How long can you live in a home once you stop making mortgage payments? Do you believe this free housing will increase or decrease if they stop all foreclosures?

What will a foreclosure freeze do to home values?

How much market manipulation can the consumer really take before they just stop buying and wait?

Do you think you can trust market values when the banks and the government are controlling interest rates, down payments, underwriting standards, inventory, and the media's presentation of the news?  

The Great Basin is unique when it comes to water because the rivers have no outlet to the sea.

It is made up of many smaller drainage basins.　

There is a complicated system of hydrology below the very interesting geology and topography of fractured, tilted plates of the Earth's crust, that make up the Great Basin. Often referred to as Basin and Range because those tilted plates create mountain ranges that run from north to south. As the Earths crust stretched, cracked and tilted, it created large dry valleys or basins between the ranges. These basins can be compared to bowls that collect the snowmelt off the mountains. The alluvial fans are like great sponges, absorbing the meltwater into the ground. The snowpack is the primary recharge for the aquifers.　

Nevada and the Great Basin is divided by the Nevada State Engineers Office into 256 ground water basins, some are "designated basins". Designated basins, when it comes to water, may only be open to additional allocations for preferred uses, like municipalities for additional pumping.　

Scientists are and have been measuring water table levels, spring flow rates, and precipitation for many years. We know pumping affects water table levels. We know the average precipitation, but then that is history. Today drought is in the news and many scientists believe more drought is likely in our future, due to climate pattern changes taking place. Future recharge rates are speculative.　

They know the maximum consumption allowed by the existing recorded water rights. Not all basins are decreed and some additional rights could be out there and are not recorded but valid. Domestic wells are generally not considered, no permit is required to drill a domestic well, and they are limited to two acre feet per year in consumption. 

The terminology of Hydrology seems very complicated, at least for this layperson. The science, like most science attempting to make future projections is speculative, especially the flows between the many basins and the aquifer recharge rates. New discoveries in all science fields rewrite what we thought we knew as fact, everyday.　

Unfortunately, we may not have the answers to some of the most important questions until the water tables have dropped and the Seeps and Springs are gone. The scientists can not tell us when the flow rates of Seeps and the Springs may slow, or even dry up. The truth is they can only speculate. They do not know how drought will affect recharge rates of the aquifers, and they certainly do not know how long or severe the drought may be. There is far more that science is unsure of, than there is that can be actually guaranteed.　

July 27, 2010 at the Aspen Institute's Environment Forum, Former U.S. Secretary of the Interior Bruce Babbitt at the "Hot and Dry: Water in the West and the World," told the audience, 

"Water scarcity is an issue, not everywhere, but in some regions. The American Southwest is not one of those regions where there is water scarcity. It's hard to believe given all the hyping in the national and local and regional press."　

This is right in line with Pat Mulroy's statement when she said, "The hyperbole (hyper exaggerations) coming from rural Nevadan's about their water table concerns was childish."

You have to wonder what motivates Mr. Babbitt to say such a stupid thing, but then Pat Mulroy was also on the three person panel with him, and they were in Aspen Colorado. A poster child for conspicuous consumption and environmental lunatics. These are people who would like to tell you how many children you are allowed to have, and how large your carbon footprint can be, as they fly off in their private jet. They are asking for more of your dollars in the form of Obama's Green stimulus money. Watch the classic intellectual arrogance on the forum videos!　

They have already spent $ 80 Billion Dollars on Green stimulus bailout, and by the way, Harry Reid is claiming credit for the few short term jobs in Nevada this money created in his political race against Sharron Angle. 

Southern Nevada Water Authority has proposed a pipeline from Las Vegas through Lincoln County and continuing into White Pine County on to the North. The Las Vegas Valley water district, now SNWA, filed 146 ground water applications in 1989 for undeveloped, unproven ground water in Eastern Nevada. This spark has lit the fuse for the battles to come. They do not at this time have approval for the water needed to supply this pipeline.　

The Colorado River Compact allows Las Vegas 400,000 acre feet of water from Lake Mead. On average, one acre foot will supply two homes per year. A study by the Scripps Institution of Oceanography in San Diego said there's a 50 percent chance that Lake Mead, could run dry by 2021. In the last ten years Lake Mead has dropped from around 1200 ft. to below 1100 ft. today. At 1050 ft. Hoover Dam will stop generating electricity, and at 1000 ft. Las Vegas will lose the lower intake for the city‘s water supply.　

