Rancon was formed in January 1971 with the intent of buying, developing and selling property in Southwest Riverside County. We totally believed that the area between Los Angeles and San Diego would become a solid megalopolis in our lifetime and that’s exactly what has been happening. It will continue to happen. Over these 43 years we have watched the Inland Empire go through huge economic swings. This is particularly true for Southwest Riverside County, the area in which Rancon has always concentrated its investments. On two occasions, the region became the fastest growing area in America and at other times, specifically in the mid-1990s and the last six years, an area that scared most developers away.
That situation has changed as of April 2013 and while, in our opinion, it has gone from cold to warm, it will become hot again over the next 12 to 24 months. When that happens, values of real estate will skyrocket. The reason this has happened before and the reason this will happen again is the simple economic law of supply and demand. Los Angeles, San Diego and Orange County have very little supply of land to build on and it is therefore very expensive. The opposite is true in the Inland Empire where we have lots of affordable land at literally half the price.
All of the partnerships we have formed over the past four years have no debt, meaning we own our property free and clear, thus putting us in the perfect position to be able to have the patience to wait for the right time. Believe me, it takes patience because when the market starts to get hot, especially after a six-year recession, everybody wants to jump the gun and immediately sell. We are committed to not doing that. We treat each property individually and sell those that should be sold now while waiting patiently to sell others when the time is right.
We also believe in the philosophy "there are bulls, there are bears, there are hogs and hogs get slaughtered." What we mean by that is we will not wait for the last dollar but we will not act prematurely either. We plan on selling everything long before the market dips again.