[NicMM]

CA renter,

What you said about rental may be true. I saw several around $50k in Escondido.

Like this on in east Escondido,
http://www.sdlookup.com/MLS-090024886-1817_E_Grand_Ave_6_Escondido_CA_92027

It is asking for 1987’s price. Does anyone know if it has any problem such as broken HOA or plumbing issues (since it is a 70s building)? How do we check those?

In this area, can a 900 sqft 2 bedroom condo rent for $800? I guess after $250 HOA fee, property tax, and vacancy, $800 would be a number to break even or make some money?

If these homes have cash flow from day one, why investors are not jumping on and let them sit on market so long?

-NicMM

[quote=CA renter][quote=NicMM]Patb, these two pictures are accurate depiction.
Here is the challenge for you. If it’s you, what you would do with $50K?

-NicMM

[quote=patb]Don’t call it land investment call it Land Speculation.

To be an investment you need a cash flow and an exit strategy.

Here’s you.” i want to buy 2 acres for $50K and someday sell it”

Here’s an Investor” I am going to buy 10,000 Acres
get the state to build an offramp and the county to build 30 miles of section Road and the city to rezone it, while i rent it to cattle ranchers for cash”

Guess who makes money.?[/quote][/quote]

NicMM,

If your heart is set on real estate, $50K would be better spent buying a rental in Escondido or Oceanside (that has positive cashflow from day one) than speculating in desert land. You’ll have to manage and maintain it yourself, but you might make money over time.

My family has a history with both land and rentals/housing investments, and I can say for a fact that existing housing is far, far more profitable than land, with only a very few exceptions.[/quote]

[NicMM]

CA renter,

What you said about rental may be true. I saw several around $50k in Escondido.

Like this on in east Escondido,
http://www.sdlookup.com/MLS-090024886-1817_E_Grand_Ave_6_Escondido_CA_92027

It is asking for 1987’s price. Does anyone know if it has any problem such as broken HOA or plumbing issues (since it is a 70s building)? How do we check those?

In this area, can a 900 sqft 2 bedroom condo rent for $800? I guess after $250 HOA fee, property tax, and vacancy, $800 would be a number to break even or make some money?

If these homes have cash flow from day one, why investors are not jumping on and let them sit on market so long?

-NicMM

[quote=CA renter][quote=NicMM]Patb, these two pictures are accurate depiction.
Here is the challenge for you. If it’s you, what you would do with $50K?

-NicMM

[quote=patb]Don’t call it land investment call it Land Speculation.

To be an investment you need a cash flow and an exit strategy.

Here’s you.” i want to buy 2 acres for $50K and someday sell it”

Here’s an Investor” I am going to buy 10,000 Acres
get the state to build an offramp and the county to build 30 miles of section Road and the city to rezone it, while i rent it to cattle ranchers for cash”

Guess who makes money.?[/quote][/quote]

NicMM,

If your heart is set on real estate, $50K would be better spent buying a rental in Escondido or Oceanside (that has positive cashflow from day one) than speculating in desert land. You’ll have to manage and maintain it yourself, but you might make money over time.

My family has a history with both land and rentals/housing investments, and I can say for a fact that existing housing is far, far more profitable than land, with only a very few exceptions.[/quote]

[NicMM]

Hobie,

What happened in Adalanto?

Regarding Antelope valley, I haven’t visited and don’t plan to until I have acquired enough knowledge and things lead me towards investing there.

But just to show some pitching points from the seminar:
1. Population growth: fastest in US. From around 150k grew to 300k.
2. Industries: Defense (Northrop Grumman Corporation), Store chain & warehousing (4 walmart supercenters, etc), green energy (eSolar, BYD), inland port (store containers from Long Beach &LA ports)
3. One college
4. transportation: several railways under construction through it. One airport, not used commercially but the city plans to take it over and use it commercially.

Those are most I can remember.

NicMM

[quote=Hobie]Have you driven through the area? Learning who lives there will be a large factor in your thoughts moving forward.

The 14 Fwy is the main artery and gets congested. This is a hindrance to the growth you need in the area.

Temec took off in part due to its relatively close location to Orange, Riv, SD. All with good Fwy access.

Lancaster/Palm is just too far removed from LA. So you have to look at what industries are locating there and will support the growth.

