No Sour Grapes for Smart Land Investors
January 11, 2009
Before we get started, let me just take a minute to wish
everybody a happy and prosperous New Year. We’ve got a lot of
profitable information coming your way in 2009.
So make sure to check your inbox for each and every issue of the Dirt Report.
Today’s issue is going to be a short one. Here’s why:
I have something pretty special for you to hear and I want to get to it as fast as I can.
In the last issue of the Dirt Report, I told you about the passing of my client and good friend, Rhett.
While I’m sad to see him go, it reminds me of a quote by Robert Frost that I think is pretty powerful. And it’s a quote that has a LOT to do with the point of today’s issue.
Here’s the quote:
“In three words I can sum up everything I’ve learned about life: it goes on.”
And so it does…
Tick, Tock, Tick, Tock
While Rhett’s story comes to an end, other stories are just beginning.
Take a friend of mine who just had a new son. He was born on January 1, 2009. What a way to ring in the New Year.
New lives coming in, and old lives going out.
Time just keeps marching on.
Heck, a few decades ago, Las Vegas didn’t even exist.
Then they built the Hoover Dam…
Now they’re building the bridge OVER the Hoover Dam.
As much as things change in this world, there are two things that pretty much stay the same: LAND and TIME.
And in the land business, TIME provides the magic that turns dirt into profit.
Without TIME, you don’t have much.
As the economy is going through its gyrations, with TRILLIONS of dollars just disappearing into thin air, land investors know that they’ve got the “magic” on their side.
Because no matter WHAT happens, “IT GOES ON.”
TIME goes on. And TIME heals all, as they say.
Okay… let’s jump into the real MEAT of today’s issue…
Turning Dirt into Wine into Money
Now I don’t know a whole lot about wine. I know that I like white better than red. And Chardonnay is pretty high on my list.
But other than that, I don’t really care if my wine is barreled in oak or cedar or balsa wood.
What I DO know is that to get wine you need grapes. And to get grapes you need…. DIRT.
Today’s featured guest knows about wine AND dirt. And he knows how to put them together for profit.
His name is Josh Moffitt, but most people call him the Arizona Land Baron.
I usually tell you that investing in raw land is NOT a smart idea if you’re looking for a cashflow producing piece of real estate.
Of course you can turn raw land into cashflow once you sell, but in general… there’s not a lot of cash flowing while you’re holding your land.
Unless your Josh Moffitt.
Josh has stumbled upon a pretty smart opportunity to generate cash on his land WHILE he’s holding.
Josh invests in raw land. But he concentrates on investing in VINEYARD land in Arizona.
And thanks to some fairly recent new laws in Arizona, the wine business is growing pretty rapidly.
The More You Know, the
More You Tend to Make
Josh is a smart land investor. And he knows that SPECIALIZING in a particular area is a huge key to maximizing your profit.
A few weeks ago, I sat down and interviewed Josh and got him to explain how he does what he does.
Josh is a perfect example of why KNOWLEDGE is so important in the land investing business.
The more you KNOW in the land business, the better off you’ll be.
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And that’s why a lot of the smart land investors choose to specialize in a particular area. Over time, they become the EXPERT.
That knowledge goes right to their bottom line.
I’m sure you think I sound like a broken record, coming back to this one idea again and again…
But the reason I hammer away on it is simply because KNOWLEDGE can mean the difference between you making money and you losing money.
Never forget: the more you know about a particular area, the better your chances will be to profit.
In this land investing interview, you’re going to hear how Josh got started in the land business (when he didn’t have a ton of cash).
And he’s going to walk you through one of the first deals he did. You’ll hear him explain how he acquired a 120 acre property, subdivided it and then sold off some of the pieces.
In Josh’s example, he was even able to sell one of the pieces before he closed escrow, and then use the proceeds to help fund the entire deal. He used something called a simultaneous close.
That’s smart investing.
The interview is almost 20 minutes long, and it’s filled with MEAT from the beginning to the end.
Just be sure to turn up your speakers and have a pen and paper ready to take notes. You can hear it by clicking on the link below:
That’s it for today. Be sure to listen to that interview.
Life, Death and Land Investing
December 26, 2008
Today’s issue of the Dirt Report is dedicated to a long time client, investor and friend.
His name is Rhett Siegfried.
I’ve known Rhett for over 20 years. In fact, he was one of the first land investors I ever worked with.
A few weeks ago, Rhett passed away. And services are scheduled for January 16 here in Las Vegas.
Today, I’m going to tell you part of Rhett’s story. As I said, he was a very good friend. But also, there’s a HUGE lesson in here for anyone who is currently investing in raw land or thinking about it.
From Condos to Dirt
I first met Rhett when he was a bartender down at the Golden Nugget in Las Vegas.
At that time, he was busy investing in several condos in the Las Vegas area. He was your typical real estate investor - he did everything from Buy/Sell the properties to fixing leaky pipes.
He had to do it all, because the rent on the condos he invested in was somewhere around $400-600 per month per unit. So there wasn’t a lot of room for positive cashflow let alone profit.
I still remember every time I went to see him… if he wasn’t at the Golden Nugget, he was working on the condos.
He bought those condos for about $25,000-$50,000 a piece. And his strategy was simply to rent them out and have his tenants pay down the mortgage. It’s a basic real estate investing strategy most people know about.
And he did well with that. Rhett, a regular working guy, figured out how to get into the real estate business. He took action and he made it happen. No small feat… especially on a bartender’s salary.
But in the early 1980s Rhett discovered raw land.
I still remember explaining to him how when you’re investing in raw land, there IS no maintenance like when you own a condo.
In most instances you don’t have to go in, spend money to improve your property and hope that your improvements add to any appreciation that happens before you sell.
Instead, I’m always looking for properties to simply buy, hold and sell.
And that’s what I taught Rhett.
***You can hear a short interview I did with Rhett on November 16, 2008 where he talks about this. You’ll even hear how he made some money from his land in a way I never even considered…
Here’s the link to the audio:
The BIG Land Lesson for Today
Now here comes the big lesson for today. And it’s one of the greatest parts of becoming an investor in raw land.
I’ve told you before that there’s typically no cashflow in land. The land just sits there until you sell it.
But when you DO sell it… well that’s when Rhett’s strategy becomes valuable. (If you haven’t listened to the audio above, you’ll hear Rhett tell you about this in his own words). So valuable that it can change your life and the lives of your children and grandchildren.
Rhett’s strategy was to sell his land investments in small pieces and create notes (meaning HE held the paper for the buyer) that would provide him with regular income. Rhett WAS the bank. Every month, he collected his checks… for years and years. -
If you listened to the recording above, you heard Rhett talk about this and what it did for his retirement income. (In the last few years, he increased his positive cashflow by an extra $1,200 per month.)
Here’s a quick summary of just one of his investments:
Even though Rhett has now passed, that money will continue to flow… to wherever he designated it should go.
This isn’t pie in the sky, sit on your couch and watch the money roll in stuff you see on TV. This is real.
Of course Rhett did all the work to get the returns he enjoyed. He made good choices at good times. He bought right. He sold right.
But when you’ve held land for 5 or 10 years, it’s often easy to forget you actually did the work when the checks just start showing up month after month.
Joy and Sadness: Two Sides
of the Same Coin
Life is about balance… and where there is sadness there is always joy in one form or another. But you have to be looking from the right perspective.
