| Sunday, December 26, 2004
| Passive Real Estate Investments
Many investors are turned off by real estate because they do not have the time or inclination to become landlords and property managers. Both of which are in fact, a career in themselves. If the investor is a rehabber or wholesaler, real estate becomes more of a business rather than an investment. Many successful real estate "investors" are actually real estate "operators" in the real estate business. Fortunately, there are other ways for passive investors to enjoy many of the secure and inflation proof benefits of real estate investing without the hassle....More
|posted by Jan Chilton @ 1:16 PM
| Monday, December 13, 2004
| Myrtle Beach Preconstruction Real Estate Sales Reach Record Highs
|Investors are scrambling to purchase in the first releases of projects in under-priced Myrtle Beach, only to resell them within a few months at huge profits.
Myrtle Beach, SC (PRWEB via PR Web Direct) December 13, 2004 -- Preconstruction condos are the hottest new investment vehicle to surface in many years. Investors are scrambling to purchase in the first releases of projects in under-priced Myrtle Beach, only to resell them within a few months at huge profits.
Myrtle Beach is booming and condo pre-sales are all the rage. Buyers are able to select the best locations within the buildings at the lowest possible price by purchasing when a resort is initially offered for sale. Plus developers often offer tremendous discounts or upgrade incentives to the first buyers, to establish a dynamic sales momentum for their project.
Preconstruction Real Estate Investments – How does this work?
Typically, a property owner has a piece of land with an old building – a functionally obsolete hotel, for example. The old hotel has lost its tax advantages. It can’t be depreciated anymore, and since it is old, the rental income has also declined.
New resorts require $20 to $30 million to develop, which he doesn’t have. But he does have a premium oceanfront location that his family has owned for years. What can he do with it?
The owner finds a real estate development company to design and pre-sell condos for a brand new resort. Banks require that developers pre-sell 70% to 80% of a new resort before they will finance the construction of the project. So investing in the pre-construction of a new resort is a win-win situation for the bank, the co-developers, and for the investors that purchase the preconstruction condos. The original owner will have a brand new resort in which he can retain control of the front desk rentals – a Condotel. The bank is guaranteed to get all of its money back, because buyers will be pre-qualified and the loan will be paid off when the building is finished. The buyer/investor will benefit by being able to choose the prime location and purchase the condo at the lowest price it should ever be.
To purchase new condos in Myrtle Beach, the buyer or investor will typically execute a reservation agreement with a $5000 refundable deposit. When the building is 40-50% reserved, the buyer will convert this reservation agreement to a standard sales agreement. Additional deposits are then required to total 10% of the condo’s sale price. During this time, the buyer will also be pre-approved by a mortgage company. Then they wait until the building is finished, which is usually six months to a year. At that time, the purchase is completed and they have a permanent vacation home or rental income to enjoy.
Many investors decide not to wait until the building is finished, and are actually able to sell their sales contracts (with the developer’s approval) to other buyers for a substantial profit. Typically this happens when the building is sold out completely, and there are buyers who missed the chance to purchase during the early stages, or perhaps decided to buy an additional unit.
Investing in preconstruction real estate is one of the best opportunities for high returns and excellent monetary gains during time of low interest rates and relative national prosperity. Very few investments can offer such a high gain or instant equity – while being secured by real estate. The Grand Strand has been rated the number one favorite coastal destination by tour operators across the nation, and is in the top 20 of America’s Best Places to Retire, according to Money Magazine. Real estate in Myrtle Beach is incredibly affordable even now, but as the availability of water-front land dwindles, prices will surely increase until they equal the unbelievably expensive coastal prices of southern Florida and other prime beach resorts across America. Now is the best time to cash in on this lucrative real estate secured investment opportunity.
|posted by Jan Chilton @ 8:16 PM
| Monday, December 06, 2004
| Las Vegas Real Estate Investments
|Is the Boom Over or Just Getting Started?