City of Adalanto had similar pitches a years ago so check out its history.

Good Luck.

more perspective
http://sdcia.websitetoolbox.com/post?id=2338806%5B/quote%5D

[NicMM]

Hobie,

What happened in Adalanto?

Regarding Antelope valley, I haven’t visited and don’t plan to until I have acquired enough knowledge and things lead me towards investing there.

But just to show some pitching points from the seminar:
1. Population growth: fastest in US. From around 150k grew to 300k.
2. Industries: Defense (Northrop Grumman Corporation), Store chain & warehousing (4 walmart supercenters, etc), green energy (eSolar, BYD), inland port (store containers from Long Beach &LA ports)
3. One college
4. transportation: several railways under construction through it. One airport, not used commercially but the city plans to take it over and use it commercially.

Those are most I can remember.

NicMM

[quote=Hobie]Have you driven through the area? Learning who lives there will be a large factor in your thoughts moving forward.

The 14 Fwy is the main artery and gets congested. This is a hindrance to the growth you need in the area.

Temec took off in part due to its relatively close location to Orange, Riv, SD. All with good Fwy access.

Lancaster/Palm is just too far removed from LA. So you have to look at what industries are locating there and will support the growth.

City of Adalanto had similar pitches a years ago so check out its history.

Good Luck.

more perspective
http://sdcia.websitetoolbox.com/post?id=2338806%5B/quote%5D

[NicMM]

Hobie,

What happened in Adalanto?

Regarding Antelope valley, I haven’t visited and don’t plan to until I have acquired enough knowledge and things lead me towards investing there.

But just to show some pitching points from the seminar:
1. Population growth: fastest in US. From around 150k grew to 300k.
2. Industries: Defense (Northrop Grumman Corporation), Store chain & warehousing (4 walmart supercenters, etc), green energy (eSolar, BYD), inland port (store containers from Long Beach &LA ports)
3. One college
4. transportation: several railways under construction through it. One airport, not used commercially but the city plans to take it over and use it commercially.

Those are most I can remember.

NicMM

[quote=Hobie]Have you driven through the area? Learning who lives there will be a large factor in your thoughts moving forward.

The 14 Fwy is the main artery and gets congested. This is a hindrance to the growth you need in the area.

Temec took off in part due to its relatively close location to Orange, Riv, SD. All with good Fwy access.

Lancaster/Palm is just too far removed from LA. So you have to look at what industries are locating there and will support the growth.

City of Adalanto had similar pitches a years ago so check out its history.

Good Luck.

more perspective
http://sdcia.websitetoolbox.com/post?id=2338806%5B/quote%5D

[NicMM]

Hobie,

What happened in Adalanto?

Regarding Antelope valley, I haven’t visited and don’t plan to until I have acquired enough knowledge and things lead me towards investing there.

But just to show some pitching points from the seminar:
1. Population growth: fastest in US. From around 150k grew to 300k.
2. Industries: Defense (Northrop Grumman Corporation), Store chain & warehousing (4 walmart supercenters, etc), green energy (eSolar, BYD), inland port (store containers from Long Beach &LA ports)
3. One college
4. transportation: several railways under construction through it. One airport, not used commercially but the city plans to take it over and use it commercially.

Those are most I can remember.

NicMM

[quote=Hobie]Have you driven through the area? Learning who lives there will be a large factor in your thoughts moving forward.

The 14 Fwy is the main artery and gets congested. This is a hindrance to the growth you need in the area.

Temec took off in part due to its relatively close location to Orange, Riv, SD. All with good Fwy access.

Lancaster/Palm is just too far removed from LA. So you have to look at what industries are locating there and will support the growth.

City of Adalanto had similar pitches a years ago so check out its history.

Good Luck.

more perspective
http://sdcia.websitetoolbox.com/post?id=2338806%5B/quote%5D

[NicMM]

Hobie,

What happened in Adalanto?

Regarding Antelope valley, I haven’t visited and don’t plan to until I have acquired enough knowledge and things lead me towards investing there.

