In a standard 1031 Exchange a property is sold and then replacement property is acquired. If you locate a property you want but have not sold a property you currently own then a reverse 1031 could be advantageous. This is not a common in practice but has been done by investors. Some common reasons to do a reverse exchange is you have located a property you want based on price, location, zoning or other reason, but you need to act now in order to buy this property. Not a problem simple purchase this new property and begin the process of a reverse 1031 exchange.
Another reason is that many investors have been caught in the middle by not locating an exchange property in the 45 days to identify and 180 days to close timeframe. Locking up that exchange property in advance solve this dilemma for investors, and it may be easier for you to sell your current property than to locate a replacement property. In a slow real estate market it actually maybe harder to sell your current property and easier to get the replacement, especially, if the replacement property is at a low price and ideal location.
Acquiring replacement property first in a Reverse 1031 Exchange can cause some difficulties though. Since you have not sold your current property then you need the deposit funds for the new property. The biggest obstacle is that the two properties can’t be owned at the same time. In theory, an exchange is going from one property to another, so title to the new property and the old property can not be held at the same time. You will need to get a Reverse Exchange Asset Company to act as a straw buyer for the replacement property. You still must adhere to the 45 and 180 day rule as well.
So in a Reverse Exchange the property that will be sold to complete the exchange must be named by day 45 and it must close escrow on or before day 180.
Locating a reputable 1031 exchange company is the key in this manner, as they will act as the straw buyer. We at vacantlanddeals.com have a number of low priced properties that will be ideal buying opportunities. You can buy one of our industrial or residential low priced properties and sell your agricultural land parcels that you may have bought at the height of the market. It is an ideal time to take advantage of lower price Lancaster and Palmdale land, and we have inventory currently that can fit a reverse 1031 exchange.
Wednesday, October 12, 2011
Sunday, October 2, 2011
US Topco Energy Inc. of Taiwan Furthers Solar Relationship with the City of Lancaster
The city of Lancaster press release earlier this summer regarding the Topco partnership where Mayor R. Rex Parris remarked “Great partnerships such as these are vital as Lancaster strives to further our goal of becoming the solar energy capital of the world.”
According the city of Lancaster press releases and AVPress earlier this year, Lancaster residents consume an estimated 200 million kilowatt-hours of electrical power a year. City Council members approved an original memorandum of understanding with TopCo Energy for a photovoltaic solar power plant on April 12. That original agreement was aimed at developing one or more photovoltaic solar power plants "capable of generating at least 50 megawatts of electrical power," city officials reported.
The amended agreement signed in July increases the size from 50 megawatts "to a total aggregate of up to 200 megawatts of electrical power." The goal of Lancaster is to become a net-zero energy city, so partnerships like this with Topco will further enable that goal. Through agreements like this the city of Lancaster will generate more power than they need and so can resell excess power to Southern California Edison for regional consumption.
According to Us Topco Energy Inc. website they produce a line of service that includes the planning and establishment of solar power plants ranging from 500kW to 50mW to various new and retrofit commercial and residential constructions. Topco is at least one of twelve solar companies that are using the power of the sun in Lancaster and Antelope Valley to establish solar facilities for the production of energy for the region and state.
In our opinion this is all good news to the land investor as the cities of Lancaster and Palmdale will not only grow with urban growth with the continual population explosion in this region. They can also continue to grow economically with the power of the sun and wind in the region. The city of Lancaster should be commended for taking advantage of new solar technology and the large amount of vacant land and open space. Investors should take advantage of this growth and invest in Antelope Valley land as its future is on the rise, while the stock market is on the wane. Contact VacantLandDeals.com today and invest if low risk land banking.
According the city of Lancaster press releases and AVPress earlier this year, Lancaster residents consume an estimated 200 million kilowatt-hours of electrical power a year. City Council members approved an original memorandum of understanding with TopCo Energy for a photovoltaic solar power plant on April 12. That original agreement was aimed at developing one or more photovoltaic solar power plants "capable of generating at least 50 megawatts of electrical power," city officials reported.
