The US real estate market behaves like a wave, with peaks and valleys shown throughout the history of the data given. Inflation, currency value instability, and market demands have caused every peak to be higher in home prices than the prior peak. Analyzing that history is the basis for the assumption that the fall that we experienced in Las Vegas in the years 2007 to 2009 will be followed by a peak higher in home prices than the 2006 peak. Since the year 1999 until the fall of 2007 house prices in the Las Vegas Area were on the rise, and the top homes priced at average of 100% more than the low point of the wave at 1996 to 1997, for each individual home. Given this information, most investors are invest in the real estate market at the end of the fall or the beginning of a new wave. JHE’s approach to the wave is to invest in the market immediately after the peak and wait for the next turn of the wave acquiring as many properties as possible. Using unique buying techniques that limit the risk, these transactions allow JHE to create a large portfolio of properties by the time market turns. This distinct strategy maximizes profits on investments.
With our unique approach, the property value at the time of the transaction is not a factor in the purchasing decision. What matters is the ability to hold the property for the duration of the wave, and surpass the fall with most properties on hand.
Finding the right property to invest in, and generating the right offer for each individual property owner to close a deal, involves a great deal of experience and comprehension. As a first step JHE will do market analysis for each potential property in order to constitute values, projections, and marketing needs, that will help in establishing budget and working capital.
We will analyze the property’s current value by:
1. Comparing it to similar properties currently on the market
2. Analyzing rental properties available in the region and rent income
3. Assessing the property’s special needs and rental demands
4. Projecting future value based on past value
5. Examining property condition in comparison to neighboring properties
6. Providing solutions to establish high profit cash flow for the given property
After running property options through this analytical screening, JHE is able to make accurate decisions of how to formulate deals, raising the security in the investments we make.