So although my friend and client, Rhett, isn’t here anymore, the joy is in what he left for his family and the ones he loved.
He left the land that will benefit them for years to come.
I rode out to Arizona earlier this week for the first time in a long time without Rhett.
He always used to go on the land tours with me and be my backup. In fact, most of the land tour pictures you’ll find on my site from the past 10 years were taken by Rhett.
He was always excited to go on those tours. And many of you reading this right now will recognize his name and probably even remember when he went on your land tour.
Rhett was really looking forward to the bridge being completed across the Hoover Dam. It’s an amazing site, even in the middle of construction. Unfortunately, he won’t be here to see the bridge when it’s done. He wanted to be one of the first people to drive across. His kids and grandkids will do that for him.
But I know he’s watching…
So here’s to you Rhett. A good friend to me and to everyone that knows you. You’re someone I am going to miss for a long time.
May you rest in peace.
Getting an Inside Scoop for
Investors in and Around
the Hoover Dam Bridge
OK… time to move on.
If you’ve been a reader of the Dirt Report for any length of time, you’ve probably heard me say that one of the keys to success in raw land is KNOWING more.
The more you KNOW the more you tend to make.
And today I want to tell you about a good resource to help you KNOW more… particularly if you have invested or are looking to invest in and around Mohave County.
The resource is called the Mohave County Landowners Association. I’m a member. And as a benefit of membership, I get access to their monthly newsletter which is an excellent “Here’s the bottom line about what’s going on.” type of resource for the smart land investor.
They publish a hard copy newsletter once a month that keeps you up to date on what’s going on.
Subscriptions are $45. To subscribe just send your information and subscription payment to:
Mohave County Landowners Association
1812 Stockton Hill Road
PO Box 3877
Kingman AZ 86402-9975
The phone number is (928) 753-3055.
If you’ve invested in Mohave County or are thinking about this, their newsletter is a really valuable resource to have. I give it my strong recommendation.
So What’s the Deal with
Land Taxes?
In the November issue of the Mohave County Landowners Association newsletter, there was a short article about all the landowners who are wondering why their property tax bills are so high in a down market.
Without getting into a long explanation of property taxes (which isn’t really necessary here), the point is that a lot of property owners are up in arms over the increase in their land tax bills.
The reason they’re high is because the taxes are based on actual sales of property done back when the market was hot. Remember, 2005-2006 was probably the hottest time on record for Mohave County property.
The reason I’m telling you this is simple:
Higher tax bills are just one more factor helping to create a whole lot of motivated SELLERS in a market like this.
Now when I say the land taxes are “high,” don’t freak out. I
have a client who had a tax bill of $20 last year and $50 this
year. So while the tax bill doubled, we’re not talking about a
lot of money.
For some reason, that’s enough to motivate some land owners to
consider selling. Especially in this market… it gives absentee
land owners one more reason to consider selling.
And working with motivated sellers is a key to profit.
We’ll talk more about that in a coming issue of the Dirt Report.
Happy Holidays from the
Dirt Report
Before I close this up, I just want to wish all of you Happy Holidays and a Happy New Year.
There’s no time like the holidays to remind us why we do what we do and the people for whom we do it.
I appreciate having you as a Dirt Report reader and wish you the best in 2009.
Is That Possible? 2.5 Acres of Raw Land for $125 + Closing Costs?
December 15, 2008
Two quick updates before we jump into the heart of today’s Dirt Report:
Big Dirt Update #1 Regarding
Jim Rhodes’ Pravada Development
Big news for folks investing (or thinking about investing) in and around Golden Valley…
On December 2, an Arizona Corporation Commission law judge recommended that the ACC (Arizona Corporation Commission) approve the Certificates of Convenience and Necessity for Perkins Mountain Water and Perkins Mountain Utility Company.
Those are the companies that are going to provide the water and electric to Jim Rhodes’ Pravada development in Golden Valley.
This is big news for investors in the Mohave County area.
Here are three short excerpts from the article:
“Judge Teena Wolfe is recommending that the ACC approve the Certificates of Convenience and Necessity for Perkins Mountain Water and Perkins Mountain Utility Company.”
“Perkins Mountain Water Company and Perkins Mountain Utility Company are fit and proper entities to receive Orders Preliminary to the issuance of final CC&Ns,” Wolf’s recommendation states.”
“The two companies will serve the Ranch at White Hills and Pravada in Golden Valley. The developments are expected to contain more than 50,000 dwellings.”
Here’s the full story from the Kingman Daily Miner:
Big Dirt Update #2 Regarding
the Widening of U.S. 93
A-DOT recently confirmed that the start of construction to widen the Arizona side of U.S. 93 (the 17 mile stretch of highway that is still a 2 lane road) is going to start in January 2009.
The construction will be starting from about mile marker 17 and heading backwards towards the new bridge.
I’ll have a LOT more information for you after the new year about this… but for now, it looks like things are moving forward.
OK, let’s move on…
Strike 1, 2 and 3
for the Big 3
You really can’t make this stuff up…
It seems like every week, the Big 3 automakers keep coming up with brand new ways to screw things up.
As I write this, they’re still trying to get a bunch of your money to steady their companies - companies that clearly aren’t viable in today’s economy.
Ford says it doesn’t need cash for the short term, it just needs help for long term viability.
Isn’t the market supposed to take care of things like that? If a company can’t hang in there for the long term… well, then it ceases to exist.
That’s capitalism right?
But these are public companies. So it’s not really their own money they’re dealing with.
It’s the investors’ money. It’s your money.
And the only reason the investors are in the game is because they feel there’s a good chance of profit. And that’s the problem. There is no profit right now.
Here’s an excerpt from Ford’s April 4 2008 press release outlining 2007 performance and executive compensation:
“Alan Mulally, Ford president and chief executive officer, earned $2,000,000 in salary and received incentive bonus awards of $7 million.
Total 2007 compensation was $21,670,674, which includes salary, bonuses, the Company-recognized expense for stock options and other stock-based awards, as well as all other compensation.”
But Ford LOST $2.7 billion in 2007 and a whopping $12.6 billion the year before (the CEO got $28 million that year, for only 4 months on the job).
What’s wrong with this picture? It’s a wonder their investors aren’t out protesting in the streets.
But What Do the Big 3
Have to Do With Land?
I’m telling you all of this simply to show you just how crazy this whole mess sounds from an INVESTOR’S point of view.
You’ve got companies sucking wind who still pay performance bonuses and send their CEOs around the country on private jets.
Clearly, there’s something very wrong here.
And that’s why I’ve stuck to land for all of these years.
This kind of junk simply doesn’t go on. Because in land, there are far fewer places to hide. Fewer things to “fudge.”
And in the end, no matter WHAT happens, you’ve still got the land.
Sure there are crooks out there, and you’ll read about “shady” land deals of one type or another. You’ll find that in just about any industry where money changes hands.
But in land, you generally know what’s going on BEFORE you invest. From an investor’s point of view, you know what the expenses are that the managers will incur AND what they’ll make (usually a straight percentage of the profits).
Land Investing
with an LLC 101
A Very General Example
Here’s a hypothetical example:
Let’s say you want to invest in a property that’s being sold for $1 million. The problem is, most people don’t have a million dollars laying around.
So instead, you go out and find 9 friends who are willing to invest $100,000 each. You also invest $100,000.
You form an LLC and you become the manager of that LLC.
