60 Mile Limit
Don’t Exceed The 60 Mile Limit!
A major key to successful land banking is to rigidly maintain the “60 mile limit”. This means that to ensure a good value of return you must stay within 60 miles of a major metropolitan area. By doing this, the buyer is assured to be within the path of growth as this area expands. This 60 mile radius covers a lot of area, and that is where a highly skilled Acquisition Specialist makes a significant difference in finding that ideal plot of land inside that critical 60 mile limit.
The illustration below shows the 60 mile radius that encompasses Los Angeles,
California.
The Los Angeles Megalopolis has a population of 18.5 million people and would be the 11th most powerful economy in the world if it were a separate country. The Los Angeles area is a job producing machine responsible for producing over one-half of California’s total Gross Domestic Product.
The pressure of an exploding population places huge future demand on pre-developed land. The owners of that land in an enviable profit-making position that will never again exist. Once the land has been improved the original opportunity is gone forever.
If purchased early enough in the pre-developed cycle, buyers can acquire large parcels of land for a fraction of the cost of developed land, and reap incredible future returns Yet, where is there pre-developed land in that vast area of Los Angeles? Since the Pacific Ocean is on the west, there is only in one place—Antelope Valley.
No other method of investment allows the average individual as great an opportunity of having so much potential wealth for so little cash.
Above is the ACE Growth Appreciation Chart. Undeveloped land usually appreciates at less than the rate of inflation. Developed land can be a rollercoaster ride with cycles of prosperity and downturns tied to the regional and national economy. Pre-Developed land is the sweet spot and is where real long-term appreciation can be made. Note that the time varies from area to area.
