Here in Las Vegas, we have several condo-hotel properties currently operating and two more just getting ready to open. These include Palms Place, Trump, MGM Signature, Platinum and the brand debuting Cosmopolitan and Vdara at City Center.

A condo-hotel, a term I thought most people were familiar with but apparently are not, is a condo that comes totally turn-key just like a hotel room. They are totally furnished with everything you would find in a hotel or timeshare property. This includes livingroom furniture like a queen size sleeper sofa, tables, chairs, art, and now flat panel TVs. The sleeping area which may be a separate bedroom depending on the size of the unit which have a queen or king size bed, all the high end linens you'd expect in a 5 star resort, and more. The baths will have all the luxurious towels, rugs, and bath accessories like shampoo, body soap and more. The kitchens (or kitchenettes) will have appliances, a fridge, microwave, dishwasher, some time of cooktop and possibly and oven, as well as all the appointments you'd need to cook and serve just like at home (dishes, silverware, cookware, utensils, etc.).

Considering whether this is a good option for you, there are some things you need to understand. Most people buy a condo-hotel unit for an investment. This is because they can be rented out nightly like a hotel room, and you can generate income from it. Most rental programs operate on a 50/50 split meaning you get half the nightly revenue they bring in. So for example, if the room generates $100 per night, you're entitled to $50 per night.

Other people buy one of these types of units so they have a place to stay when they come to Las Vegas, or can let friends, family, colleagues or clients use it. If this is your purpose, this is a popular use for these units, and if they happen to bring in some additional income, then its considered a bonus.

I get some of the same questions over and over:

• What does it rent for per night? There is no easy answer to this question. It depends on the size of the unit, the number of people it sleeps, the project it is in, the time of year, what's going on it town, weekday vs. weekend, etc. To get an idea what it rents for per night, go to the website of the property, put in your dates and the size unit you're thinking of buying and see what they're charging for per night.
• Why is the monthly HOA dues so high? Your monthly HOA dues in a condo hotel covers everything except property taxes and insurance. What is usually included is the typical utilities like water, sewer and trash, upkeep of the common areas like the pool and spa, fitness center, security, etc. But with a condo-hotel, it also includes the other utilities like electric and gas, front desk staff, concierge, valet parking, cable TV service and, the availability of high speed internet access and pay-per-view movies. Having all that staff to keep that 5-star property looking like a 5-star property isn't cheap.
• How much money could I expect to make each month OR will this cash flow for me? There is no way to answer this question easily. Legally, you can't be promised income because that makes it an investment which requires a securities license to sell and no one in real estate I know of has one. Also, past performance is no indication of future income. But here is the real rub -- if the property is now bank owned, you as a buyer are not provided with any type of disclosure about the property because the bank doesn't know anything about the unit other than they foreclosed on it and are selling it. If the property is a short sale, the previous owner may choose to share this info with you but they are not obligated to. But here is the hardest part of this -- in the vacation rental business, the client dictates the use. So depending on what floor your unit is on, what size it is and what view it has may or may not affect how often its rented. Some guests want a high floor, no a low floor, sleeping space for 4 people, no 6 people, no 8 people, a view of the strip or "I don't care what the view is", or I always stay in room ### if its available because that's where he proposed. As fair as the property tries to be in spreading out the reservations so everyone gets as equal a shot at income, you can see how the guests could easily sway the outcome of this endeavor. Do your homework, see how many nights you'd need to break even and decide that even if you don't make that number if you'd be okay with it.
  
• Why are these units such great deals right now? Several reasons - most of the condo hotel units currently available are being offered at amazing discounts had previously sold for $400,000 to over $1 million and can now be purchased for $100,000 to $200,000. Why so cheap? Because no lender will loan on them and so they must be purchased with cash. Why won't lenders loan on them? Because condo-hotel units were typically purchased by investors and, when the market goes bad, investors are the first ones to dump the properties making these very risky loans.

I love condo-hotel properties. Having frequently been in all of these properties, I see their merit and their downside. But if you visit Las Vegas frequently, or want a hands-off rental, this could be a great option for you.

