real estate investment

Investing in Real Estate with ICG Means Amazing Service – But What Will It Cost You?

 
So, here’s a question I get asked often by investors, after I’ve explained the advantages of working with ICG: what will it cost me? When I explain how, in most cases, it’s going to cost them nothing, the next question is something like – what’s the catch? Or, then how does ICG make its money? These are legitimate questions, because we all know, there’s no such thing as a free lunch. The answer is, yes, ICG does get paid. However, it isn’t you, dear investor, that pays us.

The ICG Real Estate Advantage.

When you work with us at ICG, you are introduced to a whole network of builders, realtors, property managers and even financers. You are given a variety of options and there is always someone there to show you the ropes. I have worked long and hard to simplify the process of real estate investing for my clients, and it works – whether an investor wants to buy one or one hundred homes!
It’s a self-sustaining system, as I explain in this short video. There are a lot of people that are beholden to ICG for bringing buyers and customers their way. It is these people who share their commission with us: realtors, property management teams and so on. However, there are times when buyers have to pay a small amount – as in the case of the Raleigh-Durham area. Here, commissions are really low right now and buyers are having to make up the difference in terms of the brokerage.

Can you afford not to have the ICG advantage?

I think of my own property portfolio as the best advertisement for ICG Real Estate. People see how well I have secured my own financial future and they want ICG to do that for them! We deal in volumes – while the amounts that we make from our various business partners may not be large amounts, it all adds up to a lot.
So really the question you should be asking is not, can I afford to work with ICG, but can I afford to not work with ICG? Check out this episode to know what it’s all about, and check out ICG Events to find out about exciting real estate investment opportunities that you cannot afford to miss.

Investing In Real Estate in San Francisco? Why You Should Avoid This Mistake

 
San Francisco is a great place to live in as most people living here will tell you. But it is not a good place to invest in real estate! It never has been, as I explain categorically to people who come to me for advice. In fact in this short episode I explain why it has never really been a good real estate investment destination, for several reasons.

Think about rental incomes relative to property value.

Property prices in the SF area have appreciated over the decades. However, this is not the only criterion for wise real estate investments. Rental income is an important factor as well. Now it is true that rents are fairly high in San Francisco if we speak in absolute terms. However, the rent is not high relative to the value of the property here. (In this short video I explain and illustrate with some numbers. In order for your real estate investment to make sense, your rental income has to be commensurate with the value of the property you buy. Otherwise it doesn’t make sense for you as an investor.

Keep local laws in mind.

Another thing to keep in mind is state laws and rental regulations. California laws tend to be fairly anti-landlord. In my experience, a recalcitrant tenant who doesn’t pay and also refuses to vacate can turn into a very big headache for a long time. This is another reason it doesn’t make sense to invest in real estate in San Francisco. In this regard, the Sun Belt states are a lot more investment friendly.
In this short video I explain how one of our investors recently closed a very favorable property deal. You too can learn how to make savvy real estate investments to secure your financial future! Check out upcoming events to learn more about creating retirement riches for you and your family.

This One Investment Remains Safe Even During a Recession

Recessions are terrible for property owners, right? This is when people go out of business or lose their jobs, stock markets crash and property prices plummet! The media would have us believe that there is only doom and gloom everywhere. However there is a silver lining to this situation as well, as I have found over the decades of personally investing in real estate and helping thousands of others do the same. So here’s how I answer when they ask me, what do I do if there is a recession?

The seen and unseen impacts of recession.

Let’s talk about the terrible recession of 2008 which went on for a few years. Just previous to that recession, there had been a couple of years of boom time. This was when property prices had appreciated significantly. So in the years from say 2004 to about 2006 or so, property values in areas such as Phoenix were nearly doubling in just two to three years! During recession, however, those valuations were seen to plummet. So those were the seen and distressing aspects of recession. (Check out this short episode where I crunch some numbers and explain what I mean).
However, recession is also the time when property rentals go up. This is a time when people are unsure about their jobs and future earnings. They don’t want to buy property and run the risk of being unable to pay for it. So they play it safe and opt to continue to rent. This is the hidden benefit of recession for property owners.

Why you must learn the art of doing nothing.

So as I always tell my clients, you have to learn to do that most difficult of things during the recession: do nothing! When valuations plummet, one can feel a lot of pressure to just sell and cut one’s losses. I have seen this in new investors, this tendency to panic-sell. If you ride out the recession, you will see the valuations of your homes going up again. 
I created a video to explain the importance of doing nothing. I also outline the basics to keep in mind about investing in real estate and why this is the one truly recession-proof investment you can make. Check out this short video now – it will be the best return you can get on a five-minute investment today!

Increase in Renters Seeking Single Family Homes vs. Apartments

In a blog on RentCafe, by Nadia Balint, from April 2018, this is some of the information shared:

“The U.S. housing market has gone through nothing short of a transformation in the last decade. The number of people renting their abode has increased significantly, in some cities surpassing the number of homeowners. The housing market quickly responded to this shift by adding millions of rental units in just a few years, with many U.S. cities witnessing a frenzy of apartment construction.

The most interesting part of this transformation, however, was the fact that the rental market expanded even faster horizontally than it did vertically. For the better part of the decade ending in 2016, single-family homes for rent were the fastest growing type of rental in the U.S., outpacing the formidable apartment boom seen throughout the country.

According to U.S. Census estimates, the number of single-family rentals (SFR) in the U.S. grew by 31% in the ten year period immediately following the housing crisis (2007 to 2016), while multifamily rentals (MFR) grew by 14%. In net numbers, single-family rentals in the U.S. increased by 3.6 million units in ten years, more than rental apartments, which increased by 3.2 million units. As of 2016, the U.S. Census counted a total of over 15 million single-family homes for rent in the United States and a total of over 26 million apartments for rent.”

Oklahoma City leads the 10 Top Metros with the largest share of Single Family Home Rentals:

his is very likely helped by the tendency of many Millennials to rent instead of buy. Millennials have not been valuing home ownership as much as previous generations. Many of them value flexibility and the ability to move. Nevertheless, many Millennials are getting into the family-formation phase of their lives, and thus prefer single-family homes with a yard for the kids, dog etc.

All this dovetails perfectly into our investment philosophy: buy single-family homes in good areas in good large metropolitan areas, finance them with 30-year fixed rate loans (which never keep up with inflation) whenever possible, and hold. That will vastly change and improve your financial future.

We will discuss this and a lot more at our ICG Quarterly 1-Day Expo on Saturday 5/19/2018 near the San Francisco Airport. I will be teaching and holding extensive Q & A sessions. We will have expert speakers on Asset Protection, 1031 Exchanges, and Financial Planning overall. There will be lenders present, 5-star networking, and presentations from market teams from the most relevant markets in the U.S. You can attend free, with a guest by emailing us at info@icgre.com, and mentioning this blog. Looking forward to seeing you!

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