Currently Lake Mead (The Colorado River) supplies 90% of the water to the Las Vegas Metro area. The Colorado River serves Arizona, California, Colorado, Nevada, New Mexico, Wyoming, Utah, and Mexico, over 30 million people live in this region. We now know that based on the twenty year river flow study leading up to the Colorado River Compact in 1922, the river was over allocated by one million acre feet when the compact was signed and the shortage has only become worse.　

The NASA/German Aerospace Center Gravity Recovery and Climate Experiment (Grace) study has found since 2003 the aquifers for California's primary agricultural region the Central Valley and its major mountain water source the Sierra Nevada have lost nearly enough water combined to fill Lake Mead, America's largest reservoir. This area represents nearly one sixth of all the United States irrigated land and the dropping water tables have the potential to have huge implications to the US economy. 

None of this news is new , in fact the warnings have been ignored for over one hundred years. Panelists Bruce Babbit, Pat Mulroy, Sandra Postel and The Aspen Institute's Environment Forum are apparently more interested in advancing their agenda than dealing with facts and truth.　

John Wesley Powell told the International Irrigation Congress in Los Angeles in 1893,

"You are piling up a heritage of conflict and litigation over the water rights, there is no sufficient water to supply the land."

Many, many scientific studies today are clearly confirming his thoughts.

I wonder what John Wesley Powell would think today?　

How limited are your water resources?

Is Las Vegas Running Out of Water? Southern Nevada Water Authority's Water Problem 

May 26, 2010 I attended the Southern Nevada Certified Commercial Investment Managers (CCIM) Chapter monthly meeting at the Rio in Las Vegas. I went for one reason, the title and speaker, 

"How You May Be Impacted by Nevada's Water Supply" presented by Pat Mulroy.

Mrs. Mulroy is the general manager of Southern Nevada Water Authority. 

As a long time real estate professional who specializes in agricultural land with water rights in Nevada, I talk with Nevada's farmers and ranchers' everyday; I was shocked by the introduction. 

The lady introducing Mrs. Mulroy said about her, among other things,  how wonderful she is, how hard she works, how powerful she is, and then she said, "and something I'll bet none of you know about her, She HATES COWS".

Mrs. Mulroy took the stage and went on to say "anything that dumb and big has to be dangerous" referring to cattle. The friendly crowd of men and women dressed in suits and ties laughed. 

I on the other hand, immediately took umbrage, and thought to myself, I wonder if this lady realizes where the food in the grocery store comes from. 

I took notes the whole time she talked. 

Her presentation seemed to me to be based on the fear factor. 

She talked about snow pack in Colorado this past winter being at 67% of normal. She talked about continuing drought conditions. She explained that Lake Mead is running an annual deficit of approximately 2.7 million acre feet this year. There are 8.2 million acre feet coming in and 10.9 million acre feet going out. 

Mrs. Mulroy explained the Lake Mead Water  level measurements with future projections. 

But first let me give you a little history, from 1939 to 2003 Lake Mead averaged 1173 foot elevation, the high water or maximum point for Lake Mead is 1229. 

Today Lake Mead stands at about 1094. Since the canyon narrows as it descends, the water level drops faster and faster as it is over drafted, so expect the drop to accelerate. 

Mrs. Mulroy explained that at the 1088 foot elevation level they could lose the upper intake for the water supply to Boulder City and 40% of Las Vegas's supply. 

She said, "At 1050 Hoover Dam stops generating power and that the dam supplies all of the electricity to Overton Power and Lincoln County Power." 

"At 1000 Vegas loses the lower intake that would literally cut off 90% of the water supply to Las Vegas and all of the water supply to Boulder City." 

She stated that, Southern Nevada Water Association uses approximately 9.5 million acre feet per year, (that sounds like ten times too much to me) and once Lake Mead goes below 1025 there are only 4 to 5 million acre feet of water left in the reservoir. 

She said the Lincoln and White Pine Counties pipeline will start construction in 2012 if the lake goes below 1075, period!

 What makes you think they will stop in White Pine and Lincoln Counties? 

Her facts can be verified at:  http://www.snwa.com/html/wr_resource_plan.html

 Lake Mead is the largest man made reservoir in the United States.

