Why Ace Capital Group? - Land Banking Expert

ACE CAPITAL GROUP Land Banking – a Proven Form for a ula Better Retirement

Financial Reality Present & Pre-Retirement Future & Retirement Monies for Retirement Job & Business Short Term Savings • IRAs, 401(k) • Monthly Income • CDs, Money Market • Long-term Trends • Daily Expenses • Education • Appreciation • Mortgage Payments • Emergency Funds • Income in addition to • New Car • Special Occasions Social Security check • Rental Properties • Rainy Day of $1,000+ You can fail and You CANNOT rebuild afford to fail

W You Be Able To Retire ill Com fortably? ….or, will you be living with your kids?

The Real Facts • “The average ‘Baby Boomer’ family has approximately $50,000 in total net savings. Including home equity, they have about $110,000.” Ben Stein, CBS Sunday Morning • “A survey by the nonprofit Employee Benefit Research Institute found that 52% of those surveyed had less that $25,000 set aside for retirement; 13% had $25,000 to $49,999 and 11% had $50,000 to $99,999. Just 21% had $100,000 or more.” San Francisco Chronicle April 5th , 2005 • Of those reaching the age of 65, 2% are totally self-sustaining, 45% are partially dependent on relatives, 30% are partially dependent on charity and 23% are still working. Social Security Administration • 89% of all American retirement incomes are paid by the Social Security Administration! Social Security Administration

Retirement Statistics Here are the retirement statistics for those over 65 Self- Dependent on Sustaining, 2% Still working, charity, 30% 23% Dependent on relatives, 45% Source: Social Security Administration The average American retires on only $13,500 per year. Social Security provides 89% of all retirement income (U.S. Department of Health, Education & Welfare) How much do you need at retirement?

Planning Considerations 1. Inflation: - At a 3% annual inflation rate, your living expenses will double over 25 years. - At a 5% annual rate, they will triple over 25 years. 2. Medical Expenses: - Experts say that you should have $200,000 set aside just to cover healthcare expenses. • Lifespan: - People are living longer. - You may be retired for 20 or 30 years. - Will the money last?

What is Your Number ?

Don’t follow the Herd!Reality Financial Present & Pre-Retirement Future & Retirement Monies for Retirement Job & Business Short Term Savings • IRAs, 401(k) • Monthly Income • CDs, Money Market • Long-term Trends • Daily Expenses • Education • Appreciation • Mortgage Payments • Emergency Funds • Income in addition to • New Car • Special Occasions Social Security check • Rental Properties • Rainy Day of $1,000+ You can fail and You CANNOT rebuild afford to fail © 2007 ACE CAPITAL GROUP. ALL RIGHTS RESERVED

Will the Herd Even Get 10%?

Will You Even Get 10% ? Or, is 10% even a reality?

What is The Best Investment You Have Ever Made?

Consider This… 25 to 30 Years Ago You Could Have Purchased an Average House in the San Jose or Orange County Area for about $25,000.

Today that same house is worth between $500,000 and $750,000! That is 20 to 30 times your original investment!

At The Same Time, 3 to 5 Miles Away, You Could Have Purchased 3 Acres of LAND For About The Same Price…$25,000

Today That Land is Worth About $4,500,000! 180 Times the Original Investment

Can You Show Me Better Vehicle For Retirement?

Ideal Buy & Sell Area

House vs. Land Investment 1976 Investment Value in 1991 Value in 2005 House & Improved Land X 10 X 0 $ 24,000 = $ 240,000 $ 720,000 Land X 65 X 214 $ 24,000 = $ 1,560,000 = $ 5,136,000 1976 1991 2005 House & Improved Land $ 1.00 $ 10.00 $ 30.00 House & Lot Improvements $ 0.88 $ 2.19* $ 4.30* Land $ 0.12 $ 7.81 $ 25.70 * Replacement or new cost for labor, material and profit compounded @ 6.26% CPI for first 15 years and @ 4.6% for second 15 years.

Land Value What Causes Land Value in an Area to Increase? • Population density • Economy and Jobs • We’ve analyzed population & economic statistics to determine where to buy Where do we buy and why?

Ace’s Land Banking Formula 1. Population An area in the growth path of a dense population center 2. Growing Economic Base Plentiful Jobs and a Diverse Economy 3. Housing Availability of affordable housing (half-priced homes) 4. 10 Key Indicators Factors determining the growth path

Ace’s 10 Key Indicators Determining Growth Path ALL 10 indicators must be present Level, usable land before ACE buys Abundant, available water supply Accessibility by freeway, train, air Adequate utilities for massive growth Educational system: primary through college Proximity to large population: Metropolis Existing and planned industry and commerce Existing commercial and residential development Authoritative population projections and studies Master plan for community (streets, roads, sewer, electric, and gas)

Population Grow Plus Econom th ics • California has the largest population in the United States - currently 37.7 million (Source: CA Dept of Finance), and will add approximately 6.0 million more in the next 10 years. • California is the 8th most powerful economy in the world! • San Francisco Bay Area (90 Mile circle = 21%) Population = 7,700,000 • Los Angeles Megalopolis (60 Mile circle = 50%) Population = 18,400,000 (plus 3 million in 10 years)

The Los Angeles Megalopolis This 60 Mile Circle, if viewed as a nation . . . • Would be the 11th most powerful economy in the world (World Bank Statistics) • Provides ½ of California GDP • Is a job creating machine • Has the most diverse economy in the world This 60 mile circle, at 3.6 times greater density than the Bay Area, absorbs 50% of California’s population growth ! The strongest demographics and economics in the United States Where is the growth path?

Remember “Land Banking”  A specific land parcel is only a part of the overall inevitable growth potential within an area in the growth path of a major population center.  Is there any parcel of land that was a bad buy in the San Jose or Orange County area 25 to 30 years ago at $5,000, $10,000 or $20,000 an acre?  Try to find those prices now. An acre of land is typically over $1 million dollars today!  Land Banking is about long term appreciation;  And that is precisely the principle behind IRAs, 401Ks and other retirement programs!

Your Opportunity ACE enables you to land bank through the use of Tenants in Common: • Our Brokers help you team up with other co-tenants to purchase select California land. • You purchase an undivided interest in a larger parcel of land! • As a co-tenant you receive a grant deed and title insurance for your percentage of the parcel. • Your future interests are protected by a Co-Tenancy Agreement.

Learn how to help people roll their IRAs, 401(k)s and other retirement funds into select California Real Estate through Land Banking! Jack Sramek, Ace Capital Group © 2007 ACE CAPITAL GROUP. ALL RIGHTS RESERVED

Why Ace Capital Group? - Land Banking Expert

by Ace Capital Group on Jun 12, 2009

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Why Ace Capital Group? - Land Banking Expert — Presentation Transcript

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