Friday, May 16, 2014

Why buy Income Property?

Income property is still the safest and best way to build wealth over time.  Real Estate occasionally does have bubbles but they are rare.  Now is the time to be getting into real estate while the prices are still reasonable.  The economy has picked up some but it is still not growing at the pace that is to be expected for healthy job growth.  We have been in the non-recovery recovery period but real estate was beaten down so far that there have been major price increases in certain places, especially Las Vegas. 

Income property is to generate income.  It is not to buy for a tax deduction or to just hold it at a loss and then sell at a later date.  No one needs to invest to lose money.  You can still operate a cash flowing investment property while using the depreciation and interest payments to lower you taxable income.  The key to owning investment property is the cash flow.  If you can get enough rent to cover the expenses you have a winner.  It doesn't matter what your actual cash on cash return is if you are cash flowing.  Eventually the returns on a good investment property will become infinite because you will get all your money back in a few years.  Once you get your original investment back you will then have a lifetime of profit that is really that can not be measured.

Wednesday, May 14, 2014

The truth About the Las Vegas Real Estate Market

The real estate market in Las Vegas has been changing dramatically over the past several years.  It appears there is another shift in the landscape occurring now as well.  The number of short sales has dropped to the lowest it has been in years.  Short sales make up only 11% of the real estate sales in Las Vegas over the past month.  This is generally good for the market.  Anything that will move things back to a moral traditional market with more sales being equity sales is good for everyone. 

However, we have seen a slight pull back in the drastic price increases.  For the first time in many months we have seen the prices drop month over month.  The prices are still  higher when compared year over year but this is a significant change for Las Vegas.  If you are considering selling your investment property in the next year or two now is the time to get it done.  We could see prices sagging for another year as market continues to adjust itself to the current realities of Las Vegas. 


Thursday, May 1, 2014

Investing in Your Real Estate Future

Las Vegas Real Estate has seen a major rebound over the past few years.  After suffering major devastation during the recession, prices have rebounded.  Of course the prices are not what they once were even though things have improved.  The market had become such a great buyers market that investors from around the world brought cash to buy income property in Las Vegas.  Homes were sold in greater numbers in 2011 than every.  Houses were being bought by the 1000's by those who had not lost all their capital during the recession.  This helped to clear the market of some of the short sales and bank owned properties.

Another major factor in clearing the market was when institutional investors backed by Wall Street money decided to become land lords.  The hedge funds and money managers saw opportunity in the rock bottom real estate market.  The began to buy houses in mass.  They were buying 600 to 1000 at a time.  They have made great returns in just a few years because many of the homes they purchased for $50,000 are now selling for double that price.

However, the real estate market still has room for the little guy.  One of the best ways to get ahead is to but your money into real estate.  Even after the recent crash, real estate still is the best long term method of increasing your net worth.