Pat Mulroy said "SNWA will be utilizing all the water rights it owns or controls in the Virgin River, which runs through Mesquite/Bunkerville and the Muddy River in Moapa/Overton". 

Work has begun on a so called third straw.   It has been referred to as a bath tub drain. 

Michael Johnson, Virgin Valley Water District hydrologist, told me years ago the aquifer that runs under our Mesquite Valley travels under Lake Mead, could they tap into it? 

She said "the hyperbole (hyper exaggerations) coming from rural Nevadan's about their water table concerns was childish." She went on to say "the rural Nevada farmers and ranchers are being Pig Headed." 

She referenced a recent USGS Basin and Range study that she claims shows plenty of extra water. I have not yet located any completed study; http://ut.water.usgs.gov/projects/greatbasin/ 

When I asked, she said the reason for the huge draw down or overdraft, according to a recent NASA study in California's Central Valley was the result of farmers irrigating and lack of government regulation. New space observations reveal that since October 2003, the aquifers for California's primary agricultural region -- the Central Valley -- and its major mountain water source -- the Sierra Nevada -- have lost nearly enough water combined to fill Lake Mead, America's largest reservoir. 

Finally for the record, she said "there are plenty of un-appropriated water rights in Nevada and the Snake Basin is next in her sights." 

When I questioned her on that, she lashed out at me, "Do you have a better idea?" 

She appears to me to be dead set on tapping into and draining rural East Central and North Eastern Nevada, Western Utah and Southern Idaho's aquifers to supply Las Vegas. 

They did it to Pahrump, Nevada 

She said" If I have to set up a cot in Harry Reid's office, I will stay until I get a permanent chair".  I did not know Harry passed out water rights.  That job belongs to the Nevada State Engineer. 

She said to watch for a favorable Moodys Rating Agency report coming out that should help support project financing in Las Vegas. I wonder if Moodys knows any thing about water. Remember the rating agencies said the Mortgage Backed Securities were safe and secure too. 

She may be powerful, but based on her comments, attitude and general demeanor; clearly she is not as sharp as you would expect! 

That does not mean you should under estimate her ability or determination to get this done.

Nevada Ranch and Farm Land with Water Rights Issues

Are you unsure if all the hype about water and food shortages in the future is real or just?

The science is mounting and it is not any one single cause or source. You may not buy into global warming or maybe you do and just do not believe it is man caused. Either way drought is real.

As mentioned the science is mounting in favor of serious problems in coming decades for mankind’s ability to provide adequate fresh drinking water and food to the increasing billions of us on the planet.

In previous blogs I have referenced National Geographic’s April 2010 Special Issue, “Water Our Thirsty World”. They clearly believe we have a problem already in many parts of the world including parts of the United States.

A new study called, the gravity recovery and climate experiment, or GRACE shows the following.

“Combined, California's Sacramento and San Joaquin drainage basins have shed more than 30 cubic kilometers of water since late 2003, said Jay Famiglietti, UCI Earth system science professor and director of the UC Center for Hydrologic Modeling. A cubic kilometer is about 264.2 billion gallons, enough to fill 400,000 Olympic-size pools. The bulk of the loss occurred in the state's agricultural Central Valley. The Central Valley depends on irrigation from both groundwater wells and diverted surface water.

"GRACE data reveal groundwater in these basins is being pumped for irrigation at rates that are not sustainable if current trends continue," Famiglietti said. "This is leading to declining water tables, water shortages, decreasing crop sizes and continued land subsidence. The findings have major implications for the U.S. economy, as California's Central Valley is home to one-sixth of all U.S. irrigated land and the state leads the nation in agricultural production and exports."

The loss is nearly enough to fill Lake Mead, America’s largest reservoir and Las Vegas Nevada’s primary water source. The Central Valley’s major source of water comes from the Sierra Nevada Mountain Range.

Source: University of California - Irvine (2009, December 15). California's troubled waters: Satellite-based findings reveal significant groundwater loss in Central Valley. ScienceDaily. Retrieved May 23, 2010, from http://www.sciencedaily.com /releases/2009/12/091214152022.htm

Next week I will be attending a luncheon in Las Vegas; How You May be Impacted by Nevada’s Water Supply Presentation by: Pat Mulroy General Manager, Southern Nevada Water Authority

I will report what she has to say about our water in Nevada.

