The factors that determine growth and long term appreciation with real estate.

It’s common knowledge that the majority of millionaires come from investing in real estate. If you’ve been around long enough or up all night  you have seen the infomercials claiming vast fortunes in foreclosures, tax liens and deeds and probates.

Unless you have been living under a rock or in a cave you have undoubtedly seen in the main stream media the making an epidemic of the “housing bubble” and the fold of the sub prime lending market.

This wasn’t an unexpected event or random acts that led to these catastrophic events. Instead it was negligence, defrauding of federal lending  institutions and plain old greed from mortgage brokers and loan agents.

If you are a home owner or a landlord faced with these challenges I deeply sympathize with you. We’ve seen the growth and we’ve seen the demise of the industry and the one fact that stands out is no one ever talks about where the wealth truly comes from.

Looking at real estate we can divide it up into three sections “undeveloped raw land”; “predevloped land”; and “developed property”. Further more looking at these three different stages of real estate we can see the costs and profits between them.

Undeveloped land has little cost and low profit potential. Developed property has a high cost and again little profit left when you factor in all of the costs for development.

Last but not least we have the most profitable property which is pre developed land. This unique property has all of the profit potential built right in.

It’s the gap between undeveloped and developed real estate. The hidden profit center lying directly in the path of growth. Growth then in turn drives the value of the real property up.

Let’s take a look at two scenarios to illustrate the example.
Let’s go back in time to an area we all know as Silicon Valley. San Jose 1976 where you could have purchased a nice 3 bedroom 2 bath home for $25,000. Fast forward to today, what is that house worth?

In todays market it sells for  $600,000 to $750,000 a nice 25X to 30X return on your initial investment. Now then to the predevelopment stage of real estate we go back to the same time frame in San Jose where just 5 to 7 miles outside of that nice house where vacant orchard land was selling for $8,000 to $24,000 per acre.

You chose the cheapest land at $8,000 per acre and you purchased three acres for a grand total of $24,000. Again let’s fast forward to today in San  Jose. Do yo have any idea what those vacant parcels of land are selling for? If you can find them.

They sell for $1,500,000 per acre. Since you had three your now sitting on $4,500,000 to $5,000,000 a nice 180X return on your initial investment. That’s 18,000% over 30 years a nice average of 600% per year.

Now then scenario two let’s just say your a new parent and you want only the best for your new child. So you decide to start saving for their college education. You take and sock away a huge $25,000 investment. Where should you invest for the safest and most aggressive growth.

For College Education

What if you had invested $25,000 for your child’s education 18 years ago?
A CD yielding a 5% return per year*
————————$60,165
A Mutual Fund yielding a 10% return per year*
———————–$138,998
California Land yielding a 30% return per year*
———————–$2,811,385
*Note: These are for illustration purposes only and do not reflect any specific returns.

So now coming back to the strategy of long term appreciation you need to understand why predevelopment stages of real estate are essential for growth as long as they meet certain criteria.

There are four key factors that determine growth; they are population density, the local economy and the job market, half price or affordable housing, and the 10 key indicators of a growth path.

These factors are exactly the key ingredients to create long term appreciation in real estate.

All 10 of the key elements of the growth path must be present in order for success to be assured and risk of principle to be minimized or eliminated. These 10 factors of the growth path are as follows.

1) The predevloped stage of real estate must be level, build able and usable.
2)There must be an abundant and accessible water supply for todays current requirement as well as for the next 40 to 50 years.

3)The area must be accessible by freeway, train or air.

4)You must have adequate utilities for future growth.

5)There must be an educational system in place from primary schools through college and universities.

6)You must have a close proximity to a large metropolis.

7)There must also be planned industry and commerce to continue job growth and the tax base.

8)Continued growth of commercial and residential developments.

9)All sources of information should come from authoritative sources not just a random tip from the grape vine.

10)Last but not least there must be master plans for a community in place (streets, roads, sewer, electric and gas).

With all of these indicators in place you can rest assured that long term capital appreciation will prevail. If you miss just one of the key elements you can rest assured this is a recipe for disaster. Learn the science and engineering of a great deal right from the start and avoid the disappointment later.

BIO [ There are many ways of making money in real estate, but nothing makes sense unless you have a road map and a proven method for finding profitable deals. Land banking in California is a “proven formula” that provides safe, high growth, long term appreciation.

