3 Reasons Real Estate is a Better Investment than Stocks

In the current economic climate, most people are struggling with where to put their money that will give them a decent rate of return and prepare themselves for retirement. Most IRA's and 401K's took a beating in the crash of 2008 and have yet to return fully to their levels of 4 years ago. Compounding this problem and making retirement a bleak prospect for many, the Dow Jones is no higher than it was 12 years ago. This means that if your 401K or IRA has matched the performance of the Dow, your retirement account is worth no more than it was over a decade ago. There's no question that real estate was severely impacted by the recession of 2008 also, but I'm going to share 3 reasons why I think real estate is a better investment in the long haul.

1. Better Return on Investment

The chart to the left shows how stocks have performed compared to real estate since 2000. With a 43% return rate, real estate has clearly outperformed all 3 major stock indexes

2. Cash flow

Real estate returns are made up of both equity appreciation and cash flow from rental income. Unlike stocks, real estate still produces returns through rental income even if there is a devaluation of the asset.

3. Leverage. By financing real estate, an investor can achieve high rates of return on a small amount of their own money. For example, a $50,000 investment in stock with a 5% annual rate of return will generate a gain of $13,814 over 5 years. An investment property acquired for $50,000 that appreciates 5% will generate the same $13,814 gain, however since the real estate was acquired with financing and a $10,000 down payment, the cash on cash return over 5 years is a whopping $138% and that doesn't even include the rental income generated during that time.

Most financial managers and fund managers recommend stocks because it's what they know and what they get paid on. If you're not satisfied with the performance of your retirement fund and want to explore the world of real estate, check out our website to see how you can get started,

How to Invest in Cash-flow Properties

Let Someone Else Fund Your Retirement Account

That's exactly what you're doing if you hold cash-flowing real estate in a self directed IRA. All the rental income goes straight in to your IRA so your renters are funding your retirement account--Not YOU!

 

Many people don't know they can invest in real estate through their IRA, but it is nothing new. The IRS has allowed it since IRA's were created in 1975. Wall Street just doesn't want you to know it since they would rather sell you equities.

 

The Dow Jones is no higher today than it was 12 years ago which means that if your retirement account has kept pace with the Dow, you're no further along today than you were a decade ago! At that rate, will you be able to retire when you want or will you be like the 54% who have to rely on social security and family to make ends meet?

 

 3 Advantages of Owning Real Estate in your IRA:

 

1) Outperforms the Stock Market

 Rental property will easily produce a 12-14% ROI. The Dow Jones has grown only 1.8% per year for 10 years.

 

2) Tax Benefit

All income and appreciation on real estate held in your IRA is tax deferred. Just like any other traditional investments in your IRA, the profits from your real estate holdings will be tax deferred.

 

3) Inflation Hedge

The problem with most traditional investments such as savings, CD's, stocks and mutual funds is that they are not even keeping pace with inflation. The 2012 inflation rate is running at 2.2%. As seen above, the Dow is returning only 1.8% and the S&P is only averaging a measly .43% over the last 10 years while inflation has averaged 2.4% in the last 10 years. Clearly, if your retirement account is not significantly outperforming the financial markets, your futture retirement is being eaten up by inflation. With 12-14% returns on real estate, you will far outperform inflation.

 

It doesn't take a lot to invest in real estate.

If you have just $15,000 in your IRA, you can own income producing real estate that will give you a 14%-16% return.

 

See how you can accelerate the growth of your retirement account.

Download "8 Best Kept Secrets About Investing With Your IRA" from our friends at UDirect IRA Services and learn how you can take control of your IRA today.
 

Click here for your FREE REPORT

To see available propeerties, click here SEE PROPERTIES

Beautiful 8 Unit Indianapolis Apartment

Located across the street from the historic Garfield Park

This beautiful, brick apartment has been meticulously renovated, preserving it's historic art deco style. Large 1 bedroom/1bath each unit. All 8 bathrooms have been upgraded with ceramic tile. new tubs/showers/vanity and toilets. All windows have brand new storm windows. Each unit rents for $500. Total cash flow after all expenses is about $2100 per month. Currently under professional property management.

