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, hopeto combat inflation in America today, and assure you, as an investor,that real estate investments are the best opportunity forgrowth of funds.”
In Gold is the Land, Fuller presents many tables, statistics andproof for his claims that “more fortunes are made in the land orfrom the land than any other source.” He makes comparisons ofland investments versus the growth factors in stocks, bonds, savingsaccounts, the cash value of life insurance policies and theuse of leverage.
Over the years, Fuller developed many subdivisions andcommunities throughout Texas, primarily in the Lake Conroearea and all through Southeast Texas. As part of his legacy, hislong–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, DannySignorelli, 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, Iam finding that the more things change, the more they remainthe same. The primary difference between now and then is thenumbers.
Using the savings account example, a Hill Country ranch waspurchased in 1941 for approximately $7800. And 65 years later,this same ranch was sold by the heirs for almost $ 2.5 million.Had the ranch/investor put his $7,800 in a savings account, thataveraged a 5 percent return, over the same 65 years, it would haveyielded a whopping $199,000 (plus/minus). You do the math andsee Fuller’s point.
Another example in Gold is the Land is the use of leverage. Agood example of leverage would be the use of the newly revisedTexas Land Veterans program. This program was designed formilitary GI Joes and Janes to purchase real estate, land and/orland and homes, under a favorable mortgage. By using the newprogram, 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 7.25percent. If he wants to build a home, including the land, the newprogram will allow him up to a $325,000 mortgage, with 30–yearterms.
