We believe that every good investment property must meet three criteria. We have the experience, tools, process and team members for finding these properties and bringing them to market.
- Sustained profitability - The property must generate a positive cash flow today and into the foreseeable future.
- Likely to appreciate over time - You would never buy a property just for appreciation but appreciation is very desirable. Especially when using a 1031 to reinvest equity or adapt to market changes.
- Located in an area where you can make money and business risks are low. Key factors include state income tax, property tax, insurance cost and landlord favorable regulations. Regulations include property related laws like the time and cost of evictions, rent control, code compliance requirements, etc.
In order to achieve the above criteria you need to get four things right:
Las Vegas is uniquely suited to meet the location requirements. Below are just a few of the reasons:
|Growing Population||Rising Per Capita Income|
|Rising Rents||Rapid Appreciation|
|Reasonably Priced Properties||Limited Land For Expansion|
|Low Operating Cost||Low Property Taxes|
|No State Taxes||Law and Order|
|Pro Landlord Legislation||Right to Work State|
|Low Maintenance Construction||Climate|
For more information on why Las Vegas is an outstanding location to invest in see:
By any metric, Las Vegas is an outstanding location to invest in. However, the most important aspect of Las Vegas is the growth of well paying jobs. Jobs bring people and prosperity.
We Know the Right Tenant Pool
Most new investors buy what they believe to be a "good deal", rehab it, and then try to rent it. Too many learn the hard way that the property defines the tenant pool and not all tenant pools are desirable. The wrong tenant pool can result in frequent turnover, damage, evictions, high maintenance costs, high vacancy rate and more. Knowing the right tenant pool is critical. And, it starts with the right employment segments. Below is an image depicting the relationship between employers and the properties you want to buy.
Not just any pool of employees will work. There is always a range of employees and some will be transient, some will be long term renters and others will only stay for relatively short periods of time before they buy a property. Below is an illustration showing relationship between rent (and income) and tenant pool characteristics.
The result of using our property profile is that our average tenant stay is over 4 years. Also, we have had only 3 evictions in 10+ years. Lastly, even during the 2008 crash, our clients had zero decrease in rent and zero increase in time-to-rent. The market value of the properties plunged like every other property but the income did not change. In summary, we target the right tenant pool and the right properties that target that pool. If you have tenant turns every year or two, you will likely lose a lot of money.
We Know What To Rehab To Optimize Rent vs. Cost
Unless you have a deep understanding of your target tenant pool, you will likely change things that do not need to be changed and fail to do things that should have been changed. There is also the matter of the items you use. For example, if you choose the wrong carpet, when you need to replace a small damaged area your options will be to replace all the carpet or have mismatched carpet. Mismatched carpet will reduce your rent plus good tenants will not want to rent a property with mismatched carpets.
Trusted Service Providers
We maintain a list of trusted service people. And, we physically go on site almost every day during a rehab to check the work and take videos, which we send to the client. Our rehabs stay on budget and on schedule. Here is a sample set of properties we rehabbed for our clients.
A team is no stronger than its weakest link. Over the years we've assembled an expert team. Each team member is the best in class, or they are replaced. Our team enables us to provide a complete end to end solution. It cannot be stated strongly enough how important having the right team is if you are going to succeed.
Not only do we sell investment properties, we teach our clients how to invest. We do this through directed reading in the Investor Eduction section of our website plus video calls and hands on training. Real estate investing is the easiest form of investment to learn but someone still has to show you how and why.
If you are looking for a good investment property, you will be faced with looking through hundreds or thousands of MLS data sheets or combing through real estate web sites looking for possible properties. We provide our clients a special tool that enables them to select from the best properties using our proprietary analytics. The difference is illustrated below.
Option 1) You search through hundreds or thousands of properties:
Option 2) Work with us and have access to the output of our proprietary software, plus the expertise of the entire team throughout the process. Our services are free to buyers so you have no risk and nothing to lose.
And, if you are interested in a property we will evaluate the property. Here is a sample detailed property report.
The properties we target are THE most desirable properties to a large segment of buyers. Remember that buyers and renters are similar except that buyers can arrange financing. In the current market, the competition is intense. The problem is further compounded by the fact that there are only 20 to 30 good investment properties available at any given time out of 5,000 to 7,000 available properties. We can only select these "needles in the hay stack" properties by using the software we developed. Without our software, it would be almost impossible due to how quickly good properties go under contract. These properties typically stay on the market for only 2 to 5 days before they are gone. This means that the entire selection through evaluation process must be accomplished in 1 to 3 days as illustrated below.
We are two engineers that approached real estate investing as an engineering problem to solve. Over the years we've developed the software, processes, investment team, standardized rehab costs and components and much more. All of our services are free to buyers. Also, there is no contract to sign. We believe that if we are not delivering the services you need, you should work with someone else.