Investor Letter January 2008

January, 2008


Dear Investor:

I am wishing you and yours a Prosperous and Happy New Year. And, I want to let you know I have been invited to join a dynamic real estate company named Pacific Gold Realty in Victorville. My investor letters will continue as I want to keep you abreast of the ongoing and fast paced growth in Victor Valley.

Adelanto: A bright future is predicted for Adelanto. In the next five to ten years, it is anticipated that the economic development of this city is going to double, maybe even triple. Adelanto is only 25 percent developed and it has the land mass to expand into something great. Adelanto is playing catch-up in terms of economic growth and is using Victorville as a model. The Adelanto Gateway Logistics Center is advertising about 7 million square feet of industrial space to be developed.

Adelanto envisions offering many of the stores that residents have to drive to in Victorville, such as home improvement stores. The city hopes for restaurants and hotels to develop along Hwy 395. Super Target will be opening on Mojave Drive and Hwy 395 around 2010 and there are hopes for a Home Depot to come in.

Apple Valley: Apple Valley growth is inevitable – one goal is to create jobs to keep residents from commuting, thus increasing revenue for the town – commercial growth is booming.

The Apple Valley Town Council gave final approval to the Mansion senior living project. The 40-acre site at the south-west corner of Deep Creek and Del Oro roads will have 240 independent-residential units, 56 villas, 37 assisted-living units and 16 skilled-nursing beds, as well as a two-story main building, more than 500 parking spaces and surrounding gardens.

A 100-office business park may come to Apple Valley with amenities to include shorter leases, utilities and wireless internet services. This will be an entrepreneurial business park on 15 acres on Waalew Road. The development would include 100 furnished offices of various sizes, rent would be paid month-to-month, and will include electricity, water, telephone and Internet services. In addition to offices and storage space, there will be RV parking and possibly a car wash on the site.

The Mojave Water Agency has bought six acres in Apple Valley and plans to build a new headquarters. The Agency doesn’t have enough space for the people working there currently and need to plan for the growth in the future. Right now, the agency staff are housed in three different locations including temporary construction trailers.


Hesperia: Hesperia will widen Rock Springs Road, going from two lanes to five by June, 2008. It is a popular route for people in the north-east Victor Valley to travel to Hesperia and Summit Valley.

Hesperia is considering adding $2.5 million to the budget to get three new business incentive programs to entice more restaurants and commercial development to the City. The City is also hoping to bring a Holiday Inn hotel and convention center to a site near Interstate 15 and Main Street and Mesa Linda Avenue.

A new retail/office building is also coming to Hesperia. Construction is scheduled to begin by the end of November and is expected to be open for business by July, 2008. It will be located on the corner of Third Avenue and Walnut Street, with visibility from Main Street.

Phelan: Groundbreaking ceremony in January, 2008 for a $1.5 million library which will be an 8,400 square-foot building in Phelan.

Victorville: Victorville Council OKs $173 million to buy natural gas-fired turbines from General Electric for its massive power plant project north of the former George Air Force Base. Total construction for the entire plant is to be completed by 2010.

Another 1 million square-foot warehouse has been approved by the Victorville Planning Commission, to be built at Southern California Logistics Airport. Drawings show that the complex calls for the shipping and receiving of containers by truck, with about 360 trailer parking spaces. It is expected to be built in the next 12 months. Two more multi-tenant industrial buildings totaling about 234,000 square feet will be completed in February and another 296,000 square-foot distribution building is set for completion in the second quarter of 2008. It is estimated that 24,000 jobs will be created at the complex when it is complete with 18,500 support jobs in the surrounding area. Also approved is a 1 million square-foot warehouse near the Nutro Pet Products factory at Foxborough Industrial Park. The warehouse would be the size of 17.l5 football fields. Industrial users are so hungry for space right now that developers are looking to Victorville and are building warehouses before they get signed leases. Experts say that there are very few sites left in the Inland Empire. There is so much demand, that one industrial warehouse user bought a 1.1 million-square-foot building in Fontana and then promptly sold it.

Whether you are a builder, developer, or investor, Victor Valley provides a great opportunity for profitable real estate ventures. With jobs, people relocate and need housing – not all will be able to buy their own homes. Now is the time to seriously consider purchasing rental property. Invest in your future. Now is a great time to buy.

