According to Investing Daily and other news sources First Solar lowered its sales forecast. First Solar said it now expects sales of $2.8 billion to $2.9 billion on the year, down from its previous estimate of $3.0 billion to $3.3 billion. The company also said it will lay off about 100 workers, or roughly 1.5% of its workforce.
There stock was at a high in 2008 at 300 a share to now under $40 a share. Other stock watchers have indicated that the Chinese are making less expensive solar panel chips, so First Solar intends to get out of the roof panel business part of solar. The Chinese production is highly automated and the factories are subsidized.
Other solar companies have gone bankrupt such as Fremont, Ca. Solyndra and Massachusetts based Evergreen Solar.
First Solar’s press release, Mike Ahearn, the company’s chairman and interim CEO, alluded to subsidy cuts when he said the company was recalibrating its business “to focus on building and serving sustainable markets rather than pursuing subsidized markets.”
First Solar is not in the same situation as Solyndra as Solyndra was backed by US Government loans. Evergreen Solar situation is also different. Evergreen was selling primarily solar panels. Solar panel prices dropped worldwide and Evergreen was losing money on every panel it made. That is a reason why First Solar is getting out of the panel business.
We will be keeping tabs on First Solar’s progress and it has become a pivotal part of the landscape in Antelope Valley.
Monday, January 16, 2012
Tuesday, January 3, 2012
The Train, the train is Coming to the Central Valley by Fall 2013
The state has secured $3.9 billion in federal money, and California taxpayers have approved bonds for the rest. Construction is actually set to start by late next year on the first leg between Bakersfield and Fresno at an estimated cost of $5.8 billion. If construction begins then the project will likely be the largest in the Union with California and the Federal government on the hook for billions of dollars in future costs.
It is not likely to go smoothly though. The estimated costs have essentially doubled with right of way issues as the train will move into urban areas. Also the state and federal governments are currently running deficits and the private sector is not all in, so finding future funds could get murky. It also looks like California voters are a little flakey. Recent polls showing voters would not have voted for the train if the vote was today.
Democrats have indicated that clogged highways are smog choking their districts, so a train system is necessary. Republicans indicate that Amtrak is not in full use, so a high priced fast train is not a solution. A big problem maybe in Palo Alto, Ca. where democrats have riled against new rail lines passing through neighborhoods.
There is indication that at least another $20 billion will be needed, so the alternative to the lack of funds will be that if the speed train fails then Amtrak will run along the new tracks. The initial stage is the Fresno to Bakersfield route and the next stage would link the San Joaquin Valley to San Jose or Bakersfield to San Fernando (Los Angeles County
The State will need funds past the Fresno to Bakersfield plan though, but despite the backlash the Cal-High-Speed Rail Authority is moving forward. They have the initial money and they plan on laying the tracks. The current administration is behind the effort, and the Rail Authority feels private money will be invested once the project has started. If you own land at or near the Fresno to Bakersfield route then you stand to profit. Buy land and wait, and buy land in the path of development still holds true.
It is not likely to go smoothly though. The estimated costs have essentially doubled with right of way issues as the train will move into urban areas. Also the state and federal governments are currently running deficits and the private sector is not all in, so finding future funds could get murky. It also looks like California voters are a little flakey. Recent polls showing voters would not have voted for the train if the vote was today.
Democrats have indicated that clogged highways are smog choking their districts, so a train system is necessary. Republicans indicate that Amtrak is not in full use, so a high priced fast train is not a solution. A big problem maybe in Palo Alto, Ca. where democrats have riled against new rail lines passing through neighborhoods.
There is indication that at least another $20 billion will be needed, so the alternative to the lack of funds will be that if the speed train fails then Amtrak will run along the new tracks. The initial stage is the Fresno to Bakersfield route and the next stage would link the San Joaquin Valley to San Jose or Bakersfield to San Fernando (Los Angeles County
The State will need funds past the Fresno to Bakersfield plan though, but despite the backlash the Cal-High-Speed Rail Authority is moving forward. They have the initial money and they plan on laying the tracks. The current administration is behind the effort, and the Rail Authority feels private money will be invested once the project has started. If you own land at or near the Fresno to Bakersfield route then you stand to profit. Buy land and wait, and buy land in the path of development still holds true.