Why Can’t I Finance A Condo?

This has been a hot topic lately in Las Vegas. Due to the low prices, we have tons of buyers who are dying to buy a condo. The lure of $25,000, $35,000 even $50,000 condos is unbelievable catnip.

Can you imagine having a house payment of only $275 a month (of course that doesn't include taxes, insurance or HOA fees)? But my car payment is more than that.

So buyers are calling me, emailing me, telling me they've been prequalified and want to buy. Then I have to drop "The Bomb!" I'm so sorry, but even though you're prequalified, your lender will not loan on a condo. And then you get the expected response ………. "But Why?"

A few months back, when the bottom dropped out on the lenders, all lenders decided to follow FHA/VA guidelines which now limit the condo communities they'll loan on. Those guidelines say that the community must be at least 80% owner occupied. That means that if there are lots of vacant units that have become bank owned, or too many units are owned by investors and rented out (or a combination of both of those), the property does not qualify for financing. In addition, they won't finance a property that has more than 20% of the owners who are 30 days or more delinquent on their monthly HOA dues. Lastly, if there is any pending litigation, they will also usually refuse to finance.

Now there is a website that lists FHA qualified communities, however, when the due diligence is performed on the community, there are truly only a handful of properties that may qualify. So the standard response is "Sorry, you will have to pay cash."

The good news is this does not apply to townhouses (if they are truly registered with the county assessor as a townhouse) or single family homes. But for those of you who were hoping for a $275 monthly mortgage, I'm afraid you're out of luck … at least for a while.

Heather Peck

Rosen & Company West

702-595-7380

LasVegasExpert@yahoo.com

www.HeatherSellsVegas.com

 

Are We There Yet?

One of the most common questions I get from buyer's is "Are We There Yet?" When do you think the Las Vegas real estate market will hit bottom?"

Well, I can tell you that people much smarter than me think we got there. The banks are no longer dumping bank-owned properties on the market, whether by design or not. This is driving multiple offers on the houses that are available, pushing desire, and sometimes causing prices to go up. Here is the latest article in our local paper http://www.lvrj.com/business/51297172.html

The standard conversation these days regarding any property you're buyer is interested in goes like this with your buyer and the listing agent or someone on the listing agent's team. "OK, let me check on the status. Hello, how many offers on this property? Only 20, OK thank you." That is, if you can get them on the phone. Many REO or Bank Owned Property Listing Teams don't take phone calls but specify they will only respond to emails or text messages. Of course, your buyer can't believe that's how it works but unfortunately its true.

So now, if you've been waiting to get a great deal, the time to buy is now. Yes, of course we want you to buy now, but this time we really do. Condos that sold for $800,000 3 years ago can be purchased for $150,000 or less. Homes are being sold are prices that are 1/3 of what they cost to build 3 years ago. The government is willing to give you $8,000 as a tax credit that doesn't have to be paid back but you must buy before December 1^st. So huge discounts combined with tax credits, sounds like a buyer's dream.

What are you waiting for?

Heather Peck

Rosen & Company West

702-595-7380

LasVegasExpert@yahoo.com

www.HeatherSellsVegas.com

MGM Signature Condo Hotel

Condo hotel properties were quite the rage 4-5 years ago. Las Vegas had a number of them planned, however only a few actually were completed. A condo hotel is a property comprised on fully furnished condos. All units that are the same size and floor plan have exactly the same amenities, furnishings and more. And amenities are very important in these types of properties.

The MGM Signature is an amazing condo-hotel located just behind the MGM Grand Casino Resort. Comprised of three towers, each unit is beautifully furnished with a plush sofa, contemporary furniture, flat panel TVs, luxurious bedding on the decadent king size bed and sumptuous linens and towels. Kitchens come complete with Bosch, Miele and Subzero stainless appliances, granite bathroom vanities and whirlpool spa tubs. Step outside onto your refreshing balcony to enjoy a view of the Strip or Las Vegas valley. Of course there are both Junior Suites or basically a studio and one bedroom suites, with a separate living room and larger kitchen area, as well as a private bedroom. The one bedroom and studio can be combined to offer a two bedroom suite with everything you could possibly want.