The amended agreement signed in July increases the size from 50 megawatts "to a total aggregate of up to 200 megawatts of electrical power." The goal of Lancaster is to become a net-zero energy city, so partnerships like this with Topco will further enable that goal. Through agreements like this the city of Lancaster will generate more power than they need and so can resell excess power to Southern California Edison for regional consumption.
According to Us Topco Energy Inc. website they produce a line of service that includes the planning and establishment of solar power plants ranging from 500kW to 50mW to various new and retrofit commercial and residential constructions. Topco is at least one of twelve solar companies that are using the power of the sun in Lancaster and Antelope Valley to establish solar facilities for the production of energy for the region and state.
In our opinion this is all good news to the land investor as the cities of Lancaster and Palmdale will not only grow with urban growth with the continual population explosion in this region. They can also continue to grow economically with the power of the sun and wind in the region. The city of Lancaster should be commended for taking advantage of new solar technology and the large amount of vacant land and open space. Investors should take advantage of this growth and invest in Antelope Valley land as its future is on the rise, while the stock market is on the wane. Contact VacantLandDeals.com today and invest if low risk land banking.
Tuesday, September 20, 2011
Buying Low and Selling High in the California Land Market
Our headline is common knowledge on how to be profitable in any trading business from stocks, bonds, real estate and even pawn shops. We think it is not common enough in real estate. The recently burst real estate bubble was the highest percentage wise drop in value the last twenty years. Nobody knows where the top or the bottom of any market will be, but the clear signs are when demand outstrips supply. Essentially when it is a sellers market it is not conducive for long term profits for the buyer, especially when there are ten or more offers on the same property. We recall back in 2006 when one fairly modest home had thirty offers within the first week. Housing wasn’t necessarily scarce, but loans were too abundant. It is easy to see the bubble after it pops, but how can you buy at the lower end of the market? When it is the right time to buy? Most people shop for consumer goods when there is a sale. The merchant has too much inventory and they need to make room for new products. You can look at it the same way in buying land or a home.
Ideal ways to buy low priced California land is via a probate sale, bankruptcy, foreclosure, or even short sales. Many of these types of sales are found on the MLS (multiple listing services) as it is the main way for lenders, banks, courts, lawyers and brokers to broadly promote the property. By law government agencies and licensed professionals must market property to the widest public. You can also locate these court filings at your local court house. They are all within the public record. It will take some research and time, but it can be fruitful. The time and effort to research and buy at these court ordered sales maybe too time consuming, so you can look for firms that resell these properties. We at vacantlanddeals.com also buy land via probate and bankruptcy sales. We buy as low as possible, and resell at low retail costs. We currently have a number of properties that are priced at the low end of the market on our website www.vacantlanddeals.com The land prices today are some of the lowest prices in the last fifteen years. Real Estate is very cyclical, so be prudent and buy at the low end of the cycle.
Ideal ways to buy low priced California land is via a probate sale, bankruptcy, foreclosure, or even short sales. Many of these types of sales are found on the MLS (multiple listing services) as it is the main way for lenders, banks, courts, lawyers and brokers to broadly promote the property. By law government agencies and licensed professionals must market property to the widest public. You can also locate these court filings at your local court house. They are all within the public record. It will take some research and time, but it can be fruitful. The time and effort to research and buy at these court ordered sales maybe too time consuming, so you can look for firms that resell these properties. We at vacantlanddeals.com also buy land via probate and bankruptcy sales. We buy as low as possible, and resell at low retail costs. We currently have a number of properties that are priced at the low end of the market on our website www.vacantlanddeals.com The land prices today are some of the lowest prices in the last fifteen years. Real Estate is very cyclical, so be prudent and buy at the low end of the cycle.
Thursday, September 1, 2011
First Solar’s AVSolarRanchOne to begin Construction near Lancaster, Ca. Albeit some Objections
Excerpts from Patric Hedlund The Mountain Enterprise
Forbes Magazine has named First Solar the fastest growing technology company for two years running. First Solar is an $11 billion corporation, and it has a large operation proposed in Antelope Valley’s Fairmount Butte. They have a $215 federal incentive to commence building AVSolarRanchOne by September 1. It will be a 230 megawatt system on 2100 acres and employ 300 during the construction faze.