Chris W. Miller

Independence Realty

435-862-5951

Land in Nevada

Nevada Ranch Properties

Lincoln County Land Market

Nevada Water Rights

Mesquite Nevada Real Estate Market

The UN may be wrong about the world's oceans running out of fish

http://news.yahoo.com/s/afp/20100518/ts_afp/speciesfishunus 

The news about food shortages today and tomorrow may be wrong

http://en.wikipedia.org/wiki/Food_security 

The news about fresh water shortages may be wrong

http://environmentalism.suite101.com/article.cfm/environmental_cost_of_global_freshwater_shortage 

The IMF may wrong about fiscal deficits and global financial crisis

http://www.imf.org/external/pubs/ft/survey/so/2009/RES111009A.htm 

Al Gore and his wacky environmental friends may be wrong about global warming

http://www.msnbc.msn.com/id/17718399 

This writer seems be advocating a China approach, "But if resources are limited, the last thing we need is a growing population. We would be better off with a smaller population, so that earth's limited resources can be shared among a smaller number of people, providing more for each person. If families start having only one child each, this would be helpful from a resources point of view, but it would make it even more difficult to pay off out all of the outstanding debt, in addition to paying for Social Security and Medicare benefits for all the seniors." From The Intelligence Daily

 http://www.inteldaily.com/2010/04/social-security-and-medicare-funding-issues-even-worse-when-one-considers-resource-constraints/ 

These people believe it is government's responsibility, "Governments are responsible for providing access to adequate food to eliminate hunger, malnutrition and starvation.

http://www.hrea.org/index.php?base_id=145 

Obama and his crowd would probably go for this idea! Actually they may be taking us down this road of becoming a totally dependant society deliberately. 

These people say oil sands may as hazardous as the Gulf oil leak, "Oil sands development is 'kind of like the gulf spill but playing out in slow motion', said report co-author Doug Cogan, director of climate risk management at RiskMetrics. He called it a 'land-based' version of the gulf disaster."  http://www.globalissues.org/news/2010/05/17/5627 

These folks seem to tie it all together, and blame everyone;

http://www.globalissues.org/article/768/global-financial-crisis 

Much of this information feels like it is presented with a bias agenda, and some seem to lack basic common sense, whether it is backed by a guy with a degree in a science field or not. 

We do know between 15,000 to 25,000 children die each day around the world because of malnutrition and water borne disease. We do know malnutrition is a serious problem in the United States for seniors and children living in poverty. 

We do know we are overdrafting aquifers around the world and fresh water tables are dropping in many parts of the United States and around the world. 

We do know the demand for food and fresh water will increase as the world's population increases. 

Many around the world can not help themselves out of this daily nightmare. Unfortunately this scenario is going to get worse as we place greater demand on finite resources. 

Many are convinced these trends will lead to a resurgence in rural America. So there you have it, my agenda. I sell rural land in Nevada with water rights. A place where you can create a sustainable self sufficient lifestyle that could protect you from becoming a statistic. 

Lifestyle is what draws most people to rural living; it gives them a sense of getting back to their fundamental roots. Raising a garden, chickens that lay fresh eggs, fruit trees and farm raised meats. 

I am convinced economics, urban blight and a desire for an active productive lifestyle will bring many more to consider affordable rural lifestyles. Retired does not mean dead, although it might if you don't stay active. 

When you combine a nice little piece of land and a small efficient home with proper solar orientation, a mild climate, some good dirt and water, you have the basic recipe. 

Marketing to retirees has largely been focused on golf, activity/recreation center with social clubs in large planned unit developments, which is fine for some, but there are other options. 

Your grand children will enjoy visiting your "farm". 

I have some good friends, they live in what he and his wife lovingly refer to as their "bunk house", it is small but quite luxurious. It is completely solar, with propane and a wood burning stove. A solar pump provides water. They raise most all their own food, and have a nice little income from extra produce sold at the farmers market. They have television and internet, and a small green house. They tell me this new lifestyle is the greatest thing they have ever done, short of raising some great kids. They are some of the happiest people I know! 

They also tell me they sleep very well at night knowing that no matter goes on in the world, they "feel" secure. 

