As 2014 nears two months old, real estate investors are flocking to the commercial real estate industry looking for that next investment that could make them millions. Josh Anderson did just that three years ago just outside of Las Vegas, by purchasing 36 distressed properties for approximately $90,000. Nearly three years has passed since that investment in real estate was completed, and it looks like Anderson will now be enjoying a return on investment beyond what he initially imagined.
On one of the 36 lots this real estate investor purchased became the spot for the New American Home, a model home that features the newest designs and trends. It is set to be unveiled shortly at the International Builders' Show, in which over 80,000 members should be arriving to this upcoming week. With a little over 6,700 square feet, this new investment property is set to be listed at a whooping $5 Million. The other lots that Anderson purchased are looking to sell for anywhere from $200,000 to a staggering $1 million a piece.
The economy has picked up in the previous year and a half, bringing the real estate market up with it as well. When purchasing properties that were "distressed" back during the recession period, most investors deemed this too risky. Commercial real estate investment is no different as the ultimate goal in every purchase is to develop and maintain a R.O.I. that will continue to produce income for years to come. In the case of Mr. Anderson, area and location were the main factors.
The lots that he purchased were carved in to the side of the Nevada mountains with a nice view of the desert and the strip for ideal location. During the recession time though, Las Vegas saw properties drop nearly 60% after hitting their peak in April of 2006 and dropping down to their lowest level in December of 2011. With a high end market of only 343 properties, these 36 new luxury properties will be purchased relatively quickly as the economy for the Vegas area begins to spring forward.
Like any good real estate investment, it is smart to purchase low and sell high. For obvious reasons this does not always hold true. Whether looking at office space, commercial properties, investment buildings or even new health care stand alone properties, location, price and overall value will produce the highest R.O.I. on any investment. The market is moving forward rapidly, and investing now in the Monroe real estate market can produce a nice income potential as the economy follows suit with the real estate prices.
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