According to the Mountain Enterprise news reports as of August 1st First Solar’s AV RanchOne has received final discretionary permits which allow them to mobilize for construction. Mobilization primarily consists of bringing temporary facilities and infrastructure onto the site (temporary construction offices and utilities) to support the start of construction. With this permitting approval, they are released to begin mobilization at any time. They expect to commence construction activities by the September decline.
Yet, there is resistance and obstruction from residences and government agencies. The resistance from local residents in Antelope Valley is primarily that they have not been fully informed. There was even a threat to file a restraining order to stop construction, but that was tabled. There is similar objection in Tehachapi, Ca to the Alta Wind Energy Center in Tehachapi, Ca. as there will be thousands of wind towers going up in the next year. There are approximately 2000 residents in Fairmount Butt area which is about 15 mile west of Lancaster, Ca. yet they have a voice to in this large solar facility construction. Additionally, there is a proposal by Riverside County Supervisor John Benoit to introduce a two percent franchise fee for First Solar installation planned in Riverside County and that motion is pending. It could produce revenues of $3.5 million a year for Riverside County. There are indications from First Solar that they would not agree to pay that fee.
Most Californian’s would agree that alternative energy is essential for the State’s future growth and energy needs, but nobody wants a facility in their neighborhood. We think the project will prevail despite objections, and potential additional government taxes. This will invariably increase vacant land property values in the long term, as solar site assume a large amount of property. Buying low in this current market and holding long term for future growth is still a sound business and personal investment. Go to vacantlanddeals.com for land opportunities.
Thursday, August 11, 2011
Tehachapi California Wind Energy Explosion and Conflict with Property Owners
Excerpt of article from Tiffany Hsu, Los Angeles Times
Wind Turbines are multiplying at an immense pace as wind developers expand, because of the high winds that thrust through the Tehachapi Mountain range. Kern County has the highest concentration of wind farms in the nation at this point eclipsing the Altamont pass in Northern California.
Terra-Gen Power is planning hundreds and maybe thousands of wind turbines for its Alta Wind Energy Center, while, Helo Energy is planning to build 450 wind turbines. This green energy expansion is creating resistance from local residents. There are thousands of wind turbines today in the Tehachapi Valley already. They currently dominate the landscape, so thousands of additional towers will continue to change the views.
There are a number of activist groups galvanizing to try to halt the expansion. They complain of the issues with potential land erosion because of the removal of trees, the environmental impact to bird life. It is the never ending loss of beautiful views that the area is known for. It is a similar complaint of any rural destruction; we want development, but not here. According to the LA Times article by year’s end $2.2 billion will be put into the Kern County economy and the Alta Project will inject $30 million in taxes. Those are jobs the area does want, and revenues for the county and state governments.
We feel for the local residents as there community has changed and will continue to do so. There home prices may also be affected, as less people will want to live in the area. This area is full of rolling hills and mountains, with ranches and livestock grazing. It certainly is an ideal area for wind energy productions as the terrain creates a natural and continual gust of free energy. Land owners have benefited greatly as they can lease their ranch land and it still allows cattle to graze. Most of this area has been unused rural and vacant land, but no more.
There is a give and take with development, and in this case green development. We don’t think the locals will win, as the California’s State government is fully behind it. Governor Schwarzenegger signed executive order S-21-09 under AB32 giving authority to the bill to enforce 33% of the States energy to come from renewable sources. Senate Bill X1-2 signed by Governor Brown codified 33% by 2020.
This infusion of over 2 billion in development, jobs and Kern County tax revenue is a green boom to the area. It also shows that buying land and waiting for development even in rural areas like Tehachapi can be a profitable venture.
