Consumer Land Banking is the time-tested strategy of purchasing select
pre-developed land in the path of development of a major metropolitan
area and holding it until it's value matures.
History of Land Banking
The accumulation of
wealth through land ownership has defined human economic history. Land
has been a primary source of production and it's control has been the
control of wealth. The accumulation of land in the path of development
of cities and countries has been a historical process of great wealth
accumulation.
Who Does Land Banking?
Currently the process of buying and holding land for a variety of
economic, political and value-based reasons by government entities,
corporations and organizational. Governments land bank to secure
locations for schools in expanding neighborhoods, as part of supporting
economic development initiatives or for "open space reserves." As
corporations watch changing demographic patterns and where people are
moving, they will bank land for future stores and distribution centers.
Environmental and conservation organizations purchase land as a strategy
for securing habitat.
Individuals of means
have always purchased land as part of their portfolios. This "consumer"
Land Banking is a critical part of many investors asset allocation and
portfolio diversification. ACE Capital Group works with individuals to
support their own wealth development strategy and access the power of
Land Banking.
Where is Land Banking Done?
Consumer Land Banking is done with pre-developed land in the path of
growth of a major metropolitan area. Based on government and private
studies about demographic and population patterns, projections are made
about where people will be living 5+ years in the future. Based on
economic, social and geographic patterns projects are made about the
future value of the land. These projects form the basis for targeted
locations which are prime for Land Banking
ACE Capital Group has
studies targeted locations around the country and has chosen to focus on
the 60 mile radius surrounding the expanding megatropolis of Los
Angeles. The United State's property rights are the strongest in the
world; and California's limits on property tax increases creates a
relatively stable environment for projecting carrying costs. The Los
Angelas metropolitan area is the largest in the country and has provided
the one of the most sustained population increases. Our ongoing
anaylsis and studies show that the Antelope Valley area has the
conditions, as presented in the Land Banking Institute's Ten Key
Indicators -- which maximize the Land Banking opportunity. Antelope
Valley has become the clear "edge of development" with proven sustained
property value increase over the last 5 years. It presents an excellent
location for Land Banking.
How is Land Banking Done?
Land Banking involves the purchase of land at or below current market
rates. This property is held until the value matures. When it can be
sold at a profit the proceeds are reinvested into additional parcels
until the financial goals have been achieved. The structured stages of
the Land Banking process are clearly laid out in the Land Banking
Institute's Knowledge Center.
Purchasing a property
and preparing, cleaning and insuring the title to make it suitable for
Land Banking can often be a challenging, time consuming and a costly
process. Adding to that realtor fees and the price of the proper can
quickly make the property exceed market value. This then means the first
critical years of property value maturing is to "get back to even"
rather than grow wealth.
For many individual
consumers -- without the time and resources of institutional investors
-- turning to a Land Banking Specialists is the way to secure the right
property at the right price. ACE Capital Group's Land Acquisition
Specialist have developed the relationships neccessary to ensure that
the customer's of our premiere GreenDeed(tm) product secure a grant deed
with minumal fees purchased at or near market price.
Why do Individuals and Families do Land Banking?
Reasons
for Land Banking as a wealth building strategy are diverse. Goals for
personal Land Banking include securing retirement, paying for college
education, recovering the value of a pension and leaving a lasting
legacy to family or organizations. After a review of financial goals,
Land Banking is often the foundational strategy for building real
wealth.
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