In an LLC, you have your investors and you have the managers. The managers are the land experts in charge of managing the property and executing the right exit strategy. More about that later…
The timing of the “hold” is at the discretion of the managers. In this case, let’s say it’s a five year hold for the investors.
During that time, each investor is making 10% per year in interest on his money. Ever tried to get 10% interest from your bank? Good luck.
So 5 years go by… the land is sold.
Here’s how the money gets divided:
The investors get paid FIRST.
In this case, each investor would get his investment back plus interest once the land is sold.
So each of your friends (provided they invested $100,000 each) would get his money back ($100,000) and his interest (10% interest on $100,000 = $10,000 per year times 5 years = $50,000). That’s a total of $150,000.
Once the investors receive their money back plus their interest, that’s when the managers are paid.
30% of the remaining profit goes to the managers and the rest is distributed to the investors.
Here’s the most important thing:
When you have an acquisition specialist who KNOWS he’s bought right (even if he’s planned on an 8 year hold), profiting from land basically comes down to buying and holding.
And if you’re investing in an LLC like the example above, you’re going to make interest on that money while you’re holding the land.
And the LLC is just ONE of the options to play the land game.
But this market is the best market for buyers (NOT sellers) I’ve seen in the 20+ years I’ve been in this business.
Smart Investing 101:
Know the Costs Before You Invest
The link below is an excerpt from a typical type of document used in what I’m describing.
Those are the expenses.
In land, you know what your expenses are (granted they’re estimated summaries, but it’s not difficult to come up with very accurate numbers), BEFORE you invest.
That way you don’t have some big fat cat eating away at your profits without your knowledge. If you look carefully, there’s no line item for flying around the country in a private jet. Or room for taking hefty salaries or fat bonuses.
You know upfront what the percentages are (I just explained it…)
There are no “bonuses” or “performance rewards” in a land LLC.
And there’s simply no room for funding a lavish lifestyle on an investor’s dime.
In land, simple economics rule.
The higher expenses go the lower the profit goes. Try selling THAT idea to the Big 3 CEOs.
Here’s Why BAD Markets (Like this
One) Are a HUGE Opportunity
for Land Investors
Here’s the deal…
In a soft market, builders can’t afford to hold onto their inventory until the market rebounds.
There’s no cashflow in land, remember.
That’s why acquisition specialists who know what they’re doing (like I do) are buying land from the builders NOW.
Remember the issue a few weeks ago where we highlighted the opportunity to purchase lots that were selling for 50-60K a few years ago that are now on the market for 5K?
Investors can hang on to the land (the builders need money) until the market comes back.
When the market rebounds, guess who wants the land?
The builders. Only this time, the deal to buy it back isn’t quite so good for them… And THAT’S how you profit.
As an acquisition specialist, I know how to play this scenario. And I’ve done it many times.
So Just How Good ARE the Deals
Out There in This Market?
For the last few issues, I’ve been trying to make it clear just how much opportunity there is right now out there for someone looking to invest in raw land.
Remember in a previous Dirt Report, I mentioned a great way to buy land by sending letter to absentee property owners?
Here’s an example that showed up on my doorstep the other day.
It’s from a company called Asset Holding LLC.
Now I know the deals are good. My colleagues know the deals are good. And you might be catching on…
But with that said, my jaw still hit the floor when I opened up the letter you’re about to see.
It was sent to my wife by an investor looking to cash in on the opportunity I’m talking about.
Take a look at the letter she got the other month offering to buy one of her properties:
The offer is $125 cash. (No that’s not a typo…)
The property is a 2.5 acre lot next to a major development in the Arizona desert.
The property is probably worth about 20K… even in a soft market.
And they’re kindly offering to buy it for a whopping $125 AND pay all the closing costs. What a deal huh?
The Reason These Letters Go Out
Is Because They Work… Often Enough
If YOU had to send out 2,000 letters to get even one seller willing to sell a property worth 20K for only $125… would YOU keep sending the letters?
Of course you would.
And the only reason these guys are sending them is because enough people DO sell. Enough to make it more than worth their while.
Actually, you can do this too.
I’ve just shown you an example people are actually using.
It’s a simple strategy to buy land for pennies on the dollar.
Of course, it’s not quite as simple as I’m making here. I don’t really have the time to go into all of the specifics.
But this is the type of thing I TEACH to investors who really want to create some results.
I just don’t do it for free 
If you want to learn more, get the Preview Kit and get on my schedule.
The bottom line is this:
A LOT of folks out there need cash right now.
For the savvy investor who is prepared, (like the company that sent my wife the letter) that spells huge opportunity all over the place.
But land is even BETTER because so few people know about it. How many people do you know that even know the first thing about investing in raw land?
And when’s the last time you saw a late night infomercial offering to sell you a get rich course on land investing?
For some reason, it’s stayed well under the radar. And I don’t mind one bit.
I’m not looking for the limelight, I’m looking for profit.
Hopefully by now you get the point that this is CLEARLY a buyer’s market.
And it’s one like I’ve never seen before.
Next week, I’m finally going to get to the part where I outline some hot areas in the land world. And I’ll talk about one of the BIG developers that I watch like a hawk.
Watching what this guy does is a very smart thing to do. And
I’ll tell many more reasons why next time.
Who Needs a Bank to Invest in Raw Land?
December 4, 2008
If you get a steady diet of network (bad) news, you’re probably under the impression that there’s a giant vacuum out there right now sucking everybody’s money into a big black hole.
And if you’re (still) in the stock market, I guess that’s pretty accurate. Trillions of dollars of “wealth” is just disappearing.
Apparently, Mr. Market is tired of the old definition of an “asset” and is working on a brand new one that is leaving a lot of people out in the cold.
In the process, Mr. Market is wreaking havoc with people’s life savings, retirement funds and rosy plans for the future.
Some stocks are losing 90% of their value in a few weeks or months, and some of the veterans of finance are waking up to find themselves out of business.
Bye bye employees… sorry investors, your “investment” is now worth zippo.
Credit is tight… lending has dried up… getting a loan is pretty much out of the question.
If you’re watching the news, you already know this stuff. The media keeps pumping it at you so there’s less resistance to whatever plan the government comes up with next to control your freedom and spend your money.
I’m not really into conspiracy theories. I just like to tell it like it is.
So What Good are Screaming Land Deals
if You Don’t Have the Money to Buy One?
Today’s issue of the Dirt Report answers the question that might be on your mind:
“If money is tight, how am I supposed to fund an investment in vacant land?”
I wish I could give you the answer to that question. But I can’t… because there isn’t just ONE answer.
There’s a LONG list of them. So let’s jump in…
If you paid attention to the complimentary land investing course that came along with your subscription to the Dirt Report, you know my opinion on getting money to fund a land investment.
Money is rarely the obstacle to becoming a land investor. There are simply too many options, unless you’re just not serious. More often, the real obstacle is usually finding good deals.
Thanks to the market mess, that’s not currently an issue.
And if the governments keep doing such a good job of making the mess even worse, the deals are just going to keep getting better.
In the Country of the Blind, the
One-Eyed Man is King
The most important thing you need in this market is KNOWLEDGE. You’ve got to know more than other people know about what to do in a market like this.
You win in the land business by KNOWING more. More knowledge and more connections. The more the better. But that doesn’t mean you have to know it all.
As Erasmus said, “In the country of the blind, the one-eyed man is king…”
Sadly, most people simply don’t know what they don’t know.
As an investor, that can be a VERY expensive problem.