By Diann Tonnesen Century 21 MoneyWorld
Real estate investors flocked to Las Vegas during
the first six months of 2004 and drove prices up an
unprecedented 35% in some parts of the Valley
according to top Century 21 agent Diann Tonnesen.
And she predicts that the beginning of 2005 will see
more of the same.
A scarcity of vacant land for developers to build on
and a continuing influx of over 6,000 new residents a
month quickly turned the Las Vegas real estate market
into a battlefield last spring. Buyers found themselves
in multiple offer situations as they competed against
up to ten other hopefuls for a dwindling supply of homes.
Much of this money was being shifted out of the California
market where rental income had hit a ceiling due to the
high prices, and savvy investors were liquidating their
properties in order to take advantage of the better cash
returns Las Vegas and Henderson real estate investments
could offer. Most new home builders quickly placed a
moratorium on investor purchases to prevent future
competition from buyers who "flipped" their new home
purchases and cashed in on quick profits. A drought
in the Colorado Rockies also caused a water shortage,
limiting development of new golf courses and subsequently
golf course homes in Las Vegas which also drove up prices.
It is estimated that more Las Vegas homes sold for over
list price in just a few months last spring than in the
previous five years combined. In July the Bureau of Land
Management auctioned off 1940 acres of unimproved land
in Henderson for a record shattering $287,000 per acre
to Focus Property Group. In order to make its winning
bid Focus joined forces with seven home builders who
will develop the parcel as a master planned community.
The home builders included KB Home, Toll Brothers,
Woodside Homes, Kimball Hill Homes, Pardee Homes,
Meritage Homes and Beazer Homes.
In late July and August, however, the dramatic upward
surge rapidly ceased as new homes (purchased by investors
who were under contract before the moratorium was
implemented) finished construction and went back on the
market. In addition, local residents who had already
toyed with the idea of moving out of state decided to
cash in on the bonanza profits as well. Through the end
of October the supply of Las Vegas homes for sale
increased steadily, investor purchases settled back to
a normal pace and prices even decreased slightly as the
But the big international real estate investors are
already zeroing in on the newest "hot buy" in the
valley - luxury Las Vegas high rise condos and condotels.
Downtown Las Vegas is becoming urbanized and major
developers from all over the world have over 80 new
preconstruction condo projects on the books. Many sites
have already sold out and have not yet broken ground.
"Las Vegas has barely scratched the surface of the
luxury condo market," said Bruce Langson, a Las Vegas
native and developer of Las Vegas Central. He said
there's a 20,000-unit deficit of Las Vegas condos at
this time. Even famous actors like Leonardo DiCaprio
are purchasing units for their own private residences
as they become available.
Springtime also promises to be interesting on the
Las Vegas new homes front again. The vacant land
crunch is still in effect for the new home builders
and as of the end of November the supply of new homes
is once more diminishing as the investor owned properties
are finally selling off. Focus Property Group will not
be able to begin sales on its latest project until 2006.
Plus the baby boomers are coming into their own, and
Las Vegas is their number one retirement destination.
So look for another burst of excitement in a few months
as the dynamic Las Vegas real estate market takes
another leap in pricing.
also see our previous article
Preconstruction Real Estate Investments - Buy Now, Pay Later
For more information on Las Vegas real estate investment
opportunites please contact:
Century 21 Las Vegas
|posted by Jan Chilton @ 10:12 PM
| Wednesday, December 01, 2004
| Preconstruction Real Estate Investments - "Buy Now, Pay Later"
|Cash in on pre-sale profits in the country's five hottest real estate markets: Las Vegas, Myrtle Beach, Sarasota, Austin and Tucson. Small deposits on preconstruction properties can bring huge payoffs in appreciation for investors who purchase before building commences in the cities with soaring prices. |
Myrtle Beach, SC (PRWEB via PR Web Direct) December 1, 2004 -- Preconstruction condos are selling at a breakneck pace. The release of phase I of Prince Resort at the Cherry Grove Pier was evidence of that when it was sold out ($53,000,000) in the first 48 hours. Investors are snapping up 2 to 3 units at a time, as the Myrtle Beach condos market continues to be one of the most undervalued preconstruction condo markets in the country. Real estate investments continue to be one of the safest investments an individual can make in this day and age. "Getting in early on a preconstruction project can assure the investor of paying the lowest price, and of course, choice of units," says David O'Connell of NewResorts.Com, who has dominated the Myrtle Beach market for the past 7 years. He is about to release a $60,000,000 oceanfront condominium project in the next few weeks.
