Lake Tahoe Real Estate – Top 7 Reasons to Invest in Lake Tahoe Real Estate Right Now!

Even in a plunging real estate market, you can profit from investing in real estate if you know where to invest your dollars.

So, do you know where you should be investing right now in this challenging real estate market?

The answer: Lake Tahoe real estate

Here’s why you should invest in Lake Tahoe real estate, especially in the South Lake Tahoe area.

Top 7 Reasons to Invest in Lake Tahoe Real Estate

#7: Ideal Weather Conditions & Year Round Recreation Attracts New Buyers

Summer tourists in nearby Sacramento and Reno experience temperatures in the 100′s. The Bay Area is socked with fog. Lake Tahoe generally enjoys highs in the low 80′s.

And, don’t let the fact that this is known as a world-class ski destination fool you into thinking that the winters are uncomfortable. An average January day ranges from 15 – 41 degrees with brilliant sunshine compared to Vail (0 – 31,) Jackson Hole (5 – 28,) and Stow (1 – 25.)

When a storm comes it drops the snow and leaves us basking in sunlight. In fact, the sun shines approximately 275 days a year.

This allows Lake Tahoe to offer the complete selection of recreational activities all year round

Unlike most ski or golf resorts, Lake Tahoe has something for everyone. The pristine blue waters and sandy beaches provide swimming, fishing and sun bathing. Boating opportunities range from kayaks to sailing to motors. The forest and mountain trails draw hikers, bikers, rock-climbers, snow mobiles, snow shoes, cross country skiers and campers. Golf resorts range from lakeside to high desert. Photographers, painters and artists of all mediums flock to the area.

#6: Real Estate’s Rolling Boom Effect

When an area is experiencing high real estate activity, investors should look to the surrounding areas for the next wave of activity.

The Lake Tahoe real estate market benefits from the surrounding Reno, Sacramento, and overall San Francisco Bay communities. We are receiving reports that increased real estate activity in the area and values are stabilizing.

With today’s’ inventory surplus, low interest rates and the news blasting daily “doom and gloom” reports, sellers are more willing to negotiate now.

#5: Baby Boomer Are Buying Lake Tahoe Real Estate Now

Baby Boomers are the driving force behind the resort market industry and they have only just begun to invest. Many baby boomers are now inheriting various levels of wealth from senior family members. At the same time, they are in their peak earning years and investing actively in second homes and retirement homes.

They are searching for second homes near beaches, lakes, ski resorts and golf courses. Lake Tahoe is one of the few second home destinations that can offer all three.

#4: It’s Affordable

Reasonable pricing is one of the key reasons to invest in Lake Tahoe real estate. According to the South Lake Tahoe Association the price for a single family home within its South Shore is less than half than homes in Vail, Aspen and Jackson Hole.

#3: Opportunities for Supplemental Income

Lake Tahoe is a world-class vacation destination. Vacation rentals bring in subsidized income which can help cover the costs of your real estate investment. When a home offers the “Tahoe Look,” dwells within a desirable location (near outdoor recreation) and includes amenities such as a hot tub or pool table, demand automatically increases.

For example one of our current listings, a 6 bedroom contemporary home has averaged an income of over $125,000 for five years now.

# 2: High Demand and Strictly Limited Supply

In a nutshell, there is no chance of real estate over-development having a negative impact on the value of Lake Tahoe homes. Generally, supply is low and demand is high.

During the 2004-2005 “boom,” investors and developers were throwing up houses at break-neck speed in hopes of huge profits. When this market came to a screeching halt, these areas were the first to see foreclosures. Supply will always be in the favor of the investor because Lake Tahoe real estate is an environmentally protected area. That means growth is strictly limited.

And, the # 1 Reason to Invest in Lake Tahoe Real Estate: Improve Your Quality of Life:

Would You Rather Watch Your Investments or Live Them?

Everyday, we hear those who have invested in Lake Tahoe real estate praise the benefits gained through living a less stressful and more joyful life. These benefits include better health, longer life, better relationships, and so forth.

How does this relate to investing?

Think about it.

Wouldn’t you rather watch it grow while relaxing on the beaches of Lake Tahoe rather than pulling your hair out in front of your computer?

You can watch arrows going up and down or you could ride the chair lift up and swish your way down. You can listen to computer chimes or you can listen to the wind in the pines.

