ace the right choice dg 6 21 10

The Right Choice ... Smart Money for Life

David Gold

$1,000,000to

$2,000,000

$2,000,000for 5,000/

mo.

$400,000to

$500,000

Money Needs for Fundamental Stages of Life

Children College Grandchildren Medical Care

Home Retirement Travel/Vacation Long-term Care

Bubble and Burst

30-year track record!

1980 Gold Bubble Bursts

1982 Mexican Bond/Debt Market Burst

1990Japanese Stocks Burst

1987Black Monday

1994Latin America Debt Burst

1992Scandinavian Bank Stocks Burst

2000Internet Bubble Burst/ Dotcom Meltdown

2006US Mortgage-backed Bonds Started to Burst

2007“Shangai Surprise” Chinese Stock Market Burst

2009 Bust, not just a Burst of global retirement assets

2009Banking Bubble Burstwith Bailouts

2010May of 2010… the “Fat Finger Mistake”

Getting Back to the Basics

History has shown that Real Asset Growth is gained through holding Real Estate.

…not the value of the house.

Now…

That same land sells for $1 –$2 million per acre.That’s 83 to 167 times the original price…

As much as a $9,000,000 profit.

Over 18% return.

The Value of Land:An Example

30 Years Ago…

$60,000 would have bought you a nice house in Silicon Valley or Orange County.

Today that same house sells for around $650,000.

An 8.2% compounded Annual Return

Back then, there was a choice…

Just 3 to 5 miles away, five acres of PRE-DEVELOPED land was selling for the same $60,000.

That’s $12,000 per acre.

Land continues to appreciate, while your house continues to depreciate!

Perception vs. Reality

Note: Average market values from Santa Clara County Assessors Office

If in 1978, you had purchased a home in Silicon Valley or Orange County for $60,000, the land would have been valued at about $9,000 and the house at $51,000.

$9,0001978

$60,000

85%

$210,000

1993

$300,000

30%

$514,000

2010

$650,000

21%

What is Land Banking?

Land Banking is the time-tested Wealth Building Strategy of:

Selling it for a significant profit in the future.

Waiting for its value to mature.

Acquiring select pre-developed land in the growth path of a major metropolitan center.

TIME

Undeveloped Pre-developed Developed

The Principle of Supply and Demand

LA

ND

VA

LU

E

Buy LOW

Sell HIGHThe key is to:

TIME

The Principle of Supply and Demand

LAN

D V

ALU

E

Pre-developed DevelopedUndeveloped

Can You Begin to See It?

10% Already Developed

Why Land Bank in California?

Population Growth

• Largest Population in the U.S.—38 million

• CA grows by the size of one new Sacramento every 8 months

World’s 8th Largest Economy

Limited Land Availability

82% Wild Land

8% Remaining (Farm or Pre-developed)

There are more people living in the Los Angeles Basin than in Oregon, Nevada, Arizona, Idaho, Utah, Montana, Wyoming, and New Mexico

Why Land Bank in Antelope Valley?

Los Angeles Megalopolis• Over 50% of California’s total

population• Current population of over

18.4 million people• Expecting 3 million more people

over the next 10 years

The 60 Mile Radius around Los Angeles is the world’s 17th Largest Economy

COMBINED!

Northern Los Angeles County

The Perfect 10!

The Los Angeles Megalopolis:

Includes parts of Los Angeles, Ventura, Kern, San Bernardino, and Riverside counties.

It is a 60-mile radius and an economic giant of domestic and international significance.

Again, it’s about LOCATION, LOCATION, LOCATION!

10 Key Indicators That Make Land Valuable

1 Level, Usable Land



Level, Usable Land

The Greater Antelope Valley covers approx. 3,000 square miles.

Predominantly flat with elevations 2,400 to 3,200 feet above sea level.

The Valley’s floor is prime for commercial and residential development.



2 Abundant Water Supply

Groundwater is stored in the Antelope Valley Groundwater Basin.

The primary source of surface water is the Littlerock Reservoir.

The imported surface water arrives from the State Water Project.



Abundant Water Supply





3Accessible by Planes, Trains, and Automobiles



Accessible by Planes, Trains, andAutomobiles



The Antelope Valley Transit Authority offers numerous bus routes.

Rail service includes the Metrolink, with three Antelope Valley stations.

Travel by airplane is facilitated by private and commercial airports.

High-Speed Rail





4 Adequate Utilities for Massive Growth



Adequate Utilities for Massive Growth




Electricity is provided by Southern California Edison Company.

eSolar and SCE are developing one of the largest U.S. solar plants.

A 245-megawatt solar plant on 1,100 acres will power over 50,000 homes.






