Las Vegas, Nevada (PRWEB) September 27, 2013
Not many will argue that 2013 has been a good year for the Las Vegas real estate market. According to real estate data and research site, DQ News. Home price increases, for the former ground zero of the 2008 real estate collapse, have increases nearly 35% from a year ago. In addition, the National Association of Realtors reported a national six and half year high for existing home sales in August, crediting demand on limited inventory for the continued surge. New construction on single family homes is also on the rise, hitting a five year high, according to a report from the Commerce Department. Many of those permits have been issued in Las Vegas. All the signs of a sustained recovery are here. We have limited inventory and high demand continuing as well as an increase in new home construction says Mike Eckerman, CEO of Novus Dia Financial, a real estate asset management firm.
Eckerman is quick to point out the important role cash investors have had assisting in the recovery. According to Eckerman, investors are mainstays in Las Vegas and continue to pick up many of those distressed properties which have contributed to the overall growth. Like any other business, real estate investing requires a deep understanding of the market and its income producing potential. Las Vegas has been a hot market for first time, smaller investors and the larger, more sophisticated investors. Its a very competitive market right now, explains Eckerman.
With all of those encouraging components in play, Eckerman announces five important strategies to follow in order to become a savvy and sophisticated real estate investor in the Las Vegas market.
1. Know the Market: Having firsthand knowledge of the Las Vegas market can pay off in dividends. For example; According to the latest report from GLVAR, Las Vegas leads the nation in home price increases. Eckerman says to monitor those trends regularly and have a confident feel for where the market is headed.
2. Treat the Investment like a Business: Becoming a savvy investor means its important to approach the investment like a business. Like any business, the investor wants to see a profit. Its a great idea to draft up a business plan to include any potential overhead costs, such as construction improvements that may be needed prior to leasing out the property. Be prepared and have those potential expenses in order, Eckerman says.
3. Build a Network: In a competitive market like Las Vegas, the importance of networking can greatly increase the chances of cutting through the competition. It can also create new investment opportunities. Eckerman says, reaching out to other investors and setting up a rapport with successful real estate professionals in your key market can be extremely rewarding.
4. Understand the Risks and Have and Exit Strategy: Eckerman encourages using a buy and hold strategy on properties with terms between 3-7 years in order to see the long term appreciation on the property. This method allows the investor to get an accurate snapshot of the market in preparation if the right time comes to sell off the property.
Eckerman explains that if the market begins to show signs of slowing down, it shouldnt be an indicator for investors to wait it out. Sure, mortgage rates may increase but its not necessarily a bad thing. Its important to keep in mind that with any investment, youre hedging against inflation. Purchasing and owning a property that rises with the fluctuating tide will ultimately protect your wealth, regardless, explains Eckerman.
5. Have a Reliable Network of Professionals: Eckerman explains the importance of taking the time to hire and maintain a solid lineup of real estate professionals. Hiring CPAs who know the tax options and benefits as well as attorneys, who have a firm understanding of the local real estate laws, can offer protection from any unforeseen legal and tax challenges that might arise. For those investors looking to rent out their investment, having a property manager will take away the stressful burden of being a landlord, explains Eckerman. In addition, Eckerman also recommends hiring reliable contractors to handle light and heavy maintenance. With a good group of professionals at your disposal, investors are creating a sophisticated network that will increase and sustain a savvy reputation, explains Eckerman.
Novus Dia Financial is a Real Estate Asset Management and Strategy Firm that specializes in acquiring, leasing and selling Residential Real Estate. Novus Dia Financial also provides education to individuals on how they can earn above market returns through Proprietary Real Estate Investment Strategies. Novus Dia has office locations in Las Vegas, Newport Beach, Beverly Hills and San Francisco.
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