Our ancestors lived off the land; you can go back to a slower, simpler, more rewarding way of life. The biggest difference today from back then is modern technology. Instead of plowing your garden behind a horse, you can ride a small tractor. You can raise chickens to lay eggs or broilers that are designed to be eaten. You can have peacocks and geese as watch dogs and security systems. 

We are looking at and working on developing larger tracts for mini farms. Some bankers seem to think this idea is crazy and have told me no one will ever buy it. I would appreciate your thoughts, ideas, and input. Does this make sense to you?

Land in Nevada

 The average price of listed foreclosures is rising.

The distress is moving up the income chain. What started with sub prime borrowers, the loose money and bad loans actually reached consumers at all income levels. 

The pain of losing a home has mostly been felt by the lower income and unemployed, so far. 

Excessive debt to income ratios exists at all income levels. Stable higher income has given many the luxury of postponing the inevitable. The bigger they are the harder they fall, or so they say. 

The headline is deceiving, "The average price of listed foreclosures is rising."  Sounds like good progress, rising average prices. It does not mean, what it sounds like. 

What it really means is the more expensive homes and commercial property is moving through process of deleveraging. This process will continue until the imbalance in those debt ratios and values is brought back into balance. Over leveraged simple means more owed than the asset is worth, too much debt, not enough value. 

Over leveraged can also apply to individuals, too many bills not enough income. The wealth effect in real estate caused many to over extend. When prices were rising, they spent like they were rich. While personal consumer debt rose, savings actually fell. 

The burden of covering the financial loses from deleveraging will fall on the tax payers of the future. The government programs appear to me to making the issue worse, at best prolonging the pain. Fannie Mae and Freddie Mac will turn out to be liabilities for generations. Your great grand children will still be paying back the debt.  

For those who will use the headline to spin the market, prices will likely continue to fall. We have not seen the bottom yet. The real estate economy is a symptom of the current social attitudes about image, debt, and materialism, just in case you are buying the spin. 

Our narcissistic society is the American Dream gone wild. Our homes, cars, TVs, diamonds, on and on have to be bigger and better than the next guy. To the point we will mortgage our future, our kid's futures and our grand kid's futures to satisfy the insanity. Capitalism is not the problem, debt is the problem. 

While European socialist financial systems fail, Fannie and Freddie's unfunded bailout liabilities are adding billions now to the United States debt. We are printing away our Nation's future opportunities, to cover the excesses of the recent past. 

The only real way out is to reduce the debt, at all levels. It starts with personal financial responsibility and that includes your vote.  The government does not belong in the business of lending money (Fannie, Freddie, HAMP), real estate, banking, the auto industry, health care, or any other business that can be run in free open markets. Open free markets that allow for failure and loss as well as opportunity and success are the only answer. 

Generational theft to keep people in homes they could not afford to start with, to satisfy an "entitled point of view" must be stopped. We as a nation are going to have to learn to live within our means. The government can not save the value of your home; the government can not stabilize home prices, only open free market supply and demand. 

I recently attended a meet the candidate's forum. The question was raised, what about a social security means test, not just whether social security is taxable but how much you receive based on other total income and maybe net worth. The room was full of retirees and the candidate asked how many would oppose such an idea, virtually every hand went up. 

The wealthiest generation in our Nation's history may prove to be the greediest generation of our Nation's history.  They are clinging to a phony image and lifestyle at the expense of their children's future. That is what I am talking about when I say personal financial responsibility. If you are accepting money you could do without, you are part of the problem. 

In general they look down their noses at those in the so called entitlement programs, welfare and the like. Social security looks like a rat moving through a snake, except this time the rat will eat his way out. For the people in their 20's and 30's will that "security" be there for them, they are paying in. 

So I say why not now, why not today's recipients as well as tomorrow's. Start today, reduce the debt, cut the entitlements, and build smaller homes, save more money. Whether the IMF is correct or not, that United States debt will exceed 100% of U.S. GDP by 2015, we can either start today or suffer worse consequences in the future. It is guaranteed. 

We better all start today and we better all take it very personally; procrastination to deal with this painful process could kill our Great Nation.

Irrigated Land in Nevada with Water Rights. 

The issues of population growth,  the future world shortages of food and water are not going away just because much of the worlds population chooses to ignore the facts. They actually think their food comes from the grocery store.