I would greatly appreciate the opportunity in helping you select the right rental, commercial and industrial properties and also, in selecting any vacant land that you may need to strengthen your investment income and further your retirement dreams.

Sincerely,


Pamela Suzanne Johnson, REALTOR®
My Finger Is On The Pulse Of Real Estate.
Cell - (760) 646-3631


VICTOR VALLEY REAL ESTATE HOT SHEET


INVESTORS PLEASE PAY ATTENTION TO WHAT IS HAPPENING AND NOT TO WHAT THE NEWSPAPERS AND REPORTERS ARE SAYING.

REALITY IS THAT NOW IS THE TIME TO BUY REAL ESTATE FOR THE FOLLOWING REASONS:


I have been sending you investor letters for many months. My purpose is to inform you about the growth and future growth in Victor Valley. You own property here and you should be informed about the plans proposed by the cities in the High Desert.

· First-time homebuyer program offers no down payment on home mortgage loan – Cities are offering down payment assistance or home down payment grants to first time home buyers. With the changing mortgage market, having a good income and good credit, homes can be purchased with zero down, one hundred percent financing. The down payment assistance and home down payment grants comes directly from various City’s funds and ideal for renters looking to get into the California real estate market.

· There are many homes for sale that an investor can buy and resell to the first time home buyers. This is a market that investors are overlooking because they feel there are no buyers; to the contrary, there are many looking for homes in the Victor Valley because the area is still the most reasonable in California.

· 13 percent of California’s population is Asian and 10 percent of that population is Korean. Approximately one million Korean people live in California, with one-half a percent of those living in the High Desert. The Korean churches in the High Desert are continuously letting the Korean people know about the potential of the High Desert. One Korean pastor recently visited Korea and did a report where he showed pictures of the High Desert on Korean television. As the Korean population continues to grow, the High Desert Korean Chamber of Commerce will help newcomers in finding homes, businesses, churches and Korean cultural activities.

· Over the past few months, there have been an increasing number of Korean Realty firms opening their doors in the High Desert. These Realtors are preparing for the Korean population which is migrating to the Victor Valley.

Investors again are overlooking the opportunity to acquire real estate for re-sale whether it be for homes, businesses, commercial, industrial or vacant land. Many areas which are further out “from the center of town” are already planned for residential master planned communities. One community is Hacienda at Fairview Valley. No one really knows where Fairview Valley is located in the High Desert, but I do. It is the valley at the most eastern end of Apple Valley. It is surrounded by lovely mountains and sits just north of Lucerne Valley. Vacant land is still very reasonable but, it is slowly being purchased by land investment concerns which plan to hold it until there is very little land left, thus realizing a substantial return on the investment.

The land investment concerns are buying extremely large parcels of land in the Apple Valley Industrial area, near the WalMart Distribution Center. When the commercial development builds out to buffer the high end residential communities which are planned, the land will be worth substantially more than what it is being sold for now.

· High Desert Corridor project seeks engineering bids. The High Desert Corridor one day will link the Victor Valley and Palmdale, being the expressway that would improve travel safety, spur economic growth across the High Desert and divert truck traffic from Southern California freeways and High Desert highways. The corridor, also known as the E220, will be a crucial element for creating an “inland port” complex. It will connect to a separate project currently spearheaded by the city of Victorville that will link Interstate 15 to Highway 395, including a connection with Southern California Logistics Airport and, in a later extension, to Highway 18 through Apple Valley. BNSF Railway Company is developing a large railroad yard complex at Southern California Logistics Airport. Multi-modal freight distribution centers such as SCLA are vital to lessening dependency on the Los Angeles basin for goods movement and keeping pace with the global economy.

· LASTLY, with the government working with the lending institutions to stop the foreclosures and cap the interest re-set on the adjustable rate mortgages, the “glut” of homes on the market will disappear and the prices of homes will stabilize. Once this begins to happen in the near future, home prices for both the new and existing homes will increase in value. A normal real estate market will be re-established and so will end the buyers’ market.

I urge you to seriously consider acquiring property in Victor Valley. If you are planning to hold your investment for 10 to 20 years, there are areas that are already in the planning stages as the smaller communities prepare for growth. The long term investment for estate planning is recommended for those who wish to provide for a growing and extended family.