Time to Sell??

   There are two main questions to answer when selling an investment property.  The first is “What is the state of the current real estate market?”. The second is “What are my investment objectives in real estate and how have they changed over time?”. For most investors real estate is initially used to build and create wealth. Later in life this shifts to preserving wealth and estate planning. Let us examine these two questions.
   What is the state of the current   investment real estate market in Reno Nevada today? The elephant in the room is Covid 19.  Although not enough time has passed to see the final outcome and all the effects to our market, so far some interesting things have happened. Uncertainty has caused sellers to sit on the sidelines causing inventory to go down. Cash buyers have not stopped looking and interest rates have seen historic lows. Low inventory, cash buyers and low interest rates have pushed prices up despite the uncertainties surrounding Covid 19. This price increase makes it a good time to sell investment real estate in Reno.
   The second question, “What are my investment objectives in owning real estate?”, is a personal question that only you can answer. Cashing out or reinvesting in another property may further your personal goals more than you had imagined. Let’s look at the challenge of what might better fit your current goals than owning your  existing property.
   By selling you could take the cash and spend it on fine wine and a trip to Europe. Most investors I know are methodical and conservative with money so the option of cashing out and going on a spending spree might not fit. Instead, we could invest in a property that has a good cash flow but no management or maintenance headaches. This could be a long-term triple net lease where the tenant is paying for all the taxes, utilities and maintenance. There are other investment vehicles such as ground leases,   Delaware Statutory Trusts and others that may fit that we could discuss further. A very viable option for some investors is to give their investment property away to a charity in a manner that sets up income for life for their spouse and themselves while also benefiting the charity of their choice.
   The market is right to sell, the questions becomes if you sell, how can you better your personal position?  Give me a call to discuss options for a better future.