Here’s a quick example:
Usually when a new client calls me to discuss his options for investing in raw land, the first step is to get a clear picture of his financial situation.
More often than not, my client is sitting on severely underperforming assets. He just doesn’t have the knowledge (or vision) to put them to better use for higher gain. That’s part of the service I provide.
Here’s how the conversation often goes:
“So how much is your IRA earning you?”
“Well, I don’t really know. I get a statement every now and then, but it’s kind of hard to tell. Plus, I get penalized if I withdraw too early… so I’m not sure that helps even if I did know.”
“Okay, well tell me about your 401(k)…”
“Well, I don’t want to get penalized for cashing that out either…”
And on it goes. The client thinks his options are limited… little does he know that funds from IRAs and 401(k)s (and more) can be used to fund a land deal… without penalty.
But let’s say he doesn’t have those things… and he can’t go to a bank or use a HELOC to fund the deal.
Then what?
The answer to that question brings me to one of my favorite sources of funding for land investors.
It’s called:
PRIVATE MONEY
Private money is just that. It’s money that comes from somewhere OTHER than a bank.
One type of private money is seller financing. In a market like this, with Motivated sellers (with a capital M), seller financing is one of the most creative ways to fund a land investment.
Mainly because it’s only limited by your creativity and the motivation of the seller.
Another option is to use a hard money lender. It’s pretty much like borrowing money from a bank… without the bank. These are private individuals that lend money.
Except the interest rates are higher…
We’ll be talking a LOT in the coming weeks about private money. For now, just remember that when you’re considering an investment in raw land, you’ve got A LOT of options.
Now let’s move on to something else you really have to know if you’re going to be smart about investing in dirt:
Dirt is Starting to Get Attention…
the Clock is Ticking
The calls are coming in already…
A LOT of people have a lot of money they need to park, and some of them are starting to realize that dirt is a good place to do it.
Anywhere else, (like keeping it in the stock market, an IRA, or a 401(k) is getting pretty risky… it’s quickly becoming “move it or lose it…”
In my opinion, those things have always been risky because it’s hard to tell exactly what’s being done with your money.
Apparently a lot of people are beginning to feel the same way I do. Savvy investors and Joe the Plumbers alike…
Just this week I got two calls asking me about how to park upwards of $22 million in dirt.
A few issues ago, I mentioned how, even in a BAD market, dirt prices would start to climb as people started searching around for safer places to put their assets.
Well, this is the type of stuff that does it. When money starts flowing into land in a particular area, prices tend to rise.
That’s just common sense. And it’s a clue to take action, if you’re paying attention.
If You’ve Got Questions, Here’s Your
Chance to Get Them Answered
If you have questions about your particular situation and whether or not investing in raw land is smart for you, here’s your last chance to get on board the upcoming virtual “Land Summit.”
Here are the details:
I’m going to give you the answers to the EXACT questions you have about investing in vacant land… especially in this market.
The format will be a Question and Answer session. You supply the questions, I’ll supply the answers and any supporting content to make things crystal clear.
The fee is $47 and your questions are due by next Wednesday. (Due to the demand, I’ve extended the deadline a few days to give everyone a chance to get their questions in.)
Once you’ve signed up and sent your fee, you’ll get instructions on how to submit your questions (yes you can ask more than one).
Once all of the questions come in, I’ll create an audio that goes through each one and lays out the answer in simple english.
Everyone will get a copy of the audio including answers to every question that comes in.
Now I usually charge a lot more than $47 for consulting. After all, this info can make you a lot of money. But in this case, considering I can help thousands of investors at once, it’s a good deal for both sides.
Here’s the page to reserve your spot:
If you’re interested in becoming a land investor but have some questions, the upcoming Land Investor’s Summit is the time to ask them.
Chances are, when the audio is completed, we’ll probably begin offering it to potential land investors for at least $97. So taking action quickly can save you about 50%.
Vacant Land Investing Made EZ for Joe the Plumber
November 21, 2008
Boo. Some pretty scary times right now in the economy.
If you have a heartbeat, then you know that the dominant emotion right now in this country is FEAR. Fear of financial collapse… fear of never being able to retire… fear of losing your job… fear of the unknown.
Just plain FEAR.
And people have a right to be scared by what’s going on. After all, if the auto industry tanks, 3 million people could be out of work overnight. 150 BILLION dollars of income could disappear from the economy. Not to mention the ripple effect that would create through all of the businesses that support those plants.
If you’re scared… you have every right to be.
But just because it’s normal to be scared right now doesn’t mean it’s smart.
Smart investors get scared. But smart investors don’t let FEAR affect their decision making.
Here’s what one of the richest men in the WORLD has to say about fear.
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
-Warren Buffett
Now if you’re going to take investment advice from anybody, Warren Buffett is probably the guy to give it to you. Just look at his results.
The Golden Rule of Begging: If You’re
Asking for Money, It Doesn’t Help You
to Pull Up to the Meeting in a Rolls Royce
So this week, the CEOs of the Big 3 (Ford, GM, Chrysler) are piling into their private jets and taking a day trip to Washington to sit on Capitol Hill and beg for handouts.
But they had a bit of trouble explaining why they needed money so badly and still were able to spend the $20,000 or so (EACH) to fuel up their private jets to get to the big show in Washington.
Listening to their testimony was really eye opening for me. It opened my eyes to just how clueless these folks are. And how reckless they’ve been with their investors’ money.
Since I’m in the land investing business, my mind usually focuses on things from the perspective of the investor. It’s just how I’ve trained my mind to think. I’m always looking out for the investor.
In the case of the Big 3, you have shareholders sitting around watching their investments disappear right before their eyes.
GM just hit a 66 year low of $2.52 per share. Ford a 26 year low of $1.21.
Things are NOT looking good.
And the big wigs are still using the private jets…
Is that who you’d want managing your money?
How Much Water (Money) Would YOU
Pump into a Leaking Balloon?
And that’s what’s so terrible for all of the Big 3 investors. You buy stock and you place your trust in the COMPANY to manage and protect the value of your investment.
The company (which in this case happens to be a set of 3 dinosaurs who wouldn’t know innovation if it smacked them in the face) have been dragging their feet for years. Just fat and happy… willing to pump out overpriced, gas guzzling cars left and right.
But now that’s a problem. Because here’s the deal:
If the average American can’t afford to go into DEBT, then the Big 3 can’t afford to be in business.
It’s a deck of cards really… and it’s starting to fall.
So they’re asking for 25 Billion dollars of YOUR money to tide them over…
Tide them over until WHAT is a question they’re not really willing to answer.
The “bridge loan” they’re asking for doesn’t really address what they’re going to do to fix their companies.
I’m not sure they’re really interested in that.
The bridge loan is simply money to tide them over until the U.S. consumer can afford to start borrowing money like a mad man again.
What If Shareholders in the Big 3
Could Have Locked in Their Profits
When They Bought The Stock?
Now let’s jump into the world of the land investor.
Like I said last week, smart land investors don’t buy and pray. They BUY because they KNOW they got a deal ON THE BUY.
That’s how you make your money in land.
It’s a much more profitable way to invest… and you sleep a whole lot better at night.
And that brings me to someone I’d like to introduce to you today. His name is Mike McClaskey. He’s a smart land investor and a colleague of WealthBridge Enterprises.
Mike has a philosophy when it comes to land. His philosophy is that you only buy from motivated sellers.