But just to show some pitching points from the seminar:
1. Population growth: fastest in US. From around 150k grew to 300k.
2. Industries: Defense (Northrop Grumman Corporation), Store chain & warehousing (4 walmart supercenters, etc), green energy (eSolar, BYD), inland port (store containers from Long Beach &LA ports)
3. One college
4. transportation: several railways under construction through it. One airport, not used commercially but the city plans to take it over and use it commercially.

Those are most I can remember.

NicMM

[quote=Hobie]Have you driven through the area? Learning who lives there will be a large factor in your thoughts moving forward.

The 14 Fwy is the main artery and gets congested. This is a hindrance to the growth you need in the area.

Temec took off in part due to its relatively close location to Orange, Riv, SD. All with good Fwy access.

Lancaster/Palm is just too far removed from LA. So you have to look at what industries are locating there and will support the growth.

City of Adalanto had similar pitches a years ago so check out its history.

Good Luck.

more perspective
http://sdcia.websitetoolbox.com/post?id=2338806%5B/quote%5D

[NicMM]

Patb, these two pictures are accurate depiction.
Here is the challenge for you. If it’s you, what you would do with $50K?

-NicMM

[quote=patb]Don’t call it land investment call it Land Speculation.

To be an investment you need a cash flow and an exit strategy.

Here’s you.” i want to buy 2 acres for $50K and someday sell it”

Here’s an Investor” I am going to buy 10,000 Acres
get the state to build an offramp and the county to build 30 miles of section Road and the city to rezone it, while i rent it to cattle ranchers for cash”

Guess who makes money.?[/quote]

[NicMM]

Patb, these two pictures are accurate depiction.
Here is the challenge for you. If it’s you, what you would do with $50K?

-NicMM

[quote=patb]Don’t call it land investment call it Land Speculation.

To be an investment you need a cash flow and an exit strategy.

Here’s you.” i want to buy 2 acres for $50K and someday sell it”

Here’s an Investor” I am going to buy 10,000 Acres
get the state to build an offramp and the county to build 30 miles of section Road and the city to rezone it, while i rent it to cattle ranchers for cash”

Guess who makes money.?[/quote]

[NicMM]

Patb, these two pictures are accurate depiction.
Here is the challenge for you. If it’s you, what you would do with $50K?

-NicMM

[quote=patb]Don’t call it land investment call it Land Speculation.

To be an investment you need a cash flow and an exit strategy.

Here’s you.” i want to buy 2 acres for $50K and someday sell it”

Here’s an Investor” I am going to buy 10,000 Acres
get the state to build an offramp and the county to build 30 miles of section Road and the city to rezone it, while i rent it to cattle ranchers for cash”

Guess who makes money.?[/quote]

[NicMM]

Patb, these two pictures are accurate depiction.
Here is the challenge for you. If it’s you, what you would do with $50K?

-NicMM

[quote=patb]Don’t call it land investment call it Land Speculation.

To be an investment you need a cash flow and an exit strategy.

Here’s you.” i want to buy 2 acres for $50K and someday sell it”

Here’s an Investor” I am going to buy 10,000 Acres
get the state to build an offramp and the county to build 30 miles of section Road and the city to rezone it, while i rent it to cattle ranchers for cash”

Guess who makes money.?[/quote]

[NicMM]

Patb, these two pictures are accurate depiction.
Here is the challenge for you. If it’s you, what you would do with $50K?

-NicMM

[quote=patb]Don’t call it land investment call it Land Speculation.

To be an investment you need a cash flow and an exit strategy.

Here’s you.” i want to buy 2 acres for $50K and someday sell it”

Here’s an Investor” I am going to buy 10,000 Acres
get the state to build an offramp and the county to build 30 miles of section Road and the city to rezone it, while i rent it to cattle ranchers for cash”

Guess who makes money.?[/quote]

[NicMM]

Wow! I see someone with real experience giving good reasoning here. Thanks, sdduuuude!

In my case, I have absolutely no clue about land investment. The comments of majority here greatly reminded me that and the big risks that could bring. On the other hand, I am willing to learn land investment for future opportunities. Just as putting money in a saving account, if I could save that money into a land and retrieve it out after 15 years to have enough to pay son’s college, that would be fantastic!

I assume land value should not go down if it doesn’t go up. Then I don’t have much to lose. And I have no faith in 529 plan.

