If you are an experienced Antelope Valley land investor and are looking for a broker with whom you can develop a long term relationship of trust I suggest you read this section.
If you are a new or first time Antelope Valley land investor, and/or live outside of the Antelope Valley, you need to read this section.
Any investment idea, if gone about in the wrong way, can result in a loss of investment dollars. In this respect, Antelope Valley land is no different from any other type of investment. To be a successful Antelope Valley land investor, and to avoid unnecessary loss of capital, the investor needs to be aware of some basic "do's and don'ts".
Almost monthly, I correspond with land owners, from all parts of the globe, that have invested in AV land, but have done so in the wrong way. In almost every case, the mistake was the same:
An uninformed buyer purchased their land directly from a very well informed seller, at a seminar, or from a land company, from outside of the Antelope Valley. It was an "amateur buyer" purchasing from a "professional seller".
Professional sellers of land usually have the words "Land"or "Land Company" in their name, or advertise as an "investment group". These "Pros" buy their land from brokers inside the AV, then resell their purchase to investors that live outside the AV. Their business is the buying and reselling of land; their own land. They represent the interests of only one party: themselves.
Since these land companies are not violating any laws, the only protection the individual investor has is knowledge about the AV land market. It is incumbent upon the investor to protect themselves by becoming well informed about the AV before investing their money.
Buying AV land at "seminars", from "land companies", or from "investment groups", located outside of the Antelope Valley, usually results in the buyer severely overpaying for their land, and/or ending up with "average to poor quality" investment land.
Most buyers, outside of the AV, do not have ready access to current AV land market values. Most buyers outside of the AV do not have convenient access to a knowledgeable AV land broker to advise them as to which areas of the AV are best for investment, and which areas should be avoided. Even at inflated price levels, AV land may seem "low priced" in relation to land prices where the investor lives.
When shopping at the grocery store, would you pay $5.00 for a bottle of ketchup? No you wouldn't, because you know the true market price for that bottle of ketchup is $1.50. Yet many AV land investors have done just that; they have paid $5 for a bottle of ketchup, paying many times more than is necessary to own AV land.
Do's and Don'ts for Buyers
-Do not buy AV land from seminars or land companies located outside the AV. Seminars outside of the Antelope Valley are one of the favorite venues for these "land companies." Antelope Valley land, sold outside of the AV, is almost always sold at prices much higher than it's market value. Buying land in this manner provides no way for the buyer to accurately verify the land's true market value prior to purchase.
-Do not trust comparable sales provided by the seller; these are parcels they have sold to other "investors".
-Do not compare AV land prices to land prices where you live. There is no relationship. Any comparison is irrelevant and misleading.
-Do use an experienced land broker from the Antelope Valley. Broker's know their market; they will be offering for sale, land owned by other investors, not land owned by themselves. The real estate broker acts as an agent for you, and has a legal & fiduciary responsibility to represent your best interests. If a broker violates this responsibility, he could be subject to disciplinary action by the Dept. of Real Estate, and could have his license suspended or revoked.
-Do insist on "comparable sales" before buying any land. Make sure these are "real market sales", and not inflated sales to other "investors".
-Do choose a broker that is willing to keep you informed of the market's progress during the time period you are holding your land.
-Do choose a broker that has the marketing skills to resell your property for you.
In summary, you need a broker that can:
-educate and guide you through the buying process
-keep you informed of the market's progress during your holding period
-advise you on the proper timing and pricing of the resale of your land
-market the property for you to get it resold
As in any profession, "not all brokers are created equal". Some brokers, for your purposes, will be better than others.
Before investing your money, first invest your time in finding the best full-service land broker you can. You can do this by using the internet and sending out emails. Ask a lot of questions.
Yes, this will take some time, but if you do not do this, how much time will you invest to recover lost money?
"In land, you make your money when you buy, not when you sell." If you "buy wrong", by overpaying or by purchasing in the wrong area, you have dead money, not an investment.
The goal here is to limit the risk of your capital to only one factor:
This way your investment performance depends on one, and only one variable: the future of the Antelope Valley.
My Pledge to Buyers
1. I do not use high pressure sales tactics. Take your time learning about the Antelope Valley. Subscribe to my free email news services which include: weekly news updates & monthly newsletters detailing all land sales sold through our Multiple Listing Service. After taking the time to learn more about the AV, then make your decision as to whether or not AV land should be part of your investment portfolio.
2. I will inform you on the best areas of the AV in which to invest based upon your available capital.
3. I will provide comparable sales to you to ensure you that you are paying present market value, or less, for your land.
4. After the sale, I will keep you informed of our land market's progress through my electronic news services.
5. I have been in the Antelope Valley land market since 1980. When requested, I will advise you on the pricing and timing of the resale of your land, and market your land to get it sold.