Here are some of the warning signs to watch out for –

1. Deals that seem too good to be true.

2. Deals that are too complex.

3. Deals that offer a guaranteed profit or rate of return.

4. Sellers or agents that pressure you to buy or commit quickly; without giving you time to investigate the details.

If you’re offered a piece of land, or any other kind of real estate, that seems like one of these examples, call somebody you trust, like a lawyer, and take your time before making a decision.

Here are some of the tools used by confidence men in real estate scams. They are known as such because you’ve known them previously and you’ve placed your trust and confidence in them.

1. Forged deeds.

2. Developments, properties, or trusts that don’t exist.

3. Phony appraisals.

4. Hidden loans against the property.

5. Unpaid taxes.

How can you protect yourself from these kinds of scams?  Here are some suggestions –

1. Inspect the property yourself before making an offer.

2. Confirm the public records, including the deed, the title, any loans, and the status of the taxes.  This is done by getting and carefully examining the title report.

3. Know who you’re dealing with – check the license status of any agents involved with the transaction.  This can be done online at http://dre.ca.gov

4. Get everything in writing.  Oral contracts are normally not binding in California real estate.  You MUST get everything in writing.

5. Never pay cash toward the purchase price in advance.  It’s expected that you will make out a check to the trust account of your agent or broker for the deposit when you submit the offer for the property.  But that check should not be cashed unless the offer is accepted.  Beyond the deposit money, you should not be sending money for the purchase price to anyone but the escrow company.  That money should only be sent right before the recording of your new deed.

6. Make sure you are getting a new title insurance policy in your purchase escrow.  If there are any problems discovered later that involve the title of the property, or unpaid loans or taxes, the company that insures the title will have to pay to make things right.  You will be protected.

I hope this helps you avoid problems.  If you’re thinking about buying some land and using my services, I promise you will get a clean deed and title insurance in any transaction in which I’m a participant.

Welcome To GreenDeed

If you have any questions after watching the presentation, please let me know.

GreenDeed™ is a trademark of ACE Capital Group, Redwood City, CA 94061

“Land banking can be smart, simple, and secure. If you adhere to the very definition of land banking, as the strategy of acquiring pre-developed land in the growth path of a major metropolitan area and holding (or banking it) to sell for significant profit in the future, your risk can be very low and your potential for return, as seen historically, can be very high.

It is usually a good idea to purchase land with cash, HSA, educational, or self-directed IRA funds. Borrowing money to purchase land is not land banking, it then becomes “land speculating.” The key words to yielding high returns are “acquiring pre-developed land.” Pre-developed land is:

• In an area that has already been targeted for growth.
• Located in the growth path of a major metro area.
• In an area with a diversified economy.
• In a close proximity to jobs and affordable housing.

There are 10 key indicators that usually determine the best hot spots for land banking:

1. Land is usable and relatively level.
2. There are abundant resources in the area.
3. The area is easy to reach by car, train, or plane.
4. Utilities are in place to accommodate rapid growth.
5. Close to an ever-expanding major metropolitan area.
6. Current industries and commercial base is growing.
7. Existing residential development and low cost housing.
8. Higher education institutions nearby and more planned.
9. Regional studies projecting healthy population growth.
10. Master plan for streets, roads, sewer, electric, and gas.

Land banking, as a long-term appreciation strategy, is for individuals that have both a sufficient income to sustain their current lifestyle and can wait at least five, or preferably 10 years, to reap the benefits of their investment. This can make land banking ideal for planning your retirement, saving for a college education, or building a legacy.

We have all heard the saying: “Most millionaires in America made their fortune in real estate.” That is a partially correct statement; the truth is that many multi-millionaires actually made it by land banking. Land banking has been used effectively for hundreds of years to protect and build family wealth.”

“In Striking Shift, Small Investors Flee Stock Market
By GRAHAM BOWLEY
Published: August 21, 2010

Renewed economic uncertainty is testing Americans’ generation-long love affair with the stock market.

