Top 4 Compelling Reasons to Invest In SoCal Land Now
The number one question people have when talking about real estate investments today is, “What about the decline in the real estate industry right now?” People are understandably hesistant because of the present state our economy and the subprime debacle.
Here are the top 4 compelling reasons why you need to invest in SoCal land now:
- China! Why? China is pushing Southern California into a logistics boom which calls for distribution centers. It takes roughly 80 acres of land in order to build a modern day distribution center. In the “gateway cities,” those close to the ports, land costs $20 per square foot in these areas. This would cost a company about $70 Million to build its distribution center. On the other hand, in “exurban cities,” or suburbs of suburbs in the inland areas, land costs only about $2 per square foot. Building a warehouse in these areas would cost only $7 Million. That’s a 1000% price difference! REITS (Real Estate Investment Trusts) are already snatching up large tracks of land and consolidating to position themselves before the logistics boom. Yes, you could invest in a REIT; but why own a share when you could own acreage?
- Improvements in California’s infrastructure are on the way. We are so behind in infrastructure that we are just now considering a bullet train in California, whereas Japan built its bullet train in 1968. Governer Schwarzenegger states that in California we are in need of $550 Billion in improvements in the next 2 decades due to the impending population and logistics explosion. Therefore, he is proposing a Public-Private Partnership (PPP) in order to alleviate this. Please see the article: Gov. Schwarzenegger Joins Gov. Rendell and Mayor Bloomberg to Reinvigorate Federal Investment in Nation’s Infrastructure for a more detailed explanation of this. I recommend watching the video, too.
- Hedgefunds, or private equity moneys, are creating a war chest as we speak. These funds are worth Billions of dollars. This includes hedgefunds with people like Kirk Krekorian and Michael Dell being involved. They are buying inventories of residential home builders, such as Sun Cal, KB Homes and Lennar, who got overzealous in the boom time. The builders are having to sell their assets cheaply to the big guys instead of weighing down their books – so they’re offloading them. The big guys are expecting that real estate will turn again, and they will then sell the builders assets back to them at an increased price.
- One can never predict cost of construction in boom times, so the cities themselves are putting in the infrastructure. The cities are also able to buy goods from the overzealous builders inexpensively and there are budgets to improve infrastructure. Here is where “Other Developers Money” (ODM) comes into play. Land Bankers are direct benefactors.
So while there’s less competition in this economic decline right now, take advantage and invest in SoCal to make money in the long-term.
About
I’m so grateful you are visiting my blog. I think you’ll find it intriguing and that it will be valuable to your financial future.
I grew up just outside of Dallas, Texas in a city called Arlington. My parents, Chris and Debbie Burch, as well as my sister, Shannon Cox, have always inspired me to be a positive light to those around me. I grew up as a dancer and enjoying school with particular interest in biology and mathematics. After going to undergraduate school at Southwest Texas State University, I was accepted into a Physical Therapy program in the Netherlands at Fontys Hogeschool Eindhoven where I met my husband, Anthony Abrajano. We married in 1999.
While working as a Pediatric Physical Therapist, I had two children, Cate and Charley. After 10 years in the field of PT while raising my small children and moving to California, I had a paradigm shift. While PT is rewarding and I adore children, I wanted to find a way to invest in my family’s future and feel secure about it. Everyone told me to invest the max in my 401K, and I did. Boy, was that the wrong choice! I lost so much money in my 401K in 2002 by listening to this mainstream advice. Fortunately, I made almost all of it back very slowly over the next couple of years.
Then preparation met opportunity. My friend, Yuko Rodriguez, told me about Southern California Land Banking. Land banking is investing in pre-developed land in the path of growth based on growth factors such as population growth, affordable housing and large diversified job base.
“All a man has to do to get rich in America is find out where people are going, get there first and buy land.” General Douglas McArthur
OK, well obviously that was long ago; and women can also tap into this form of investment. So I became a land banker. I have invested in three parcels of land at this point and plan on becoming an all American Land Baroness!
Surely, you have many questions which I plan to cover in my blog site. Please feel free to contact me at my personal e-mail address if you’re ready to invest or just would like to further explore land banking: tkcabrajano@sbcglobal.net
My Favorite Charities
I worked at Texas Scottish Rite as a pediatric Physical Therapist for 2 1/2 years, mainly on babies with foot demormities. This hospital provides whatever medical care necessary 100% free of charge to children with orthopedic and neurologically related deformities regardless of ability to pay. I would still be working there if I lived in Texas. If you are looking for a fabulous organization to donate to, please click on the crayon.
The Vick House Project is an opportunity to make a good ending to a sad story. For much of this past year, Americans have heard about the tragic tales of mistreatment and abuse to dogs for the purpose of dog fighting. Please click on "Tank" above to visit the Vick house Project.
