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>>DALE: Good afternoon this is Dale Snyder with The Snyder Group at Remax Central here
in Las Vegas. Today’s topic of discussion is should I invest in a market that I’m
concerned might go down a little bit, even though the cash flow is good.
The reason for this discussion is I just talked to a client. He’s got the cash to invest
in our market, we’ll simplify it. He say’s he has a hundred grand to put in our market.
He’s getting one percent. He’s getting really no money, no return on his money. But
he’s concerned prices may go down more if he buys on our market.
Well, my response is if you’re going to be getting, on average, a 6% to 12% cash return
with an average, I’d say about, 8% to 9%, if you depreciate, you’re obviously going
to lever up a little bit.
And you’re getting 1% in the bank versus getting, you know, on average, 8%-9% with
depreciation. If prices go down a little bit it’s still a good investment right? So it
doesn’t really matter if it goes down a little more because we all know, and I think
you would assume this so you wouldn’t at the Las Vegas market that overtime, the values
are going to go back up.
And when the values do go back up, rental rates will go up, and your equity position
will be strong. So it’s really a no brainer and it’s why we have so many investors are
taking advantage of it.
If you have more questions about whether or not to invest in our market because you’re
thinking it may be going down a little bit still. And what your cashflow’s going to
be on investments, where you should invest and so on. Please give me a call. You can
find me on my website DaleSnyder.net D-A-L-E-S-N-Y-D-E-R dot net.
Thank you so much for your time. Have a fantastic day.