Turning Wind into Money
August 7, 2009
About 668,000 people read the Las Vegas Review Journal on a daily basis.
Most of them, in a hurry to eat breakfast and race off to work, probably missed this small little blurb in the “IN BRIEF” section this past week.
Here’s the headline I saw:
“Huge wind farm slated for northwest Arizona”
Now in the past few issues of the Dirt Report, we’ve been talking a lot about the alternative energy development plans in and around the White Hills Arizona area.
And I’ve highlighted several projects involving solar energy.
White Hills is important, of course, because it’s right near the Hoover Dam bridge - slated for completion in 2010.
(According to the issue of the Silver Cactus News I just received, the bridge is 85% done.)
This week, we’re talking about renewable energy again. But this time, it’s NOT solar… it’s wind.
Here’s a quick summary of the article:
BP Alternative Energy has filed plans to develop up to 45,000 acres for a wind farm in the White Hills AZ area.
The article explains they’re looking to develop up to 500 megawatts on that land and use up to 385 wind turbines.
As it’s proposed, the wind farm could power about 150,000 homes. And construction could start as early as late 2011 or early 2012.
Now I’m all for renewable energy, but from my point of view, this article is hardly about wind.
It’s really about land. And it’s about how savvy land investors can spot opportunity approaching (or at least do their best to prepare for it if it does show up) years before it materializes.
That takes specialized knowledge and timing.
While most people just gloss over these types of stories (after all, this BP story was only about 6 inches long buried in the newspaper) to me, they stick out like a sore thumb.
This BP story is just another clue that opportunity is all around for land investors.
Remember, development is growth…
Growth brings people…
People need places to live…
Builders need land to build those places to live…
Between the Hoover Dam Bridge, the solar and now the wind, things are heating up.
If you want to see an in depth look at wind in Mohave County, AZ, take a look at the document below.
It’s the slides from an April 4, 2008 presentation to the Arizona Wind Working Group.
It’s a LONG document, filled with a lot of great information about Mohave County and its wind energy resources.
Here are two quick items of note:
1. On page 18, you’ll find a listing of the Renewable Energy Market Drivers. The one thing that’s on the list NOW that wasn’t then is of course, President Obama… and the deep pockets of the government.
2. You’ll see a mention of the BP Wind Farm, complete with diagrams, on page 55.
The reason that second item is important is simply because it shows you that the BP Wind Farm is NOT a new project.
Here we are, a YEAR from the date these slides were presented and just now the BP story is showing up in the papers.
But it’s even older than that.
Here’s a link to the project being discussed at a meeting of the Colorado River Transmission way back in October of 2007.
Just scroll down about 2/3 of the way down the document and you’ll see the BP Wind Farm mentioned.
Successful land investing requires that you KNOW things other people don’t know. And the sooner you know them, the better.
I point all of these articles and publications out to you because only by seeing enough of this stuff do you train yourself to read between the lines and see the opportunity. And you train yourself to see the clues far enough in advance to act on your knowledge.
You see, most people just don’t get how big the LAND business really is.
They just miss it completely.
I, for one, am happy to keep it that way. Since it keeps the opportunities open for those of us that know what to look for.
But as a subscriber to the Dirt Report, you’re well ahead of the pack. And I do my best to keep it that way.
Now considering this is a DIRT newsletter and not a literary one, what you’re about to read will most likely be the ONLY piece of poetry I ever feature in the Dirt Report.
This piece of poetry, however, is important. Because it really gets to the heart of what makes land such a valuable investment AND explains why it’s somehow managed to stay under the radar for so long.
Here it is:
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Who Am I?
I am the basis of all wealth, the heritage of the wise, the thrifty and prudent.
I am the poor person’s joy and comfort, the rich person’s prize, the right hand of capital, the silent partner of thousands of successful people.
I am solace of the widow, the comfort of old age, the cornerstone of security against misfortune and want. I am handed down through generations, as a possession of great value.
I am the choicest fruit of labor, the safest collateral and yet I am humble. I stand before every person bidding them to know me for what I am and asking them to possess me.
I am quietly growing in value through countless days. Though I might seem dormant, my worth increases, never falling, never ceasing. Time is my aid and the ever increasing population adds to my gain. I defy fire and the elements, for they cannot destroy me.
My possessors learn to believe in me and invariable they become envied by those that have passed me by. While all other things wither and decay, I alone survive. The centuries find me younger, always increasing in strength. All oil and minerals come from me. I am the producer of food, building materials and the home to every living thing. I serve as the foundation for homes, factories, banks and stores.
I have not been produced for millions of years yet, I am so common that thousands, unthinking and unknowingly, pass be by.
Who Am I? I Am Land
-Anonymous
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Remember how I always talk about the importance of SIGHT in the investing business? That it’s key to be able to spot opportunities other people can’t or won’t see?
Well, people are so busy looking out there for the next big thing, they often forget to look right under their feet… at the dirt they’re standing on.
My advice to you?
Don’t be one of those people.
There’s opportunity to make smart investments in raw land all over the place.
I don’t believe there’s been a better time to buy real estate… at least not in the last 50 years or so.
So keep your eyes peeled… and keep reading the Dirt Report.
