Is There Too Much Luxury in Nevada Real Estate? – Laura Kirsch

On this episode of The Closing Table, we sat down with Laura Kirsch!

To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…

Here’s what you missed from Laura Kirsch…

The conversation began with Laura sharing her life that extends far beyond the realm of real estate—she’s a dedicated family woman, a loving wife, and a proud mother of two girls. Their shared passions for sports, hiking, and biking keep them constantly outdoors, relishing the proximity to Lake Tahoe, a cherished spot they frequent. Their extensive social circle and active involvement in the community enrich their lives outside the professional sphere.

In the realm of real estate, Laura’s journey began remarkably early. At the age of 16, she ventured into the field through an internship, swiftly acquiring her real estate license at 18. Initially part of a group setup at REMAX until 2018, she sought a change and transitioned to Marmot Properties, a boutique brokerage in Reno renowned for its focus on development and community building, particularly in Midtown. This shift broadened her expertise, delving into facets like new construction and zoning codes. Establishing her own team, Laura found an unexpected catalyst in motherhood, learning the art of efficiency and productivity. Her career trajectory gained momentum in 2018, escalating significantly amidst the booming market of 2020. Over the past four years, she’s facilitated the sale of over 50 homes alongside a stellar team member, leveraging their synergy as a duo while contemplating future expansion.

Geographically rooted in Reno, Nevada since childhood, Laura marvels at the city’s transformation from a predominantly casino-driven landscape to a diverse economy. Reno’s proximity to California, coupled with its tax-friendly status, contributes to its allure. The city’s evolution beyond its gambling-centric past involved a concerted effort to diversify the economy, catalyzed by proactive governance. This shift attracted major corporations and fostered a thriving startup ecosystem, elevating Reno’s profile over the past decade. The allure of nearby Lake Tahoe, a mere 40-minute drive away, adds to the city’s charm. Reno’s burgeoning status as a fast-growing, albeit not yet metropolitan, city delights Laura, who finds joy in raising her family amidst its scenic beauty. The city experiences all four seasons, ranging from scorching summer days to abundant snowfall in winter, owing to its high desert climate.

Economically, Reno and its neighboring city, Sparks, share pertinent real estate statistics. With median purchase prices hovering between $550,000 to $600,000 (inclusive of condos and mobile homes), properties move swiftly, averaging a mere three weeks on the market. Despite a scarcity of inventory, an influx of eager buyers, particularly from the 2020-2021 period, has maintained a balanced market, offering equitable opportunities to both buyers and sellers. Laura notes this as the healthiest market scenario she’s witnessed in recent years, attributing it to the absence of disproportionate power dynamics among stakeholders.

Laura’s commitment to community service shines through her involvement with Big Brothers Big Sisters, the Young Professionals Committee, and Grace Church. Her philanthropic focus on children is evident, especially in her role on the board for the local chapter of Big Brothers Big Sisters and her presidency of the Young Professionals Committee in 2020-2021. During her tenure, the committee’s fundraising efforts for Big Brothers Big Sisters soared from an average of $10,000 per year to an impressive $125,000.

Simultaneously, Laura’s engagement with Grace Church led her to contribute significantly during the challenging times of the COVID-19 pandemic. Through the Food for Families program, she played a vital role in providing over 1,500 meals for families in need over a three-month period, showcasing the power of community support during times of adversity.

Laura’s problem-solving approach aligns with Norman Vincent Peale’s quote, emphasizing the importance of mindset in navigating challenges. Her mantra, “problems solve themselves,” underscores her confidence in finding solutions. While Laura finds it challenging to pinpoint a specific instance, she notes that this mindset permeates her work, allowing her to navigate and resolve issues seamlessly. Clients trust her problem-solving abilities, leading to successful deal outcomes and a strong sense of gratitude for the trust placed in her.

Reflecting on her experience building a home for a family in need in Mexico, Laura describes it as the best experience of her life. Participating as part of Nevada Realtors’ leadership program alumni, she and a team built a home in just two days. The family, living in challenging conditions, received a two-bedroom house with basic amenities, evoking gratitude and a sense of community. Laura was struck by the simplicity of the process in Mexico compared to the stringent regulations in the U.S. While acknowledging the importance of regulations, she noted that in Mexico, there was greater freedom in construction, highlighting the contrasts in housing development between the two countries. The experience reinforced her appreciation for the privileges she enjoys and the fulfillment derived from giving back to those in need.

Laura’s insights from The Institute of Luxury Home Marketing highlight a notable trend in the luxury real estate market—there’s an excess of inventory surpassing demand. This reality significantly shapes the buyer/seller experience in this niche. According to Laura, luxury homes are lingering on the market longer than during the low-interest-rate period in 2020. In those times, favorable interest rates and substantial profits from selling homes quickly facilitated buyers moving up in the market unexpectedly. However, with current high-interest rates making borrowing expensive, the affordability of luxury homes becomes a challenge for many. Consequently, the luxury market is reverting to a more typical state, reminiscent of the pre-COVID era, where million to three-million-dollar homes take longer to sell due to the limited buyer pool for such high-end properties.

The conversation wraps up with Laura discussing some investment strategies, she emphasizes that purchasing rental properties isn’t primarily for monthly cash flow but for several key benefits. She defers to her husband, a financial manager, and their CPA for expertise. As a real estate professional, Laura employs cost segregation for the rental homes they acquire, leveraging accelerated depreciation. While she clarifies that she’s not a CPA, the strategy involves depreciating the home’s value against ordinary income, rather than just relying on passive income from the property. This approach is particularly advantageous for high-income individuals in significant tax brackets. Laura acknowledges that their rental properties don’t yield substantial monthly profits as the tenants’ rent primarily covers the mortgage. Instead, the benefits lie in depreciation to offset taxable income, property appreciation, and asset accumulation—a multifaceted approach that aligns with a strategic, long-term investment mindset.

Check out Laura Kirsch:

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