When investing in real estate anywhere, there are two important factors to consider before anything else:

1. Does your real estate agent have the knowledge in investing as well as the market knowledge of the are you are looking in? If your REALTOR® does not know the market, he or she can lead you to investments which may look good on the surface, but could cost you everything later. If they are not familiar with your investment goals, and investment property valuations, the outcome could be the same.
2. What economic engines drive the area? If you are not familiar with an area you are investing in real estate in, it is important to know what economic factors will sustain your investment and show a positive return on your money.

As a full time real estate broker and real estate investment analyst on the Mississippi Coast, it is my job – my duty, to maintain market knowledge, research new economic factors that could positively or negatively effect your investments, and discuss your investment strategy with you to determine exactly what your short and long term goals are. My clients have successfully seen positive returns on their investments, despite economic slow-downs, because I not only find great deals for them, but also because I help them see a larger picture of what is going on. I don’t always have the answers people want to hear, but I always speak my true opinions. I look at every deal as if it were my money on the line and never steer towards a property that I would not invest in myself.

Economic engines are important because regardless of what they are – this is what drives rentals and sales. If a new employer is coming to the area, and you know their workers’ estimated salary, it is feasible to buy properties that would fit in their rental needs or develop properties (build) to suit purchase needs. If a major employer is shutting down and 1000 jobs are to be lost, you know that you need to avoid properties that typically would cater to them.

South Mississippi has a variety of positive economic engines including gaming and tourism, ship building, government contracts, and two military bases on the coast (Navy CBC and Keesler AFB). The coast is also rich in the seafood industry, offers almost unsurpassed entertainment, and arts & culture.

South MS is an excellent place to feel comfortable with your real estate investing needs and despite economic slow downs in the rest of the country, the MS Coast saw relatively little impact compared to other major destinations. We have some of the most undervalued property in the country and as others are starting to become aware of this, values will continue to rise.

Contact me to discuss your real estate investment needs and let me help you build wealth through your real estate portfolio.

Knowing how to invest properly in real estate includes one important step that many investors forget – picking the right agent. Many investors choose properties to purchase based on what everyone else is doing or based on a sales flier they received from a listing agent telling them what a great deal it is, when both of these actions are the furthest away from what you want to do – unless you just like losing money.

The truth of the matter is, that many agents do not know how to properly valuate investment property or know how to analyze an investors individual needs. While I focus primarily on properties that will generate cash flow and the best potential for appreciation, I also realize that some investors are fine with an after tax cash flow if they can see a greater short term return on investment.

My investment strategy in my late 20’s was to look for things I could make a quick return on and get out of but as I got older I realized that longer term passive income was better for my overall strategy and I was fine with less appreciation potential as long as it could comfortably generate a revenue stream for me. In 10 years, I may have a different outlook. The point is, everyone’s goals are different and it is important to know what those goals are in the beginning and this is why I am a great choice as an investment REALTOR® on the Mississippi Coast. I work from Bay St Louis to Ocean Springs and can help you formulate a plan to maximize your goals.

Contact me and lets get started evaluating your needs so that I can assist you in meeting your real estate investing goals.

While Go Zone accelerated depreciation is a great reason to buy real estate investments on the Mississippi Gulf Coast, it is not the only on. While every home buyer and investors needs are different, the one thing everyone wants to see is appreciation in their investment. Looking for emerging real estate markets is one of the key factors for investors who want to see their real estate investments grow in value.

The Mississippi Gulf Coast is a truly under-valued area in terms of real estate in general. Part of this is due to other states’ overall view of Mississippi in general, but we all aren’t toothless slobs that can’t enunciate – just the ones they show on the 6 o’clock news. The rest of us are at home with our families or working

Whether you believe it or not, the Mississippi Coast is a true emerging real estate market and more investors are realizing that now. If you want to be an early mover, contact me and let’s analyze your investment strategy.

So What Makes the Mississippi Coast so Special?