The sizzling Las Vegas real estate market is turning up the heat another notch. With over 80% of Nevada owned by the US government, land-starved developers are going vertical to meet the demand for housing in the fastest growing city in the United States. Presales of luxury high rise condos and "condotels" along the Las Vegas Strip are skyrocketing, with over 30 new high-end projects already in progress and more opening at the start of 2005. Developers are catering to sophisticated investors by offering a bundled package of lavish fully furnished units, onsite leasing agents and nightly rentals tied to the local casinos, and the return on investment for these Las Vegas condos is so high that many projects are sold out before ground has even been broken. Anticipated appreciation rates (which hit 30% this spring) are also fueling the buzz.
Some of the most expensive yet highly sought after property can be found in Sarasota, Florida. As a "city of the arts" and a tropical paradise, homes in Sarasota will always be in demand. Downtown Sarasota's bay front condos are the hottest Sarasota Real Estate right now. Within walking distance to Sarasota Bay, theaters, restaurants, upscale shopping, specialty stores and cultural centers world-class amenities are right at your doorstep. Prices range from $300,000 to $10,000,000 depending on location, square footage and water views, for a two bedroom/two bath condo. These top of the line extraordinary new condos offer breathtaking views of Sarasota Bay and the Gulf of Mexico. Inc. Magazine recently named Sarasota as "Florida's next big thing!"
Another hot area for investors is Austin, Texas real estate. Since the tech market crash of 2001, this jewel in the rough has been of strong interest to investors, especially those who are able to capitalize on their equity from other hot markets. It remains quite affordable for most first-time investors, with Austin homes and condos in the $100,000 to 300,000 range, as well as duplexes. Nestled in the beautiful hill country, Austin is scenic and serene, with a chain of lakes running from west to east and thousands of acres of devoted park land and nature preserves. According to Austin Realtors, the market seems poised to take off again in 2005, with the number of homes for sale dropping slightly in late 2004, and a frenzy of home buyer activity occurring during this holiday season. All in all, one would do well to consider the up-and-coming Austin real estate market as part of a savvy investment portfolio.
And meanwhile, out in Tucson, Arizona, the local real estate market is also heating up, according to Brenda O'Brien, a top Tucson Realtor. While homes in Tucson are still reasonably priced, they are starting to climb at double digit rates. October listings in the Tucson Real Estate Market decreased 20% from October 2003, and the average price of a home in Tucson was $211,240, according to the local Association of Realtors. This represents an increase of 13.4% over last year's average price. Tucson new home sales are also booming, and great homes can still be had in the $300,000 to $500,000 price range. Retirees from all over the country are choosing Tucson for the perfect weather and reasonable home prices, which add to the investment potential.
By going to contract prior to construction in any of these cities investors should be able to benefit hugely from the projected appreciation increases before even closing on their purchases. Those who purchase multiple units in several projects should do exceptionally well in 2005 before rising inflation costs drive prices up even more.
For more information on sales in these areas please contact:
Myrtle Beach - David O'Connell
Myrtle Beach Real Estate Investment Groups LLC
Las Vegas - Diann Tonnesen
Century 21 MoneyWorld
http://www.greatlasvegashomes.com/Sarasota - Annette Smith
http://www.annettesellssarasota.com/Tucson - Brenda O'Brien
http://www.tucson-az-home.com/Austin - Jason Crouch or Jim Olenbush
Austin Texas Real Estate
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Labels: Austin Texas Real Estate, las vegas real estate, myrtle beach condos, Sarasota Real Estate, Tucson AZ Real Estate
|posted by Jan Chilton @ 11:12 AM