With all the gloom and doom about foreclosures going on in Las Vegas, I still think it’s a good time to buy. Why is it that when prices are high and EVERYONE is buying, that people make it seem like it’s the right time to buy? I have learned following the crowd isn’t usually the smart choice. Yes unemployment is at 15% and foreclosures are still happening, so what? Do you think Las Vegas is going to disappear? Personally, I don’t.
The US is in a recession, but prices are so damn cheap! I put offers only some places and have low balled them and gotten accepted offers on a 2 bedroom with 1 car garage for $58,000, in the same complex I own my vacation home! You can’t even buy a new Escalade for $58,000! But you think it’s going to go down even more right? Well let me say this, waiting to buy when the “magical bottom” hits is a mistake. This 2 bedroom cant rent anywhere from $750 to $900 per month! Don’t you think that is a great return on your money, I do!
But it’s risky right? Don’t you think it’s riskier when you buy a place in Vancouver for $250,000 and can only rent it for $1,000 a month? All the real risk is gone in a market like this. This condo will rent for $750 to $900 and if it didn’t then I could drop the rent to even $600 and I will still come out ahead, but the rent won’t go that low. The foreclosure market in Vegas reminds alot of my internet marketing. The opportunity to make money in both sectors is big, but when the rules and landscapes change then those doors will be shut forever. When you see an opportunity you need to decide, then act on it. You can work until you’re 65 or have the life you really want to have, it is your choice! Sure I get scared but I analyze the situation then act on what I think is right.
Could I go bankrupt by purchasing a few properties and $55,000 to $65,000, no way. The mortgage payment on those is small, it’s not a $1,500 monthly payment, just a few hundred dollars. It’s much safer than buying condos for $350,000 and then you need to put a couple hundred of your own money into that Vancouver condo every month to make it cash flow. Every property you buy needs to cover itself and if possible make you a few hundred per month, per property. This is the way to do real estate investing, then you can go far. If you need to dip into your wallet for every property you buy on a monthly basis, how many condos can you buy? Not too many right?! Enough said on this. I just needed to get this out. Everyone thinks real estate is so difficult, not as hard as you think.