The MS Coast has numerous economic engines which include:

1. Federal Dollars. Keesler Air Force Base (Biloxi), Naval Construction Battalion (Gulfport), Camp Shelby Army Base (Wiggins), Stennis Space Center (Hancock County) and the Coast Guard station (Gulfport) which are all within about 40 miles of each other. Keesler Air Force Base is home to the Cyber Command Training Center as well as the Hurricane Hunters. These bases keep a steady flow of military personnel moving in and out of the area which helps to balance the housing market even when national housing statistics are very gloom.
2. Local Economic Influences. Most strong real estate markets have at least one driving force to the economy – the MS Coast has many. Not only does south Mississippi have the military installations, but it also happens to be a major gaming destination. Billions of dollars have come to the Coast through the gaming industry. A “Vegas on the Beach” if you will, major casinos in Biloxi, Gulfport, and Bay St Louis, with more planned in other areas such as D’Iberville (a truly growing area) as well. Other economic engines include seafood, ship building, tourism (beaches, islands, fishing) and a growing container port. Gulfport is expanding its already large container port to be one of the largest in the country and will be state of the art (see Port of the Future – outside link opens in new window).
3. Prices. The Gulf Coast of Mississippi is one of the most undervalued areas in the country as far as what you get for the money and what its potential is. With the exception of a surge immediately after hurricane Katrina that had to balance itself out, homes have shown very steady appreciation historically. Currently, new homes can be bought in the $120k+ range but inside subdivisions, I recommend going a step above to the $130k-$140k range. The initial cash on cash looks less appealing, but these subdivisions usually offer a much better exit and less chance of “going downhill”. There are many very nice subdivisions that offer smaller homes in this range that would appeal to investors, but most agents do not show the potential. For those comfortable with buying older homes and doing some upgrades, it is very feasible to see positive cash flow and equity almost immediately in 10+ year old homes. Want to take the development route? There are an abundance of quality properties to start on.
4. Tax Incentives. Tax incentives are a great reason to look at an area, but there is so much more to it. Many investors who bought under the first part of the Go Zone got took in by unscrupulous builders and real estate agents that sold properties at above (in my opinion) market value in order to reap the rewards from those sales. Go Zone is an awesome incentive – when you are talking to someone who wants your repeat business in the future and not just a fly-by-night company looking to make a buck. If you are considering taking advantage of Go Zone, time is drawing near. Don’t wait until “later” because you may lose out on your ability. Pickings are slim and the best properties go to early movers. I can help you get great deals if you contact me in enough time. Don’t let Go Zone be your only reason for investing here though – there are so many good reasons.
5. Location. Location, Location, Location, right? The Biloxi/Gulfport/D’Iberville/Ocean Springs areas are located on the beautiful Gulf Coast. If I didn’t have you before, let me say it again – waterfront communities! Everyone loves being near the water. Well, maybe not everyone, but a LOT of people do. We also happen to be approximately an hour from New Orleans, LA and Mobile, AL. Both of these cities can be identified as emerging markets on their own, but the MS Coast is better than either due to federal spending, diversified local economy, gaming, tourism, and the in-progress port expansion.
6. Growth Potential. The MS Coast is comprised of several cities including Bay St Louis, Pass Christian, Diamondhead, Long Beach, Gulfport, Biloxi, D’Iberville, St Martin/Ocean Springs, and other smaller areas surrounding. In many cases, there is no clear definition between these cities other than the corporate lines that divide them. This makes for a huge growth potential in these areas producing one large city base rather than several smaller communities. There is also plenty of room for expansion in the northern parts of these counties which has already started due to lower insurance rates north of the Interstate, however, the bulk of the population is in areas south of the Interstate with the exception of North Gulfport and the outstandingly fast growth in the D’Iberville area.
7. Quality of Life. As a “military brat” myself, I have lived in numerous place. I was born in Biloxi and moved back in 1999 to help my grandmother, who’s health was diminishing. I have found no where else that I really could say that I loved as much as here. There is always something going on, the people are great, the dining is just as good as the people, and when you simply don’t know what else to do – a simple walk on the beach or day on the water will put your mind at ease and really help you appreciate life.

This is my home, one of the best emerging markets in the country, and I enjoy it daily. An investment on the MS Coast is a great one indeed, provided you are talking to the right person. I look forward to discussing your needs with you and working on your portfolio. When you are ready to move here yourself, I look forward to relaxing with a fishing pole in hand, and enjoying what the Mississippi Coast has blessed us with.