Of course, the Signature is a separate guard gated community, offering valet parking, a pool and spa only to residents and guests. In typical high rise fashion, you have a business center, concierge to make all your entertainment and dining arrangements for you, a state of the art fitness center, and of course you can take advantage of an in-suite massage or room service from one of the many restaurants at the MGM Grand, just steps away. And if you travel for business, you can take advantage of their airport check-in, plus it's just a short hop to McCarren Airport.

Another thing I really like about the Signature is its proximity to the monorail, as well as being able to use the amenities at the MGM Grand. If you've never floated along the lazy river, you've really missed a great treat.

You can live here full time if you choose, or place your unit in the rental pool if you only plan to visit occasionally. No promises on how often it will get rented, if at all, but it's a nice option to have.

If there was a downside to this lifestyle, it would be you will probably never know your neighbors. Because these units are also rented out, chances are the people that are next door today won't be there next week. And if you intend to use the unit as a rental as well as a personal residence, you can't hang a nail or change a pillow. Each unit must look exactly the others the same size in your tower.

With the amazing prices on these units right now, this is a property I think anyone who comes to Las Vegas often enough should consider. The biggest stopping point for many buyers has been the lack of financing for condos. If this is what's holding you back, then please shoot me an email because I have a lender who will now loan on these types of properties. Of course, not everyone will qualify, but don't let lack of financing keep you from purchasing one of these outstanding properties.

Heather Peck

Rosen & Company West

702-595-7380

LasVegasExpert@yahoo.com

www.HeatherSellsVegas.com

What Makes A Property A Good Investment

 

I get calls from new investors all the time that want to buy a good investment. My question to them is what would make it a good investment? And of course the reply is "I don't want to lose money, I want it to be worth more in a couple of years. Do you think that will happen?"

Now I don't know about you, but crystal ball is broken. It's been in the shop for months and no one has been able to come up with the parts I need to fix it. So instead I try to have them put it in perspective.

If you're buying a property that you intend to hold and lease out, how much of a profit would you need to make every month for it to be considered a good investment? $100 a month? $300 a month? $500 a month? More? How long would you have to hold a property for you to feel like you made your money's worth? 2 years? 5 years? Longer?

In our market, many investors have discovered that they can easily make $300-$400 a month positive cash flow per month based on what the property costs them vs. the rent they can collect. When you're deciding if that's enough for you, remember to calculate all your expenses.

Typical expenses on an investment property include:

• Principal and interest, if you financed the property
  
• Taxes
  
• Insurance
  
• Homeowner's Association or CIC (common interest community dues if there is one or more – yes some properties have up to 3 associations to pay dues to)
  
• Property manager's fee (unless you want to be the one the tenants call at 3am with a plumbing problem)
  
• Money set aside for possible repairs
  
• Money set aside to renew the home warranty you bought next year (an extremely worthwhile investment when it comes to helping maintain necessary systems, keep your tenants happy and your wallet happier)
  

So when determining if a property is a good investment, find out what it will lease for in good condition. Decide what price you would have to pay for it and how much you'd have to put into repairs to make it a place good tenants would want to lease. Make sure NOT to overprice your property. Great properties have lots of people want to rent them but not if they are much more to rent than another property.

If the numbers make good sense to you, and you're in the black, then buy it. Have your financing or proof of funds ready, decide what the most you can afford to pay is and go for it. Happy Investing!

Heather Peck

Rosen & Company West

LasVegasExpert@yahoo.com

www.HeatherSellsVegas.com

702-595-7380

Be Ready To Buy In Today’s Market

The rules have changed so much in the last few months for buyer's trying to buy real estate today. Gone are the days when you could make an offer contingent on selling your current house. Lender's no longer will accept your offer hoping you will get prequalified to buy during the next couple weeks. No one will just take your word for the fact that you can really afford to pay cash for a property. They won't give you a few days after you submit your offer and they accept it to get everything gathered together. Today you must be prepared with all your paperwork so your offer will be complete and seriously considered.