Investors withdrew a staggering $33.12 billion from domestic stock market mutual funds in the first seven months of this year, according to the Investment Company Institute, the mutual fund industry trade group. Now many are choosing investments they deem safer, like bonds.

If that pace continues, more money will be pulled out of these mutual funds in 2010 than in any year since the 1980s, with the exception of 2008, when the global financial crisis peaked.

Small investors are “losing their appetite for risk,” a Credit Suisse analyst, Doug Cliggott, said in a report to investors on Friday.

One of the phenomena of the last several decades has been the rise of the individual investor. As Americans have become more responsible for their own retirement, they have poured money into stocks with such faith that half of the country’s households now own shares directly or through mutual funds, which are by far the most popular way Americans invest in stocks. So the turnabout is striking.

So is the timing. After past recessions, ordinary investors have typically regained their enthusiasm for stocks, hoping to profit as the economy recovered. This time, even as corporate earnings have improved, Americans have become more guarded with their investments.

“At this stage in the economic cycle, $10 to $20 billion would normally be flowing into domestic equity funds” rather than the billions that are flowing out, said Brian K. Reid, chief economist of the investment institute. He added, “This is very unusual.”

The notion that stocks tend to be safe and profitable investments over time seems to have been dented in much the same way that a decline in home values and in job stability the last few years has altered Americans’ sense of financial security.

It may take many years before it is clear whether this becomes a long-term shift in psychology. After technology and dot-com shares crashed in the early 2000s, for example, investors were quick to re-enter the stock market. Yet bigger economic calamities like the Great Depression affected people’s attitudes toward money for decades.

For now, though, mixed economic data is presenting a picture of an economy that is recovering feebly from recession.”

As investors fleet the market because of it’s volatility and the uncertainty of positive returns, the question arises, “Where can you put your retirement funds, your college funds, etc?”  I would suggest that the patient investor has one very good response which offers a much better return than bonds over time,  “Carefully selected land.”  Buy a parcel, or parcels, of land in the path of development and wait for the value to rise.  It may not be easy, but it IS simple.

I thought you might like this short video -

Real Housewives of DC – A lesson in Land Banking – Mary explains to Cat how her grandfather had the chance to buy land many years ago before the land was developed. All they can do is laugh at the realization of the missed Land Banking opportunity.

I think you also might like the information at these websites -

• The 401k Loan: How to Borrow Money From Your Retirement Plan and … – The 401k Loan May Have Benefits, but it Isn’t Without Pitfalls. Roughly 75% of 401(k) plans have a loan provision. This is good news for participants who find themselves in a bind and need quick access to some cash, …
• Leave Your Money in Your Retirement Accounts! – Over the last few months, the economic crisis and mortgage crisis have caused many people to lose large percentages of their retirement and investment portfolios. Losses of 40% or more are not uncommon. While this is devastating to …
• Investment Retirement Account Information, Articles, Links » Blog … – I would like to start saving my money for retirement and my company currently doesn’t have a 401K. I would like a plan that will give me the most return but will offer the ability to withdrawal from the account if I need it to pay medical bills, improve my home, and similar cases. If you’re a financial advisor or have experience, please let me know what is out there.
• Top Retirement Investment Mistakes | Wealth Protection Blog – Every day new many investors try their luck in the stock market. Due to the volatile nature of the market, investors could face a financial loss if you do not take the right approach. Right approach is a necessity in any retirement investment option.
• Ways to Increase your Investments in Retirement | Retirement … – Did you know that it’s possible to increase your monthly retirement cash from Social Security by as much as $1033 per month? No? Well, don’t feel alone. There are over 32 million retired Americans. Guess how many took advantage of this …

6. Close proximity to large Metropolis – Lancaster and Palmdale are located within the County of Los Angeles, the most populous county in California, and they are within 45 miles of the City of Los Angeles, the most populous city in California.