NicMM

[quote=sdduuuude]I see a few ways: 1) time it right 2) buy big chunks, cut it up, and sell the pieces, and 3) Identify land that is in the growth path of development, but is not recognized as such by others.

My parents purchased some land together with two other families back in the early 80’s. This was on the outskirts of Tucson. When they bought, it was a long way from anytyhing but Tucson grew right past it and it ended up being a nice part of the suburbs so they did well. I’m not seeing opportunities like that anywhere right now.

I also feel, as a guy who likes to build stuff, that there is a chance to save money on your primary residence by buying a lot and building a home on it – to live in. In a way, that is a land investment as it allows you to avoid developer-markup on both land and structure.

Buying a chunk of land in a fairly well-populated area just doesn’t seem like a good investment. It will be priced to the market and the only way to make money is for the market to go up.

But if you see some compelling reason why you think a piece of land will appreciate when a whole lot of real-estate is languishing, then do it.

If you feel that real-estate is a growth investment, it it makes sense. However, regarding items 1, 2, and 3 above – I just don’t see the economic climate supporting any of them for several years.[/quote]

[NicMM]

Wow! I see someone with real experience giving good reasoning here. Thanks, sdduuuude!

In my case, I have absolutely no clue about land investment. The comments of majority here greatly reminded me that and the big risks that could bring. On the other hand, I am willing to learn land investment for future opportunities. Just as putting money in a saving account, if I could save that money into a land and retrieve it out after 15 years to have enough to pay son’s college, that would be fantastic!

I assume land value should not go down if it doesn’t go up. Then I don’t have much to lose. And I have no faith in 529 plan.

NicMM

[quote=sdduuuude]I see a few ways: 1) time it right 2) buy big chunks, cut it up, and sell the pieces, and 3) Identify land that is in the growth path of development, but is not recognized as such by others.

My parents purchased some land together with two other families back in the early 80’s. This was on the outskirts of Tucson. When they bought, it was a long way from anytyhing but Tucson grew right past it and it ended up being a nice part of the suburbs so they did well. I’m not seeing opportunities like that anywhere right now.

I also feel, as a guy who likes to build stuff, that there is a chance to save money on your primary residence by buying a lot and building a home on it – to live in. In a way, that is a land investment as it allows you to avoid developer-markup on both land and structure.

Buying a chunk of land in a fairly well-populated area just doesn’t seem like a good investment. It will be priced to the market and the only way to make money is for the market to go up.

But if you see some compelling reason why you think a piece of land will appreciate when a whole lot of real-estate is languishing, then do it.

If you feel that real-estate is a growth investment, it it makes sense. However, regarding items 1, 2, and 3 above – I just don’t see the economic climate supporting any of them for several years.[/quote]

[NicMM]

Wow! I see someone with real experience giving good reasoning here. Thanks, sdduuuude!

In my case, I have absolutely no clue about land investment. The comments of majority here greatly reminded me that and the big risks that could bring. On the other hand, I am willing to learn land investment for future opportunities. Just as putting money in a saving account, if I could save that money into a land and retrieve it out after 15 years to have enough to pay son’s college, that would be fantastic!

I assume land value should not go down if it doesn’t go up. Then I don’t have much to lose. And I have no faith in 529 plan.

NicMM

[quote=sdduuuude]I see a few ways: 1) time it right 2) buy big chunks, cut it up, and sell the pieces, and 3) Identify land that is in the growth path of development, but is not recognized as such by others.

My parents purchased some land together with two other families back in the early 80’s. This was on the outskirts of Tucson. When they bought, it was a long way from anytyhing but Tucson grew right past it and it ended up being a nice part of the suburbs so they did well. I’m not seeing opportunities like that anywhere right now.

I also feel, as a guy who likes to build stuff, that there is a chance to save money on your primary residence by buying a lot and building a home on it – to live in. In a way, that is a land investment as it allows you to avoid developer-markup on both land and structure.

Buying a chunk of land in a fairly well-populated area just doesn’t seem like a good investment. It will be priced to the market and the only way to make money is for the market to go up.

But if you see some compelling reason why you think a piece of land will appreciate when a whole lot of real-estate is languishing, then do it.

If you feel that real-estate is a growth investment, it it makes sense. However, regarding items 1, 2, and 3 above – I just don’t see the economic climate supporting any of them for several years.[/quote]

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