CALIFORNIA – An Even Bigger Economic Powerhouse according to Kiplinger CA Report

Here is an awesome message from my friend Paul Tucson about the opportuities we have in California.

HERE’S LOOKING TO THE FUTURE:  People often ask me why I tell them to invest in prime, developable land in the future growth areas of California and what makes me so sure?  The answer is always simple:  Just use the trends, forecast, and daily information that is in the news and use this with what has historically happened in the past along with proven planning guidelines and tools used to prepare for the future such as the State, County, and City’s General Plan and zoning maps.  By using population forecast by the state’s planning agency, Southern California Association of Governments and the federal government’s Bureau of Census.  In addition, you can study major transportation agency plans by Los Angeles Metropolitan Transportation and Caltrans (California Transportation Department).  These are just a few of the many details that needs to be tracked and considered and then implemented in my “landbanking” strategy.

 

I was in a real estate conference yesterday learning about a new retirement strategy that was implemented just last year 2006 about Self-directed Real Estate Solo Roth 401k plans and I realize that most CPAs and Financial Planners/advisors don’t even know about this nor do have they incorporated it into their business.   What a shame because this strategy along with “landbanking” as the investment vehicle coupled with a self-directed real estate Roth IRA (for individual workers) and a Solo Roth 401k plan (for entrepreuners/small business owners) is the most powerful wealth-building strategy that exist today that can help secure someone’s financial future in the next 10 years.

 

However, as I sat in the back during the introductions of the attendees, I realize that a certain number of people there promoted landbanking as well.  It’s a great idea until I ask about where they are landbanking.  Quickly I find out what I suspected all along:  They are selling land just to sell land – they are selling CHEAP land.  What’s the difference between CHEAP LAND vs. PRIME, DEVELOPABLE LAND?  In the future, it’s millions of dollars.  The key is that “land that’s not developable and is not in path of major population and job growth IS NOT worth much in the future”.  You want to buy land that you know will be developable in the future because IT IS ALREADY ZONED for future housing, commercial and industrial development projects.  How can you ensure this?  By looking to make sure that the land is in the CITY LIMITS or their SPHERE OF INFLUENCE (LAND THAT WILL BE ANNEXED INTO THE CITY LIMITS IN THE FUTURE AS THEY GROW) and then checking in the city’s GENERAL PLAN MAP for zoning.

 

QUESTION:  From my last e-mail, in the Antelope Valley in North Los Angeles County, they have plans to build 5 Wal-mart Supercenters.  And in the Victor Valley area of San Bernardino County, they have plans to build 6 Wal-mart Supercenters.  What if you bought a 5-acre piece of land 1/2 mile from where they are planning to build one of these Wal-mart Supercenters – would this have been a good move?   I think so and thank you because I just found out yesterday that one of the locations that Wal-mart is planning to build is 1/2 mile away from my 5-acre parcel that I bought 7 years ago.  Surely, the price of my land will at least quadruple once this major shopping center 1/2 mile away gets built with the Wal-mart Supercenter as the anchor retailer.  Was this lucky?  Sure but even in the beginnning, me and my partners knew that this 5 acre was in a great future location.  Most importantly, we acted on it and bought it and paid a premium price knowing that it’s in a future growth area according to the City of Lancaster’s General Plan map (after studying all of the approved and planned major housing subdivisions planned for the surrounding area).  The rest is “lucky” as some may call it. 

 

As a current Planning Commissioner for the City of Corona for the past 5 years, I have learned a lot about the value of prime, developable “DIRT” in a booming city.  In Corona, those who own prime, developable “DIRT” are sitting on a “GOLDMINE”.   I like to say that every other Monday, when our Planning Commission meets to go over development items to approve, I make millionaires of landowners.  How?  Each time a project gets approved for rezoning, subdividing and development, it makes a landowner of these PRIME, DEVELOPABLE land very wealthy because it turns their land to million dollar estate homes, industrial warehouse buildings, shopping centers and hotels.    Landbanking the right way (BY BUYING PRIME, DEVELOPABLE LAND ONLY) can make a BIG difference on whether you can RETIRE RICH AND RETIRE EARLY or not retire at all.

 

My advice for people that I consult with is to START SAVING & INVESTING if they’re not doing anything, if they are investing “TO STOP INVESTING NOT TO LOSE  (i.e., their 401ks, CDs, mutual funds and annuities) and instead having the courage to INVEST TO WIN and WIN BIG.  Knowing all of these current trends that is poised to build the next power region of Southern California, now is not the time to be afraid to make your move but to find the courage to secure a better financial future for you and your family – I’m doing it for mine.

 

Think Big & Win,