7. Existing and planned industry and commerce – The largest industry in the Antelope Valley is the aerospace industry and the largest single employer in the Valley is Edwards Air Force Base. Other important industries include retail, hospitality, heath care and social assistance, and local government.  A Macy’s store has opened in the Antelope Valley Mall in Palmdale and several Walmart Superstores have already been built, with more planned.

The communities of the Antelope Valley are planning for a future of economic growth by attracting businesses to the surrounding area. The Antelope Valley Enterprise Zone covers approximately 61 square miles in Lancaster, Palmdale, and unincorporated Los Angeles County, and it provides several tax incentives for new and existing businesses. The Foreign Trade Zone includes sites in Palmdale and Mojave where international exporters and importers can receive reduced duty fees and labor costs.

8. Existing commercial and residential developments - Existing commercial and residential developments include numerous business parks, shopping centers, and planned communities in Lancaster and Palmdale.

9. Authoritative population projections and studies – There are two major sources for population projections and studies: the US Census Bureau and the Greater Antelope Valley Economic Alliance (GAVEA).

According to the US Census Bureau, the local communities of Antelope Valley had the following populations:

According to GAVEA, the local communities of the Antelope Valley had the following populations and forecasted growth:

10. Master plan for community (streets, roads, sewer, electric and gas) – By state law, each city and county must adopt a general plan for the physical development of all lands under its jurisdiction. This plan will serve as the basis for planning land use, transportation routes, population growth and distribution, development, open space, resource preservation and utilization, air and water quality, noise impacts, safety issues and other related physical, social and economic development factors.  Palmdale and Lancaster both have General Plans in place.

When you can find all ten of these indicators in an area, the area is likely to continue to grow, and land values are likely to increase substantially over time.  The Antelope Valley has all of these ten indicators right now and is a great place to buy.

10 Key Growth Indicators For Land Investment

1. Level, usable land – Located at the southwest edge of the Mojave Desert where it is bordered by the San Gabriel Mountains to the south and the Tehachapi Mountains to the north, the Antelope Valley covers an area of approximately 3,000 square miles. The Valley is predominantly flat and considered to be a high desert with elevations between 2,300 and 2,400 feet above sea level. The floor of the Valley consists primarily of alluvial deposits – materials deposited by rivers. Rocks in the region are predominantly granite and marble, and the soil type is predominantly loam – a combination of sand, silt, and clay in about 40-40-20% concentration. The floor of the Valley is very flat with only a few rock outcroppings called buttes. Most land in unincorporated Los Angeles County is zoned agricultural with the exception of Lake Los Angeles, Quartz Hill, Littlerock, and Llano which are zoned rural or urban residential. The ability to develop land may be subject to the requirements and restrictions of all applicable governing bodies.

2. Abundant water supply – The primary sources of water are: groundwater, surface water, and imported surface water. Groundwater is the primary source of water in the Antelope Valley. Prior to 1972, it provided more than 90 percent of the total water supply; after 1972, it provided between 50 and 90 percent. Groundwater is stored in the Antelope Valley Groundwater Basin and has an estimated capacity of 68 million acre-feet with a recharge rate of 31,200 to 80,400 acre-feet per year. The primary source of surface water is the Littlerock Reservoir with a capacity of 3,500 acre feet. The imported surface water arrives from the State Water Project (also known as the California Aqueduct). From the SWP, the Antelope Valley-East Kern Water Agency is contracted to deliver 160,000 acre-feet per year to the Antelope Valley.