Tuesday, December 13, 2011
Failed Exchanges – Safe Harbor and Options
We found information regarding 1031 exchanges and tax obligations on an exchange between two calendar years. Typically we have found that the Internal Revenue Service ("IRS") will not challenge or disqualify a 1031 Exchange transaction as long as the investor has followed the Safe Harbor provisions or guidelines provided by the Treasury Regulations. What this means is to use a qualified 1031 intermediary who will hold the sales proceeds until a like kind property is located, so the sale proceeds never actually reached your account. If you do a 1031 by yourself and receive the funds from the sold property then you still may have an option on when to account for the taxes.
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If an exchange fails, funds are returned to the investor and taxes are owed. But if a failed exchange runs over two different calendar years, investors may have an option on when to pay taxes. Let’s say the sold property closes escrow on December 12, 2011 and as of the 45th day of the exchange, the investor has not found a replacement property so the the exchange is cancelled. The sale proceeds from the sold property must then be returned to the investor in January 2012 on the 46th day of the exchange. The investor has the option to recognize the tax liability either in 2011 or 2012. The investor sold the property in 2011, but they had the right to the benefit in 2012. The investor should contact their accountant for the best option, but this scenario does provide such an option.
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If an exchange fails, funds are returned to the investor and taxes are owed. But if a failed exchange runs over two different calendar years, investors may have an option on when to pay taxes. Let’s say the sold property closes escrow on December 12, 2011 and as of the 45th day of the exchange, the investor has not found a replacement property so the the exchange is cancelled. The sale proceeds from the sold property must then be returned to the investor in January 2012 on the 46th day of the exchange. The investor has the option to recognize the tax liability either in 2011 or 2012. The investor sold the property in 2011, but they had the right to the benefit in 2012. The investor should contact their accountant for the best option, but this scenario does provide such an option.
Tuesday, November 15, 2011
The Southern California Water Solution Maybe in the Desert, Which Could Increase the Price of your Investment Land
>The original article was reported by Noaki Schwartz and Garance Burke of the Associated Press.
In the Mojave Desert east of Needles, Ca. in San Bernardino County is a place called Cadiz, Ca. It seems more like a location for a Clint Eastwood western as it is a desolate dry hot desert, but there maybe an oasis of water here just south of route 66. According to reports this oasis has tall green trees with lemons, and grape vines awaiting harvest.
A private water company indicates beneath the 35,000 acres Cadiz ranch is an aquifer with enough water for 400,000 homes. They indicate that this water comes originally from springs above in the Desert Mountains and settles in Cadiz and eventually resurfaces in dusty lake beds dozens of miles away where it evaporates in the hot desert.
A proposal to tap this water supply was rejected several years ago, but their new plan is to drill thirty four wells, and then pipe the water along the railroad line that currently exits.
Environmentalists say that this will impact the desert tortoise, bighorn sheep, Joshua trees and other plants and animals. Conversationalists say the aquifer is not as large as the company indicates, and even others say removing so much water annually will not allow the aquifer to recharge itself with limited annual rainfall. The debate will continue, but to us if the water is simply evaporating then a balance between man and nature maybe able to be made. Former Gov. Arnold Schwarzenegger has called the proposal "a path-breaking, new, sustainable groundwater conservation and storage project," when the prior proposal was made years ago.
According to the Associated Press, since 2010, the Santa Margarita Water District, Three Valleys Water District, Golden State Water Company, Suburban Water Systems and Jurupa Community Services District entered into agreements with Cadiz to receive water. These agencies supply water to parts of Los Angeles County, Orange County, Riverside County and eastern San Gabriel Valley.
Now 400,000 homes will only serve a fraction of the water needs of Southern California, but it is enough to serve Lancaster and Palmdale, Ca. or Victorville’s current populations. We will see if the recent proposal will gather enough steam to flow water down to the Antelope Valley and onto farmland and homes instead of evaporating into dry air. Certainly, a future water solution will allow the High Desert areas to grow much like Arizona has.
In the Mojave Desert east of Needles, Ca. in San Bernardino County is a place called Cadiz, Ca. It seems more like a location for a Clint Eastwood western as it is a desolate dry hot desert, but there maybe an oasis of water here just south of route 66. According to reports this oasis has tall green trees with lemons, and grape vines awaiting harvest.
A private water company indicates beneath the 35,000 acres Cadiz ranch is an aquifer with enough water for 400,000 homes. They indicate that this water comes originally from springs above in the Desert Mountains and settles in Cadiz and eventually resurfaces in dusty lake beds dozens of miles away where it evaporates in the hot desert.
