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Frequently Asked Questions
What are our licenses and credentials?
Capital Holdings, Inc. is a licensed brokerage, and is a member
of the Better Business Bureau. We also have an "A+" credit
rating through Dun and Bradstreet. Our brokers have over 60 years
of combined experience in real estate with land sales as their specialty.
How do we compare to other land companies?
It is rare to find a company that will finance land for only 10%
down. Banks will not finance land, and most land purchases require
cash. Capital Holdings, Inc. makes land ownership possible and affordable
by only requiring a down payment minimum of 10%.
There are other land companies that require 20% to 30% down payment
and even then, the option of putting as little as 10% is out of
the question. With Capital Holdings, Inc. you can leverage
your money by acquiring speculative investment property with the least amount
of "out-of-pocket" cash.
Do you check my credit?
No, there is no credit check needed to purchase land through Capital
Holdings, Inc., because we are a private lender.
What are the terms for purchasing?
- If you put 10% down, the interest rate is 9 % for 15 (or 30)
years.
- If you put 20% down, the interest rate is 8.5% for 15 (or 30)
years.
- If you put 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.
What is my monthly payment?
Your monthly payment depends on your loan amount.
Are there any property taxes?
The property tax is 1.25% of the purchase price.
Are your properties free and clear in title?
Yes, they are. All our properties go through a complete background
check as well as the company's rigorous research standard of acquisition.
When do I get the grant deed?
If you put 10 or 20% down, the grant deed stays in Capital Holding's
name. You can get the grant deed to the property 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. Once your time comes
for getting the grant deed, 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. The lesser
the supply of land, the higher the demand there is and the higher
the price of land. For example, the price of land in Rancho Cucamonga
5 years ago was affordable. Recently, so much growth has been
happening in that area that land prices have gone up as high as
$1 million for 5 acres.
Why California?
California is experiencing tremendous growth. We are expected
to double in population in the next twenty years. Along with population
growth, California has a steady economy, jobs, and great weather.
It is because of these factors that California is growing and
therefore increasing the real estate value of the state.
What area is the best?
The best area for you depends on your budget, and your investment
goals, objective and 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
approximate location of the property. To get the most accurate
location and boundaries of a property, it is recommended to have
a surveyor come out and do this for you.
How does land investing compare to stocks?
Land is one of the places where leveraging and getting a return
on one’s speculative investment in the shortest amount of time is possible.
Also, the opportunity to purchase land is open to everyone. With
stocks, there is no leveraging. If you want to buy $100,000 in
shares, you need to have $100,000. Though there are many who have
been successful in stocks, it is recommended to have a diversified
investment portfolio that includes stocks and real estate.
How does land investing compare to other real estate?
When it comes to land, there are several reasons why it is a wise
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 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 continue 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. You have REAL financial security.
- 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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