[airics]

heres my take on the housing market... some say they go up, some say they go down.. so i will put this in perspective.... on monday all the homes in vegas go up 2% on wednesday they go down 3% on friday they go up 1% .... no action on wkends.. at this point, i don't even think i care anymore since nobody seems to know anything.. however, if anyone has a crystal ball for sale let me know....

[Kaiminani]

Originally Posted by fishordie

Of particular interest was the responder who Looked up this prognosticator on line and noted his has been predicting an upturn in Vegas since 2007.

Lol. Straight from the broken-watch-is-right-twice-a-day department.

[007 license to sell]

Originally Posted by fishordie

Yo 007,

Thank you for posting this. My responses are already noted in the responses by readers section to be found under the column. Of particular interest was the responder who Looked up this prognosticator on line and noted his has been predicting an upturn in Vegas since 2007. Another insider without credibility. As I continue to note, educate yourself and do not listen to those industry experts spouting so called facts and figures. As a note, the writer gave absolutely no reasons for his logic thus making his statements just opinions which as we all know opinions are like rear ends. We all have one but most of them smell.

FOD

I don't like to put a comment along with the article at first, I like to see what different reactions are. Being in the trenches, I don't see it happening because there are to many variables right now with the economy so fragile all over the world and since Vegas relies so heavily on Tourism anything can cause intstant changes as airics said. Granted there has been a ton of investors purchasing last year, but when will those buyers start to decrease and or go away?

Locals aren't buying their saving their money, they don't know when they be next to be laid off. And since we have a 13.1% unemployment that takes allot of local buyers off the market. It's going to be a interesting year that's for sure.

I wish I had a crystal ball as well just like everyone else.

[UrsusMinor]

Originally Posted by fishordie

I do not wish to say exactly where the majority of my present investment monies are going to as I am still buying but I will say it is in Southern California, from 3 - 7 miles inland from the Coast, in a very moderate climate, with a mix of ethnicities and neighborhoods.

For me, the only problem with buying in California (where I live) is that I'd like to shield my investment in an LLC, and it costs a minimum of $800 a year to run one in this state. With the kind of money I have to invest (ie not all that much), an extra $800 a year can kill the economics.

I do own one house down in an upscale neighborhood in San Diego, which I picked up as a home in 1995, when the market was way down. We paid $180 K, and it is now worth about $500 K. So it was a good investment overall, but it still rents for peanuts. And we're living in another house in Orange County which is still worth about 25% more than we paid for it. So I can't really complain, but most of the deals I see in SoCal these days require far too much cash and offer too little in return.

But it sounds like you have some real savvy in this area. If you ever want to share your secrets, I'll be the first to buy the book!

[fishordie]

Originally Posted by UrsusMinor

For me, the only problem with buying in California (where I live) is that I'd like to shield my investment in an LLC, and it costs a minimum of $800 a year to run one in this state. With the kind of money I have to invest (ie not all that much), an extra $800 a year can kill the economics.

I do own one house down in an upscale neighborhood in San Diego, which I picked up as a home in 1995, when the market was way down. We paid $180 K, and it is now worth about $500 K. So it was a good investment overall, but it still rents for peanuts. And we're living in another house in Orange County which is still worth about 25% more than we paid for it. So I can't really complain, but most of the deals I see in SoCal these days require far too much cash and offer too little in return.

But it sounds like you have some real savvy in this area. If you ever want to share your secrets, I'll be the first to buy the book!

I will tell you the places I am buying are only 30 - 40 miles from San Diego however I have to ask why the LLC??? Who is going to sue you either as a manager or an owner??? If you get a loan it is secured by the property. I can only assume you are worried about your tenants suing you and thus in an LLC they cannot come after your personal assets other than those in the LLC. Now in that case they can still go after the property which if it has value you would be carrying a significant amount of insurance to cover these accidents. If that is the case I guess I understand. I carry a large insurance umbrella on all my properties so I feel pretty well guarded. Even with an LLC you would want to be covered.
However, and I am not an atty., if you are acting like an alter ego in the LLC it is possible to be sued individually. That is worth checking with a knowledgeable lawyer. I just happened to be finishing a case where the LLC looks like it is about to be breached and the individual could be liable for his misdeeds performed as the sole manager in his LLC.

Anyway, best of luck in your purchasing but there are some fantastic deals out there if you are patient and know where to look.

FOD

[Kaiminani]

Originally Posted by UrsusMinor

For me, the only problem with buying in California (where I live) is that I'd like to shield my investment in an LLC, and it costs a minimum of $800 a year to run one in this state!

Are you sure that the LLC needs to be registered in California? I've read plenty of discussions about using a new mexico LLC to hold property (real estate and otherwise) in all 50 states. Check out Invisible Privacy | Online Privacy

[UrsusMinor]

The reason for the LLC is that this is about the only way the IRS will let you put IRA money into real estate.

The rental we own in San Diego is held in our names rather than an LLC. But I want to put my IRA money into property, and the lawyers tell me that an LLC is just about the only way to do that. (You can also form a formal C corporation, etc., but all of the other options are even more cumbersome.)

As to an out-of-state LLC owning property in California--yes, you can do it. But that LLC has to pay an annual minimum tax of $800 to the State of California for doing business in California, even if it is incorporated elsewhere. (This has been through many court tests now. The courst have decided that California can't force businesses to incorporate there to do business there, but that they can apply any kind of tax system they want to to businesses operating in the state, so long as they are applied uniformly.) Crazy? Yes. And it's driving California investment money (including mine) to neighboring states.

You can own an LLC in, say, Nevada and invest in Arizona, or vice-versa. But California is, well, special. And not in a good way.

[fishordie]

Originally Posted by UrsusMinor

The reason for the LLC is that this is about the only way the IRS will let you put IRA money into real estate.

The rental we own in San Diego is held in our names rather than an LLC. But I want to put my IRA money into property, and the lawyers tell me that an LLC is just about the only way to do that. (You can also form a formal C corporation, etc., but all of the other options are even more cumbersome.)

As to an out-of-state LLC owning property in California--yes, you can do it. But that LLC has to pay an annual minimum tax of $800 to the State of California for doing business in California, even if it is incorporated elsewhere. (This has been through many court tests now. The courst have decided that California can't force businesses to incorporate there to do business there, but that they can apply any kind of tax system they want to to businesses operating in the state, so long as they are applied uniformly.) Crazy? Yes. And it's driving California investment money (including mine) to neighboring states.

You can own an LLC in, say, Nevada and invest in Arizona, or vice-versa. But California is, well, special. And not in a good way.

Okay, Now I really love this site. I did not know you could use an LLC rather than an actuary to handle this type of IRA or retirement plan purchase of real estate. Very good to know and I will find out more as I plan on doing just that so I will no longer need to have my actuary to act as an intermediary for that type of investment. Thank you for the info.

FOD

[jpk]

Las Vegas home prices, sales slip in January - Tuesday, Feb. 9, 2010 | 9:48 a.m. - Las Vegas Sun

http://www.lvrj.com/news/breaking_ne...-83909757.html

[tony soprano]

Originally Posted by jpk

Las Vegas home prices, sales slip in January - Tuesday, Feb. 9, 2010 | 9:48 a.m. - Las Vegas Sun

Las Vegas home sales up 17 percent from last year - Breaking News - ReviewJournal.com

Something's got to give.