ACE Capital Group » Land Banking

DOWNTURN WON’T IMPACT POPULATION GROWTH

Randy Burchfield — Wed, 15 Jul 2009 18:03:51 +0000

Because of the current downturn, most Californians are expecting slow population growth. According to a survey done by the Public Policy Institute of California, California will continue to grow at historical rates. The population is expected to grow by 10 million people over the next 20 years. That means more housing, more jobs and a demand for Land!

One of the reasons for the growth is the continued birth rate. California is a fairly young population so we will see growth internally. Immigration is another reason California population will continue to grow. The third reason is due to the current downturn. The Baby Boomers who were planning to cash out, retire and move are finding that they must wait for home values to increase and wait for retirement funds to grow. So the Baby Boomer generation is staying put and continuing to work.

For ACE Capital clients, this is a huge opportunity, because the growth will continue in the growth path of the major population centers. The most diverse job and housing opportunity that is growth friendly is Los Angeles County, specifically in North Los Angeles County.

So now is the time to focus on a methodology to recover retirement funds more quickly through the acquisition of pre-developed land in North LA County

What kind of exit strategy is there?

admin — Thu, 05 Jun 2008 19:44:19 +0000

Land banking is a long-term appreciation strategy, so we recommend owners hold their property for more than one full real estate cycle or approximately 8-10 years. However you are free to sell your property at any time—either when a developer or builder is knocking on your door or when you decide to place your property on the market with a local real estate agent.

Scott Bachman

What is the minimum purchase?

admin — Thu, 29 May 2008 19:04:37 +0000

There is no specific minimum purchase price. However, we encourage our customers to purchase as much as they are comfortable with. By purchasing a Tenant In Common parcel our customer’s can participate in much larger tract of land acquisition. Larger parcel of land are typically more attractive to developers. With a TIC parcel you still receive a grant deed and title insurance giving you free and clear ownership of your property.

Jerry Hart

How do I roll my retirement into Land Banking?

admin — Wed, 28 May 2008 20:53:07 +0000

Section 408 of the IRS tax code opened the door for you to roll over your IRA including Traditional, SIMPLE, SEP and Roth as well as qualified 401k, Solo 401k and 403b plans into real estate without a tax penalty. If your plan administrator or custodian does not provide a land banking service, you will need to find one. If you like, we can refer you to one of our partners in the ACE Professional Network.

Scott Bachman