Is NOW the time to buy?
As many real estate owners intend, real estate is a great building block to achieving financial freedom and wealth. Almost every single millionaire and billionaire alive today has made some, if not most of their wealth through real estate. Real Estate is a tangible asset, unlike a stock. No matter what happens, it will always be there and is something you can go out and touch with your hand. If you follow the cyclical nature of real estate, timing is important.
Real Estate has ALWAYS gone up in value. Just because there are downturns in the market does not mean that you hold a bad asset or investment. To me, making money throught investing is like losing weight. There are a gazillion ways to do it, but if you try something and give up on it in 5 days and move onto the next scheme, you are not giving yourself or the investment time to allow your plan a chance of success.Since 2003, we have helped over 200 real estate investors in acquiring investment real estate. Whether it be a condo, single family home, multi-family home, or commercial property, we have always advised everyone to stay within their means and feel comfortable with the financial projections of the property.
There is a simple formula that banks use to determine property value. It is not an appraisal or a CMA. A bank basis their loan amounts (on commercial property) by calculating its value off of the purchase price, debt services, and operating expenses. Different from a capitalization rate, this valuation process is highly disregarded by realtors today, but in our opinion should be taught to all licensees in order to offer their clients a true value investment, the same way a bank would calculate.
As I mentioned, it is typically used on commercial property, but the same can easily be used to calculate value on any type of real estate.Today, investment opportunity is all about timing. Many are trying to predict the bottom and quite frankly, that will be nearly impossible to do. There are other variables to consider when looking at an investment opportunity. For instance, in Mississippi along the coast of the Gulf of Mexico, Congress and the IRS are offering a 50% bonus depreciation on real estate purchased in designated areas affected by Hurricane Katrina.
This is called As many real estate owners intend, real estate is a great building block to achieving financial freedom and wealth. Almost every single millionaire and billionaire alive today has made some, if not most of their wealth through real estate. Real Estate is a tangible asset, unlike a stock. No matter what happens, it will always be there and is something you can go out and touch with your hand. If you follow the cyclical nature of real estate, timing is important. Real Estate has ALWAYS gone up in value. Just because there are downturns in the market does not mean that you hold a bad asset or investment.
To me, making money throught investing is like losing weight. There are a gazillion ways to do it, but if you try something and give up on it in 5 days and move onto the next scheme, you are not giving yourself or the investment time to allow your plan a chance of success.Since 2003, we have helped over 200 real estate investors in acquiring investment real estate. Whether it be a condo, single family home, multi-family home, or commercial property, we have always advised everyone to stay within their means and feel comfortable with the financial projections of the property. There is a simple formula that banks use to determine property value. It is not an appraisal or a CMA.
A bank basis their loan amounts (on commercial property) by calculating its value off of the purchase price, debt services, and operating expenses. Different from a capitalization rate, this valuation process is highly disregarded by realtors today, but in our opinion should be taught to all licensees in order to offer their clients a true value investment, the same way a bank would calculate. As I mentioned, it is typically used on commercial property, but the same can easily be used to calculate value on any type of real estate.Today, investment opportunity is all about timing. Many are trying to predict the bottom and quite frankly, that will be nearly impossible to do.
There are other variables to consider when looking at an investment opportunity. For instance, in Mississippi along the coast of the Gulf of Mexico, Congress and the IRS are offering a 50% bonus depreciation on real estate purchased in designated areas affected by Hurricane Katrina. This is called The Go Zone. We have been an active developer in the area and have placed many investors in lucrative positions to eliminate a huge income tax liability by simply purchasing real estate in a very nice market.Investing in foreclosures in the Florida market is hot right now. Purchasing property at 40 cents on the dollar are intriguing to many and we feel quite strong that FL is a great time to buy right now.
In Hoboken, with the tax increase, may owners are dropping prices drastically on all types of real estate. In the suburban markets of New Jersey, multi-family homes can be taken for 40 cents on the dollar.With the new president coming into office, historically low interest rates that keep getting lower, and confidence injected back into the country, we feel that today is a great time to start looking for that building block to achieve your future wealth.>We are highly experienced in all of these markets. One of our team members is one of Southest Florida’s most successful agents, and also part time developer in Florida and Mississippi. For more information on local or out of state investment property, please contact New Jersey Real Estate Guys and ask to speak to one of our highly qualified representatives. And just one thing…If the deal doesn’t sound right to you, don’t buy it! We want you to feel great about your real estate experiences with us.
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