Our Blog

By Blanche Evans - Realty Times

A new survey by Citi Smith Barney says that over half of millionaires and 40 percent of affluent investors, those with $100,000 in assets excluding real estate and employer retirement plans, or approximately 25 percent of the U.S. population, surveyed believe that real estate is a good investment.

That's because they practice what they preach. While about 67 percent of American residents own a home, one in ten people of all economic backgrounds own a second home. But among the wealthy, nine out of ten own some sort of real estate investment accounting for one-third (33%) of their portfolio, and most (52 percent) report that despite a softening housing market, their real estate investments have increased over the last year.

Outside of their primary residences, one in ten investors reported owning investment homes that they rent out, and a similar share say they are invested in a REIT for commercial property. Millionaires (18 percent) are more than twice as likely as those in lower income brackets (8 percent) to have commercial REIT investments.

By Michael Gier, Managing Partner - Nationwide Property Investments, LLC

Will and I are in the middle of a great trip throughout Texas checking up on our own investment properties and our land development deal. While in San Antonio we also found two other land development deals that we are negotiating. One is an 80 acre parcel and the other a 20 acre parcel, both with tremendous potential. We're excited about these and hope to get them both.

We're also meeting and making deals with builders and developers for our investors. Real estate is on sale...Now is the time to buy! We are so excited about the deals we are negotiating for you which include 4-plexes, duplexes, and single family homes.

Even with all the great deals we're negotiating, there is one deal that stands out the most.  Here are the details: 

Duplex Investment with $12,000 in Equity. Cash flow with only 10% down (80/10/10) is estimated at $280/mo. Call us for details on how to make this work.

Only 1 available now! 3 others available and complete April, 2008. $2,500 ties up the property now. 

 
The city of Peaster is approximately 20 miles West of the city of Ft. Worth and just 9 miles North West of Weatherford, TX. 

Each side has 3 bedrooms, 2 baths, 1,050 sq. ft. and each duplex is on a one acre lot.

Complete turn key including a property manager.

Peaster is experiencing a vast residential housing increase due to the allure of its tax rate, school status, and small time feel.  

We'll show you how to structure the deal to make this work for you. These will go quickly so contact us right away.

info@NationwidePropertyInvestments.com or call us:  800-469-2260

By Will Barnard, Managing Partner - Nationwide Property Investments, LLC

The “American Dream” is and has been to own your home free and clear without any mortgage payment.

If this dream is still valid today, how can it be explained that thousands of financially successful Americans, who have the funds to pay off their mortgage, choose not to. The American Dream has been passed down to us by our parents and grandparents alike. Many Americans fear a home mortgage, particularly when they are at retirement age. This way of thinking is very outdated, although valid back in the 1930’s. During the great depression, banks were legally able to call a mortgage loan due in order to receive a much needed cash infusion. The stock market had lost over 75% of its value, un-employment was at an all-time high, and real estate values were falling dramatically. Many homeowners lost their homes because they did not have the funds to pay off their mortgage and they could not sell the home because there were no buyers at the time. Due to this horrific situation, a new way of thinking was born. “You should own your home and never carry a mortgage”. This way, if the economy dropped suddenly and you lost your job, you would at least have a roof over your head. Since then, laws have been past that make it illegal for banks to call your mortgage loan due.

Today, it is no longer the case that we will live in our homes for 30 years and keep the same mortgage for 30 years until it is paid in full like our grandparents did. Today, the average person lives in their home for only seven years and according to the Federal National Mortgage Association, the average American mortgage lasts for only 4.2 years. People are moving to larger homes in better areas as well as refinancing for a better rate or to pull equity for home improvements and other expenses. These statistics show that it makes little financial sense to pay down your mortgage by applying additional principle payments and to have large amounts of equity in your home.

Ask yourself these two questions: What rate of return do you receive on the equity sitting in your home? Would you burry $100,000 cash in your backyard? The answer to the first question is 0 or nothing! For question two, most people would answer NO, however, a vast majority of home owners across the US are basically doing just that by leaving the equity in their homes.

Rather then allow your cash to remain dormant, pull that equity out and utilize it in any number of great investments. One option is real estate. Nationwide Property Investments, LLC (NPI) have a number of properties available that cash flow each month after all expenses. You receive tax benefits such as depreciation, cash flow and property appreciation. Another option would allow you to invest those funds with NPI and earn double digit returns on your money collateralized with real estate. Both of these options make you money! Isn’t that much better then having the equity sitting in the walls of your home making you nothing?

Even if you were to pull $100,000 of equity from your home in the form of a Home Equity Line at an interest rate of 7% ($7,000 annual cost) and placed those funds in a safe interest producing asset which produced a return of 7% ($7,000 annual gain), would you be exactly even at this point? The answer is NO! The interest you pay on your equity line is tax deductible (mortgage interest is 100% tax deductible in most circumstances) therefore, the true cost of the 7% loan is actually only 4.55% (assuming a 35% tax bracket). It is not difficult at all these days to find an investment vehicle which produces a 7% return.

Another problem with all that equity sitting in your home is that if sued you risk losing it. You want to look cash poor when an attorney looks at your assets. If liens show up against your homes and it appears you have very little or no equity then it may keep you away from a lawsuit. Most attorneys won’t work for free. If they can’t find a way to get paid through your assets then they won’t file the lawsuit.

In closing and most importantly, it is a very wise decision to separate the equity from your home to prevent losing it. If you have an equity position in your home and the home values in your area decline, you will lose that equity. If you separate it from the home, via an equity loan for example, you secure the equity by converting it to cash which then may be used for safe & conservative investments. According to a recent study, 67% of Americans hold the majority of their net worth in personal home equity. If we were ever taught to diversify our investments, this statistic shows a failure to practice that advice.