Showing posts with label california land. Show all posts
Showing posts with label california land. Show all posts
Thursday, April 5, 2018
Is Marijuana Saving Adelanto?
Adelanto is in San Bernardino County just outside of Victorville, Ca. It has lost the Georgia Air Force Base in 92 and has not seen good times since. Recently the down was $2.6 million in the hole and they have elected to become a marijuana cultivation zone which is put them in the in the black or should we say green. The population according to the census is 33,000 with 1% in prison. It has been known as a prison city since it has a privately run detention facility as big employer. The city was founded about a 100 years ago by the inventor of the toaster and iron. The current population is about 50% Hispanic and 30% African-American, but almost half live below the poverty line. Around its 100 anniversary it joined Desert Hot Springs in allowing medical marijuana on an industrial scale.
Land prices in the cultivation zone have sky rocketed 1000% from $300k to $3 million for parcels in the allowed area. The city has licensed 40 new facilities and it now rests its hopes on a weed. Currently eight states have legalized recreational marijuana and twenty nine approve medical use. Adelanto and other struggling cities in California are banking on a new “green wave”, which is a Federal crime. We will see if this sticks long term.
Industrial hemp may have been a better first start as it is clearly a more green for the environment, while marijuana is a smoking drug with many issues that surround it.
Thursday, April 12, 2012
Mitigation Banking Has Been on the Rise in the Antelope Valley Just as California Department of Fish and Game Temporarily Halts Mitigation Program
As of March 14, 2012, the California Department of Fish and Game (DFG) announced that budget cuts have temporarily stopped the agency’s ability to review and approve new mitigation banking proposals statewide. The State budget cuts have created a backlog and the Department has slowed the process. DFG did acknowledge in their press release and website that mitigation banking is an important environmental tool and hopes the pause in mitigation land banking activities is short-lived. They will sign and complete bank agreements that are close to being completed, yet they didn’t indicate what it considers “close.” DFG will not, however, be approving new banking programs and stated it may not have the capacity to process major amendments to existing agreements.
This creates a great problem for smaller and new mitigation banking firms, which lack the capital to process and buy longer term. Some of the smaller mitigation bankers may have spent larger sums of capital on areas where the environmental benefits are not in delicate ecosystems for endangered plants and animals. These land bankers were buying larger parcels of land in the hopes that developers will buy the land to fulfill the environmentalist concerns. These smaller bankers will have to sell some of their land now to more deep pocket competitors or investors to stay afloat.
The mitigation business is similar to land banking business, where you buy vacant land and hold the land for buyers who need the land for later development. In mitigation banking the future buyers are developers who develop near cities growing areas and must buy “credits” to satisfy environmentalist and the state in order to develop their land today. An example would be a Mall developer, a solar or wind farm will have to buy large swaths of land and donate it to the state to preserve the land forever. Most of these parcels are in endangered animal and plant habitats like that of the desert tortoise, ground squirrel, and Joshua tree woodlands in Southern California.
We at vacantlanddeals.com have been working with several mitigation bankers who are buying land for current developers, or buying land now to mitigate bank it for future developer plans. We have hundreds of land owners on our list of potential sellers who can benefit from this mitigation wave. Contact us and we can help introduce your land to the larger mitigation bankers. Lancaster and Palmdale areas of Antelope Valley, and San Bernardino County are large target areas for land banking and mitigation banking needs. Some of the larger mitigation bankers can wait until the DFG completes its backlog or hires more employees to handle the traffic.
This creates a great problem for smaller and new mitigation banking firms, which lack the capital to process and buy longer term. Some of the smaller mitigation bankers may have spent larger sums of capital on areas where the environmental benefits are not in delicate ecosystems for endangered plants and animals. These land bankers were buying larger parcels of land in the hopes that developers will buy the land to fulfill the environmentalist concerns. These smaller bankers will have to sell some of their land now to more deep pocket competitors or investors to stay afloat.
The mitigation business is similar to land banking business, where you buy vacant land and hold the land for buyers who need the land for later development. In mitigation banking the future buyers are developers who develop near cities growing areas and must buy “credits” to satisfy environmentalist and the state in order to develop their land today. An example would be a Mall developer, a solar or wind farm will have to buy large swaths of land and donate it to the state to preserve the land forever. Most of these parcels are in endangered animal and plant habitats like that of the desert tortoise, ground squirrel, and Joshua tree woodlands in Southern California.
