Investment holding companies that buy and hold rental properties

Sep 7th, 2011  
by IrvineRenter  in Library News

Astute Observations

Astute Observation by rkp
2011-09-08 12:23 AM

why the lack of comments today?

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Astute Observation by freedomCM
2011-09-08 12:40 AM

Your big assumption (in LV and generally) is that wages will begin to appreciate again.  Outside of the top 10% of households, I see no evidence that this will occur.  Wages are being driven down.  Many former two income households are now one income.  U6 in LV is 25%.

Since you are buying “middle income” properties, why shouldn’t your rents decrease over time as household income decreases?

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Astute Observation by IrvineRenter
2011-09-08 06:21 AM

Rents for these properties declined 10% to 20% from 2007 to 2009 as an adjustment to the unemployment and loss of local income. Rents have been stable since 2009.

If anything, I think rents would go up as people go back to work. I don’t think wages will continue to fall. However, if they do, rents will fall along with them. That is a risk of buying rental properties there.

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Astute Observation by Walter
2011-09-08 08:19 AM

Exactly. Find any investment with decent returns in todays market that does not have substantial risk.

I look everyday. All I see is risk or no return :(

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Astute Observation by IrvineRenter
2011-09-08 08:37 AM

With the federal reserve pumping free money into the system, it drives returns down on everything. All investments are measured against the risk-free investment in government treasuries, and when those fall to 3% or less, the returns on everything else fall right along with them. Investors are forced to take on more risk to generate meager returns.

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Astute Observation by gepetoh
2011-09-08 10:54 AM

Hey IR, how are you finding the lending market out there these days?  What are lenders demanding/preferring in today’s market out in Vegas for financing?  Are you an investment trust and credit is through that, or are they looking at your personal credit?  Curious because I am thinking about buying additional rental properties there as well.  It would be good to get an anecdotal insight on what lenders are looking at these days.

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Astute Observation by Aaron Norris
2011-09-09 09:36 AM

Trust deed investing is a great way for people that don’t have the time or experience to be land lords to make decent returns. They can even invest using IRA accounts and pension funds. Beats the excitement of the stock market and is much more boring than being a land lord. Flipping is tight here in CA too but still happening often in Socal.  We’re still quite a few flips but we’ve definitely seen more on the buy/hold side. Some of the harder hit areas of the Inland Empire have declines some 60-70% and the rents are still strong.

I worked for a company before moving into real estate investing that was working on the City Centre in Las Vegas. Remember when “Condo Hotel” was the latest rage? What’s happened to all of those in LV?

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Astute Observation by lee in irvine
2011-09-09 10:20 AM

Are you Bruce’s son?

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