Go Zone accelerated depreciation is in its final year without any anticipation of being extended again. This means that if you are serious about doing anything with Go Zone property – you need to start acting now.

There are a lot of agents out there that are selling properties, saying they qualify for Go Zone under a “developer’s option”, but from the tax professionals I have spoken with, this is very murky water. I have had one broker tell me that they have been able to make this work, but two tax attorneys said no way. My philosophy is that if you go by the book, you won’t be heartbroken later when some IRS auditor tells you that you tried to game the system and lost.

The inventory for truly qualifying Go Zone property is declining. There is almost no multi-family properties that qualify and there are few single family properties that really make sense from an investment analysis. When I look at any real estate investment, I feel that it is important to make sense before tax incentives – otherwise it is not really an incentive, it just becomes a tool to sell.

There are a handful of single family homes being built that will qualify and make good sense from an investment standpoint.  If multi-family (duplex, triplex, fourplex or more units) is what you are most interested in, I have builders ready to get you a top-quality product that will make sense financially AND you can get the Go Zone depreciation.

Contact me today for more information or if you are ready to get started.

If you are considering building a new home, it is imperative that you contact me before going directly to a builder or a builder’s agent, unless of course you are directly related or really good friends with a quality builder that builds numerous homes every year.

As a full time real estate broker that has spent a lot of time in the new construction market, I have worked with many new home builders on the Mississippi Coast. I have helped people gain more insight on the building process and helped them locate their perfect builder from Bay St Louis to Ocean Springs and just about everywhere in between.

The building process is daunting and can be a real challenge unless you are working with someone who has YOUR interests and can help you through the process.

I have builders that start as low as $80 square foot (possibly lower per foot price if you are building a really big home with lots of open space). Don’t be fooled by builders that advertise $65/foot – by the time they add all the extras in, you will pay much more. When you are ready to get serious about starting the process – contact me for quality affordable builders. I can assist from the very beginning in lot selection as well.

Let’s talk. Want something really special? Let’s talk waterfront!
If you are looking for Go Zone Properties and need smaller, affordable homes that will cash flow, I have you covered as well.

The MS Coast won another victory when the Go Zone bill was extended last month, providing for accelerated depreciation on real estate property put into use during 2011. The prior extension [2010] was a bit “thrown together” and extended the “put into use” part, but did not extend the expenditure date. What this means is that if you bought real estate in the Go Zone for the tax credits, you had to purchase something that was built on or prior to December 31, 2009 – this has changed.

The new extension will allow for any new property that has not been put into use. So, any property built since the Go Zone was enacted and not put into use will qualify.

What does this mean to you? Anyone looking for Go Zone property during 2010 had to find property that was built before the end of 2009 and never occupied (put into use). As you can imagine, the later in the year it got – the harder it was to find good, viable property as all the good ones were already sold. This left mostly bad investments or really high-dollar investments that only a handful of people could qualify for.

After a few hours tracking down information on the extension, I was able to get in contact with two attorneys that are well-versed in Go Zone. One of which I have referred before, and the other was very prompt in response to my inquiries and based on some papers he has authored/co-authored, seems extremely knowledgeable.

John Harral with ButlerSnow stated to me in a phone conversation that ultimately, any property built after Katrina and put into use during 2011 would qualify, although he also said that any specific questions should be directed to him or another Go Zone familiar attorney and your tax adviser.

Michael Haun with Paul, Hastings, Janofsky & Walker LLP, stated:

The recent extension pushed back both the placed-in-service date and the construction date to January 1, 2011.  Consequently, with respect to nonresidential real property or residential rental property that is placed-in-service by December 31, 2011, the adjusted basis of such property attributable to construction before January 1, 2012 is now eligible for the additional first-year depreciation.

What does that mean? In as simple terms as possible – anything that has been built and not put into use will qualify. There are an abundance of opportunities in existing properties as well as building new ones that would qualify for this. Use this CONTACT ME link to email or call me to help you find viable investments for your needs.

Attorney John Harral can be reached at (228) 575-3038
Attorney Michael Haun can be reached at (404) 815-2279
I (Damion Flynn, Broker) can be reached directly at (228) 365-1883