We at vacantlanddeals.com have been working with several mitigation bankers who are buying land for current developers, or buying land now to mitigate bank it for future developer plans. We have hundreds of land owners on our list of potential sellers who can benefit from this mitigation wave. Contact us and we can help introduce your land to the larger mitigation bankers. Lancaster and Palmdale areas of Antelope Valley, and San Bernardino County are large target areas for land banking and mitigation banking needs. Some of the larger mitigation bankers can wait until the DFG completes its backlog or hires more employees to handle the traffic.
Monday, April 2, 2012
Wind Energy Projects have been a Challenge for Developers in Antelope Valley, Ca.
Many Antelope Valley residents are not excited over green energy projects underway for both Wind and Solar Energy. Many residents indicate that Wind Turbines would ruin the area's ambiance and harm the environment and the landscape will be changed forever.
The Antelope Valley energy companies want abundant lower priced land and lots of sun and wind. The sun scorches this landscape for at least nine out of 12 months and the wind gusts are reliable and steady.
Two solar projects have already been approved for unincorporated Los Angeles County. Eight other renewable energy projects have been proposed. The Wind Energy players NextEra Energy Resources and Element Power US want to build utility-scale wind turbine facilities that would tower hundreds of feet high.
According to the Los Angeles Times in a recent article the project manager for Element Power's proposed Wildflower Green Energy Farm. "Between 4 p.m. and 7 p.m. the winds reach their highest peak, and it falls in line when the electrical grid has highest demand."
Element wants to use 4,000 acres of private land next to the poppy reserve for some 50 wind turbines almost 500 feet high. Each turbine would produce enough electricity to power up to 2,000 homes.
NextEra is proposing 90 turbines on about 7,000 acres in the northwestern Antelope Valley. This area has been identified by the California Energy Commission as suitable for large-scale wind and solar power developments. This is over an above Alta Wind Energies mega project of up to 1000 turbines in Tehachapi, Ca.
Resident fears once one large turbine project is approved then many more will be proposed. Solar panels are four to six feet above ground while the turbines will be hundreds of feet high. Home owners in Antelope Acres and Kings Canyon area argue that erecting wind turbines near homes would spoil views. They are also noisy and can devalue home prices. There are issues with large blades sparking fires, killing of birds and damaging wildlife habitat.
Element power has indicated that they have done habitat studies and they feel wildlife will not be adversely affected. They will also dedicate 320 acres for permanent conservation. Next Era also feels the turbines will have a minimal effect on wildlife.
We have helped introduce a number of property owners to solar and wind developers and consultants. Contact vacantlanddeals.com if you have property that maybe of interest to alternative energy developers.
The Antelope Valley energy companies want abundant lower priced land and lots of sun and wind. The sun scorches this landscape for at least nine out of 12 months and the wind gusts are reliable and steady.
Two solar projects have already been approved for unincorporated Los Angeles County. Eight other renewable energy projects have been proposed. The Wind Energy players NextEra Energy Resources and Element Power US want to build utility-scale wind turbine facilities that would tower hundreds of feet high.
According to the Los Angeles Times in a recent article the project manager for Element Power's proposed Wildflower Green Energy Farm. "Between 4 p.m. and 7 p.m. the winds reach their highest peak, and it falls in line when the electrical grid has highest demand."
Element wants to use 4,000 acres of private land next to the poppy reserve for some 50 wind turbines almost 500 feet high. Each turbine would produce enough electricity to power up to 2,000 homes.
NextEra is proposing 90 turbines on about 7,000 acres in the northwestern Antelope Valley. This area has been identified by the California Energy Commission as suitable for large-scale wind and solar power developments. This is over an above Alta Wind Energies mega project of up to 1000 turbines in Tehachapi, Ca.
Resident fears once one large turbine project is approved then many more will be proposed. Solar panels are four to six feet above ground while the turbines will be hundreds of feet high. Home owners in Antelope Acres and Kings Canyon area argue that erecting wind turbines near homes would spoil views. They are also noisy and can devalue home prices. There are issues with large blades sparking fires, killing of birds and damaging wildlife habitat.