2525 Shelby St, Indianapolis
Asking Price              $220,000
Total rent                   $4000/mth
Operating expenses   $1492
Cash flow                  $2108              
Cash-on Cash            11.5%                                

For a pro form P&L, Click Here 

E mail me for more information at m.darrigo@sbcglobal.net







                                                                                                 

Prices Slashed on 10 Turn-key Properties!

This is a chance to pick up a great cash-flowing rental property at a great price. We've slashed the price on 10 properties and priced them to sell quickly. All are located in good Indianapolis neighborhoods and are fully renovated and most are priced under $45,000.
 
 Here's just one of these great deals.

Over $500 per month Cash-flow and nearly 15% ROI!

3536 Payton Avenue, Indianapolis
4Br 1Ba
Rented for $799
Cash-flow  $552
ROI  14.8% 

Financing available

To See More Deals, CLICK HERE

Indianapolis rent is on the rise

Source: Trulia

According to data released by Trulia last month, housing prices increased only slightly nationwide in the last 3 months, however, rents have increased an average of 5.6%. 6 of the top 10 markets had increases of over 10%. Indianapolis ranked 5th in the nation with an increase of 11.1%. Trulia attributes the rising rents in these markets to increased employment and rising housing prices.

With rents on the rise, now is a great time to buy rental property in Indianapolis.

Click Here to check out some of the turn-key, cash-flowing properties we have to offer in Indianapolis.. E mail me at m.darrigo@sbcglobal.net.

This turn-key duplex is a real cash-cow

                       20% ROI!

Check out the cash-flow on this fully rehabbed duplex. Fully rented and cash-flowing over $800/mth! Needs nothing--you'll be cashing those rent checks the first month. Our duplexes don't last long so if you like what you see, don't wait or it will be gone.Check out the kitchen on this one.

For more details and pictures, Click Here

1630-1632 Tabor St, Indianapolis
       Asking price   $47,000

                                                                                                   

Indianapolis Rated the Best Market for Real Estate Investment

Inman News examined the demographic and economic data for hundreds of metropolitan areas in the U.S. to determine the best markets for real estate investment. After narrowing it down to the top 10, guess which one came out on top? Read the article to find out.

http://www.inman.com/reports/10-markets-invest/index.html

To see available turn-properties in the best U.S. real estate investment market
Click Here

Get over $800 per month Cash-flow!

Don't miss out on this one. This Indianapolis duplex is in a great rental area and will produce over $800 per month cash-flow. Needs a small amount of work but we'll have it rehabbed and ready for your tenant within 3 weeks of closing.       

Asking only $33,600 (includes rehab)

Will rent for $1200

Estimated Cash-flow of $808 per month



For more details,  Click Here           
                                                                              

Indianapolis Out-performs the Nation Again

According to Standard and Poors/Case Shiller Home Price Indices report just released, the housing market is continuing to struggle (No surprise there). The 20 city composite index had a 3.5% decline over last February with home prices now at their 2002 levels.  Indianapolis continues to buck the trend however. Indy’s medium home prices were up 5.8% over February 2011. That outpaces any of the 20 cities in the composite index. Phoenix was next at 3.3% above last year.  Atlanta posted the worst numbers—down 17.3%. This was a new low for Atlanta and was the 5th consecutive month of double digit declines for the market.

With numbers like these,  is it any wonder that this born and bred Californian likes the Indianapolis market so much for real estate investment?

To learn more about how you can capitalize on this great opportunity, visit my website at: InvestInIndy

Grab This Cash-cow Before it's Gone

We're having an investor tour next week and this will be the featured home. This is a nice 4Br 1.5Ba in a great neighborhood. It's currently rented for $799 and cash-flowing $550 a month. This one will probably be gone after next week so grab it while it's available.

