I thought you would enjoy reading this article from equities.com.
It reinforces what is great about investing in Las Vegas.
As I have mentioned before, we have always known what we have been building together in Las Vegas is special. We have been experiencing unbelievable rates of return on our investments and with our low cost basis we are set to enjoy the fruits of our labor for many years to come. Unfortunately too many articles about the many benefits of investing in real estate in Las Vegas along with a better overall sentiment about the economy moving forward has lead to an increase in competition, as well as an increase in our cost to purchase. From our perspective we are seeing pricing 30%+ higher than just 18mo’s ago. Though it is very obvious to us on our local level this phenomenon is happening in many areas across the country.
So how do we adjust? Are there still opportunities out there?
As investors it is important that we adjust. There is still boundless opportunity right now in a still very fractured economy. It is during recessionary times when fortunes are made. Integrity Wealth Building has been very fortunate to line itself up with a few of the larger banking institutions in the country. This inventory is usually reserved for other large institutional investors, hedge funds, and Wall Street insiders. We now have access to millions of dollars worth of mortgage loans, deeds, and notes. Most of the loans are non-performing, but we are also reviewing performing, and re-performing debt as well. We are currently reviewing hundreds of these assets a month and are able to purchase them at an unbelievable discount. We now have the ability to purchase these assets at a significant discount before they becoming part of a feeding frenzy on the courthouse steps of an REO auction. I do believe there is an unbelievable amount of potential in this type of investment. However like any good investment, money will soon find it. Fortunately we are the early entrants into this investment and I do believe we have a 2-3 year window to build something special. In a few years from now I do anticipate seeing articles similar to the one I am forwarding, but with the headline referring to Mortgage Notes and Deeds as one of the best investments in the country.
We are currently working on quite a few notes and deeds. These at times can be very time consuming on the front end but once worked out and if we feel they will make strong long term investments we look to bring in a partner to capitalize with us on the monthly cash-flow as well as the long-term potential of the asset.
These are all cash transactions. We have priced partnerships as low as $15k to $100k. For many of us who are concerned about retirement or are looking for a higher rate of return, we have been investing and partnering with self-directed IRA’s and 401ks. We feel the ROTH retirement accounts could be the best on the market and is a great place to invest in real estate as well as notes and mortgages. We have and can create partnerships between IWB and self directed retirement accounts.
I realize some of you have already participated in our note acquisition program and have enjoyed the success. For those who have not yet participated we do anticipate having more opportunities in the pipeline later this year as well as into 2013.
thank you and I look forward to our continued success together,
Jeff Sustaita