Now when he uses the word “motivated sellers,” he’s not talking about your average Carlton Sheets educated weekend real estate investor’s definition of a “motivated” seller…
Mike’s not looking to buy from land owners that want to sell. He’s looking to buy from land owners that HAVE to sell.
He’s looking for BIG developers in trouble.
And believe it or not, right now, there are a LOT of ‘em…
Land Investors Have a
HUGE Advantage Over Other Investors
So let me ask you a question…
If you could buy something for $9 KNOWING that you could turn around and sell it (if not immediately, within a relatively short period of time) for $100… would you consider that a good investment?
Well that’s what Mike does… over and over and over again.
He locks in his profit on the BUY.
And when he buys, he buys BIG. Which is another key to creating HUGE profits in land.
You buy the land, you split it into smaller parcels and you sell it.
Just like if you go to the grocery store. The store’s profit is bigger if they sell you ONE apple. Their profit per apple shrinks if they sell you a whole bushel.
In land, you BUY the bushel and sell it off, piece by piece.
If you can’t buy the bushel on your own (and most people can’t), then you join a group of investors and buy the bushel.
That’s what Mike McClaskey does. He locates the “bushels” for groups of investors to look at. WealthBridge Enterprises supplies the expertise to guide the investors through the process.
| If you’re curious just how good the deals are right now, let me invite you into the “back room” at WealthBridge Enterprises. Here’s a fact sheet from our due diligence on a deal we’re considering right now. Click the link to view the Fact Sheet: |
And that’s why our investors are happy. There’s no “buy and pray” strategy happening here. If there’s not a smoking deal on the BUY, then there’s no deal… period.
What Kind of An I.Q. Does It
Take to “Manage” Dirt?
So let’s go back to the example of stocks one more time. When you purchase stock in a company, you’re expecting someone to manage the value of your investment.
“Managing” your investment means a ton of different things. You could almost think of every decision that a business makes as an investment management decision. After all, every decision they make can influence the value of your investment… either directly or indirectly.
Let’s say you’re an investor in General Motors. Do you really think that having your CEO take a private jet to Washington is a good idea when money is tight?
Is that good management of YOUR investment?
I haven’t found anyone yet who would say so (except the CEO).
If you’re a land investor, there’s not much required by way of “management.” After all, most of the work has been done on the FRONT end, before you ever purchase the piece of property.
Of course, sometimes you get the land rezoned as a part of your exit strategy. Sometimes times you don’t. Many times the dirt just sits there waiting for you to make your move down the road.
As far as “management” goes, there’s not a whole lot. After all, it’s just DIRT. Not much to manage.
That means there are fewer things (read people) messing with the value of your investment.
I guarantee you the managers of an investment in dirt (like the experts that would manage a “bushel” of land on behalf of a group of investors) aren’t flying around the country in private jets at $20,000 a pop and sending the bill to their investors.
(We’ll talk about what it costs to manage a land investment in a
future issue of the Dirt Report.)
When you invest in land, you know your expenses UPFRONT.
This is pretty much “investing made EZ” for every Joe the Plumber out there.
Can You Become a Land Investor Just
Sitting on Your Couch?
With all of the turmoil in the markets and all of the uncertainty about how people (who actually want to retire someday) should protect their assets, I’ve decided to set aside a whole day or two for getting the right information out into the market.
I’m going to be hosting a multimedia Land Summit that’s going to help a whole lot of people.
But I’m not going to talk about what I THINK you’d like to know, I’m going to give you the answers to the EXACT questions you have about investing in vacant land… especially in this market.
The format will be a Question and Answer session. You supply the questions, I’ll supply the answers and any supporting content to make things crystal clear.
The fee is $47 and your questions are due by Wednesday December 3. That’s the Wednesday AFTER Thanksgiving.
Once you’ve signed up and sent your fee, you’ll get instructions on how to submit your questions (yes you can ask more than one).
Once all of the questions come in, I’ll create an audio that goes through each one and lays out the answer in simple english.
Everyone will get a copy of the audio including answers to every question that comes in.
Now I usually charge a lot more than $47 for consulting. After all, this info can make you a lot of money. But in this case, considering I can help thousands of investors at once, it’s a good deal for both sides. There’s leverage there.
And if you’ve been on the Dirt Report list for any length of time, you KNOW I love leverage…. smart leverage.
Here’s the page to reserve your spot:
Are You Smarter Than a 5th Grader?
November 15, 2008
This issue is probably going to get me into hot water…
But before I get to the controversy, I want to tell you about a client of mine. His name is Lou Moretti. He’s a 5th grade school teacher in New York.
Now in the past, I’ve talked about his land deal just a bit. He invested in 40 acres a year or so ago. His first investment in dirt. He had NO clue what he was doing with raw land. That’s pretty much why he became a client.
(He’s reading this now, and I guarantee you he’d agree.)
You’ll hear more about Lou’s investment in upcoming issues of the Dirt Report. And there’s a picture of him. But for now, let’s keep moving…
I gotta tell you, Lou doesn’t make a lot of money. He’s a school teacher. And he works darn hard for the money he does make. He’d be the first to tell you that.
A School Teacher on the
Fast Track to Wealth?
But that’s NOT to say that Lou isn’t on a fast track to becoming wealthy one day. Because Lou DOES do something that sets him apart from 95% of the people in this country.
He may not make a lot of money. But what he DOES make, he uses WELL. He doesn’t invest his dollars in stuff like TVs, gadgets, gizmos and a bunch of junk that eventually ends up in the dump. He knows how money works.
How does he know?
Because he spends time STUDYING how it works. He’s a fan of investor Robert Kiyosaki. That’s the guy who wrote “Rich Dad, Poor Dad.” If you haven’t read that book yet, you owe it to yourself (and your family) to pickup a copy today.
Lou’s even been to “Rich Dad University.” And he’s got his head on straight about how investing works.
And here’s the important part:
Lou’s not just doing this to increase his own wealth, he’s got much bigger goals than that.
Lou’s taking his knowledge and doing something that no one did for people in my generation.
What he’s doing is making sure that the kids that pass through his classroom have their heads on straight about how money works too.
They’re only in 5th grade. But they already know how to write a check… they know what an asset is and they know what a liability is.
From the Mouths of Babes… Are YOU
Smarter Than a Fifth Grader?
Think your CAR is an asset? Think your HOUSE is an asset? These kids don’t… they know better than that.
Lou’s teaching them to be financially LITERATE.
He calls it Finance Fridays.
The kids love it. They’re having fun, and they have no idea they’re learning skills that are going to put them on a SUPER fast track to big financial results in their lives. Way ahead of most anyone else in this country.
They will have the tools they need to take control of their financial futures.
I’ve attached a newspaper article about Lou and what he’s doing.
You can take a look here:
And THAT brings us to the point of today’s Dirt Report. (Here comes the stuff that’s going to make some folks mad.)
It’s Time to Take Control Folks, Because I’m
Not Sure Who’s Driving This Thing
Do you know who’s in control of YOUR financial future?
Are you sure?
If you think you’re in control, you might be right. Or you might be surprised to find that there’s nothing further from the truth.
I’m afraid that’s the case for most people in this country.
In fact, there are new clues every day. Just look at yesterday’s newspaper.
It’s the story where the Treasury Department has decided that it doesn’t know what it’s doing with your money. And unlike what it said a few weeks ago, YOUR $700 billion isn’t going to buy up “toxic” mortgage assets.