Element power has indicated that they have done habitat studies and they feel wildlife will not be adversely affected. They will also dedicate 320 acres for permanent conservation. Next Era also feels the turbines will have a minimal effect on wildlife.
We have helped introduce a number of property owners to solar and wind developers and consultants. Contact vacantlanddeals.com if you have property that maybe of interest to alternative energy developers.
Tuesday, March 13, 2012
California Assembly Bill 2474 Targets Rural Property Owners Disproportionately
Governor Brown this year has waged a campaign to charge rural residents for the costs of fire protection since an increasing number have moved into wildland areas. And state fire officials say the greater the number of homes in rural areas, the higher the cost of fighting fires.
Assembly Bill 2474 (Chesbro) was introduced in the California Legislature on February 24, 2012 to address some of the concerns facing Californians who own real property in the state fire responsibility areas (SRA), and who will start seeing bills (in the amount of $150 per habitable structure for fire prevention fees) show up in their mailboxes this June.
AB 2474 will require the State Board of Forestry and Fire Protection to take into consideration: (1) any amounts that an owner of a structure in a SRA already pays for local fire prevention services, and (2) the severity of the fire zone where the structure is located. If this bill is signed into law it should comfort homeowners who already actively engage in fire prevention measures on their own, and those who own property in SRA zones where the fire severity rating is lower.
The current existing law requires the Board to adopt emergency regulations to establish a fire prevention fee in an amount not to exceed $150 to be charged on each structure on a parcel that is within a SRA. The Board is required to adjust the fee annually using prescribed methods. The fees (tax) will provide $85 million to State coffers. This is another way to slowly increase the cost of living to homeowners and land owners. Rural property owners have less support and clout than urban property owners, and they call it a fee instead of a tax to reduce its attention. Nevada County Supervisor Hank Weston was quoted as calling the $150 charge "a farce to fill a budget gap created by the state."
Assembly Bill 2474 (Chesbro) was introduced in the California Legislature on February 24, 2012 to address some of the concerns facing Californians who own real property in the state fire responsibility areas (SRA), and who will start seeing bills (in the amount of $150 per habitable structure for fire prevention fees) show up in their mailboxes this June.
AB 2474 will require the State Board of Forestry and Fire Protection to take into consideration: (1) any amounts that an owner of a structure in a SRA already pays for local fire prevention services, and (2) the severity of the fire zone where the structure is located. If this bill is signed into law it should comfort homeowners who already actively engage in fire prevention measures on their own, and those who own property in SRA zones where the fire severity rating is lower.
The current existing law requires the Board to adopt emergency regulations to establish a fire prevention fee in an amount not to exceed $150 to be charged on each structure on a parcel that is within a SRA. The Board is required to adjust the fee annually using prescribed methods. The fees (tax) will provide $85 million to State coffers. This is another way to slowly increase the cost of living to homeowners and land owners. Rural property owners have less support and clout than urban property owners, and they call it a fee instead of a tax to reduce its attention. Nevada County Supervisor Hank Weston was quoted as calling the $150 charge "a farce to fill a budget gap created by the state."
Wednesday, February 15, 2012
Adverse Possession of Lancaster, Palmdale California Land
We ran across this issue as we were trying to sell a property where the owner lived overseas outside the Antelope Valley area. We were attempting to drive by the property and we found an illegal dwelling and a man with a gun defending the property. Now this doesn’t occur everyday, but in parts of the Antelope Valley surrounding the cities of Lancaster and Palmdale, Ca. there is a lot of vacant land with little access or only a dirt road. Now the squatter was on the property but had taken physical possession. He appeared to have been living on the property for some time and making a home of his own, but didn’t complete all the factors of adversely possessing the property. You can acquire a property by adverse possession including a house or vacant land in California, but the action will take at least five years.
The process to make a claim of adverse possession in California by a claimant (the party seeking to gain title to the property) they must successfully demonstrate the following. 1. Possession under a claim of right or color of title, which means ownership of property by a person in possession, without being regular( so not the documented registered owner), Color of title is where the claimed owner has some piece of paper claiming to transfer title to him or herself. This can be done writing a document saying you are the owner. 2. Actual, open, notorious occupation (protected by a substantial enclosure such as a fence, barrier or wall and usually cultivated or improved. 3. Claimant is adverse and in hostile possession. 4. Continuous possession for a period of five years. 5. Payment of all taxes assessed against the property during the five-year period. Most people think you just have to pay the taxes, but in order to fully take the property and defend it in court then you need to have all of the above.