Technology and genetics have and will continue to improve production. Technology is making huge contributions to irrigation efficiency, and will continue to improve. This aspect requires farmers to upgrade equipment. Expensive and for some farmers a nuisance, particularly if they are happy with what they are currently doing.

Seed genetics, plant and pest treatment technology has and will also continue to makes huge strides to add to productivity.

These will not be enough to meet damand. Athough, since 1970, productivity has stayed ahead of demand.

We have a number of properties available for sale with water rights. Some of our properties are located in Southern Nevada.  Water rights are in high demand in Southern Nevada, between Coyote Springs, Toquop, the new power plant, and Las Vegas. Water could get real short in the not to distant future. Science shows the Colorado River is way over drafted and Vegas may have a problem with water shortages. Since Nevada water rights are considered appurtenances to the land, they can be sold with the land.

Here are a few Nevada Farms and Cattle Ranches with Water Rights, and we have more:

This Nevada farm land consists of 1000 acres deeded, plus a 33,979 acres BLM range allotment, the BLM ranger told me on a tour, "this is the finest quality range he manages".   There are water rights to 13 springs, some on public lands. Two pivots irrigate 220 acres, at 5 tons per season it could produce roughly 1,100  tons of quality alfalfa per season. Current local market prices are around $130 per ton, which generates estimated gross income nearly $143,000  per season.  The 2120 AUM BLM summer range allotment allows for around 250 Head.                http://listings.realbird.com/VirtualTour.aspx?id=D7D5D7D4&rb-brand=1&fid=48063

This Nevada farm land consists of 18 quarter section pivots, 2294 in water righted irrigation land. At 5 tons per season it could produce roughly 11,500 tons of quality alfalfa per season. Current local market prices are around $130 per ton, which generates estimated gross income nearly $1,500.000  per season.             http://listings.realbird.com/VirtualTour.aspx?id=D7D5D7D4&rb-brand=1&fid=20913

This Nevada farm consists of 1920 acres, 1594.5  in water righted irrigation land. At 5 tons per season it could produce roughly 7,972 tons of quality alfalfa per season. Current local market prices are around $130 per ton, which generates estimated gross income nearly $1,364.425  per season.                                  http://listings.realbird.com/VirtualTour.aspx?id=D7D5D7D4&rb-brand=1&fid=36585

This Nevada farm/ranch consists of approximately 520 acres deeded, Southern Nevada Ground water rights. The ranch is productive, raising quality alfalfa, at 5 tons per season it could produce roughly 2,500  tons of quality alfalfa per season. Current local market prices are around $130 per ton, which generates estimated gross income nearly $325,000 per season.  This ranch will be transition land in lifetimes.                     http://www.propertypanorama.com/tour.asp?id=101804

This old homestead "estate sale" Nevada ranch has not been worked much in some years. Consisting of 266 acres, the property has an old well and I have been told functions. Possibly most important is the 821 acre feet of ground water rights. This ranch is located South of Panaca, Nevada, in Lincoln County. These  Southern Nevada ground Water rights have priority dates of 1947.  There are two BLM range leases, Panaca Cattle Company and BuckBoard, roughly 60AUMs.                      http://www.propertypanorama.com/101805 

This a special Nevada ranch with water rights because of the location and lay of the land. The "Flatnose Spring/Deer Lodge Valley offers  620 acres, and approximately 1500 acre feet in certified Southern Nevada ground water rights. Plus Flatnose Spring surface water rights, the spring was measured in 2004 at 1,818 liters per minute. The ranch as a history of producing around 1500 tons per season of quality alfalfa per season. Current local market prices are around $130 per ton, which generates estimated gross income nearly $200,000 per season. The owner has been receiving two depredation Deer tags per year and sells them for $5,000 each, this year he has around 40 applicants, he is considering raising the price for the deer tags.                http://www.propertypanorama.com/101808

You can own Water Rights in Nevada. The Irrigated Land in Nevada can be leased back to farmer operators and provide return on your investment.

For more information, give Chris a call 435-862-5951

Chris W. Miller
Independence Realty
Las Vegas, NV 89123
435-862-5951
702-733-9337

Land in Nevada

Nevada Ranch Properties

Lincoln County Land Market

Mesquite Market

chris@mesquitemarket.com