Monday, August 1, 2011
BYD Ltd Electric’s Technology for Los Angeles County and Lancaster California’s Jobs Future
The city of Lancaster and BYD Ltd. (Build Your Dreams) has been in discussion since early last year for a potential electric car manufacturing plant in Lancaster Ca. The city sent a delegation to China for that purpose in 2010. BYD manufactures an electric crossover vehicle called the e6 electric and said it expected to start selling the car in the U.S. The city of Lancaster would like BYD to manufacture and assemble this vehicle and others in Antelope Valley. Also, during the Schwarzenegger administration there was talk of the city of Los Angeles pledging to buy BYD manufactured electric buses if the plant was based in LA County. BYD has yet to make any formal announcements regarding their plans. Although, they have established a US headquarters in the city of Los Angeles, and expect up to 2000 employees over time to administer their US operations in their downtown Los Angeles location.
They further set up roots by establishing a collaborative partnership to develop a grid-scale battery project for renewable energy storage with the Los Angeles Department of Water and Power (LADWP) last year. Also, about a year ago the City of Lancaster, BYD and KB Home announced the completion of a new earth-friendly prototype home utilizing BYD’s solar, battery and LED Lighting systems. The plan is to potentially lead to more affordable solar electricity and energy storage options for homeowners. The city accelerated the development process through the planning process, so KB and BYD could construct the prototype home immediately. The manufacturing and assembly of electric cars and buses would certainly be a boom for the city of Lancaster and Los Angeles County; as such a move would create jobs and future growth to a city that was damaged by the housing crisis.
BYD was founded by Wang Chuan-Fu in 1995 in Shenzhen, China. He is a chemist and part of the Chinese Dream as he raised $300,000 from relatives to manufacture rechargeable batteries. Since then BYD has become one of the world’s largest manufacturers of cell-phone batteries. They have also raised $250 million from Warren Buffet toward their e6 vehicle. They plan on manufacturing 800,000 e6 cars powered by lithium-ion batteries, where they indicate they intend to start selling the e6 in the US at a price of about $40,000.
In addition they have established a solar cell and solar panel technology, where they would like to establish their solar systems in combination with large energy storage systems that they currently develop. Based on news reports they plan on moving rapidly in developing and expanding in the solar panel arena. This relationship with the city of Lancaster works well as solar is expanding in the valley and Mayor Parrish projects that Lancaster will produce more energy than it consumes with its solar expansion.
We will wait and see if BYD expands manufacturing in the Antelope Valley, but the prospect looks promising for real estate and land values if the projects develop here.
They further set up roots by establishing a collaborative partnership to develop a grid-scale battery project for renewable energy storage with the Los Angeles Department of Water and Power (LADWP) last year. Also, about a year ago the City of Lancaster, BYD and KB Home announced the completion of a new earth-friendly prototype home utilizing BYD’s solar, battery and LED Lighting systems. The plan is to potentially lead to more affordable solar electricity and energy storage options for homeowners. The city accelerated the development process through the planning process, so KB and BYD could construct the prototype home immediately. The manufacturing and assembly of electric cars and buses would certainly be a boom for the city of Lancaster and Los Angeles County; as such a move would create jobs and future growth to a city that was damaged by the housing crisis.
BYD was founded by Wang Chuan-Fu in 1995 in Shenzhen, China. He is a chemist and part of the Chinese Dream as he raised $300,000 from relatives to manufacture rechargeable batteries. Since then BYD has become one of the world’s largest manufacturers of cell-phone batteries. They have also raised $250 million from Warren Buffet toward their e6 vehicle. They plan on manufacturing 800,000 e6 cars powered by lithium-ion batteries, where they indicate they intend to start selling the e6 in the US at a price of about $40,000.
In addition they have established a solar cell and solar panel technology, where they would like to establish their solar systems in combination with large energy storage systems that they currently develop. Based on news reports they plan on moving rapidly in developing and expanding in the solar panel arena. This relationship with the city of Lancaster works well as solar is expanding in the valley and Mayor Parrish projects that Lancaster will produce more energy than it consumes with its solar expansion.
We will wait and see if BYD expands manufacturing in the Antelope Valley, but the prospect looks promising for real estate and land values if the projects develop here.
