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Frequently Asked Questions
What are your licenses and credentials?
Capital Holdings, Inc. is a licensed California Real Estate brokerage. We have an "A+" credit
rating through Dun and Bradstreet and the Better Business Bureau. Our brokers have over 60 years
of combined experience in real estate with land sales as their specialty.
How do you compare to other land companies?
It is rare to find a company that will finance land with 10%
downpayment. Most banks will not finance land, and most land purchases require
cash. Capital Holdings, Inc. makes land ownership possible and affordable
by requiring a minimum down payment of only 10%
Other land companies require 20% to 30% down payment, whereas Capital Holdings, Inc. allows you to leverage your
money by acquiring speculative investment property with the least amount
of "out-of-pocket" cash by requiring the minimum of a 10% downpayment.
Do you check my credit?
No, there is no credit check needed to purchase land through Capital
Holdings, Inc.
What are the terms for purchasing?
- With 10% down, the interest rate is 9 % for 15 (or 30)
years.
- With 20% down, the interest rate is 8.5% for 15 (or 30)
years.
- With 30% down, the interest rate is 8% for 15 (or 30)
years.
What’s my down payment?
You need to put at least 10% of the purchase price as downpayment.
What is my monthly payment?
Your monthly payment depends on your loan amount.
Are there any property taxes?
We bill an estimated property tax of 1.25% of the purchase price. Any amount received above the actual tax paid to the county (minus a $25 admin fee) is credited to your principal or loan balance.
When do I get the grant deed?
With less than 30% down-payment, the grant deed stays in Capital Holdings'
name. We record the grant deed in your name upon request and review of payment history, if you do one
of the following: (1) put 30% down, (2) pay for the property in
full, or (3) wait until you get 30% equity. If any of these requirements are met, Capital Holdings, Inc. will send you
the appropriate paperwork to file with the County. The whole process
may take 6-8 weeks.
What is leveraging?
Leveraging in real estate is spending as little money out of pocket
in order to get the greatest return.
Why invest in land?
Land requires no maintenance in order for it to go up in value.
The land goes up in value because of supply and demand. If there is a lesser
supply of land, and the demand is higher, the higher
the price of land will sell. For example, the price of land in Rancho Cucamonga
a few years ago was affordable. Recently, so much growth has been
happening in the area that land prices have gone up to as high as
$1 million for 5 acres.
Why California?
California is the most populous state in the United States. The population is expected
to double in the next twenty years. Along with population
growth, California has a strong economy, jobs, and great weather.
These factors affects California's growth tremendously and
therefore increasing the real estate value in the state.
What area is the best?
The best area depends on your budget, your investment
goals, objective and your timeline.
How do I know exactly where my property is located?
Each property has a unique Assessor's Parcel Number (APN). We
use maps from the San Bernardino County Assessor that corresponds
to the property's APN. By using the APN and Assessor's map, we
are able to get a more detailed location of the property. Even
with these tools, we are not able to identify the exact location
and boundaries of the property when touring. We can only get to the
approximate location of the property. To get the most accurate
location and boundaries of a property, it is recommended that you have
a surveyor come out and do this for you.
Who owns the land that Capital Holdings, Inc. sells?
All parcels that are marketed and sold by Capital Holdings, Inc. (CHI) are owned by its affiliated entities.
Who do the Capital Holdings, Inc. agents and brokers represent?
Capital Holdings, Inc. reprsents the seller exclusively.
How does land investing compare to stocks?
Land is one of the places where leveraging on speculative investment is possible.
This makes the opportunity to purchase land possible for everyone. With
stocks, there is no leveraging. If you want to buy $100,000 in
shares, you need to have $100,000 in cash.
How does land investing compare to other real estate?
When it comes to land, there are several reasons why it is a wise speculative investment:
- Land requires no upkeep
You don’t have to be there to tend to an empty parcel. Unlike apartment buildings or commercial properties you spend almost nothing in maintenance. You don’t have to worry about irresponsible tenants or unpaid rent. In fact, the land continuously increases in value even if you don't see the property.
- Land never wears out nor depreciates
Nothing can destroy the land and since land is a fixed commodity, its value must continues to rise as more people move into an area. Detroit can build more cars. Wall Street can float more stock issues, but there is only so much land.
- You don’t need a lot of money to acquire land
Because of the value inherent in the land itself, Capital Holdings, Inc. will lend up to 90% of the sales price of the property. With as little as $1,000, you can control up to $10,000 in land. This is called leverage. Neither the stock market, nor banking your funds offer you so much leverage with such little initial cash outlay.
- Land is the original inflation fighter
U.S. News and The World Report states that land values rose at a rate three times as great as the increase in general price level over the past decade. So you pay off your land with dollars that are increasingly worth less, which in most cases pushes you ahead of inflationary trends.
- Land is an excellent tax shelter
Property taxes and interest charges in most cases are tax deductible. Yet, at the same time, undeveloped property taxes are low enough so as not to be a real financial burden.
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