There is a Proposal to Expand the Significant Ecological Areas of the Antelope Valley

Significant Ecological areas are areas where there are endangered species of plants and animals. The main endangered animals of the Antelope Valley are the ground squirrel and desert tortoise, while the Joshua Tree and Poppies are the most prominent plants that are endangered in these areas. But there are a number of lesser know endangered species like the burrowing owl, and smaller plant life. These new areas will include an enormous area on Antelope Valley’s North East side from Redman to High Vista and on the west side most of the area will be Fairmount Butte south of Hwy 138 from 140th West to 170th West and south to the mountains. The largest areas in this new proposal will be on the East side south of Edwards Airforce Base almost covering From Hwy 14 to the San Bernardino border from ave H north to the base. Most of these areas are vacant unused land or farmland with little to no development. The eco zone will also run along the wash areas. The three main wash areas where water runs from the San Gabriel Mountains will be included in this proposal. An area that is considered a significant ecological zone allows for limited development. And in some cases no development. If an area is widely used by the desert tortoise then no development will be acceptable, so only mitigation land use will be approved. Some areas near the Joshua tree forest could be developed but will scattered homes without changing the landscape. We have maps of these proposed changes so you can see if your future parcel or current land parcel is within these zones.

Larger Firms are Buying Foreclosed Homes Causing Small Businesses to be Outbid While low priced California Land is Still available.

Larger investment firms on Wall Street have branched off into buying foreclosed homes. Usually such a small investment would not be of interest to Wall Street but they are now buying these homes to rent them out and eventually sell them when the market improves. These firms are buying homes all over the country at the court house steps where most foreclosed homes are sold. We went to a few of these sales and attempted to bid on a property, but we were outbid. A home which might sell on the market for $100,000 sold for $85,000. A small operation may bid $65,000 for such a home as the cost to clean it up and make it ready for renting may cut into the resale value. Increasingly small mom and pop businesses get outbid by these new large capital investment firms. Small firms like at least at 20% yield on a home while the larger investment firm will take 10% yield. We have seen low end bidding homes slowly and then when the auctioneer says last and final the bid bidder (investment firm) bids it up and takes it. Many of these foreclosed homes have had squatters living on the premises, or broken windows, and doors. It causes security and insurance issues with the property. Many insurance companies require that you live in the state where your investment home is, or have a property manager on site. According to a recent news reports one firm bought over a 100 homes in a day totaling over $8 million. These large investment firms are raising money from investors to buy and mange these properties and they are backed with billions of dollars. Most banks currently sell foreclosed homes one at a time, and lots of them get pulled from the auction list as they work with the property owner to save the property. It takes a lot or time effort and money to buy these foreclosed homes, while very well priced ideal land parcels are available with little to no other buyers vying against you. We specialize in low price land opportunities in Lancaster and Palmdale, Ca. If we don’t have the property on our inventory then we will locate a suitable property that meets your needs. We work with solar firms, mitigation bankers, land bankers and individual investors. We can locate the best priced property for your individual portfolio. Call us at 213 500-9578 Vacantlanddeals.com

Los Angeles County Proposes Rural Land Zoning Changes in Antelope Valley which Is Unfavorable to Land Investors

Los Angeles Regional Planning has been proposing new rural agricultural land zoning from the generally current zoning of LCA (Los Angeles County Agricultural and rural zoning. The current zoning allows farming and one home per 2 acres in the majority of Antelope Valley’s east and west sides. Many of the parcels on the far east side and far west sides of the Antelope Valley are 2.5 acres to 640 acres. This zoning today is fairly favorable to land owners as it allows say two dwellings in a four acre lot. Most parcels are broken down from 2.5, 5, 10, 20, 40 acres and so on up to 640 acres. The new zoning will drastically change the land use and development of these parcels and the vast majority of parcels will fall into RL 10 or RL 20, which is Rural Land one dwelling per 10 acres or one dwelling per 20 acres. This new zoning change will impact thousands of land owners negatively. This means you will need at least 10 acres on the far east or far west in order to put one house on your property. Most Antelope Valley Country land owners will need 20 acres in order to build one dwelling. So land owners with large parcels in the 40 to 640 acres will only be able to put a minimal amount of homes on their parcels. Thusly you can only put two homes on a 40 acres parcel zoned RL-20. It means the county wants this land to have limited development or to be farmed but the cost to run power, and water to these remote areas would be cost prohibited. Also with the water rights being reduced the availability to drill a well going forward will also be more difficult as the county wants to reduce the number or wells in the valley. These zoning changes will drastically reduce the value of property owners land as developers will not develop in these proposed low density zoning areas, as the return on their investment would not justify the expense. On the flip side land within the city limits of Lancaster and Palmdale should show more value over time as they will have access to city services and far far better zoning opportunities today and going forward. It is clear that Los Angeles County doesn’t want Antelope Valley to look like San Fernando Valley. Some of the reasons the county gives for these proposed changes are that it protects environmental resources, enhances rural land character, minimizes natural hazard threats, creates an efficient use of the infrastructure and public facilities, and limits green house gases. We think it clearly reduces their tax revenue, and ends Los Angeles Counties growth curve as 49% of all the vacant undeveloped land is in Antelope Valley. The zoning changes are still within the proposal stages, but Los Angeles County has been trying to make these changes for years. Maps of the new zoning can be found via Los Angeles Regional Planning or contact us and we can show you where to get them.