That’s what you were promised remember? That’s what was blared through the media.
The toxic mortgage “assets” (even the government doesn’t know what an asset is) had to be cleaned off the books to get the economy going again.
It was SO imperative, and SO time sensitive… completely necessary to avoid a financial meltdown.
You signed the check for that, but apparently it isn’t so necessary now…
Instead, the money is going to be used for something else. It’s going to be used for whatever the Treasury Department wants to use it for.
Does that make you feel in control?
After all, it is YOUR money they’re spending here.
Of course a whole lot of people are crying foul. But yelling doesn’t really get you anywhere. It’s a lot smarter to simply BE smarter.
Like Lou. Lou’s smarter than the average person is about money. Heck, his 5th graders even qualify for that.
He’s helping his kids take control of their financial futures.
And that’s one of the things I like best about investing in raw land. I know that’s what got Lou’s interest as well.
Investing in Land Means
You Are In Control
What you’re about to read here is either going to make you angry (which is likely), or it’s going to light a fire under you to take action and do something about your financial future (hopefully, that’s likely too).
From my point of view, I don’t really consider the stock market a real form of investing. From my perspective, it’s much more of a “send your money away and pray” philosophy of wealth creation.
Obviously, it doesn’t always work out.
Most people in the stock market are simply taking advantage of what seems to be nothing more than a legalized form of gambling.
You send in your money and wait. The stock market always goes up over the long term right?
But that’s when things like WorldCom happen… or Enron. You realize just how much control you have as a stock investor when something like that comes up.
And that’s why I don’t consider stocks and mutual funds smart investing. Smart investors KNOW their chances of making money. What’s more, really smart investors KNOW how to lock in profit before they spend a dime.
Of course, there are no guarantees… but when you’re smart like this on a consistent basis, you don’t really need guarantees.
When you’re investing in raw land, you don’t hand your money over and wait, hoping your money manager does the right thing with it.
That’s NOT being in control. That’s relinquishing it to someone else.
When you invest in land, you know what you’re getting into BEFORE you spend a penny.
Sure you have to WAIT to realize your profits, but waiting is a whole lot different than hoping or praying.
In land, you know your entrance strategy and you know what your options are to get out… and when.
Can You Really
Bat 1,000 in Land?
In a few weeks, I’m going to introduce you to a BIG player in the land business.
In fact, he’s NEVER lost money in land. He just recorded that with me this week.
Is he lucky? Maybe…
Is he smart? You bet…
He’s smart because when Tom (that’s not his real name) makes an investment, he’s done enough of his homework to KNOW that his profit is locked in. That’s SMART investing.
No hoping or praying required.
How many investors in stocks or mutual funds can say that?
If YOU Don’t Take Control, Someone
Else Will Take Control For You
So when you’re considering your options, it’s best to steer clear of stuff that can be messed with by people with far more power or influence than you or me… people like the government.
Heck, from 1933 to 1975 you couldn’t even OWN gold in this country. OK… technically it wasn’t ILLEGAL to own gold. The law just said you weren’t allow to “hoard” gold.
But guess who got to define what hoarding was and wasn’t? It certainly wasn’t the guy who actually owned the gold.
The flip of a switch, the mark of a pen, the laws change and you’re sunk.
Could it happen again?
Who knows. Do you really want to find out?
With land, you’ve got an ace in the hole. You’ve got the land.
All hell can break loose, currencies can collapse, markets can run amuck. But no matter what, you’ve STILL got the land.
And when everything else is collapsing, you quickly find out that there are only a very few REAL assets on Earth.
EARTH is one of them.
Here’s ONE Bank That Doesn’t Need a Bailout
November 7, 2008
I’m glad the election is over…
For the past few weeks, my phone has been ringing off the hook with so many political calls asking for my “support,” I can hardly have a normal conversation.
Every other sentence is interrupted with the call waiting beep.
“Hi this is Steve… what can I do [BEEEEEEEEEEEP] for you?”
You see how annoying this can get.
So I’m glad it’s over. And it really doesn’t matter to me who won… not from a business standpoint anyway.
Because my investing strategy for both myself and my clients doesn’t change one bit. The land business is based on fundamentals that don’t shift with the changing of a President.
And the land business seems to fly low enough under the radar that the government doesn’t play fast and free with the rules (like they did when they decided to ban short selling on certain stocks a few weeks ago).
That DOESN’T mean that a new Commander in Chief in the White House can’t bring even more opportunity to the table… but only time will tell.
So for now, let’s shift back to something that you’re hearing about in the news pretty much every day.
It seems like there’s a log jam in the big government bailout plan.
The money (your money) is flying out of the Treasury, but it’s getting stuck.
Apparently, the masterminds of the bailout plan forgot one thing:
They forgot that they can’t force a bank to lend money. (At least not yet.) That was the whole idea. Give the banks the money. Then have the banks lend the money to get the economy moving.
But banks are still in trouble. And no one really knows how bad it’s going to get.
And that brings us to the point of today’s Dirt Report.
Because there’s one “bank” that shows no signs of needing a bailout…
It’s Called the Land “Bank”
In a market like this, I call it, “The Bank of Opportunity.”
“Land Banking” is the very same strategy that is responsible for nearly 100% of my success and the success of my clients and those around me.
And you’re going to laugh when you hear just how simple the strategy of land banking is.
Ready?
Buy Land and Wait
How’s that for a secret investment tip?
Buy land and wait.
You buy land in the path of growth and development and you wait until it comes to you. Then you sell (maybe).
Of course it’s a bit more complicated than that. Especially the BUYING part. You have to do that right for the whole thing to work.
But the basic idea is very simple. You put the land in your “Land Bank,” and make withdrawals (meaning you sell) when the time is right.
There are a lot of people YOU know who made their fortunes using this very simple (and repeatable) strategy.
I’ll talk about some of them in the coming weeks and go into a whole lot more depth into their strategies in my “From Panic to Profits Report” that will be published in about 14 days. (Be on the lookout for a special email when it’s ready.).
So let’s talk about one example of a successful land banker you definitely know:
It’s Bob Hope… the comedian.
No one’s really sure exactly how much land he owned, but it’s been estimated that his holdings were somewhere between $100-500 million.
He owned a LOT of land.
In fact, former Palm Springs Mayor, Frank Bogert, was once overheard saying, “Every time I found a piece of land, it turned out Bob Hope owned it…”
Sure Bob Hope was famous, and he was paid very well for his celebrity. But during his career, Bob Hope discovered another fast track to living the American Dream. A secret strategy that doesn’t require you to be famous, popular or even funny. For him, that secret strategy was investing in land.
I call this a “secret” only because so few people know about it. I’m not sure why that is, because when you realize just how big the opportunity is in this business, well, you’ll be wondering why MORE people don’t know about it.
(Feel free to keep this secret to yourself…
Reminds me of someone else who knew the secret… General Douglas MacArthur.
Here’s what he said about the land business:
“All a man has to do to get rich in America is find out where people are going, get there first and buy land.”
I’m telling you all of this simply to show you that land investing is as old as the hills… literally.
But THIS time in history is particularly special if you’re interested in profiting from land.
That’s because there’s something happening out there right now that very few people seem to be paying attention to.
(Remember, in the land business, the more you KNOW, the better you tend to do.)
I call it…
The BIG Opportunity Almost No
One is Talking About
So if the market’s so soft and property prices are deflated right now, then why is this time such a smart time to become a land investor?