It could be easier to acquire this type of property at a tax sale then doing all of the above unless it is a house where the time and value is more in your favor. Adverse possession of tens or hundreds of acres of land could be more difficult to fence if you are challenged in court. You may have to do more research to find out what is open and notorious in adverse possession of vacant land. We have ran across potential properties that can be taken by adverse possession as the property owner has given up and no longer intends to pay the property taxes, so the other parts of adverse possession can be undertaken.
The process to make a claim of adverse possession in California by a claimant (the party seeking to gain title to the property) they must successfully demonstrate the following. 1. Possession under a claim of right or color of title, which means ownership of property by a person in possession, without being regular( so not the documented registered owner), Color of title is where the claimed owner has some piece of paper claiming to transfer title to him or herself. This can be done writing a document saying you are the owner. 2. Actual, open, notorious occupation (protected by a substantial enclosure such as a fence, barrier or wall and usually cultivated or improved. 3. Claimant is adverse and in hostile possession. 4. Continuous possession for a period of five years. 5. Payment of all taxes assessed against the property during the five-year period. Most people think you just have to pay the taxes, but in order to fully take the property and defend it in court then you need to have all of the above.
It could be easier to acquire this type of property at a tax sale then doing all of the above unless it is a house where the time and value is more in your favor. Adverse possession of tens or hundreds of acres of land could be more difficult to fence if you are challenged in court. You may have to do more research to find out what is open and notorious in adverse possession of vacant land. We have ran across potential properties that can be taken by adverse possession as the property owner has given up and no longer intends to pay the property taxes, so the other parts of adverse possession can be undertaken.
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 Bernardo 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 Bernardo 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 an attorney. However, as recommended by 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 will likely get a reply of “I can’t tell you, I am not the Judge”. Also, forget about seeing the judge.
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 an attorney. However, as recommended by 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 will likely get a reply of “I can’t tell you, I am not the Judge”. Also, forget about seeing the judge.
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.
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.
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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Tuesday, January 18, 2011
Tips on Buying California Investment Property, Undeveloped or Pre-Developed Land?
Generally there is only developed land which has some or full development on the parcel, or undeveloped land which would be considered just raw land with limited or no access but with future potential development. Much of the available raw land in the US is agricultural land or just vacant unused land. There is also an in between designation we identify as pre-developed land. The main distinction between Un and Pre developed land is the proximity to current development and the zoning of the parcel, but both are Land Banking options. Undeveloped and Pre-developed land offers the potential of both risk and reward whether it is zoned rural residential agricultural land, or typically better zoned pre-developed land which could be zoned urban residential, industrial or even commercial land use. Undeveloped land is generally less expensive to purchase than pre or developed land. An abundance of undeveloped land in Los Angeles County is designated agricultural use as large amounts of land is needed for farming, but usually this land type also allows limited rural residential uses. Don’t be afraid of the agricultural zoning as much of current developed land was previously agricultural land. Many of today’s farmers are now real estate investors as urban growth has encroached and absorbed their land.
Many parts of the City of Palmdale and Lancaster Ca. include vacant land parcels within the city limits or just outside, but at a distance from development. Much of this pre-developed land is rural residential, industrial (light or heavy) and a lot of multi-family residential zoning. The lowest price per acre would be the rural residential where an owner would be allowed to build one home per 2.5 acres. This type of land is cheaper acreage but high reward as the zoning can change to a more favorable zoning over time as city planning designates. The higher price per acre available vacant parcels would be multi-residential R-7000 or R-10,000 allowing one dwelling per 7000 or 10,000 square feet. You would have to pay a much higher price for this type of parcel zoning, but the return on investment can be in the thousands of percentages since housing developers will pay top dollar for needed property if you held the parcel longer term.