5 Ample Educational Facilities: Preschool to College Level



Ample Educational Facilities: Preschool to College Level




5 Ample Educational Facilities: Preschool to College LevelEight school districts

manage 74 elementary and middle schools.

The AV Union High School District serves 20 high schools.

The University of Antelope Valley serves 15,500 students.







6Close Proximity to Major Metropolis

Level, Usable Land Close Proximity to Major Metropolis


1

Close Proximity to Major Metropolis





6

Lancaster and Palmdale are located within the County of Los Angeles.

The County of Los Angeles is the most populous county in Calif.

45 minutes away, Los Angeles is the most populous city in Calif.








7Prime Growth

Industries in Place and Expanding

Prime Growth Industries in Place and Expanding


Prime Growth Industries in Place

and Expanding



1

2




6

7

The largest industry in the Antelope Valley is the aerospace industry.

The largest single employer in the Valley is Edwards Air Force Base.

Other important industries include renewable energy, health care, retail, & more.








7Prime Growth


8Huge Commercial

and Residential Development



1

Huge Commercial and Residential Development



6

Accessible by Planes, Trains, and Automobiles

Huge Commercial and Residential

Development



and Expanding2 7

83

Existing commercial and residential developments include numerous business parks, shopping centers, and planned

communities in Lancaster and Palmdale.








7Prime Growth


8Huge Commercial


9Studies Projecting Healthy Population Growth



1

Studies Projecting Healthy Population Growth


6



Development



and Expanding2 7


Studies Projecting Healthy Population Growth 94

3 8

There are two major sources for population projections and studies:The U.S. Census Bureau and the Greater Antelope Valley

Economic Alliance (GAVEA).

Only North LA County Plans for TRIPLE DIGIT (193.4%) Population Growth.


9

Studies Projecting Healthy Population Growth

There are two major sources for population projections and studies:The U.S. Census Bureau and the Greater Antelope Valley

Economic Alliance (GAVEA).

Only North LA County Expects TRIPLE DIGIT (202.9%) New Home Construction.








7Prime Growth


8Huge Commercial


9Studies Projecting Healthy Population Growth

10Regional Master Plan

for Community and Municipal Infrastructure



1

Regional Master Plan for Community and Municipal Infrastructure

6



Development



and Expanding2 7



3 8


Regional Master Plan for Community and

Municipal Infrastructure5 10The General Plan serves as a basis for planning land use,

transportation routes, population growth and distribution, air and water quality, noise impacts, safety issues, and other factors.

Level, Usable Land Close Proximity to Major Metropolis1 6



Development



and Expanding2 7



3 8


Regional Master Plan for Community and

Municipal Infrastructure5 10


Creates the Ideal Land

Banking Parcels

San Diego

1960: 200,000 population

1980: 2,250,000 people!

Today: There are over 3,000,000 people!

The Southern California Opportunity!

San Fernando Valley


1960: 1,100,000 people!

Today: Population is over 1,750,000!

Orange County


1965: 775,000 people!

Today: There are over 3,000,000 people!

At that time the L.A. Planning Commissionstated that by the year 1960 the SanFernando Valley would have a populationof 750,000.

The Planning Commission stated that in10 years there would be 500,000 peopleresiding in Orange County.

Their County Planners believed there would be at least 1,000,000 people in San Diego by 1975.

19521965

19691978

19851989

2010

Antelope Valley

In 1978 the population in Antelope Valley was approximately 95,000.

Currently the population in Antelope Valley is approximately 500,000.

With thousands of new affordable homes and commercial developments.

Avenue F

Avenue E

80th S

t W

70th S

t W

90th S

t W

Supply Samples

APN: 3201-001-016$27,341.77/acre

APN: 3220-011-025$29,303.48/acre

APN: 3219-006-006$25,510.20/acre

APN: 3268-001-037$27,358.49/acre

APN: 3268-006-065$20,000.00/acre

SubjectAPN: 3220-010-010

$18,000.00/acre

Supply Samples

Palmdale Blvd

Avenue Q

15th S

t E

25th S

t E

20

th St E

SubjectAPN: 3015-016-018

$53,454.07/acre

APN: 3015-015-019$90,476.19/acre

APN: 3015-017-004$68,382.94/acre

APN: 3018-021-006$75,471.70/acre

APN: 3015-011-011$94,202.90/acre

Personal Real Estate Investor Magazine Advertising

Chen Wang’s Personal Story

What Will Be Your Personal Financial Success Story?

Children College Grandchildren Medical Care

Home Retirement Travel/Vacation Long-term Care

Money for Life Letter of Intent

ace the right choice dg 6 21 10

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