Thursday, June 14, 2012

Is it Safe(?) to Return to Real Estate Investing?

About a week ago, I saw this headline question in Forbes.  The problem I immediately saw with the answer was the author was actually using this question to pump small investors to consider REIT's (Real Estate Investment Trust) as the safe way a small investor could get back into real estate.  He especially singled out Kimco who does have some very choice and well located shopping centers around the country.  Now, these are pretty safe investments.  But, the Return on Investment (ROI) is going to be smaller than an amateur investor would expect.

And, sure, there are also thousands of SFR/Condo Investors with enough cash to gobble up that market.  And most of these Buyer/investor types "think" they will get the property at a steal; and IF they are willing, they just sit on their "prized" acquisitions anxiously waiting for the right timing to come along so that they will start "flipping" again.

But, what these small RE investors are forgetting is that there are really good valued CRE properties waiting for a Buyer.  Sure, it may cost more than a house or condo.  But, IF you have +/-$1 Million, you can get a small net leased property paying a decent Cap Rate or ROI.  And in Las Vegas, a really good Walgreen's Net Lease will run in the 8% to 7.5% Cap Rate.  But, you can even find 9% Cap Rates on some unusual properties that are NOT mainstream.

IF you check out the column to the right, you will see buttons to various properties.  If you don't see one in your price range, just drop me an email and I will -- free of charge -- search the Las Vegas area for what is available in your price range.  I have seen fast food restaurants, office buildings, (small 4- 8 units) apartment buildings all under that $1 Million mark.

AND, if Property Management isn't your thing, a net leased investment sounds like its right up your alley.

For more Information about Las Vegas Commercial Investment Real Estate Property, contact David Howes at: OR 702-501-9388!