When you have a system that locates areas that mimic historical trends of Los Angeles, San Jose and San Francisco you have certainty and control over your financial future.

Get your free 30 minute no cost, no risk, no obligation consultation with Ryan Wegman and Learn how you can do it too.

Goto http://www.ryanwegman.com and schedule your appointment with Ryan Wegman. Ryan is a Land Banking Specialist

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Call it bragging or whatever you like I really don’t care. I have made the commitment to change the world or at least the largest portion of it that I have the ability to touch. Personally I may not be able to save the planet although I sure am going to try.

When we started out in life we were versed in good vs. evil and right and wrong. I have to ask “what went wrong”? We’re a society built on deception.

Credit and fraud, predatory mortgage lending, land banking fraud, illegal stock market scams and the list goes on and on. Even corporate deception and scandals have had the spotlight in recent years.

No matter what you do a certain part of deception is thrown into your daily life every single day. Your effected by it in the reflection of your costs of living, fuel, food, inflation, interest rates and general higher costs of commodities.

Your life may even be filled with fragments and splinters of deception in the ways that you manage your life. How are your finances handled, are they organized, balanced, tracked to the penny in real time?

Are you the model employee who shows up to work on time and performs at your best or are you just sitting there filling a seat and earning a check? Deceit and deception are most times easier to fall into the traps of their ways rather than fighting for the right.

This is why I say one man can make a change a change for the good of humanity and a change for the good of himself as well as others. Let’s make the commitment to perform in ways that are for the overall good and benefit of mankind.

When we perform at our peak level in everything that we do we feel inspired and driven to continue the process. For the most part it only takes a little more effort to do the right thing anyway. Why would you jeopardize your self esteem and self worth by performing under par when it’s no harder to do the right thing?

So here is the scoop I said I wanted to make a difference in peoples lives and I have made the commitment to excellence. For every individual who makes this commit to excellence and master the art of life I will join you in your pursuit of happiness.

Make the change in your life and see the results happen for you and your special ones close and dear in your life. I’ll guide you in every way that I possibly can to assist you in making the commitment. A commit to master your life financially, spiritually, and set forth the foundations to solidify your new found passions for greatness.

Commit to master your self and you will inadvertently change the world around you.

Commit to master the world around you and you will inadvertently change your self. The two are intertwined with one another. You cannot change anything however until you decide to find what you need to change in your own self. Enough said about change and commitment you already know if you’re in or you’re out. What your game plan is.

If you don’t have one you need to get one and get it right now. Opportunities for wealth, change and a brighter future are abundant and flourishing right before your very eyes. The issue at hand is you are too afraid to grab a hold of what’s in front of you.

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Product launch date 08/19/2008 Internationally respected company launches new Tranquil Sleep Now program to help people get a better nights sleep. Financial marketeer Ryan Wegman has released his third publication titled “The Pillars of Wealth”.

For the first time Ryan is revealing his story of triumph over adversity and challenge. Now tis Author wants you to spill your guts with your dirty little secrets.

How do you manage your finances and where do you seek assitance in repairing the damage caused from poor financial managaement?

Take a few moments to jot down the areas you are concerned with in your life and let Ryan develop your new game plan. Make the Commitment to Mastery today.

Ryan is a cash flow specialist, real estate investment coach and mentor, infopreneur and internet marketer. His personal mission is to end financial illiteracy and create wealthy, hea;lthy financially fit families for years to come. Learn more about Ryan and his land banking and financial services.

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You’re on autopilot, but you need to check the speedometer. Your target date is set and the funds have been sold as a kind of autopilot for your 401(k) plans, freeing workers from ever having to look at their retirement accounts.

However  the funds inside of these autopilot accounts may need to be looked at with more intensity.

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After a call from his mother the disheartening feeling of hard work and wishes expressed were for not. When Mom said she was reworking her Mother’s will the feeling of frustration set in.

Knowing that he had put in so much effort to carry out his Grandmothers wishes for her estate after she died. Unfortunately his mother was living in a world where many seniors do.

Do I live for today or plan for tomorrow? The whole restucturing of the trust was so that she could gain access to a lump sum of money vs. a long term income paid from the trust.

Read the rest of the story here from the Wall Street Journal

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