There is now an opportunity to reach out to buyers anywhere in the world.  Our community borders have just opened.  Carmel and Fishers properties can be presented to qualified buyers through personal introduction in most places around the globe.  I utilize a new, structured real estate international marketing system linking the power and efficiency of worldwide professional agents who specialize in their respective areas to promote a property from our area.

The core of the concept is that your local professional has a common goal and business agreement with like-minded, United States and International agents to sell a Carmel or Fishers property.  This group of real estate agents is committed to introduce a Carmel property to their best clients.  There are more opportunities to sell a local property through a process that provides a personal introduction from a trusted advisor. 

We are able to package the city of Carmel along with the property showing our new cultural opportunities here such as the Performing Arts Center and Arts & Design District to promote the city along with the property.  There are not many places around that offer the quality of life at such a low price.  We have an incredibly inexpensive cost of living and unbelievably low property values compared to many other states and countries.   

One recent investor client from the Far East described to me that land values in her country as ten times higher than ours.  These, and many other investors are looking to purchase here for a great value.  A powerful package of the city along with the impact of relatively low property cost through a quality personal invitation opens more buyers to sell a luxury home, residential investment, or commercial property.  The process of linking outside buyers with local sellers generates increased activity in pockets where the market is soft.  More buyers is exactly what the sellers tell us we need right now.  This international system stimulates buyer activity and sales.

The recent trend of tight credit has presented opportunities for good real estate investments.  Fewer investment property buyers with less competition increases pressure on those who need to sell.  One of two ways to look at investment real estate is how much will it pay you on a monthly basis compared to your monthly expense of holding the property.  If a fixed loan requires an outlay of $1500 per month and you bring in $2000 per month in rent, you are well on your way to making a continuous solid profit.  The renter pays the full loan payment and provides some extra cash while you are building equity and depreciating the asset. 

A second way of profiting in real estate is by purchasing a property and speculating on a dramatic increase in value due to an unusually discounted price or future changes that will benefit the property.  One example of this is the HWY 31 Major Moves expansion project.  Some of the property near interchanges zoned for residential property or agriculture will undoubtedly be utilized and rezoned for commercial use due to the proximity and access to the highway.  Commercial zoning will drive a higher selling price.  Another example of improved value in Carmel would be properties near the incredible Monon Center, also known as Central Park.  With the ponds, indoor/outdoor pools, workout center, Skateboard Park, and many community events, this is an unbelievable asset that people would prefer to live by.  Higher demand in this case has improved selling prices since the announcement of the 2007 facility.

The key to a successful real estate investment is finding a good property candidate (or finding someone who can) and calculating to the best of your ability how you will profit from the risk that you are taking.  If the upside provides immediate cash flow or good potential future value, real estate can be the best investment available.  If you find a property with both, do yourself a favor and jump on it before someone else does.

Type:  Traditional       

Age:   Built in 1995

Location:   Near 146^th Street and Hazel Dell Parkway

Neighborhood:   Ashmore Trace is a peaceful east Carmel community with nearby parks and walking trails.  It is conveniently located across the street from a new shopping center.

Square footage:  2556

Rooms:   This four bedroom two-and-a-half bath home offers an open kitchen and family room combination, living room, formal dining room, and laundry room.  An oversize master suite has vaulted ceilings and a huge private bath with a walk-in closet, dual sinks, and separate tub and shower. The two-story entry and 9 foot ceilings give this home an open and airy feel. 

Strengths:  This home has been recently updated with stainless appliances, new flooring, modern lighting and fixtures, and fresh paint. Exterior updates include a custom built deck with fire pit and a raised garden.  The large backyard backs to trees and an adjacent field for added privacy.

Challenges:  There are currently 91 properties on the market in Carmel that are listed between $200,000-250,000.

WHAT’S IT WORTH?  $225,000

Start early and pay for your child’s education with one rental property.

College Tuition = One Rental Property.

These past couple of months, the prospects of becoming a landlord have become brighter for those of us in Carmel and Fishers.  Mortgage companies have tightened their belts on approving loans for those with credit issues that were approved in the last few years.  The buyer’s monthly income may be high enough to purchase, but a blemish on a credit report may result in a denial from the bank.  Instead of purchasing a home, these people in the market will likely turn to renting a property.  There is a demand for suitable housing for those affected by the recent changes.  You can help rent to these people and at the same time pay for your children’s college education.

Today, $15,000 is the typical annual cost for an Indiana resident to attend a public university.  This cost includes in-state tuition, books, room and board.  Recent trends show that it takes most students five years to graduate.  Here are the minimum costs of college education assuming a five year graduation estimating a 5% college cost increase per year.

Now                        5 years                   10 years                 15 years

$75,000                 $95,721                 $122,167               $155,920

Equity created from purchasing a single family rental investment at $160,000 with 20% down payment and a 15 year loan (assumed 7% annual loan rate).

Now                        5 years                   10 years                 15 years

*$32,000               $61,486                 $102,234               $160,000

**$32,000            $86,970                 $185,484               $249,274              

*Assuming no increase in property value.

**Assuming 3% annual appreciation                            

Compare the same investment in the stock market with a 10% annual return.

Now                        5 years                   10 years                 15 years

$32,000                 $51,536                 $83,000                 $133,672

Even in the unlikely event of no appreciation over 15 years, the real estate investment has advantages over a stock market investment.

Why do it?

• Paying for college out of ordinary income results in 25% to 40% tax on that future increased amount.
• Kids working full time at school will extend time to graduate and may increase probability of dropping out.
• Student loans supply the college graduate with a diploma and years of post graduation debt.
• You are in control.  Buy a rental property and pay tuition with the debt free property. It is your home at the end of the day so if your child decides not to attend the university, you increase your income in retirement.