You can look at buying either undeveloped or pre-develop land based on your capital and time horizon. A low capital investment and longer time horizon which may be typical for a 401k, or IRA type of investment would best fit an undeveloped parcel. For example an investor could purchased a 10 acre parcel in LA County for $3000/acre of rural residential and agricultural land zoned and hold it for fifteen to twenty years. It is an ideal buy and hold opportunity where you should target a 200% return in twenty years or less. This would be a buy it and don’t worry about it investment. Undeveloped land should have the higher percentage increase of the three examples of land over time as it is easier to double you money on a $3000/acre investment than a $50,000 per acre investment.
Now with pre-developed land we have a high profit potential and a lower risk property with usually a higher capital investment and shorter time horizon target. Potentially it has all of the profit potential built in. Ideally, pre-developed land could have a better return on investment based on its zoning. Pre-developed land would be land directly in the path of growth with targeted zoning and in or near current city limits. A past example of pre-developed land would be the San Fernando Valley where decades ago one would pay $10,000 per acre for a vacant land parcel just outside current development. Today that type of parcel would be hundreds of thousands of dollars per acre over several decades. But you don’t have to sell the parcel after holding for decades as the parcel should be profitable in less than ten years. We look at pre-developed land as a more favorable profit potential in a shorter time frame as it is the land that has been allocated for near term future development for the cities growth. The urban development alone will drive the price increase of this type of property.
We have both types of properties in our inventory, which fit undeveloped and pre-develop scenarios in Northern Los Angeles County cities of Palmdale and Lancaster Ca.
Many parts of the City of Palmdale and Lancaster Ca. include vacant land parcels within the city limits or just outside, but at a distance from development. Much of this pre-developed land is rural residential, industrial (light or heavy) and a lot of multi-family residential zoning. The lowest price per acre would be the rural residential where an owner would be allowed to build one home per 2.5 acres. This type of land is cheaper acreage but high reward as the zoning can change to a more favorable zoning over time as city planning designates. The higher price per acre available vacant parcels would be multi-residential R-7000 or R-10,000 allowing one dwelling per 7000 or 10,000 square feet. You would have to pay a much higher price for this type of parcel zoning, but the return on investment can be in the thousands of percentages since housing developers will pay top dollar for needed property if you held the parcel longer term.
You can look at buying either undeveloped or pre-develop land based on your capital and time horizon. A low capital investment and longer time horizon which may be typical for a 401k, or IRA type of investment would best fit an undeveloped parcel. For example an investor could purchased a 10 acre parcel in LA County for $3000/acre of rural residential and agricultural land zoned and hold it for fifteen to twenty years. It is an ideal buy and hold opportunity where you should target a 200% return in twenty years or less. This would be a buy it and don’t worry about it investment. Undeveloped land should have the higher percentage increase of the three examples of land over time as it is easier to double you money on a $3000/acre investment than a $50,000 per acre investment.
Now with pre-developed land we have a high profit potential and a lower risk property with usually a higher capital investment and shorter time horizon target. Potentially it has all of the profit potential built in. Ideally, pre-developed land could have a better return on investment based on its zoning. Pre-developed land would be land directly in the path of growth with targeted zoning and in or near current city limits. A past example of pre-developed land would be the San Fernando Valley where decades ago one would pay $10,000 per acre for a vacant land parcel just outside current development. Today that type of parcel would be hundreds of thousands of dollars per acre over several decades. But you don’t have to sell the parcel after holding for decades as the parcel should be profitable in less than ten years. We look at pre-developed land as a more favorable profit potential in a shorter time frame as it is the land that has been allocated for near term future development for the cities growth. The urban development alone will drive the price increase of this type of property.
We have both types of properties in our inventory, which fit undeveloped and pre-develop scenarios in Northern Los Angeles County cities of Palmdale and Lancaster Ca.
Wednesday, March 17, 2010
The City of Lancaster California is Proposing Land Development Changes to Establish Three Separate Mixed Use Zones
The City of Lancaster, Ca. Planning Department is forwarding new recommendations in conjunction with their 2030 General Plan. The focal point of their recent meeting is to draft new zoning changes for the city, and to incorporate several mixed use proposals. The City of Lancaster, Ca. currently doesn’t have mixed use development, while cohabitating residential and commercial zoning has been implemented in numerous cities across America. A typical mixed use would be street level retail shops on main roads with single family or multiple family dwellings above. Most of Lancaster Ca. has been single family dwellings in proximity to commercial buildings. It has been a typical small town growing without the future planning of the needs of the community. It’s a sort of plan as you grow, instead of planning growth. The mixed use proposal will make Lancaster look more like Orange County’s growth and development, which has been the new normal.
