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Posted over 12 years ago

Why Invest In Real Estate?

"Why should I  in Real Estate?" is probably the most frequently asked question I hear. I have invested in Real Estate for many years in Utah, and this is one of the main reasons I started Nationwide Real Estate, LLC. I understand the value and the advantages of investing in Real Estate and wanted to give others the opportunity to start reaping the rewards of this type of investment. There are many options when it comes to investing your money. Allow me to show you in two different scenarios why Real Estate is the most lucrative and least risky form of investment.

In the first scenario we will look at a typical investment in Utah. Utah has not suffered from the economic down turn as much as other states and therefore the Real Estate market has stayed strong. Generally speaking the prices on homes have not depreciated as rapidly as in other states and so deeply discounted investment properties are hard to come by, but even with that an investor is still able to make a decent return. What if you could change your decent return into an amazing return?

In the second scenario we will look at a typical investment portfolio from the properties available through Nationwide Real Estate, LLC. The prices on the homes are discounted up to 50% off market value. The reason why these homes are so deeply discounted is due to the purchasing power Nationwide Real Estate, LLC has created over the past two years. By purchasing these types of properties you will already have built in equity and your rate of return almost triples.

To make things easy in both scenarios we will use the same investment amount of $325,000.00.

Scenario 1 - Typical Investment in Utah 
Property Type: 2 Single Family Homes 
Property Sales Price: $162,500 x 2 = $325,000 (includes all property  paid up to date of close) 
Rental Income per property: $1,000 per property 
Monthly Rental Income: $1,000 x 2 properties = $2,000.00 
Yearly Rental Income: $2,000 x 12 = $24,000 
Return on Investment: 7.38%

Scenario 2 - Typical Investment with Nationwide Real Estate, LLC Properties 
Property Type: 13 Single Family Homes 
Property Sales Price: $25,000 x 13 homes = $325,000.00 (includes all property taxes paid up to date of close) 
Rental Income per Property: $450.00 per home (This is the low end, average rents are $550.00) 
Monthly Rental Amount: $450.00 x 13 = $5,850.00 
Yearly Rental Income: $70,200.00 
Return on Investment: 21.6%

You may be wondering about yearly property taxes, property management fees, and possible repair fees for the homes. These costs are very important when considering in Real Estate however keep in mind that in the second scenario you have your money invested in 13 different assets that will appreciate over time. Appreciation and the built in equity you get when purchasing homes from Nationwide Real Estate, LLC help keep the risk of the investment down. Another thing to remember is that you are able to sell these assets at any time and that these properties also act as a tax shelter. Please remember to consult your tax professional for any questions regarding the different tax advantages to owning investment properties.

In short the type of homes Nationwide Real Estate, LLC is able to provide to you can give you a greater return on investment, instant equity, hard assets that can be sold at any time and tax benefits only available by owning investment properties. It is not hard to see why you should invest in Real Estate with Nationwide Real Estate, LLC.

Tony Larson Nationwide Real Estate (NWREAL) www.NWREAL.com 801-368-0292 .


Comments (1)

  1. Tony, As an investor I'm interested in the net return, not the gross return. Tax rates, insurance rates, property management rates can differ in various areas, and this can have a huge impact on the return. More detail is needed to make an investment decision.