3. Accessibility to freeway, train, air, etc. – The available means on transportation include: automobile, bus, railroad, and airplane. Automobile transportation is the primary means of transportation in the Antelope Valley as roads in the Valley are generally easy to navigate and efficient to use. There are several highways and freeways: Fwy 14 and Sierra Hwy heading north-south, and Hwy 138 heading east-west. For commuters without access to an automobile, there is the Antelope Valley Transit Authority. Formed in 1992, combining the efforts of the cities of Lancaster and Palmdale and Los Angeles County, the transit authority offers twelve bus routes covering most of the Valley from 60th St W to 170th St E between Ave H and Ave U. Railroad service includes the Metrolink, Southern California’s regional commuter rail service. The Metrolink has three stations in Antelope Valley – Lancaster, Palmdale, and Acton – all of which connect to the LA Union Station. Travel by airplane has been an important means of transportation in the Antelope Valley since the 1930’s. The Valley used to be dotted with numerous airports; most of which are now gone. The remaining airports can be grouped into two groups: small, private airports and large, commercial airports. The small, private airports have limited amenities and require permission to use the site. They vary in condition and suitability. Of the large, commercial airports, there are two: the General William J. Fox Field and the LA/Palmdale Regional Airport.

4. Adequate utilities for massive growth – In 2007, California produced 69.5% of the electricity it uses; the rest was imported from the Pacific Northwest (8.2%) and the U.S. desert southwest (22.3%). Natural gas is the main source for electricity at 45.2% of the total system power.

Electricity in Lancaster and Palmdale is provided by Southern California Edison Co. In 2007, SCE served the second largest number of consumers in California and sold 79,505,231 MWh at an average retail price of 14.11 c/kWh.

5. Educational system: primary through college- The Antelope Valley has a well established public education system from elementary school through college. At the college level, the Antelope Valley College serves 15,500 students, it is accredited by the Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges, and offers many associate degree programs like a registered nursing program, an airframe and power plant technician program, and an engineering program. At the high school level, the Antelope Valley Union High School District provides high school education to Lancaster and Palmdale and the surrounding unincorporated areas of Los Angeles County. At the elementary and junior high school levels, eight different school districts manage over 50 elementary and junior high schools.

Tomorrow, we’ll cover the remaining five indicators of growth that you want to find before buying land for investment purposes.

The properties that I offer are currently owned by the ACE Capital Group*, which has a rigorous approach to selecting pre-development parcels.  Ace Capital Group currently owns more than $8 million of properties in the Antelope Valley of California, in the northern end of Los Angeles County.  There are many reasons Ace Capital Group has chosen to focus on this area and we discuss them in our free online webinars and live seminars.

You can sign up to be notified of our next free webinar by filling in the boxes in the right column.  In coming articles, I will continue to provide more information about land banking, how to locate the best areas for land banking, about the qualifications for the ideal property, and will discuss some of the specific properties available for purchase from Ace Capital Group right now.

So keep coming back to this site.  We’ll be adding a LOT of great information very soon.  If you want to know more about Ace Capital Group, here’s what it says on their website -

“ACE Capital Group is a family-owned Land Banking company based in Redwood City, California. Our premier consumer Land Banking product is sold under the brand GreenDeed(tm) through a network of authorized real estate agents and brokers.

Our business has evolved from the extremely successful personal Land Banking of our founders. For the past 40 years, Chen and Victoria Wang have been pioneers in the field of consumer Land Banking.  Their proven approach has made it possible for thousands of their customers to allocate under-performing assets in existing retirement accounts to select pre-developed land. Leveraging a highly specialized agreement, ACE’s Land Bankers have access to better parcels of land, at better prices, with better exit strategies than any other Land Banking product.

While ACE is not a real estate broker or financial advisor; we are the principals who purchase and sell carefully selected California pre-developed land specifically for the purpose of Land Banking.”

Ace Capital Group is the owner of the properties I offer for sale.  If you want more information.  Please contact me.

*Feng Shui Investments, the licensed California real estate brokerage that Michael Goodman is attached to, sells GreenDeed™, the premier Land Banking product of Ace Capital Group as an authorized representative.

