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Investor and Builders/Developers

Our agents work with real estate investors who purchase or develop single family residential dwellings, multi-family residential dwellings, commercial and office space, and all other type of real estate projects. If you are an individual investor, our job is to identify and analyze the risk that is involved in your real estate purchase. You will then have to decide how much risk you are willing to take. Real Estate is one of the best long term investments you can make. The Real Estate cycle is commonly described as a “buyer’s market” or a “seller’s market.” The buyer’s market indicates a surplus of supply and a downward price trend, favoring the purchaser. In a seller’s market, the supply is short and demand is high (prices are forced upward by the competitive market situation).

To satisfy demand, supply is created with the introduction of new construction and conversions. This supply eventually levels off the market cycle. This leveling is temporary. At the point where the cycle reaches its peak (most recently in early 2006), the market cycle begins to fall and will fall until demand exceeds supply.

“Fix and Flip” is a common term used in the market by investors. This option may be available, though you may want to consider buying for the longer term and planning to own for at least 5 years (or to ride the current cycle out). Keep in mind that “ideal” real estate is:

Income producing
Equity Building
Leveraging

If you were to purchase a property to hold and rent you can produce income in the rents that you receive. The cash flow could be positive, neutral or negative.

You will have greater tax flexibility because you will be able to take a depreciation allowance on the improvement (i.e. house, building) itself. You can also deduct the operating costs from the gross income collected.

You will build equity in the property as you pay off your mortgage (if any) with the rental income produced. That equity can be utilized for many purposes (see leveraging below).

You will gain value over the long-run. Despite the localized market cycles, the overall national market has always appreciated and at greater percentages than most investment vehicles.

Leveraging is when you assume greater risk, with the potential for greater reward. (leverage: investing with borrowed money as a way to amplify gains) Potentially, you can buy multiple investment properties using no “out of pocket” money. Let’s say you buy 123 Main Street, in Anytown, USA and rent it, using the rent to pay the mortgage. You will build equity (the difference between the value and your mortgage debt). You can then take out your equity (TAX FREE!) and use it as a down payment on another property and you can continue to do this until you own an unlimited number of properties.

Here is another example. You have an investment property worth $300,000 and you owe $200,000, thus having $100,000 of equity. Your return on this property at this point is $5,000 per year. Now let’s say you take out that $100,000 equity and buy 10 more properties (each producing $5,000 in profit) putting down $10,000 on each property. Your return is now $55,000 per year, instead of $5000/year and you didn’t have to spend too much of your own money.

There are many advantages to owning investment properties. However there are some disadvantages. Becoming a landlord is time consuming and sometimes challenging. Higgins & Welch can help you find and purchase your investment property and manage it for you as well!

Call 215-247-5000, 610-331-7655 or email ewelch@welchgroup.net to begin discussing investing in Real Estate and how you can start today.

Builders/Developers

Higgins & Welch can work with you in building and executing your marketing plan — managing the entire campaign, or just working with you where needed. We are experienced in various types of real estate development ranging from custom built single family dwellings to entire affordable housing communities and mixed use developments. We can provide sales and marketing support, market studies, competitive market analysis, architectural design assistance, advertising, marketing and market positioning.All markets are challenging and competitive and as a builder/developer it is imperative that you focus on what you do best and leave the rest to the experienced agents, consultants and staff of Higgins & Welch. It all starts with offering the right product on the right land. Let us work for you to maximize your profits. We will give you the opportunity to buy more land, provide you with the counsel to make a confident and informed decision on development, effectively negotiate on your behalf, walk you through the due diligence period, properly price and successfully market your product.

We will accomplish this through utilizing our vast experience, resources and contacts, research and analysis of market factors, determining an appropriate price point, marketing your property, managing the process for you, making your life easier and impacting your bottom line.

Call today to start a new project or to have a confidential conversation about a current or proposed project.

Call 215-247-5000 or email sales@welchgroup.net to begin discussing investing in Real Estate and how you can start today.

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