The first time I read Gold is the Land was in the early ’70s. Authored by Jim Fuller, a real estate investor and developer, Fuller had a keen insight to develop properties that were pricedand timely to the Texas market.
Fuller tells you right up front that he is trying to convinceyou that “real estate investment is your only, or primary, hope to combat inflation in America today, and assure you, as an investor, that real estate investments are the best opportunity for growth of funds.”
In Gold is the Land, Fuller presents many tables, statistics and proof for his claims that “more fortunes are made in the land or from the land than any other source.” He makes comparisons of land investments versus the growth factors in stocks, bonds, savings accounts, the cash value of life insurance policies and the use of leverage.
Over the years, Fuller developed many subdivisions and communities throughout Texas, primarily in the Lake Conroe area and all through Southeast Texas. As part of his legacy, his long term lieutenant, Don Apostolo, is carrying on with developments. His latest two being in the Hill Country area, CieloRio Ranch and the Hills of Bandera. Fuller’s grandson, Danny Signorelli, has become a prominent and successful developer inthe Lake Conroe and Southeast Texas area.
Fuller’s book was published in 1971, and as I read it again, I am finding that the more things change, the more they remain the same. The primary difference between now and then is the numbers.
Using the savings account example, a Hill Country ranch was purchased in 1941 for approximately $7,800. And 65 years later, this same ranch was sold by the heirsfor almost $2.5 million. Had the ranch/investorput his $7,800 in a savings account, that averageda 5 percent return, over the same 65 years, it would have yielded a whopping $199,000 (plus/minus). You do the math and see Fuller’s point.
Another example in Gold is the Land is the use of leverage. A good example of leverage would be the use of the newly revised Texas Land Veterans program. This program was designed for military GI Joes and Janes to purchase real estate, land and/or land and homes, under a favorable mortgage. By using the new program, a vet can purchase one acre or more for up to $80,000, with only 5 percent down, and a 30–year mortgage rate of 7.25 percent. If he wants to build a home, including the land, the new program will allow him up to a $325,000 mortgage, with 30–year terms. Gold is the Land is a good read for anyone interested in investing in real estate or wanting to increase the returns on their investments.
