Posted By: William Barnard - Managing Partner Nationwide Property Investments, LLC
The Metroplex is in the news again, this report written by Forbes.com describing the 10 best metropolitan cities able to avoid the depressed economy and real estate market.
Median home price: +.5%
Unemployment: 4.3% (from 4.5%)
Key growth: Education and health, +5.6%
With unemployment on the decline and home prices holding steady, the Dallas-Fort Worth area seems to be avoiding the worst of the downturn. The region is home to a diverse set of companies, including Exxon Mobil, American Airlines parent company AMR, Southwest Airlines, home builder Centex, Dean Foods, Texas Instruments and Tenet Healthcare.
Even during the Nation's slumping real estate market (as a whole), the economy in a recession, and unemployment on the rise, The Metroplex is holding it's own. When the market does recover, The Metroplex will be poised for tremendous growth in RE values due to the record population growth (2006, 2007, & on pace for 2008), decrease in unemployment, and strong job growth.
If you have been "sitting on the fence" and waiting for what ever reasons come to mind, I hope it is not a picket fence and I suggest you jump off before you are left in the dust! There has not recently been a more opportunistic time to purchase income producing real estate than now, particularly in the Metroplex area.
The prices on the duplex and quadplex units we have are as low as they can be, and sellers are becoming aware of the value of their land, thus making it more and more difficult to locate land to build these units. I feel that this window of opportunity will be brief, and Michael and I are getting as much as we can before it is too late. We are also buying these same units we are offering to you and would like to remind you that you will never be alone and we will be there for you during the entire time you own the investment!
A wise man said, "The greatest mistake in life you can make is to continuously be afraid you will make one." If that does not open your eyes, consider this: The Fort Worth duplex we have will put at "risk" $15,500 (10% cash down). What percentage of your income/net worth is that? It is reasonable to assume that it is not a large percentage and that the "risk" of losing all of it is very low, especially considering the fact that you have Michael and I on your team to "watch your back" and help you in any way you need.
Most of our investors currently have W-2 income and these investments are a great start in reducing your taxes via the depreciation deduction you get each and every year! That alone is a reason to start. I for one, believe we are taxed too much and real estate offers more tax advantages and legal loopholes than any other investment. These advantages, together with the cash flow and huge upside potential of appreciation in this area, create a turnkey buying opportunity which will not easily be duplicated.
About four months ago, I came across something called a cost segregation analysis and until just recently, I have not had the time to research and educate myself on the subject. I recently attended a RE seminar in which the speaker gave an extraordinary explanation on how it works and how it can benefit a RE investor. More known in the commercial realm, a cost seg can be most beneficial even in the residential market.
In a nut shell, a cost seg company can be hired and their job is to make a "site visit" in which they itemize items in a sfr, duplex, 4-plex, etc. The standard straightline depreciation deduction in residential RE of 27.5 years that we are all aware of can be accelerated with a cost seg analysis. Here's how it works.
Some items such as carpet, paint, etc are deducted on a 5 year, some on a 15 year, and the balance such as the structure itself remains on the 27.5 year. What this does is accelerates the depreciation giving the investor a much larger deduction and can also be retroactive. For example, if you purchased a RE investment in 2006 and your CPA has been giving you the standard depreciation deduction for years '06 & '07, you can order a cost seg in 2008 and the amount you "overpaid" in taxes (due to the increased depreciation for years '06 & '07) will be refunded for your 2008 filing in '09.
There are cases in which a cost seg is not beneficial, so each investor should take the necessary steps in their due diligence to determine if one should be ordered. I have contact info for the cost segregation company and they can provide free info over the phone or email to determine if it is right for you. Just contact me, will@NationwidePropertyInvestments.com if you are interested in learning more. Also consult with your CPA (please make sure your CPA is familiar with RE and cost seg) to make sure you get the most from your deductions.
Just one more advantage to investing in real estate! It does not sound very exciting here on the BLOG, but I was on the edge of my seat at the event!
Contact Us | About Us | Testimonials | Our Radio Show | Earn 12% | Education | Available Properties | Home | Our Blog
Copyright © 2010 Nationwide Property Investments, LLCPortions Copyright © 2010 a la mode, inc.Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site MapAll rate, payment, and area information are estimates and approximations only.
