Did Archimedes understand real estate?

“Give me a lever long enough and a fulcrum strong enough I can move the earth.”  Archimedes said this hundreds of years ago, yet some people are afraid of using ANY leverage in this real estate market.  I have investors contacting me with $100,000 in cash and they want to buy $100,000 worth of real estate in Las Vegas because they don’t want to end up over leveraged.  I understand.  A large part of the reason we are in this mess is that we got overleveraged.  But some leverage is always good.

Let’s first look at values.  There are plenty of homes in great neighborhoods listed for $70 per square foot.  There are certainly a few listed lower like the one that came on the market today built in 2005 and in move in condition for $50/ sf (call me if you want to buy it).  So you buy a 3 bedroom / 2 bathroom rental for $100,000.  You have the money to pay cash and you don’t want to over leverage yourself. You collect about $900 per month in rent. OK, great!

BUT what if you decided to put down 50%, and buy 2 of them?  First of all, you should have no trouble getting the loans.  Second off, your monthly mortgage payment on EACH property is only about $315 per month (with moderate credit)!

Now are you SURE you don’t want to use at least a little leverage? C’mon! I’m not suggesting that you abandon your beliefs altogether or become irresponsible with your money, but that is reasonably safe, wouldn’t you say?

The prices on Las Vegas real estate are ridiculously low.  Don’t wait for the bottom to start investing here.  You won’t know where the bottom was until it’s gone.  Really.  What are you waiting for?  If you would like information, with no cost or obligation, please contact me.
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Author: The Jeff Howard Group powered by Keller Williams Realty Las Vegas

I moved to Las Vegas in 1993 and I have been investing in Real Estate since 2003. I believe in creating win-win scenarios whenever I buy or sell any real estate. I have owned over 50 properties in Idaho, Ohio, South Carolina, Rhode Island, Massachusetts and Nevada. Whether you're ready to invest in the Las Vegas valley, or if you want to buy or sell a home here, as your Realtor, I will help you make great decisions and add to your bottom line. Call me today to talk about your next real estate move. 702 SELL NOW (702-735-5669). To see what my past clients have said about my, be sure to visit http://www.JeffHoward.reviews

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