It seems like only the ultra-rich can invest in property. In reality, that's not the case.
The good news is, if you want to start investing in Las Vegas real estate and expand your investment portfolio, there's nothing stopping you.
But how do you get started in the overwhelming world of real estate?
To learn the basics of how to invest in Las Vegas Real Estate and where to start, keep reading this guide!
Research Your Options
When it comes to real estate investing, you have more options than you think. You can even reap the benefits of real estate investing without owning property. Yes, you read that right.
Here are some of your other options:
- Non-ownership through crowdfunding or exchange-traded funds
- Private real estate investment funds if investing in commercial real estate
- Renting out real estate either traditionally or through AirBnB
- Real estate appreciation or flipping a property; buying it cheap and selling on an upswing
- Become a real estate broker
Knowing all of your options will help determine the best investment path for you and any partners. Also, consider how much you want to be involved with the property.
Talk to a Lawyer (and Other Professionals)
Before you jump into the world of real estate investing, talk to a lawyer and other professionals. Don't let the specifics of real estate investing scare you off from investing in property. Know that professional brokers and real estate lawyers will know more than you about all this; isn't that a good thing?
If you go the route of buying a property, know that if you buy it directly you will be held liable for any damages and issues with the property. This means your personal assets are at stake if a lawsuit is ever started.
To avoid this, most investors open up a limited liability company, aka an LLC. Of course, before making this decision, talk to a professional, as this will also affect your taxes.
Talking to a professional before you even buy a property will ensure that you get your legal barings. Missing a step now will mess up your investments in the future.
Take a Look at the Local Las Vegas Real Estate Market
Now that you have your legal assets aligned, it's time to look into the Vegas real estate scene. Here are some quick facts to know:
- The Las Vegas (Clark County) average effective property tax is .70%
- The national average effective property tax is 1.08%
- The average rent in Las Vegas is $1,196
- 45.75% of Vegas households are renter-occupied
These are good facts to know before getting into real estate investing, specifically Las Vegas real estate investing, for the first time. Key take-away: Las Vegas has a lot of renters and you could be the next to make money off of that fact.
Find a Property
Finding a property should be one of the fun parts of real estate investing, especially if you plan to flip the property.
As an investor, don't get attached to the property. You (most likely) will not be living here. Look at the property like any business person would. Look for good bones and features that will attract renters, or make for a great investment as the housing prices (hopefully) go up.
For more info on what to look for in an investment property, check out our previous blog post about that topic.
Investing in Las Vegas Real Estate: Property Managers
As a beginner, investing in real estate can seem overwhelming. The consequences, too, can be big if something goes astray.
For this reason, hiring a property manager might be the way to go. A property manager can help with accounting, rent collection, tenant screening, and property maintenance. The best part? You'll still get paid for your investment.
Are you ready to start investing in Las Vegas Real Estate? Then contact us at Avalon Realty and Oaktree Management. We will get you squared away so that you can start collecting your investment money without the stress.