The three proposed mixed use zonings will be Mixed Use-Neighborhood (MU-N), Mixed Use-Commercial (MU-C), and Mixed Use-Employment (MU-E). The mixed use neighborhood zone would incorporate residential housing in close proximity to commercial, offices and services. It would include multi-family housing, such as apartments and condominiums, small-lot single-family subdivisions, and smaller commercial and office space. The streets patterns would allow better traffic flow, and it would offer pedestrian connections, community space with trails and neighborhood parks.
The mixed use commercial would integrate residential and commercial space together. The commercial space would most likely be along major artery streets, with modern landscaping. It will also have multi-storied buildings which must contribute to the areas surroundings. The third zoning change proposal is mixed use employment. This zone is intended to provide an area for non-retail employment in close proximity to residential housing. It would likely include multi-family residential dwellings with office professional, business parks, and some light industrial uses. This zone is not intended for heavier industrial uses.
The two major target areas for this new zoning will be south of Ave H from 20th to 40th Street West, and also along Sierra Hwy and Division south of Ave I. As the city grows so does the opportunity for land investors. We think this is a very positive step toward the future for land buyers in Antelope Valley. Most of these areas are currently vacant land parcels, but it will be a future location for a developer. Many large chain stores wish to locate their business near residential neighborhoods as it has been part of their business model. Land prices today are far less then they were just three years ago, so this is a good time to look at vacant land deals in Antelope Valley.
The three proposed mixed use zonings will be Mixed Use-Neighborhood (MU-N), Mixed Use-Commercial (MU-C), and Mixed Use-Employment (MU-E). The mixed use neighborhood zone would incorporate residential housing in close proximity to commercial, offices and services. It would include multi-family housing, such as apartments and condominiums, small-lot single-family subdivisions, and smaller commercial and office space. The streets patterns would allow better traffic flow, and it would offer pedestrian connections, community space with trails and neighborhood parks.
The mixed use commercial would integrate residential and commercial space together. The commercial space would most likely be along major artery streets, with modern landscaping. It will also have multi-storied buildings which must contribute to the areas surroundings. The third zoning change proposal is mixed use employment. This zone is intended to provide an area for non-retail employment in close proximity to residential housing. It would likely include multi-family residential dwellings with office professional, business parks, and some light industrial uses. This zone is not intended for heavier industrial uses.
The two major target areas for this new zoning will be south of Ave H from 20th to 40th Street West, and also along Sierra Hwy and Division south of Ave I. As the city grows so does the opportunity for land investors. We think this is a very positive step toward the future for land buyers in Antelope Valley. Most of these areas are currently vacant land parcels, but it will be a future location for a developer. Many large chain stores wish to locate their business near residential neighborhoods as it has been part of their business model. Land prices today are far less then they were just three years ago, so this is a good time to look at vacant land deals in Antelope Valley.
Sunday, September 6, 2009
Rural Land as an Alternative Investment in the New Green Energy Economy
There has been a number of development proposals for the vacant land near the Antelope Valley Poppy Reserve. In 2005 there was a proposal from Scottish Power to develop Wind Energy, but the neighborhood disliked the idea of large Wind Towers on the horizon. That enterprise appears to be long dead. In addition, there has been a proposal working its way through LA County Planning Commission for a NASCAR Style Race Track at 150th Street West and Ave D. The neighbors have been fighting that proposal as well due to noise and other issues, but it has been the hottest ticket on the west side until now.
A new plan is shedding light on the poppy reserve. Nextlight Renewable Power of San Francisco is planning a solar sight called AV Solar Ranch One. This proposed development is targeted for 170th West at Ave D. The company uses photovoltaic panels which turn sunlight into electricity. They operate on a track so the panels move with the sun, and the energy produced will connect to Southern California Edison. This consigns with California law which mandates up to 33% of the States Energy to be from alternative sources. Edison is already expanding their power-lines that run through the region, and the proposal appears to be on track with residents as the Antelope Acres Town Council unanimously approved the plan. Nextlight’s news release targets the environment impact studies to be approved by April of next year. They hope for construction to begin by October of 2010 and energy production by 2011. This project will certainly change the landscape of the area, which has been primarily vacant unused land. It shouldn’t affect the poppy reserve though, since the site is north of Fairmount Butte. Also, it is not part of the counties ecological reserve where Joshua Trees and other plant and animal life is protected.