A proposal to tap this water supply was rejected several years ago, but their new plan is to drill thirty four wells, and then pipe the water along the railroad line that currently exits.
Environmentalists say that this will impact the desert tortoise, bighorn sheep, Joshua trees and other plants and animals. Conversationalists say the aquifer is not as large as the company indicates, and even others say removing so much water annually will not allow the aquifer to recharge itself with limited annual rainfall. The debate will continue, but to us if the water is simply evaporating then a balance between man and nature maybe able to be made. Former Gov. Arnold Schwarzenegger has called the proposal "a path-breaking, new, sustainable groundwater conservation and storage project," when the prior proposal was made years ago.
According to the Associated Press, since 2010, the Santa Margarita Water District, Three Valleys Water District, Golden State Water Company, Suburban Water Systems and Jurupa Community Services District entered into agreements with Cadiz to receive water. These agencies supply water to parts of Los Angeles County, Orange County, Riverside County and eastern San Gabriel Valley.
Now 400,000 homes will only serve a fraction of the water needs of Southern California, but it is enough to serve Lancaster and Palmdale, Ca. or Victorville’s current populations. We will see if the recent proposal will gather enough steam to flow water down to the Antelope Valley and onto farmland and homes instead of evaporating into dry air. Certainly, a future water solution will allow the High Desert areas to grow much like Arizona has.
Tuesday, November 1, 2011
General Probate Procedure for Real Property in California
An estate of less than $100,000 which doesn’t include real property (real estate) can be done as a mini-probate. According to attorney’s we are familiar with, it simply needs an affidavit of death, and a declaration with a description of the assets.
A Probate proceeding is necessary whenever a decease person has left assets which have not been placed in a trust or a joint tenancy before death. An estate value of less than $100,000 doesn’t have to go through a full probate proceeding. Also if the real estate is under $100,000 there is a special "small estates" procedure that heirs can use under California probate code section 13151. A full probate can take seven months or more and use up capital in legal fees, and court costs. A small probate would take two months and can be done for $1500 to $2500 with most attorneys in California. It can be a little different when assets include real estate.
In Real Estate Probate, If the property is appraised as having a value of less than $20,000 it can be taken by affidavit, which can even be done without and attorney. However, as recommended by the other attorneys, if the estate is worth less than $100,000 and the real property is worth more than $20,000, you will need to petition the court. If you choose to tackle a probate on your own in order to save the$1500 to $2500 legal and court fees then you may need to get into some reading such as How to Probate an Estate in California by Julia Nissley. It does come recommended via online book stores. Typically asking questions of court clerks you likely will get a reply of “I can’t tell you, I am not the Judge”. You also will not be able to see the Judge to ask your question either.
You can likely save yourself anguish and heartache by seeking the advice of an attorney, so you essentially get a third party to handle your family affairs. We do recommend that you handle the probate as soon as possible. If you wait until you get an offer on your property it will takes months to complete the probate and the buyer may move onto other opportunities.
A Probate proceeding is necessary whenever a decease person has left assets which have not been placed in a trust or a joint tenancy before death. An estate value of less than $100,000 doesn’t have to go through a full probate proceeding. Also if the real estate is under $100,000 there is a special "small estates" procedure that heirs can use under California probate code section 13151. A full probate can take seven months or more and use up capital in legal fees, and court costs. A small probate would take two months and can be done for $1500 to $2500 with most attorneys in California. It can be a little different when assets include real estate.
In Real Estate Probate, If the property is appraised as having a value of less than $20,000 it can be taken by affidavit, which can even be done without and attorney. However, as recommended by the other attorneys, if the estate is worth less than $100,000 and the real property is worth more than $20,000, you will need to petition the court. If you choose to tackle a probate on your own in order to save the$1500 to $2500 legal and court fees then you may need to get into some reading such as How to Probate an Estate in California by Julia Nissley. It does come recommended via online book stores. Typically asking questions of court clerks you likely will get a reply of “I can’t tell you, I am not the Judge”. You also will not be able to see the Judge to ask your question either.
You can likely save yourself anguish and heartache by seeking the advice of an attorney, so you essentially get a third party to handle your family affairs. We do recommend that you handle the probate as soon as possible. If you wait until you get an offer on your property it will takes months to complete the probate and the buyer may move onto other opportunities.
Wednesday, October 12, 2011
Reverse 1031 Exchange: To Buy Before you Sell
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.
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.
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.
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