Tuesday, July 12, 2011
Land Banking with a California Land Contract
Land Banking is a term used by land investors. It essentially means to buy land and hold it for a period of time for a long term gain. It is the same as holding a stock or security for a long period of time. Simply buy land, hold and wait to see what future growth patterns do to its market value.
A land contract is a simple contract between a buyer and seller to purchase real property. It doesn’t even have to be land. It can also be known as an installment sale agreement. It is an agreement between a seller and buyer whereby the seller provides financing to sell the property for an agreed purchase price and the buyer repays the loan in monthly installments. It is much like a typical mortgage agreement, but there isn’t a financial institution involved and there are only two parties in this transaction. Under a land contract, the seller retains the legal title to the property, yet allowing the buyer to take possession of it other than legal ownership. As an example, if a buyer pays $9,000 for a parcel with 10% down payment of $900 and then finances $8200 at 7% interest approximately $228.02 in installment payments a month over 3 years. The seller is providing a short term loan to the buyer. The seller holds legal title to the land until the loan is paid in full. After the full purchase price has been paid including interest, the seller will convey title to the property to the buyer, and record the deed with the recorder's office. If the buyer defaults on their installment payments then typically the land contract would consider this a failure to pay, and the buyer would be in breach of contract. In a failure to pay any equity earned by the buyer would return to the seller. The seller would retain all of the buyer’s payments and interest.
Land contracts are different than the typical real estate contracts, because in a land contract the seller is providing a loan to the buyer (short term seller financing). In a standard real estate contract, if there is a loan then the loan is handled by the third party lender who administers the payments after escrow closes. If a third party lender is involved then a lien (mortgage) or trust deed would be recorded on the property.
This is an easy way for a buyer to limit their risk in buying land if they don’t have the full cash amount in order to buy a property. It is also more cost effective and offers security to the seller as they will not have to foreclose on the property. We are offering land contracts on our smaller parcels, so it allows land buyers to invest in real estate with less capital and risk for tomorrow’s reward. We also think banking on your future with real estate still remains one of the best means to secure your retirement, or long term needs. With today’s low bank interest rates investing in land is a far better alternative.
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A land contract is a simple contract between a buyer and seller to purchase real property. It doesn’t even have to be land. It can also be known as an installment sale agreement. It is an agreement between a seller and buyer whereby the seller provides financing to sell the property for an agreed purchase price and the buyer repays the loan in monthly installments. It is much like a typical mortgage agreement, but there isn’t a financial institution involved and there are only two parties in this transaction. Under a land contract, the seller retains the legal title to the property, yet allowing the buyer to take possession of it other than legal ownership. As an example, if a buyer pays $9,000 for a parcel with 10% down payment of $900 and then finances $8200 at 7% interest approximately $228.02 in installment payments a month over 3 years. The seller is providing a short term loan to the buyer. The seller holds legal title to the land until the loan is paid in full. After the full purchase price has been paid including interest, the seller will convey title to the property to the buyer, and record the deed with the recorder's office. If the buyer defaults on their installment payments then typically the land contract would consider this a failure to pay, and the buyer would be in breach of contract. In a failure to pay any equity earned by the buyer would return to the seller. The seller would retain all of the buyer’s payments and interest.
Land contracts are different than the typical real estate contracts, because in a land contract the seller is providing a loan to the buyer (short term seller financing). In a standard real estate contract, if there is a loan then the loan is handled by the third party lender who administers the payments after escrow closes. If a third party lender is involved then a lien (mortgage) or trust deed would be recorded on the property.
This is an easy way for a buyer to limit their risk in buying land if they don’t have the full cash amount in order to buy a property. It is also more cost effective and offers security to the seller as they will not have to foreclose on the property. We are offering land contracts on our smaller parcels, so it allows land buyers to invest in real estate with less capital and risk for tomorrow’s reward. We also think banking on your future with real estate still remains one of the best means to secure your retirement, or long term needs. With today’s low bank interest rates investing in land is a far better alternative.
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