At least two solar energy companies are now taking advantage of the suns consistent output in the Antelope Valley, and the availability of low priced land.We have been telling our clients and prospective investors that they need to buy land near a large metropolitan area in the path of growth,Northern Los Angeles County certainly fits that model. The proposed solar development and the continued focus of the State and Federal governments to support alternative energy sources will create a new economy. Historically, new economies have taken us out of recessions, like the recent Dotcom and Real Estate booms which both eventually went bust. The new “Green Energy Economy” looks like it will be the next boom but with lasting implications. It will change the way we use energy and resources, and the Obama Administration is intent on its implementation with Cap and Trade regulation. The green boom ground zero is in the Antelope Valley, so stay tuned for future developments.
A new plan is shedding light on the poppy reserve. Nextlight Renewable Power of San Francisco is planning a solar sight called AV Solar Ranch One. This proposed development is targeted for 170th West at Ave D. The company uses photovoltaic panels which turn sunlight into electricity. They operate on a track so the panels move with the sun, and the energy produced will connect to Southern California Edison. This consigns with California law which mandates up to 33% of the States Energy to be from alternative sources. Edison is already expanding their power-lines that run through the region, and the proposal appears to be on track with residents as the Antelope Acres Town Council unanimously approved the plan. Nextlight’s news release targets the environment impact studies to be approved by April of next year. They hope for construction to begin by October of 2010 and energy production by 2011. This project will certainly change the landscape of the area, which has been primarily vacant unused land. It shouldn’t affect the poppy reserve though, since the site is north of Fairmount Butte. Also, it is not part of the counties ecological reserve where Joshua Trees and other plant and animal life is protected.
At least two solar energy companies are now taking advantage of the suns consistent output in the Antelope Valley, and the availability of low priced land.We have been telling our clients and prospective investors that they need to buy land near a large metropolitan area in the path of growth,Northern Los Angeles County certainly fits that model. The proposed solar development and the continued focus of the State and Federal governments to support alternative energy sources will create a new economy. Historically, new economies have taken us out of recessions, like the recent Dotcom and Real Estate booms which both eventually went bust. The new “Green Energy Economy” looks like it will be the next boom but with lasting implications. It will change the way we use energy and resources, and the Obama Administration is intent on its implementation with Cap and Trade regulation. The green boom ground zero is in the Antelope Valley, so stay tuned for future developments.
Saturday, August 15, 2009
Land Zoning Targets for Solar Companies in Los Angeles County
There are at least two solar companies (Nextlight and E-Solar) planning operations of large solar plants in Antelope Valley in Northern Los Angeles County. NextLight is planning a large project at 170th West at Ave D (AV Solar Ranch One).
Most of the area outside of the city limits of Lancaster and Palmdale is zoned rural residential and agricultural land. This allows a single family residence within a parcel of 2 acres or more. It also allows for agricultural uses such as livestock, and crop farming. Agricultural zoning is further broken down into A1 and A2. A1 allows for light agricultural and A2 is heavy agriculture. Heavy agriculture zoning requires at least 5 acres minimum.
So how are these Solar Enterprises rapidly and economically getting around constructing an energy facility on rural agricultural land? Typically there would be an environment impact report needed with permits, community forums and the list goes on. These solar companies have targeted previously disturbed land, or land that has been farmed. Farmers have already tilled the land for years, so any endangered wildlife have found new homes and the land has been partially developed. In Nextlights case they use photovoltaic technology, so they use very little water, and the panels are only a few feet above the ground. In E-Solar’s case they use mirrors to reflect the suns raze on a water tower. E-Solar is attempting to solve their water needs by working an agreement with the City of Lancaster to use recycled water.
Both companies have solved a portion of their environment impact by buying A2 zoned land on the western portion of the valley. There are also two solar projects currently in the city of Lancaster at Division and G and an upcoming one at Sierra Hwy and avenue M.
