Tehachapi California Wind Energy Explosion and Conflict with Property Owners

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.

BYD Ltd Electric’s Technology for Los Angeles County and Lancaster California’s Jobs Future

The city of Lancaster and BYD (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 department, 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.

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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New Highway from Los Angeles County to San Bernardino County Would Increase Land Values on Antelope Valley’s East Side

There has been a proposal for a High Desert Corridor Highway (E 220) of approximately sixty three miles from Hwy 15 (SR-18) in San Bernardino to Palmdale Ca. (SR-14). This will greatly enhance access between the two major cities of Palmdale and Victorville, Ca. as the current thru road is Hwy 138 which is a two lane road. The High Desert Corridor Joint Power Authority (HDCJPA) is administering the project and it is currently in the environmental phase. The HDC will construct this new 60 mile east west expressway and likely a truck toll facility between Los Angeles and San Bernardino counties within the decade. The highway segment would be an eight lane freeway and it includes a High Occupancy Vehicle (HOV) lane in each direction from SR-14 past the Palmdale Airport to 50th St East along an alignment paralleling Ave P-8 in Palmdale, Ca. It may have to drop to Ave Q to pass Lake Los Angeles and reconnect to P-8 once near Palmdale. Most of the land along Ave P-8 is open space without any road access. It also looks like it will run north south along 50th street East up to Ave E and then run to Ave D (Hwy 138) west of Hwy 14. The exact details of the road route are not totally specific on the land targeted. It may still be under review while the environmental phase continues. In 2009, the Metro Board approved $500,000 for the HDCJPA to support the agency’s efforts. Measure R provided $33 million for environmental clearance. The City of Victorville received an $800,000 federal earmark which was transferred to the HDCJPA for the project. These funds will be used for the environmental clearance. The environmental clearance phase is scheduled to be completed by 2013 and construction completed by 2020. It looks like they will need additional funds for the construction phase.

An eight lane expressway will need to take a considerable amount of space along Ave P8 where land values are at there ten year lows. There are also opportunities along Ave E between Hwy 14 and 50th Street East. The project is not fully approved and technically it has not begun but buying land on the far-east side along this freeway route looks like a good long term investment in our opinion. As buying low priced land and holding it for long term investment is the essence of land banking. Even if the proposed route changes the land prices on Antelope Valley’s east side are currently very low. If you are interested in low price land opportunities then contact us for potential land banking acquisitions.

Senate Bill 676 Will Allow Kern County Farmers to Grow Industrial Hemp on their Land

>Industrial Hemp has made its way back on the agenda in Sacramento with SB 676 proposed by Mark Leno the San Francisco/Marin County State Senator. It is the California Industrial Hemp Farming Act of 2011. Similar bills were vetoed by previous Governor Schwartzenegger. The bill establishes a five county pilot project for growing Industrial Hemp. The Counties which will be allowed to grow hemp if this bill passes are Imperial, Kern, Kings, San Joaquin and Yolo Counties.

Industrial Hemp has a variety of uses from clothing, foods (breads, energy bars, etc.), health, beauty products, and paper products. Tens of thousands of products use hemp. The bill states that only these counties can grow industrial hemp with 5 acres minimum, and with no upper acreage limit. It must be for agricultural use or research. Farmers must test the hemp for THC content and destroy crops with an excessive THC count. Industrial Hemp looks like the narcotic marijuana plant, but it has very low levels of THC. Thus its used only for industrial purposes. There are other regulations in order to not disguise Hemp with the Marijuana version such as no clandestine or backyard growing will be allowed.

Federal Law enforced by the DEA (Drug Enforcement Administration) prohibited the growing and cultivation of Industrial Hemp, as the DEA regarded Industrial Hemp as a controlled substance like Marijuana. The DEA’s claim was recently over-ruled by the 9th Circuit Court of Appeals in 2004 as the court stipulated that the DEA has no authority over the 1970 Controlled Substance Act. Farmers were allowed to grow hemp but the extra security, fencing, and DEA regulation were cost prohibited.

Here are some positive facts regarding hemp versus tree paper. Hemp paper doesn’t require toxic bleaching chemicals. It can be whitened with hydrogen peroxide, which doesn’t poison waterways as chloride and bleach do with the chemicals used in making wood pulp paper. Hemp paper can be recycled 7 to 8 times, compared with only 3 times for wood pulp paper. An acre of hemp produces as much paper as four acres of trees annually. It requires little or no pesticides or herbicides and produces two to four times more fiber than an acre of timber. It grows rapidly and can be harvested every 90 days and it is an ideal rotational crop. It also continues with the going green viewpoint of California as many trees will be saved. This “new” product will create jobs for Antelope Valley.

This may be a great opportunity for Kern County land owners as this would be a beginning of a need for available land. If this project succeeds then Antelope Valley may also be allowed to grow hemp as most of the available land in agricultural land, and it would be an ideal location. This “new” product will also create jobs for Antelope Valley.