What could be better than wrapping “quality of life” and long term investments into one “full benefits” package?

Robert Frost inspired us to unite vocation with avocation. Investing in Lake Tahoe real estate is just such a venture. The pay offs can be huge.

How to Register Your Business

In setting up a business, one of the most important decisions you have to make is to choose the type of business structure you will have such as Sole Proprietorship, Partnership, Limited Liability Company or Corporation. The type of business structure is an important determinant on how your business will operate and for taxation purposes.

If you decided on a Sole Proprietorship or Partnership structure type of business, you have to register it by filing a form called DBA (Doing Business As) or FBN (Fictitious Business Name). This is dependent on the state where the business is being formed where you have to apply for the necessary licenses and permits as may be required. If your business is a corporation or Limited Liability Company, you have to register it with the Secretary of State as such and a corresponding number will be given when the formation documents are filed. This number is most likely called the Secretary of State File Number.

If you have employees, you also need to get a number from your state’s Employment Development Department to allow you to deal with payroll issues.

An Employer ID Number (EIN), also known as a federal tax identification number is used as an identification number for other purposes, including filing state tax returns. This is an IRS requirement in order to operate.

Applying for an EIN for your business is very easy by filling in IRS Form SS-4. You can apply for an EIN online, by telephone, by fax, or by mail. If you submit your application online, you will receive your EIN at the same time and use it immediately.

Information regarding the types of business licenses you need to operate may be obtained from the state, city, county, or town wherein you plan to conduct business. The license requirements depend on the types of businesses you want to operate. For a comprehensive list of these requirements, you can visit the United States Small Business Administration (SBA) website at, which will provide you a list of where to obtain necessary information about business licenses for your state. Additional information is also available from your city and county’s web sites.

Following is a simple checklist you may follow for starting and registering your business:

1. Business License – all businesses need a license

2. DBA/Fictitious Business Name – businesses using a name other than the owner’s name have to register a DBA/Fictitious Business Name Certificate. If your business is an LLC or corporation, a DBA is not required.

3. State Tax ID/Employer ID Number EIN – businesses that have employees have to get an EIN and a Federal Tax ID Number (FEIN).

4. Seller’s Permit/Reseller’s License/Tax ID – wholesalers or retailers of taxable goods and services need to a Wholesale License, Seller’s Permit or Resale License.

5. Federal Tax Id Employer Identification Number FEIN – corporations or LLCs, employers, and, in some states, those businesses that are also getting a Seller’s Permit are required to obtain a Federal Tax ID Number (FEIN) and a Business License.

6. Corporation or Limited Liability Company – articles of incorporation or articles of agreement.

7. Partnership/LLC Agreement – Operating Agreement.

Some of the above permits and licenses are necessary in opening a business bank account. Make sure that you comply with all requirements and provide all necessary documents in order to register and obtain your business license or a home occupation permit before you start business operations. If you do not, there is a very high possibility that you may incur monetary and punitive liability for failure to do so.

Learn To Invest Money – 3 Things To Avoid In Order Have Success

Don’t get greedy

A wise man once said of stock investments that you have not made of lost anything until you have sold the stock. This is one mistake that many investors (both amateur and professional) make. In order to avoid the same mistake you need to understand the difference between realise and unrealised profit.

If you bought $1,000 of stock in Company X 6 months ago and since then the stock price has doubled your unrealised profit is $1,000. The common mistake is to think “ooh this is great, i’ll just hold the stock for another 6 months and make another $2,000. Big mistake. Instead you should consider realising some of your profit by selling some stock. Before you do try to reassess the stock again and treat it as if it were a new investment. If you still believe the stock offers value then maybe hold some or all of your position.

Ignore you emotions

Another great thing to do if you want to learn to invest money successfully is to ignore your emotions. Many poor investments (and friendships lost) have been made because someone has been approached by a friend with an investment proposal, maybe in their business or a friend of a friends venture. If you have these kind of personal or emotional links to an investment you may find it much harder to exit the investment if things don’t go as expected. Also on the other hand you may find it harder to walk away and take a profit.

Don’t run before you can walk

The key to successfully learning to invest your money is to make it a gradual process. If you go from a base of zero knowledge to try to start spread betting on the commodities markets you are doomed to fail. Read around the subjects and areas of investments you are interested in and ensure you fully understand each market you will enter before investing your hard earned money!