This scenario is a great example of what we have been saying about landbanking. Rural residential land owned by farmers or investors overtime turns into needed space for a growing metropolis. Landbanking is a long term and sometimes short term investment for wealth. Land if purchased near growth and at a reasonable price can be a low risk investment as a retirement vehicle and diversified investment.
Most of the area outside of the city limits of Lancaster and Palmdale is zoned rural residential and agricultural land. This allows a single family residence within a parcel of 2 acres or more. It also allows for agricultural uses such as livestock, and crop farming. Agricultural zoning is further broken down into A1 and A2. A1 allows for light agricultural and A2 is heavy agriculture. Heavy agriculture zoning requires at least 5 acres minimum.
So how are these Solar Enterprises rapidly and economically getting around constructing an energy facility on rural agricultural land? Typically there would be an environment impact report needed with permits, community forums and the list goes on. These solar companies have targeted previously disturbed land, or land that has been farmed. Farmers have already tilled the land for years, so any endangered wildlife have found new homes and the land has been partially developed. In Nextlights case they use photovoltaic technology, so they use very little water, and the panels are only a few feet above the ground. In E-Solar’s case they use mirrors to reflect the suns raze on a water tower. E-Solar is attempting to solve their water needs by working an agreement with the City of Lancaster to use recycled water.
Both companies have solved a portion of their environment impact by buying A2 zoned land on the western portion of the valley. There are also two solar projects currently in the city of Lancaster at Division and G and an upcoming one at Sierra Hwy and avenue M.
This scenario is a great example of what we have been saying about landbanking. Rural residential land owned by farmers or investors overtime turns into needed space for a growing metropolis. Landbanking is a long term and sometimes short term investment for wealth. Land if purchased near growth and at a reasonable price can be a low risk investment as a retirement vehicle and diversified investment.
Tuesday, June 2, 2009
The Auction Option
There are a number of ways to buy land, and sell land at a good price range. The MLS (multiple listing services) is the most common means via a broker. A broker can guide the buyer and seller through the process. A new more risky means is buying via an auction. There are many private auctions and county auctions where land is sold. We have found in both private and public auctions the selling prices can be favorable and unfavorable. A buyer needs to be well informed regarding land before potentially losing capital in a bad purchase.
Several years ago during market highs we witnessed a County auction where prices raised twenty to fifty percent above retail. Buyers were overbidding land for greater prices then they could have negotiated from the local MLS. These auctions can create a price frenzy to buy a property that a purchaser feels is the best property on the list. The reality is there are many decent properties available at auctions if you have performed your due diligence. A buyer should have a specific maximum price range and stick to it. We have also found where auctions list parcels which are street easements, ally's, mountain sides, and flood zones. An uninformed buyer will overbid and they are left holding a useless property in many cases.
The professional auction bidders have aerial maps, plat maps, real estate software, and historical information on properties and have viewed the property. The professional investor has typically "walked the property", so they know what they are investing in.
Beware the auction option, since you should know what you are investing in. In many cases you can hire a professional to buy for you at the auction. You pay a small commission and they can do the research and bid for you in you name. You could own a well priced investment, or own an unsellable piece of land. Buyers beware the auction.
Several years ago during market highs we witnessed a County auction where prices raised twenty to fifty percent above retail. Buyers were overbidding land for greater prices then they could have negotiated from the local MLS. These auctions can create a price frenzy to buy a property that a purchaser feels is the best property on the list. The reality is there are many decent properties available at auctions if you have performed your due diligence. A buyer should have a specific maximum price range and stick to it. We have also found where auctions list parcels which are street easements, ally's, mountain sides, and flood zones. An uninformed buyer will overbid and they are left holding a useless property in many cases.
The professional auction bidders have aerial maps, plat maps, real estate software, and historical information on properties and have viewed the property. The professional investor has typically "walked the property", so they know what they are investing in.
Beware the auction option, since you should know what you are investing in. In many cases you can hire a professional to buy for you at the auction. You pay a small commission and they can do the research and bid for you in you name. You could own a well priced investment, or own an unsellable piece of land. Buyers beware the auction.
Wednesday, May 20, 2009
Small investments can go a long way in Land Banking
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.
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.
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