Alas More Funds for The Cal High Speed Rail, But Will it Stop in Palmdale?

In 2008 voters approved nearly $10 billion in state bonds to fund the Cal High Speed Rail project under Proposition 1A and now this past month Transportation Secretary Ray LaHood took Florida’s $2 billion and gave it to 15 states and Amtrak. Florida’s new governor and legislator rejected their high speed rail, California gets a new $300 million which will be used to continue laying the groundwork for the nation’s first 220 mph high speed rail system in the state. The initial plan according to federal and Rail officials would be to run along the Central Valley as it would be the least expensive to begin. This is an essential part of the Obama Administrations proposed shovel ready projects. Thus the lion’s share of the $3.5 billion provided by the Obama administration must be spent on the rail line running between the tiny towns of Borden and Corcoran, Ca. Borden is outside of Merced and Corcoran is next to nowhere and is best known for its prison.
This can be chalked up to California’s continual poor planning as the CalHighSpeedRail Authority indicated earlier that there will be no ridership on the first phase. We believe they guarantee that with starting in sparsely populated Borden and Corcoran. Another issue that bogs the speedy trains is the disagreement with running the train from Bakersfield to Los Angeles via Lancaster and Palmdale Ca. Many including the LA Times writers want the direct route via Hwy 5 through the grapevine. They indicate it will save $1billion, and 30 miles. Yet, isn’t the trains objective to carry passengers? Bypassing Palmdale would eliminate potentially 700 thousand potential riders in Palmdale, Lancaster and Victorville. If the train is not potentially a commuter train, then why build it in urban areas like San Diego, LA, and San Jose, or it is only a train to compete with SouthWest airlines?
The final southern route into LA County will be debated, but there looks to be plenty of new opportunities along Hwy 99 as the White House and Governor Brown administration will not stand in the way of this moving train. Will it be a sign of more government waste by Democratic administrations, or a future jewel of the West U.S. Most land along Hwy 99 is farmland as we have been saying all along the farmers are the best long term land bankers over time. Check out our land along the future potential route in Lancaster Ca. via www.vacantlanddeals.com so you can be a land banker too.

How to Diversify Investments by Rolling Over or Transferring an IRA/401k into California Land Investment?

Most IRA’s and 401k are invested in stocks and bonds, but many are not aware that you can invest the money that you have in your IRA or 401K into land investment. This also includes investments such as other real estate, precious metals, and commodities.
You can simply do this by rolling your current IRA and/or 401K account into a new "Self Directed IRA" account at no major cost to you. You will also retain the tax deferred status without penalties as you have not cashed out your investment. The Self Directed IRA Company will do most of the work for you, but the stock brokerage may work to attempt to retain you as their customer.
Part of the reason a Self Directed IRA is more valuable is that it provides more control and choices. This control provides you the ability to invest in land, or precious metals like gold and silver which all are hedges against inflation. If you speak to a gold or silver investment company they typically suggest a five year hold in those precious metals. In addition, land investment companies also suggest a five year or longer hold. Longer term holds depends on the location of your land investment (distance from development), and your future retirement horizon goals.
There is a difference between and transfer and a rollover. When implementing a transfer your IRA assets are moved directly from one financial institution (typically a brokerage) to another without the IRA owner actually taking possession of the assets. An IRA transfer avoids any possible tax liabilities that could occur by taking possession of your IRA/401K funds, while a rollover occurs when an individual requests a distribution from an IRA or a Qualified Retirement Plan. Your investment firm would then roll the funds into the Self Directed IRA. According to IRA laws you are allowed only one roll-over in any 12 month period. Of the three types of rollovers a Qualified Retirement Plan Direct rollover is not treated under this 12 month rule, while the other two rollovers IRA roll over and a Qualified Retirement Plan rollover are.
An IRA Rollover occurs when an individual has personally taken the distribution of funds from their IRA. You then have 60 days to rollover the distribution into another IRA. If this is not completed in the 60 day period you would be subject to a 10% tax penalty.
The process begins by your establishment of a self directed IRA account. You then initiate the transfer with a transfer form provided by your current IRA holding custodial.
You then designate the new self directed IRA custodial and they receive your funds as the new custodial. You don’t have to transfer your entire IRA/401k but just as much as you need for the new investment.
Your new self directed IRA is now available to receive California land investment. VacantLandDeals specializes in low priced and low capital land investment opportunities. They have land near development typically with ideal zoning in the path of growth for future urban development providing your exit strategy in five to fifteen years. VacantLandDeals also specializes in investment capital under $50k and some investments fewer than twenty thousand, so the low capital and low risk investment has the opportunity to mature. Go to http://www.vacantlanddeals.com/lands-for-sale/ to review an investment opportunity.