My First Asset Investment

Information Regarding The Investment

Investment Type:
Land Banking

Investment Period:
2 to 4 years

Investment Nature:
Capital gain

Annualized Rate of Return:
15% to 23% compounded interest

Return on investment:
40% to 80%

Investment amount:
US$10,000 (1/2,769th registered undivided interest in the land)

Investment information:
Arcade Meadows Phase 1
Jackson County, Georgia
- Located approximately 97 km northeast of downtown Atlanta, Arcade Meadows Phase 1 features approximately 335.66 acres of land(1.358 km²) and is named after the neighboring city of Arcade. The Property is situated 18.6 km northwest of Athens and 38 km southeast of Gainesville, providing access to two major employment centers.

-Planning status: The property is currently zoned mixed use and is within the Planned Community Zoning designation of City of Arcade.

-Top 4 Features:
  1. The Mega Region: The Piedmont Atlantic Mega region (PAM) is a defined growth corridor located in the southeastern United States. The PAM consists of a large economic network of metropolitan regions linked by environmental systems, geography, infrastructure and growth. The state of Georgia is one of six states located within this mega region.

    The PAM is :
    • The fastest growing mega region in the U.S.
    • Inhabited by approximately 47 million people
    • Expected to grow to 82 million people by 2050
    • Representative of almost 7% of total U.S. land area
    • 12.5% of U.S. Gross Domestic Product ($1.7 trillion USD in GDP)

      Sources: America 2050, Leaders Agree Megaregion Strategy is Key to Addressing 21st Century Challenges in the Piedmont Atlantic Region, August 13, 2008; Georgia Tech, Center for Quality Growth and Regional Development, last visited August 27, 2008.


  2. The Fortune Top 12: Atlanta, Georgia is home to 12 of the most profitable companies in the world. A pro growth and business friendly mentality creates an environment attractive to many large global companies such as Coca-Cola, Newell Rubbermaid, Delta Airlines and UPS.

    Atlanta, Georgia is :
    • Headquarters to 12 Fortune 500 companies
    • An attractive commerce center with low corporate taxes
    • The least expensive city in the U.S. for business
    • Ranked 6th in the U.S. for job creation (2007)
    • Home to many large industrial and distribution centers
    • A diverse economic center with not one industry accounting for more than 20% of the entire economy

      Sources: 2007 Metro Atlanta Rankings - Metro Atlanta Chamber of Commerce, last visited August 18, 2008; April 2008 Fortune 500 Issue, www.metroatlantachamber.com/macoc/business/img/Fortune1000.pdf.

  3. The Gateway of Growth: A complex network of infrastructure, including super highways, rail links, commuter trains and air transport, is guiding long term sustainable frowth in the Atlanta region.

    The Gateway of Growth is:

    • Home to the busiest airport in the world (over 85 million passengers per year)
    • The access point to 80% of the U.S. Population (2 hours by plane /2 days by truck)
    • The central hub where 3 major U.S. highways converge
    • The rail center of the south
    • Home to three world renowned universities

      Sources: Georgia Department of Transportation and GVA Advantis; www.georgiabraintrain.com/; Atlanta Chamber of Commerce, Moody's Economy.com, Global Insight; America 2050, Leaders Agree Megaregion Strategy is Key to Addressing 21st Century Challenges in the Piedmont Atlantic Region, August 13, 2008; Georgia Tech, Center for Quality Growth and Regional Development, las visited August 27, 2008.

  4. The Land Plan: Encroached by growth on all sides (Atlanta, Gainsville and Athens), Jackson County displays strong target market fundamentals conducive to Walton's business model.

    The Land Plan is:
    • Acquiring land with a future
    • Managing pressures and barriers to growth
      (topography, demographics, costs)
    • Partnering with pro growth cities and goevrnment bodies
    • Implementing a buying strategy to ensure sub market dominance
-Quick Facts:
  • Formerly known as Terminus, Atlanta was the zero-mile marker for where the Western & Atlantic Railroads met the Georgia Railroad
  • St. Joseph's Hospital was foudned in 1880 and today, is the oldest Atlanta hospital still in operation
  • In 1929, Atlanta's downtown street level was moved one and a half stories above ground level to cover the numerous railway tracks throughout city
  • The city of Atlanta played host to the Olympic Games in 1996

Information Regarding The Company Invested In

Walton International Group

With 29 years of experience in the real estate market, Walton is one of the largest managers and operators of raw land in North America. Using our expertise, Walton focuses on the purchase of strategically located raw land in the path of development of key North American cities, a concept known as land banking. Traditionally reserved for large institutions or corporations, Walton makes land banking available to qualified investors.
  • Low correlation to equities, bonds and commodities
  • Consistent, proven performance
  • Long term positive, low volatility returns
-Investment Principles
  • Identification of solid land banking opportunities, structuring these for medium term investment, preparing the raw land for development, and successfully closing exist offers from third party purchasers.
  • Corporate goal of doubling the value of investors' funds i 4 to 6 years
  • Aiming for consistent simple positive returns of 20.0% p.a. while preserving a profile of low volatility performance
-Buying Low, Selling High (Capital Gain investment)

-Track Record
  • 36 Full Cycle Investment Programs
  • 15.88% p.a. (compound)
    23.5% p.a. (simple)
-Distributions
  • CAD$573 Million Distributed in the Last 3 Years
-Experience
  • 29 Years of Expertise
  • Never Lost Investor's Funds when Held to Maturity
-Scope
  • 57,000 acres under Management or Contract
-Service
  • 14 Offices in 7 Countries
  • 45,000 Clients Globally
Investment Risks

  • Time
    In cases where the land was not able to be developed within time frame due to unforeseen circumstances, there will be a delay in availability for exiting.
    The availability of offers for exiting also determine the rate or return as well as the speed of return.
    -Risk is not within my control

  • Exchange Rate
    At the time of exit, the exchange rate might be higher or lower than when I entered the investment. If the rate is lower, I might lose out on a % of return if I chose to convert it to Singapore Dollar. But there will be a bonus if the rates are higher.
    -Risk is not within my control

  • Scam
    In the case where this investment is a scam, I will lose all my investment capital. This risk can be avoided on the due diligence on my part. So far, from several sources like online forums and magazine articles and offhand conversations, I've gathered that Walton International exists and has been reputed for delivering their claims.
    -Risk is within my control

  • Cash In Need During Emergency
    In cases where I need to get back my money before maturity of investment, the company can file my request to search for willing buyers of my share of investment. Depending on the buyer, I could lose some amount or make a smaller amount of profit due to immature exiting.
    -Risk is within my control


Rationale For Purchasing This Investment

  • I couldn't allow spare cash that is being eroded by inflation idle in bank accounts
  • This investment offers low volatility and medium rate of returns enough to beat inflation.
  • I understand the value of land and that this investment has a very low chance of going stale
  • Land is limited, and it can be reshaped, restructured and reused for many purposes to increase in its value, therefore, it depends on the developer to boost the land's value
  • The investment amount is reasonable and within my reach
  • The agent appears to be trustworthy and helpful
  • The time frame of this investment is short and I could live without the money during this period of time.

Whether or not this investment will be profitable, it is a good learning experience. I've already identified several mistakes that I made when I bought this investment. But if all goes well, those mistakes might not lead to a disaster.

No comments: