Are you earning 8% on your investments? If not, real estate might be the right answer for you. Below is a list of web pages and videos that will show you the advantages that only real estate offers. If you are new to real estate, you might want to start with the 70 second video: Why Real Estate?
How I Find Good Investment Properties - If you are looking for a good investment property, the problem will be finding the needle in the haystack since there are hundreds or thousands of bad or marginal deals for every good deal. If you have to do this on your own, you will end up - (More...)
One Stop Service - Considering real estate because you want a higher return and tax advantages but unwilling to get involved with repairs, collecting rent, evictions and such? Then you have come to the right place. None of my clients manage their own properties; even - (More...)
Investment Process - The difference between luck and consistent profit is a process. To change luck into a process takes a lot of experience, repetition and tuning. Few investors go through the investment process often enough and have sufficient resources to make real - (More...)
About Me - After graduating with a degree in engineering with a focus in numerical analysis, I was in marketing or sales for almost 25 years with companies like HP, IBM and Internet startups. I've successfully sold, both individually or driving sales teams: - (More...)
High Return - With inflation exceeding 1%, standard investments which return about 2% may not even keep pace. Interested in 9% or more? While no one can guarantee any specific return, some of my clients are getting returns exceeding 9%. If this sounds - (More...)
Low Risk - I have personally purchased stocks that become worthless paper but I have never experienced or heard of real estate that become worthless. Why else would banks be willing to lend money over a 30 year period? Real estate always has value, no matter - (More...)
Leverage - With stocks, if you have $100,000 to invest you can buy $100,000 in stocks. If you earn a 5% return per year, in 5 years the (compounded) value would be $128,000. However, putting 10% down and financing the balance you could purchase $500,000 in - (More...)
Tax Advantages - Real estate has tax advantages over any other form of investment I know of. Not only can you deduct expenses and losses ( there are limits) you can also depreciate the property. These are huge advantages. I will touch on each of the major tax - (More...)
1031 Exchanges - How would you like the ability to sell one investment and then buy others with no tax consequences? With real estate, you can. This is another unique advantage of real estate. Section 1031 of the U.S. Internal Revenue Code allows investors to defer - (More...)
Land Shortage - This is one of multiple articles on why I choose to live and invest in Las Vegas. In this article I will discuss one of the reasons why I believe real estate investments in Las Vegas have a high potential for future appreciation. Below is a - (More...)
Construction & Landscaping - This is the first of multiple articles on why I choose to live and invest in Las Vegas. Note that in this article I will talk about single family homes. In another article I discussed why single family homes are currently the best type of - (More...)
Pro-Business Government - When Nevada revamped its business laws several years ago they virtually copied Delaware's. Delaware (or now Nevada) is were most US companies are incorporated due to the business laws. This is a very import to corporations. But it is not just - (More...)
Unique Aspects - Las Vegas is unique in the nation since it is the only major city that combines the attributes listed below. These factors are encouraging businesses and infrastructure providers to move their business to Las Vegas. Plus, Las Vegas is very - (More...)
Market Stability - I usually get chuckles in presentation when I show a slide with Market Stability in reference to Las Vegas. Well, I am not referring to past pricing stability; everyone knows what happened. I am referring to future price and rent stability which - (More...)
Now is the Time To Act - What do you call an opportunity when everyone agrees it is a good one and lots of people have reported making money on it? Too Late! Right now, all the market indicators that I can see point to this being the time to buy; especially the bank repos. - (More...)
Making an Offer - It is relatively easy to buy residential property in Las Vegas. All offers are written on standard Greater Las Vegas Association of Realtor (GLVAR) purchase agreement. See this page for specific details on the GLVAR purchase agreement and a copy of - (More...)
Purchase Contract FAQ - This webpage coverers the most frequent questions I receive concerning the purchase contract and the purchase process. Purchase contract structure What agreement is used to purchase real estate in Las Vegas? What does "As Is" actually - (More...)
The Closing Process - Congratulations, your offer was accepted! So what happens next and when? While there are many tasks to be completed before you legally own the property ("getting the keys"), most will be handled by the title company, your lender, the - (More...)
Work Backwards to Make Money - I've owned between 30 and 40 rental properties. Sadly, I lost a good bit of money on the first few properties. I made the mistake that most investors make: buying the property, rehab it and then trying to rent it to cover my costs. This rarely - (More...)
Rental Sweet Spot - In every market where I've purchased rental property I've looked for two things: what price range and what type of property rent best and with the greatest chance of appreciation. I will explain price range first. In every market in which I've - (More...)
Multi Unit Considerations - I've been getting questions on Multi unit properties (MUP) recently and decided to review the Las Vegas MUP situation. MUPs are quite different than single family homes for a few reasons: Buyers are only investors; there is no opportunity to sell - (More...)
Financial Calculations - I frequently get questions on basic calculations of investment property profitably so I put together this article. I choose an actual client's property and performed the two classic calculations of profitability: NOI and Cash/Cash. In addition, I - (More...)
Estimating Rehab Costs - One of the ways many inexperienced investors go wrong is improperly estimating the cost of rehabbing investment property or over spending on the rehab. In this article I will tell you how I estimate rehab costs. Before I get into the method I use I - (More...)
Properties to Avoid - I frequently find the best deals are properties with cosmetic damage. Holes in sheet rock, stained/torn carpet, paint, plumbing fixtures; these are not major costs. Even more important, these types of costs are relatively predictable. However, - (More...)
Comparing Properties - Suppose you are considering 10 potential properties and you would like to know which is likely to be the best performer. There are some standard performance factors that are used by many investors. The exact method these factors are calculated may - (More...)
Long Term Renters - Long term renters are the most profitable because they reduce rehab and vacancy costs. And, I believe that in every market there is a maximum monthly rental rate for long term renters. These are the people who will likely never buy a home for any - (More...)
Vacancy Rate Variation - Renting to the right tenant is critical to keep vacancy rate and repairs at a minimum. Below is an example showing the difference in annual income at 100%, 80% and 60% occupancy rate. Some additional costs not included in the model below includes - (More...)
Estimating Real Estate Taxes - Property taxes are confusing, no doubt about it. Hopefully this message will clear up some of the confusion. To illustrate the process I will calculate the taxes the following home for the 2009-2010 tax year as an example: 10016 Floragold Ct. The - (More...)
Estimating Rent - Knowing what a property will realistically rent for is critical. Without this, you don't know what the property is worth. So, how do you estimate rent? Simplistically, you find recently rented comparable units, calculate the rent/sqft for each, - (More...)
Homepath Properties - Properties owned by Fannie Mae are usually available for Homepath financing . Note that individual lenders may have minor variations on the following: Features: 10% down payment (as opposed to 25% which is typical). Financing is available for - (More...)
Simple Mortgage Calculator - The following is a simple mortgage payment rate calculator. Just enter the total price of the home (Purchase Price), the amount you intend to barrow, and change the interest rate (I assume 5.25% which is a reasonable rate) and term of the - (More...)
My Investment Blog Articles - I add articles to my investment blog in response to client's questions. Usually, the material will eventually make it into webpages or even videos but my blog is the place to find the latest information including market updates. Below is a list of - (More...)
House Flipping - The key to making money flipping is to finding the right property at the right price in the right area in a know condition and closely manage costs necessary to make the home sellable to a TYPICAL BUYER for this type of home. The best way to know - (More...)
The Problem with Short Sales - When clients search for homes on public websites like Realtor.com and others, they naturally select the best values which, unfortunately, frequently turn out to be short sales. Short sales can be problematic for buyers and in the article I will - (More...)
Condos vs. Single Family - One of the most frequent questions I get from investors is whether condos or single family homes are the best investment. My answer is that it depends on the numbers. Right now there is a glut of condos and apartments for rent in Las Vegas so the - (More...)
Investment Thoughts - Once you decide that real estate is the right investment vehicle for you, you need to find a Realtor that has experience with investment properties. Preferably owning them and not just selling them. Obviously, I hope that Realtor will be me. But, - (More...)
Multi-family or Single Family? - I was recently asked whether multi-family or single-family properties are better investments. An excellent question. The answer (as usual) is it depends on the specific market. While I could write several pages on this subject I will keep this - (More...)
Nevada Energy Regulation - Untitled Document Starting January 1, 2011, Nevada has implemented a new law (NRS 113.115(1)) requiring that the seller of residential property provide the purchaser with an evaluation of the energy consumption of the home. Links to the form and - (More...)
Setting Up Services - Escrow has closed and you now own a home in Las Vegas. Congratulations! One of the most important steps now is setting up the services. I put this webpage together in the hope that it will make things easier. However, I find the utilities (no - (More...)
Cash or Finance? - I had breakfast recently with a client (thanks again for the breakfast BM!). We talked about many aspects of real estate investment. One thing that he expressed surprise over was the difference between his return calculations and what I show in my - (More...)
Recording a Quit Claim Deed - I am often asked how to add someone to a deed or move a property into a company. Below are two services that will handle process for you. Their fees vary depending on your situation. If you want to save money and handle it yourself, the steps are - (More...)
Internationals - I have lived in other countries and many of my clients are internationals. I know many of the concerns internationals have and I can already address most of them. Below are the answers to the most frequent questions I receive. If you have concerns - (More...)
Canadian FAQ - Canada and the U.S. have enjoyed a close relationship for a long time. Because of this special relationship, Canadians enjoy many advantages such as special financing and more. I summarized the financing program below and in the FAQ answered many - (More...)
Market Update - The following graphs are updated monthly and reflect the current Las Vegas residential real estate market. The graphs are based on data from the Greater Las Vegas Association of Realtors and other sources. I created this page since I could find no - (More...)
Sample Las Vegas Home Prices - When I move to a new area, I find it difficult get an understanding of what homes cost. I put the following set of homes together so that you could see a span of typical prices. Condo -$50,000 - 1 bedrooms, 1 bath, 1 car garage, 900 sqft. Condo - - (More...)
Clark County Foreclosure Radar Data - The following information is from www.foreclosureradar.com and provides details on forclosures in Las - (More...)
Contact me if you are considering buying or selling Las Vegas real estate. You will be glad you did.
...Eric
Eric Fernwood
RE/MAX CENTRAL
8400 W. Sahara Ave
Las Vegas NV 89117
Email: EricFernwood@gmail.com
Website: www.EricFernwood.com
Investment Blog: Blog
YouTube Channel: YouTube Channel
Cell: 702-358-8884
Fax: 702-202-2020
© 2010, 2011 Eric Fernwood. All rights reserved.