GreenDeed™ is a trademark of ACE Capital Group. Aceh Capital LLC, d/b/a ACE Capital Group, is organized under the laws of the State of California, is not a real estate or security brokerage and does not offer any brokerage or investment advisory services. ACE Capital Group sells land through a network of California DRE licensed real estate brokers. Feng Shui Investments is an independent distributor authorized to represent ACE Capital Group’s GreenDeed™ product and is not an employee or agent of Ace Capital Group. ACE makes no forecast or claim of future value or appreciation of the land. Past performance is not a guarantee of future appreciation. Read the full land disclosure package carefully before deciding to make any purchase.

Why You Should Invest In Land

“Most people think investing in land is only for big-time real estate developers looking to buy large parcels of land for commercial development or the subdivisions of homes. What they don’t realize is that investing in land is one of the most sound investment strategies available today and is a viable opportunity for most investors, both large and small.

Purchasing land is one of the most sound investment real estate strategies available today and is a viable opportunity for both large and small real estate buyers. The simplicity and transparency of land investment has gained many followers.

There are three types of land investment:

Short term – planning to sell the land within 18 months
Medium term – wanting to hold the land 3 to 5 years
Long term investor – wanting to hold the land 5 or more years

The advantages of investing in land:

Higher profits – Annual Return on Investment (ROI Analysis)
Greater flexibility for maximizing value
Simple investment management

Regardless if you are looking for a real estate property for investment purposes, or as a site for a future home; investing in land is proven to offer a safer and higher return on your investment than any other financial instrument available today.

Unlike stocks and bonds, investment land is a finite resource and is becoming ever more so with each passing day, and it is a trend that shows no signs of abating. Not all land is equal in value. Some parcels are worth more than other because of their location, unusual features, vegatation or views.

Land investment remains one of the most popular forms of investment with private individuals who understand the concept of buying and holding land in the path of growth. The land will always have a tangible investment value that can touched and used.

Due to its limited supply and demand, one can also rest assured that land values will almost always be on the rise. Historically, land is the basis of countless fortunes that have been made. Undeveloped land offers several investment advantages that can not be found in most developed real estate.

For those having underperforming assets in their portfolios and not getting the returns they had hoped for, they should consider land for their retirement planning and 401K programs. ”

(from http://arizonaretirementland.com – Copyright Hualapai West Inc, All Rights Reserved)

There are definite advantages to banking on the future value of land, compared to playing the stock market or buying bonds and CD’s.  One of these advantages is a minimum of volatility.  The value of land can go down but, when it does, it does so more slowly than other vehicles.  But, over time, putting your money in land has been one of, if not the best, places to hold money.

An article on WiseGeek.com says, “In most countries, land is a hot commodity due to sprawling cities and commercial development. Open land is often consumed at a dizzying rate by cities and developers hungry for space to build more housing, retail and office space. In anticipation of future development, investors and city, county or state governments may purchase and hold land that is vacant, rural or underutilized at a relative bargain before its value skyrockets once it eventually falls in the path of development. This practice is called land banking.”

The same article goes on to say, “Land banking is a practice also utilized by private investors who take a risk on what is usually cheap, undesirable property in the hopes when the growth comes to them, they’ll make a significant profit. Donald Trump, Howard Hughes and Bob Hope are all famous land bankers, buying up large swaths of land in what are now highly lucrative areas such as Manhattan, NY, Las Vegas and Southern California.”

In another article on DanTomlinJr.com, it says, “Since the beginning of time, land has been the primary source of wealth and power.  Today, land continues to be one of the most prize and prudent investments, if it is careful researched and astutely managed.  Creating extraordinary value has always been the result of extraordinary vision and hard work.  Finding the right land investment takes a little of both.”

He also writes, “In the United States predevelopment land is a stable investment.   Its profit potential is consistently and significantly greater than any potential risk.  It can be one of the best investments for the patient, sophisticated investor.  But for the land to realize its maximum potential value, it must exist in a rapidly growing metropolitan area, be thoroughly researched, correctly purchased, actively managed, and aggressively marketed at the appropriate time.”

Finding the right kind of land, in a growing area, in the path of development.  Buying at a good price and selling at a better one.  That is what land banking is all about.