Land Banking Version PPT

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The Right Choice ... Smart Money for Life

Transcript of Land Banking Version PPT

Page 1: Land Banking Version PPT

The Right Choice ... Smart Money for Life

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Present Conventional Wisdom

The American Dream...

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Paper Balloon

Bubble and Burst: 30-year history!

1980 Gold Bubble Bursts

1982 Mexican Bond/Debt Market Burst

1990Japanese Stocks Burst

1987Black Monday

1994Latin America Debt Burst

1992Scandinavian Bank Stocks Burst

2000Internet Bubble Burst/ Dotcom Meltdown

2006US Mortgage-backed Bonds Started to Burst

2007“Shangai Surprise” Chinese Stock Market Burst

2009 Bust, not just a Burst of global retirement assets

2009Banking Bubble Burstwith Bailouts

2010May of 2010… the “Fat Finger Mistake”

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Now…That same land sells for $1 –$2 million per acre.That’s 83 to 167 times the original price…As much as a $9,000,000 profit.

Over 18% return.

The Value of Land:An Example

30 Years Ago…$60,000 would have bought you a nice house in Silicon Valley or Orange County.Today that same house sells for around $650,000.

An 8.2% compounded Annual Return

Back then, there was a choice…Just 3 to 5 miles away, five acres of PRE-DEVELOPED land was selling for the same $60,000.

That’s $12,000 per acre.

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Land continues to appreciate, while your house continues to depreciate!

Perception vs. Reality

Note: Average market values from Santa Clara County Assessors Office

If in 1978, you had purchased a home in Silicon Valley or Orange County for $60,000, the land would have been valued at about $9,000 and the house at $51,000.

$9,0001978

$60,000

85%

$210,000

1993

$300,000

30%

$514,000

2010

$650,000

21%

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What is Land Banking?

Land Banking is the time-tested Wealth Building Strategy of:

Selling it for a significant profit in the future.

Waiting for its value to mature.

Acquiring select pre-developed land in the growth path of a major metropolitan center.

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TIME

The Principle of Supply and Demand

LAN

D VA

LUE

Pre-developed DevelopedUndeveloped

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10% Already Developed

Why Land Bank in California?

Population Growth• Largest Population in

the U.S.—38 million• CA grows by the size

of one new Sacramento every 8 months

World’s 8th Largest Economy Limited Land Availability

82% Wild Land

8% Remaining (Farm or Pre-developed)

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Northern Los Angeles County

The Perfect 10!

The Los Angeles Megalopolis:Includes parts of Los Angeles, Ventura, Kern, San Bernardino, and Riverside counties.

It is a 60-mile radius and an economic giant of domestic and international significance.

Again, it’s about LOCATION, LOCATION, LOCATION!

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10 Key Indicators That Make Land Valuable

1 Level, Usable Land

2 Abundant Water Supply

3Accessible by Planes, Trains, and Automobiles

4 Adequate Utilities for Massive Growth

5 Ample Educational Facilities: Preschool to College Level

6Close Proximity to Major Metropolis

7Prime Growth

Industries in Place and Expanding

8Huge Commercial

and Residential Development

9Studies Projecting Healthy Population Growth

10Regional Master Plan

for Community and Municipal Infrastructure

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San Diego1960: 200,000 population

1980: 2,250,000 people! Today: There are over 3,000,000 people!

The Southern California Opportunity!

San Fernando Valley1950: 250,000 population

1960: 1,100,000 people! Today: Population is over 1,750,000!

Orange County1955: 216,000 population

1965: 775,000 people! Today: There are over 3,000,000 people!

At that time the L.A. Planning Commissionstated that by the year 1960 the SanFernando Valley would have a populationof 750,000.

The Planning Commission stated that in10 years there would be 500,000 peopleresiding in Orange County.

Their County Planners believed there would be at least 1,000,000 people in San Diego by 1975.

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1952 196

5 1969 197

8 1985 198

9 2010

Antelope Valley

In 1978 the population in Antelope Valley was approximately 95,000.

Currently the population in Antelope Valley is approximately 500,000.

With thousands of new affordable homes and commercial developments.

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Avenue F

Avenue E

80th St W

70th St W

90th St W

Supply Samples

APN: 3201-001-016$27,341.77/acre

APN: 3220-011-025$29,303.48/acre

APN: 3219-006-006$25,510.20/acre

APN: 3268-001-037$27,358.49/acre

APN: 3268-006-065$20,000.00/acre

SubjectAPN: 3220-010-010

$18,000.00/acre

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Who Is Ace?

Ace Capital Group is a specialized company dedicated to purchasing and selling carefully selected California pre-developed land for the purpose of land banking.

Our Owners have been in the Land Banking business for over four decades!

GreenDeed™ is our exclusive product that can be customized to meet your individual goals.

Our research, property acquisition, transaction, and compliance teams have hundreds of cumulative years experience ensuring that your GreenDeed™ parcel will match your unique needs.

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National Advertising

Mr. and Mrs. Chen C. WangFounders, Owners, & Principals