The obvious reason is:
DEALS. DEALS are everywhere.
It’s the same reason Warren Buffet is out there buying up stocks right now. Billions of dollars of them. He sees deals. Good value for the smart investor.
But THESE land deals are different, because there’s something happening right now that doesn’t happen very often in the land business.
The BIG guys are hurting.
The BIG developers are sitting on TONS of dirt that is ready and waiting for development. Some of them even have water and electric… everything but the structure.
Problem is, the structure might not come any time soon. Because no one is interested in buying right now. Financing is tight.
And without the development, the developer is stuck sitting on dirt. Dirt is a liability on their balance sheet.
(There’s no cashflow in dirt folks.)
And since many of these developers are publicly traded companies, too many liabilities can hurt stock prices.
So what are they doing?
They’re basically walking away and taking losses. And they’re selling for pennies on the dollar…
Because they don’t have the luxury of a 5-10 year hold (which is what any smart land investor should be thinking about)…
Most Private Land Investors
CAN
Wait 5-10 Years
(Maybe Even You)
It’s a huge opportunity for the savvy investor.
Right now, huge developers like KB Homes (http://kbhomes.com) are sitting on acres and acres of land.
In fact, here’s PROOF.
The article is titled:
“Concordia Homes of Nevada Closes Sales Offices”
The obvious question for the savvy investor is:
“What happens to all that land?”
Well that’s exactly what we’re talking about. There’s opportunity almost everywhere you look.
But it gets even BETTER…
Because some of this land is pretty different than your average good land investment. Usually, when you invest in raw land, you have to go pretty far from development to get the deal you need to lock in your profit on the buy.
And that usually means that no one has invested in the infrastructure (electric, water, etc.) that has to be there before development can really take off.
That’s the reason for the 5-10 year hold. You hold the land and wait for development to come your way. If you know what you’re doing, investing in raw land is little more than a waiting game once you acquire the property.
But SOME of this land I’m talking about with the big developers is what we call “close-in.”
That means it’s not 40-50 or more miles outside of civilization. It’s much closer.
In a normal market, that also means it’s a whole lot more expensive.
But to these developers, it doesn’t really matter how valuable the land is if they can’t turn it into cash and get it off their list of liabilities.
And that’s why NOW presents a very interesting opportunity for land investors.
Because there are deals like I’ve not seen before. EVER.
It’s not everyday that the big guys are in a position that puts YOU in the driver’s seat.
What Would Bob Hope Do?
Now think about this. Bob Hope made his fortune in land.
But when Bob Hope was investing, we weren’t in a down market.
He was paying good money for good land. And he STILL made a killing.
Just imagine what would have happened to Bob Hope’s real estate returns had he bought in a market where the BUYER has as much power as he does right now.
That surely would have brought a big smile to Bob’s face.
When I say that the land business can be good in an up market or down market, this is why.
A down market is where you get the deals.
An up market is where you get paid for being smart during a down market.
It’s really pretty darn simple.
He Got a Return of About 19,000%…
October 30, 2008
You read that number right…
That’s 19 THOUSAND percent… That’s a 19,000% return on an investment.
Think those numbers are possible?
Not usually in normal times. But when markets are in turmoil, I’m not sure there’s a limit really. And that’s because…
Crisis = Opportunity
(For Smart Investors)
I’ve been in the land business a pretty long time. And I’ve seen good markets and I’ve seen bad markets.
With the experience I’ve gained riding through all of those markets myself, I’ve realized something important you need to think about.
I’ve realized there are basically two types of people in this world. The first type of person looks at a crisis and worries about what’s going to happen. They fret, they fidget and they, more often than not, are just happy to sit there and “ride it out.” They’re so scared of losing they forget to even think about how to win.
[I've just described MOST people I know.]
Then there’s the other type that looks at a crisis and spends his time thinking, “Where is the opportunity in all of this mess?”
Those are the people that make it. Those are the winners.
Here are some numbers to give you an idea about how BIG opportunity can be in a “crisis.” This came just last week from an investment letter I subscribe to from Weiss Research…
Here’s a quote:
“In 1929, my father borrowed $500 from his mother and used it to sell short the stock market. He told me that, by the time the market hit bottom, he had close to $100,000. And he didn’t start before the crash; he actually began in April of 1930 after the ‘29 crash.”
Now I’m not a math whiz, but if you invest $500 and get $100,000 back… that’s well over a 19,000% percent ROI.
This investor was in the right place at the right time and had access to the knowledge to make smart moves–while everyone else was running for cover.
It’s a little bit like the land business right now. Most people are skeptical about the current real estate market. They’re reading the papers, watching the news and seeing the red ink day in and day out.
And that’s why, when I get a call asking for advice about what to do in a market like this, I usually say something like:
“Don’t be like most people.”
How’s that for specific?
Here’s the deal:
The media surely isn’t talking about opportunity. And if you looked at the ad revenues that reporting “good news” like that brings in, you’d understand pretty quickly why “bad news” is their bread and butter.
Here’s a good rule of investing to remember:
Just because someone says something doesn’t make it so. A good investor can listen to all of that and STILL figure out what is ACTUALLY happening… in reality.
KNOWLEDGE IS POWER
I pay a LOT of attention to a few things that are very important to the future success of my investments. One of those things is institutional buyers and the other is major developers.
I call these guys the “big guys.”
They’re well funded and they know what they’re doing.
But I don’t listen to what they say… I watch what they DO.
Because when a major developer goes in and starts buying up 25,000 acre tracts of land, you know something is going on. Or at least it’s probably going to start…
That’s because all of that buying power can actually CREATE a new market. It can CREATE demand. The big guys have the funds you need to get a ball like that rolling. And I’ve seen it happen time and time again.
So when do you think “big guys” tend to make their acquisitions?
One of the times they tend to do it is when everyone ELSE is freaking out. Because THAT’S when they can find DEALS that would never exist otherwise.
Times Like
NOW
This is really the best example I’ve ever seen of the phrase, “Knowledge is Power.” Actually it’s a little bit different in the land business. It’s more like “Knowledge is MONEY.”
In high school, the smart kids didn’t usually win. The prizes often went to the jocks or the popular kids.
Well thank GOODNESS that’s not how it is in my business or I’d be sunk. In the land business, the smart guy wins.
The guy who has a better sense of what is actually going on tends to win.
So you’ve got to be careful who you listen to.
Think about THIS the next time you’re watching the news or reading the paper:
“Chances are, the vast majority of the people that contributed to bringing you that story are broke… working for someone else… just trying to make ends meet.”
Is that really someone you want influencing the direction of your financial future?
Hang in there, opportunity is everywhere. Learning to spot it is a process… so just keep moving forward.
But before you go, you’ve got to read this:
http://www.nytimes.com/2008/08/10/us/10kingman.html?em
It’s an article about Kingman Arizona, right in my backyard. That’s where Leonard Mardian (one of the “big guys,” a major developer) went out and bought 47,000 acres of land years ago.
Remember how I said I pay attention to the actions of MAJOR developers?
Now Mardian bought the land, in part, because of the Colorado River Bridge that I discussed last week. But BEFORE his purchase, there was little demand. Not like there is now.
His MAJOR purchase (47,000 acres is a LOT of land folks) started the machine. People started paying attention. Then MORE people started paying attention.
Well fast forward a few years and look at what’s happening. Read the article.