Asking Price: $45,000

Rented for $799

Netting $552 per month cash-flow

15% ROI
                                                                                    3536 Payton Ave, Indianapolis
                                                                                    Located in Warren township
For more pictures and details, Click Here

For more great deals, go to:
 www.bestindianapolisrealestate.com

Another strong month for Indianapolis home sales

Indianapolis home sales in Marion County remained strong in February, continuing a 3 month trend of year-on-year improvement. February closed sales were up a very healthy 18%. 623 homes were sold this year vs. 523 last year.  Median price was also up 5.8% over last year, while inventory continued to decline.

Pending sales (homes in contract but not closed yet) were even more dramatic. Pending sales are up 19.7%. Strong pending sales in February translates in to strong closed sales in March.

Click on the table to enlarge

Watch for continued good numbers this month!

Warren Buffet Says It's Time to Buy Real Estate

Warren Buffett appeared live on CNBC’s Squawk Box recently and was asked about the current real estate market and whether he felt now was the time to buy. Here's what he had to say:

“If I had a way of buying a couple hundred thousand single-family homes I would load up on them.”

Most of us are like poor Warren Buffet and don't have a way of buying a couple hundred thousand single family homes, but with the great deals and low prices in Indianapolis, we can buy one or two. Check out this one for just $46,000. But hurry before Warren Buffet snatches it up! I think I hear him calling now.

3Br 1.5Ba
Currently rented for $765
Cash-flow $443
ROI   12%

For more details, Click Here

Contact me today before I call Warren back.!              
m.darrigo@sbcglobal.net




 

This Weeks Best of the Best

Get over $500 cash-flow from day one!

Asking price: $46,500

Rented for $850

Netting $520 per month cash flow

13% ROI

Tenant on 1 year lease
2102 N. Medford , Indianapolis
Located in Wayne township
                                                                                      

Renovation includes:

New Pex plumbing, new electrical & electrical panel, new gas furnace, new electric water heater, new double hung vinyl windows, new exterior doors & door hardware, new overhead garage door, new flooring throughout, all new outlets and all new light fixtures and more!

Also comes with matching new stove and refrigerator.

Click here to See More Pictures

To see more properties, click here Show Me More Deals

Strong Indy homes sales in January

How often do we see news like that lately? Not very often, but the Indianapolis market is showing definite signs of a very strong recovery. January showed improvement in all categories of measurement.


Source: Metropolitan Indianapolis Board of Realtors (MIBOR)

Most dramatically, closed sales were up a whopping 38.5% January 2012 over 2011. Last January, 455 homes were sold compared to 630 this January. Pending sales (homes in contract but not closed yet) were also very strong—up 18.3% which bodes well for a strong February.

The median price of a home was up 3.2% from $87,900 to $90,750 and for the 3 month period from December 2011 through December 2012, median prices are up 6.7% from the same 3 month period the previous year.

Perhaps the most dramatic and significant sign of recovery, is the number of months supply of inventory on the market. This is a measurement of how many months it will take to sell the current inventory at the current sales rate. Number of months on market dropped to its lowest level in at least 3 years at 7.6 months. This is a very good sign that supply and demand is nearing market equilbrium.

Now is a great time to invest in Indianapolis real estate. See what the Indy market has to offer.
Learn More About Indy

Why does a born and bred Californian like Indianapolis for real estate investment?

That’s the question that I am always asked. After all, aren’t we supposed to invest in our own backyards?

My answer is very simple—Cash flow and ROI.

Indy is consistently ranked one of the most affordable real estate markets in the U.S. You can buy 2 or 3 properties in Indianapolis for what you’d  pay for just 1 property in the most affordable California market. And that means higher ROI’s. ROI’s of 12-14% are very typical and can be much higher depending on the area of town.

Plus, the cash flow is great-- ranging between $400-$500 per month on single family homes-- after ALL expenses.

But Indianapolis offers more than just high returns. It’s also one of the safest markets for investment. In fact, Local Market Monitor, Inc. rates Indy as one of the top 3 safest markets for real estate investors according to the Wall Street Journal. Read the article here:

http://online.wsj.com/article/SB10001424052748703791804575439871207245044.html

So with  numbers like these, it’s clear why this Californian loves Indianapolis. I’ll still take our weather though!