and real estate values near the future rail system. Many areas along the six hundred mile route currently have sparse populations and depend on the agricultural industry. One of the future rails stops is in Palmdale, California in Los Angeles County. This is an area with a population of over three hundred thousand and an abundance of available inexpensive land. It is an area that has shown considerable growth over the decades, and will grow with or without the rail system providing investment growth security for speculators. Lance Dorman of Vacantlanddeals.com said “Land investors need to be on the right side of the tracks when investing on the future”. This looks to be a ripe opportunity to buy land and wait, while land prices are currently low. Real estate land prices all over California have dropped from their recent highs in 2006, and prices will definitely rise over time.

Sunday, November 23, 2008

Have the Bears Caused Investment Hibernation?

The real estate market has dropped considerably since it's most recent highs in 06 and 07. The hardest hit states have been California, Nevada, Arizona and Florida. Most of the talk about the real estate market has concentrated in the housing market. The enormous amount of foreclosures have tipped the scales for the current bear market and have become the headlines of 2008. The stock market has proven to be fickle and many await the the bottom of the housing market, so investors have had cause to hibernate.

We think it maybe time for investors to come out of the den. There are low risk ideally zoned opportunities for long term investors available now. If an investor is looking for a five year to even twenty year investment that has proven over decades to be a lucrative investment then we believe Antelope Valley could duplicate it's past success. We have found a 700% increase in just five years under similar circumstances. In 2000 during the most recent recession a 5 acre industrial zoned property on Palmdale Blvd in Palmdale Ca. sold on the GAVAR MLS for $5980/acre. In 2005 an industrial property next door on Palmdale Blvd. sold for $42,000/acre at or near the most recent high of the market. This is an exception result for the recession investor.

This recession has created another down market in vacant land in Lancaster and Palmdale Ca. Parcels are now at or near their lowest. Now is the the time to think like a successful investor and buy in a depressed market. A successful investor buys in a bear market and sells in a bull market. Vacantlanddeals.com specializes in low priced land below the market rate, and they have industrial zoned property in ideal locations to take advantage of the next up market. If they don't have the property for you then they can locate it. Populations are still expected to grow in Southern California based on recent census reports. This may be your best time to find an opportunity.

Sunday, October 26, 2008

Where is the real discount land for sale?

Many of our readers and prospective clients have searched on the Internet for discount land. This is easier typed then done. There are a number of vacant land dealers which can be found on a simple Internet search, but who is getting the deal? A number of these land promoters are implying that their land is at a discount, but after review we found different results.

Some Online land sites which promote land in Northern Los Angeles County indicate their land is at a discount, but we found high prices in our comparison. We looked at three land sites in Lancaster and Palmdale Ca. Two very similar parcels at 190th East at J. The website lacountyland.com is promoting a 2.31 acre property for $39,900, while vacantlanddeals.com promotes the 2.31 acre property next door at 190th East at I-14 for $18,500. Half price for the same property, wow. Another example is where california-land.com is promoting a 2.5 acre property at 65th West at H-8 in Lancaster for $110,000, while vacantlanddeals.com is promoting a similar 5 acre parcel at 62nd West at F-4 for $110,000. That's twice the parcel for the same price. Vacantlanddeals clearly has the discounted land here, and they do promote their prices as ten to twenty percent below the retail market. These are just a couple of examples, but it shows there are drastic differences in pricing on online sites.

Buyers need to do their due diligence on properties before they buy. If there is a property you desire then there may be a similar property elsewhere for a better price. An informed buyer needs to be aware of the land prices to ensure they are getting a good price in an up or down market. They also should do their best to verify all the details regarding a properties zoning, access, title issues, and location to services. We hope to help in this matter by continually informing buyers of opportunities and information that we feel you need to know.

Sunday, October 19, 2008

How much is enough to invest in real estate?

Do you have twenty thousand?

We have heard from a number of potential real estate investors who have limited savings but not enough to buy a home in high priced states like California. In some cities like Dayton, Ohio, or Oklahoma City you can buy a home for sixty to one hundred thousand and rent it for five hundred a month. After insurance, rental fees, maintenance, travel, and taxes your return on rent will be virtually the same as a low risk CD. We think land banking may be a better risk reward opportunity for small capital investors.

San Fernando Valley California in Los Angeles County is a prime example of a past land banking opportunity. In 1950 the population was 250 thousand and today the Valley's population is 2.7 million according to the US Census. A $40,000 well placed investment there in 1968 would have increased 1000% by 1980 to $400,000. This is a huge return, and granted forty thousand was a larger investment in 1968. But this scenario shows population growth and a well placed investment can provide positive returns.

Antelope Valley in Northern Los Angeles County may provide a similar opportunity. Antelope Valley comprises of two main cities, Lancaster and Palmdale. They have a combined population of approximately 350 thousand today, and an abundance of vacant land. Antelope Valley has approximately 49% of the available pre-developed land in LA County. California's population is expected to grow to 60 million by 2050 and Southern California is expected to have the highest growth rates according to recent reports. This adds up to a great opportunity, which rivals San Fernando Valley results. The area has the potential for population growth, low capital entry point, and availability.

Land is still inexpensive in Antelope Valley and there are a number of ways to locate a well placed investment. We think Vacantlanddeals.com offers some of the best low priced well placed investments that have the potential to produce lucrative returns. They also have land available for an investment of less than twenty thousand.

Friday, October 10, 2008

Stock Market Crash and Housing bubble, so where do you invest now?

Why raw land investment may be the best solution

Many investors worldwide have lost most of their retirement portfolio this past week in the stock market, and others have lost equity in their real estate investment properties. The simultaneous crash and bursting bubble have lost trillions in retirement investment for millions. An investor can hold and wait for the next bull market or housing boom which could take years. Or look at a centuries old successful long term investment plan of buying and holding pre-developed and undeveloped vacant land. Land values have also dropped this past year, but not anywhere near the losses in the housing or the stock market.

According to Daniel R. Aerman of inflatiointowealth.com the recent housing bubble in the US has lost six trillion dollars. The Congressional Budget Office has reported that American retirement savings accounts have lost two trillion dollars in value the past fifteen months. The Dow Jones is down forty percent the past twelve months, and half of that the past month. The bear market has reduced company stock values into the trillions. These are staggering figures, and this era will be remembered by all for decades to come. But where does an investor go from here a CD, treasury bonds, your mattress or safe?

Most of our investments have been in land in Southern California. We have made prudent investments at the low end of the market. The land market moves up and down with the real estate market, but you need to be knowledgeable in parcel values before you buy. Lance Dorman of Vacantlanddeals.com said, “We have been buying, holding and selling pre-developed and undeveloped land in Los Angeles and San Bernardino Counties the past five years”. Vacantlanddeals locates property at or near commercial and residential areas, and they perform further research on zoning and development changes in target areas. They find this land from tax and probate sales, from long term property owners, and in market lows. There are currently market lows in land today in Southern California. These new market lows signal an ideal time to buy land. Land is low risk with low taxes and no maintenance, so with their expertise you can secure a low priced long term investment. Market crashes and bubbles create losses, but also new opportunities and vacant land could be your next investment.