So here’s a question:
Why would an article like THIS appear in the New York Times? A newspaper with readership of over a million subscribers (not counting online subscribers)?
Hmmmm….
Time to Put On Your, “I’m NOT Like
Most People” Hat and Really Think
About What’s Happening Here
Let me answer the big question with another question:
“What do you think could happen to the value of an up and coming affordable development when you tell an additional 1 MILLION people about it?”
The demand is being created right in front of your eyes folks. It’s all part of the plan.
And when you learn to see this stuff and REALLY know what’s going on AND take action on that knowledge… Let’s just say the payoff is well worth developing this skill.
71.3 Million Dollar Contract QUIETLY Awarded?
October 24, 2008
I got an email from a potential land investor this week with a question. A VERY good question:
“Will the Financial Crisis Affect Construction on the Colorado River Bridge?”
That’s a very important question in my world, and here’s why.
If you’re not familiar with the Colorado River Bridge, you can get the FULL scoop at http://www.hooverdambypass.org
But here’s the quick story:
The Colorado River Bridge is the central portion of the Hoover Dam Bypass Project. Completion of the entire project is expected in June 2010. The current two-lane highway across the dam, U.S. 93, can’t really handle the 14,000 vehicles and trucks crossing per day. That’s DOUBLE the volume of 15 years ago.
If you’ve ever driven across the Hoover Dam, you know that it’s SLOW going for a couple of miles. We’re talking like 10-15 MPH.
Some snails crawl faster… and when traffic is heavy, it’s even worse.
The Colorado River Bridge is going to make crossing the Hoover Dam a whole lot more convenient.
Here’s an artist’s rendering of what it’s gonna look like when it’s done: 
The point is, it’s going to open up a LOT of areas to become bedroom communities for Las Vegas.
Here’s an example:
27 Miles south of the Hoover Dam is the White Hills Ranch Land. 21,000 acres of this land will be master planned into a development similar to Las Vegas master planned communities.
This area will be the site of approximately 35,000 new home sites.
Right now, White Hills is a one hour and 15 minute drive from the Las Vegas strip. But once the Hoover Dam Bypass Bridge is completed, this will cut drive time down to less than an hour.
People can live where it’s affordable and STILL work in the Vegas area.
All these clues point to BIG growth coming. And that’s why so many people are interested in the DIRT that’s up for grabs in the area.
Because when you buy land in the path of growth… well, good things tend to happen.
So Will the Financial Crisis
Hold Up Construction?
Not according to the article in the Las Vegas Review Journal printed just TWO days ago.
The article explains that a 71.3 million dollar contract was quietly awarded to the company responsible for WIDENING the road leading up to the new bridge.
I’m not sure how you keep $71.3 million QUIET, but we’ll leave that up to the government.
At any rate, the article is a HUGE clue that things are moving forward with the road widening project.
Why Isn’t the Financial Crisis
Messing with the Project?
My hunch is that the mess in the financial markets is temporary. But the 1.3 Million people coming to Nevada in the next 20 years that I mentioned last week?
Those people are STILL coming…
That’s a huge amount of projected growth coming…
Now just one more thing before we wrap this up. In the next issue of the Dirt Report, we’re going to focus on the Great Depression.
That was a rough time for a lot of people. But we’re NOT going to talk about those people–the folks who struggled through it. We’re going to focus on the people who spotted the potential and became EXTREMELY wealthy.
They became wealthy BECAUSE of the Great Depression. Sounds crazy, doesn’t it?
Well it looks like it might happen again. In fact, it’s already started. I’ll explain it all next time.
75% of Your Retirement Income… from a Land Investment?
October 19, 2008
It’s been quite a week…
The Dow is bouncing around like a super ball on speed.
…down 700 points one day.
…up 900 points the next.
…then back down 500 points.
I don’t know about you, but watching that turns my stomach.
But here’s the worst part: the Dow’s activity is taking the hopes and dreams of much of America on an emotional roller coaster ride.
If you’ve been on that roller coaster these past few weeks, just brace yourself… because it’s just beginning.
(And remember, turmoil for one person spells big opportunity for another.
But as I talk with my colleagues, investors and potential investors, there’s really ONE question that’s on everyone’s mind.
That question is:
What Should I Do With My Money?
The answer, of course, depends on who you ask.
-The government wants you to know that “everything is going to be okay.” Just give us your money (and the authority to spend it as we see fit) and we’ll work it out.
-The Gold guys are having a field day with all of this. Of course, they’ve been waiting for a long time for Gold to shoot up to $2,000… Maybe it’ll happen. Maybe not. Either way, they’re shouting, “Buy gold.”
The other week, Andy Rooney even suggested that putting your money under the mattress might be the smartest idea. Maybe THAT’S the safest place for it right now.
(If you missed that message, here’s a link to the video:
Watch Andy Rooney’s video…)
But here’s the problem with that.
The Government printing presses are about to ramp up and become a source of practically unlimited funds. There’s really no limit to the amount of new greenbacks they can spit out.
After all, they make the rules…
But guess what happens when all this money hits the market?
Every Dollar You’re Already Holding
Goes DOWN in Value
So putting your money under the mattress isn’t really so safe after all. The government can ruin its value even there.
So the goal is obviously to take your money, and put it into a hard asset that isn’t going to lose 75% of its value by the time you wake up tomorrow.
So let’s just take a deep breath, calm down and enter a world that I like a whole lot better than the roller coaster ride of Wall Street.
Partly because I don’t like roller coasters and partly because the vast majority of my clients don’t like them either. Especially when it’s their MONEY that’s being taken for a ride.
Let’s talk about the ace in the hole we’ve got in the land business.
I’m not taking credit for this fact… but I AM taking credit for using it to my advantage and the advantage of my clients.
That fact is this:
We’re STILL Making People, But No
One’s Making Any New Land
Just like the value of your dollars goes DOWN when the government creates more of them, the value of land tends to RISE when the population grows.
And that’s happening of course. The population is GROWING.
Despite the doom and gloom, the clues are everywhere. Here’s a link to an article from the RJ (Las Vegas Review Journal) that appeared on October 7, 2008.
Here’s the title:
State’s Growth Projected to Continue:
Population rise of 49 percent seen by 2028
The hard number is 1.3 million NEW people in Nevada over the next 20 years.
And guess what…
Those People Have to Live SOMEWHERE!
But don’t think you can just go in and buy up all the land, sell it 12 months later and retire on a sandy beach somewhere.
That DOES happen… sometimes. But it doesn’t happen the majority of the time.
As a land investor, the one thing you MUST be willing to do is WAIT. 5-10 years is best.
What happens when your time horizon is 5-10 years?
Take my client, Beverly…
She’s been a land investor since the 1990s.
She’s 62 and been retired for about 8 years.
Here’s part of her story, in her own words:
| “I did want to let you know that the 80 acres I got from you was sold last year for $396,000!! I’m holding the paper and this made my retirement economically feasible, so thanks, and know that you should have great karma for a long time.”
-Beverly |
Were there bad markets during some of those years Beverly owned her land?
You better believe it…
But she waited… waited until the time was right to sell. And now Beverly is receiving payments every month for the next 12-15 YEARS.
In fact, it’s 75% of her retirement income. Month in month out… like clock work.
No matter what the market is doing.
Believe it or not, Beverly’s situation isn’t uncommon when you’re talking about land.
Could an investment in raw land be right for you? Maybe, maybe not… but definitely something worth looking into. Especially in this market.
