Why in the world would you even suggest such a thing? Remember the basics premise of any kind of investing, buy low and sell high, expect a return! Many professionals in the Real Estate business feel that our markets are at the bottom or have passed by the bottom. Consider this; housing prices crested about September of 2005, and values began to slide down the slippery slope and picked up speed in the devaluation process as the “Sub-prime” news hit the air waves from the middle of 2006 through the beginning of 2007 At some point the “Sub-prime” problem is old news, and people are getting weary of hearing it. (remember what sub-prime means; less than prime, or high risk)
New Worries or Old Worries? Now the battle cry of dooms-dayers today is “foreclosures are at an all time high!” While this may be true, let us do a reality check; now, is everyone in Nevada in default? No, only a small number are in default approximately 1 in 300 homes in Northern Nevada have hit the default list. How many is that? About 300 homes out of 130,000 in Washoe County or about 2 % I agree this is too many foreclosures, but not the end of civilization.
Why me? Why now? Real Estate Investing has always been a long term investment, while some folks took advantage of the screaming market for a couple of years; this is not and never was investing. This is called “Speculation” please don’t confuse the two. One of the best reasons to invest in Real Estate is leverage, just ask your bank to loan you money to play in the stock market. Surprise! ahh No. Interestingly the same bank will entertain your request for an 80% loan against Real property.
Investment Potential? Think about this, when the “investment property” is performing properly it should be paying for its self. How many other investments will do that for you? Rents, Tax Advantages, Principal Reduction, Cash Flow, and lastly Appreciation. Not the other way around!
How should I know what to consider? Now is not the time to attempt to “invest” by just throwing money at a property. You should “invest” some time working with a Real Estate Investment Professional, who will follow an analysis model. Any agent can sell a property but only a few understand the intricate details of Net Present Values, Capitol Gains and Measurements of Return. Fitting the investor with the right type of property is critical. Residential multi-family rentals, office property, retail sites, commercial and industrial and vacant land all have different risks and rewards.
How do I fit Apples and Oranges together? The relationship of your goals and your other investments along with Real Estate may not be that far apart. Your IRA, your Retirement Portfolio, your Insurance, your Trust and Real Estate Ownership should all fit together to accomplish your overall plan. Real Estate can be your anchor, done right it can be one thing that survives all the others.
Like a Bargain? Don’t miss out on a driving opportunity because of some thing you read in the news paper. Real Estate is now on sale up to 40% off! Think about it!
A life time Reno area resident and former construction contractor, Joel has a diverse background uniquely gifted to professional real estate. With his love for people and 30 years of business experience combined with a common sense approach, Joel has invested in and helped his clients to buy and sell many millions of dollars of property here in the Reno-Sparks area. Joel uses modern techniques based on commercial real investment models.
A family man, married for over 30 years, Joel is involved with local and international Christian missions work, and he enjoys outdoor activities, skiing, motorcycles and boating.
Joel Ellis Ferrari-Lund Real Estate 500 Damonte Ranch Pkwy #804 Reno, NV 89521 Office 850-7033