Bond King Says Inflation will Damage Treasuries, Need Real Assets Like Land and Gold

Investors looking to preserve their purchasing power will have to avoid Treasuries and put their money in “real assets" such as stocks and real estate, Bill Gross, Pimco co-founder, told CNBC recently. “In the Treasury market all interest rates are on a negative basis,” Gross said. “Risk averse investors looking to hide in Treasuries will see a haircut relative to future inflation. ”If you want to maintain purchasing power you have to make the leap into real asset territory to get a real return.” He bases this from the potential Federal Reserve and Global Central Banks printing money to re-inflate their economies. This inflation will cause investors to move primarily to gold and silver. But also real estate maintains its value in inflationary economies. Real Estate should maintain its value and increase during inflation. Land maybe a better hedge against inflation as there isn’t any maintenance, and other losses like fire, or hazards. Land is a good asset to hold and wait for the economy to change in a more positive direction with jobs, and growing GDP(Gross Domestic Production).

Seller Financing “Owner will Carry” for California Land Loans and Buying a Home

Owner will carry for land is becoming more and more prevalent between buyers and sellers these days as banks are more reluctant to lend for land purchases. It is even more common today for home buyers. The owner will carry(seller financing) option was the norm decades ago when homes were much much less in capital cost, so buyers would pay for a home over time. It is very common today where land sellers will even offer the opportunity to buyers via MLS listings with their land listing brokers. It essentially works where an agreed price is made between a buyer and seller with an agreed interest rate. The buyer pays usually a higher deposit of say 10% and the interest rate is similar to the current rates of the day, but slightly higher than what you would get from a bank. Today’s rate would range from 5% to 7%. Some sellers want more, but unless you have the land parcel we suggest you pay a lower interest rate and not get gouged. The terms will be 3 to 7 years but could be longer. Most sellers we have found want 7 years or less. This is typically done via an escrow company once the terms are agreed upon. After escrow closes payments are then made directly to the seller or seller’s representative monthly until all payments are made in full. The buyer will receive title with a deed of trust attached. If the buyer fails to pay their monthly payment three months in a row then the seller can and typically will foreclose on the deed of trust. All buyers’ payments will be in favor of the sellers, so there will be no refund to the buyer. It is not any different than what a bank will do if a mortgage is not paid. Foreclosures happen all the time especially these days when many homes are under water. It is a very simple and easy process for a buyer to own land without a larger capital payment. It is essential when the buyers final payment is made to have a deed of reconveyance signed by the seller and recorded. If a deed of reconveyance is not recorded after the final payment then there will be a cloud on title. This will make it difficult for the buyer to sell the property later as title companies will not clear the title without a deed of reconveyance.

California high-speed rail gets green light Madera to Bakersfield

California lawmakers gave the green light to start building the nation’s first dedicated high-speed rail line, a multibillion dollar project that will eventually link Los Angeles and San Francisco. This first link is proposed to be from Madera to Bakersfield, Ca. Madera is just north of Fresno, Ca. Madera has a population of 60 thousand, Fresno with 500,000 and Bakersfield a population of 350,000 according to 2010 census. This is certainly not a lot of traffic for an $8 billion project that will run along Hwy 99. The overall project once San Francisco and Los Angeles are connected will be $68 billion, a massive amount for a state that is operating in the red. The vote was along party lines with approval from labor and Governor Brown, yet no Republican voted for approval as they site the massive costs. The Los Angeles Times reported at the same time a French firm SNCF which operates high speed rail in France offered to assist in the construction, but organizers and lawmakers declined the offer as self serving. Governor Brown has pushed for the massive infrastructure project to accommodate expected growth in the nation's most populous state, which now has 37 million people. State and federal officials also said high-speed rail would create jobs. The bill authorizes the state to sell nearly half of a $10 billion high-speed rail bond that voters approved four years ago under Proposition 1A. In addition to financing the first segment of high-speed rail, it allocates a total of $1.9 billion in bonds for regional rail improvements in (Caltrain) Northern and the Metrolink in Southern California. A number of Democrats were not in favor of this project as there are no guarantees for future funding from Federal or private sources. All this aside what does it mean for the land investor? Well initially if you own land between Madera and Bakersfield then you have a potential buyer in your home or land. It also become a target for land and real estate speculators who will target to buy land along potential or proposed routes in the Central Valley and in the Antelope Valley. There are freight rail lines along this route which is more or less along Hwy 99. Most of this land now is less expensive land then land within the San Francisco Bay Area , or Greater Los Angeles. If you wanted a green light to speculate on land in the Central Valley then you have got a track to follow.

LA County Approves First Solar to Continue Installation at AV Solar Ranch One Project in Antelope Valley’s West Side

The Los Angeles County Department of Public Works and First Solar, Inc. (Nasdaq: FSLR) have reached an agreement on the installation of solar modules at the Solar Ranch One photovoltaic (PV) power plant currently under construction in the Antelope Valley. Construction of the AV Solar Ranch One plant had been suspended during a permitting dispute with county officials over building codes. Installation of the modules had been delayed while First Solar and Public Works worked to achieve agreement related to the module code certifications. The project is partially funded by a $646-million U.S. Energy Department loan guarantee and is expected to be completed next year. First Solar has sold the 230-megawatt Antelope Valley plant in September to Exelon Corp for $75 million according to company filings. Excelon has indicated that they will invest $700 million into the project. Although it is sold to Excelon, First Solar will operate it and maintain it. The agreement with Los Angeles County will enable First Solar to continue construction activities of the 230-megawatt power plant that, which is scheduled for completion in 2013. It will generate enough electricity to power 75,000 homes. The $1.4 billion project is one of the largest in LA County. The 2,100-acre property is located in the northern part of the county and situated on land previously used for agriculture and without threatened or endangered species, according to First Solar