No offers on real estate will even be considered these days without knowing the buyer has already been prequalified or has the funds to purchae. A complete offer must be submitted in order to be considered. A complete offer includes an offer to purchase, the prequalification letter or proof of funds, and an earnest money deposit (usually in the form of a personal check), and any other documents required by your local board of Realtors. Here in Nevada that would include a signed Duties Owed form and a Confirmation of Agency.

Step one is to figure out how you're going to pay for a property before you go house shopping. If you're planning to pay cash, you'll need to have some sort of "Proof of Funds." This can be as simple as a copy of your bank statement or investment account. Of course, you can request that your financial institution to provide you with a letter that states you can afford to spend up to a certain amount. Besides, isn't it better to know how much you can afford to buy so you don't look at houses that are out of your budget or find out later you could have afforded to buy a much larger house.

Unfortunately, not everyone has a large pile of cash laying around to pay for a house. So, if you're planning to finance, you must get prequalified by a lender or loan broker. Some lender-owned properties or REOs (real estate owned) will require you to prequalify with a loan officer of their choice. This doesn't mean you must borrow the money from them, but the lender wants to be sure you can actually qualify to buy the property. Your real estate agent will be able to tell you if this is a prerequisite on the property you choose.

So if you're planning to buy a house, you must get your financing or proof of funds lined up prior to shopping for property. This way, you know that when you find the right property, you'll be able to buy it. The more prepared you are, the better your chance of getting your offer accepted.

Now go out there and buy a house.

 

Heather Peck

Rosen & Company West

www.HeatherSellsVegas.com

702-595-7380

LasVegasExpert@yahoo.com

Buying In A Fast Moving Market

This morning I was vindicated. An article in our local paper, the Las Vegas Review Journal, noted that the Las Vegas is so hot, we actually closed more sales in June 2009 than we did in June 2004 which was at the height of our boom, now referred to as our gigantic bubble.

I have related to all of my buyers of late that this market is unbelievable, with over 50% of the properties available under contract, and 25% are juggling multiple offers trying to decide which offer to take. In fact, my partner placed an offer on an investment property for one of her buyer's on a property that had already received 80 offers! As it turned out, he listened to her and made an offer $20,000 over list price, and he got the property. Now I can hear you gasp "$20,000 over list price?! This is a declining market, what was he thinking?!?!?" Let me explain.

This property was listed at $35,000 but there were other properties that made it compare to properties for $60,000. So he offered $55,000 and got the property. It is in very good condition other than a little lipstick and will cash flow nicely as a rental property. Additionally, as we run comparables in this market, we have discovered that the properties have stayed the same values as last month -- no drop.

What does that mean to you the buyer? It means that when you're buying in a hot market, be prepared to make your absolute best offer, that if you lose the property for a dollar, you'll be okay with it. Lenders on both short sales and bank owned properties are getting lots of offers, and so they are not countering except for the offer they want to accept. Nor are they putting out multiple offer notices - here in Las Vegas its become a given.

So get you're financing lined up, do your homework, and make your best offer. You're only going to get one chance in this market.

4th of July in Las Vegas

I love the 4th of July. It always brings thoughts of family time, tasty barbecues and of course, spectacular fireworks. Although my children are grown and live on the other side of the country, I try to make the 4th special.

Summers in Las Vegas bring 100 degree plus temperatures. This doesn't stop Las Vegans from celebrating this great holiday. We too will be joining thousands of locals at Lake Mead, jet skiing, boating and hanging out with friends. Later in the evening, we will be attending one of the amazing fireworks displays. My favorites are the ones that explode and appear to drip down like rain drops.

This year, we're going to Lake Las Vegas. This amazing community is located in Henderson, just five minutes from Lake Mead. As you drive into the community, you pass waterfalls, golf courses, and enter into the quaint village that offers the flavor of an old Italian village. Cobblestone streets lead to restaurants, shops, and down to Lake Las Vegas. The Lake is a private self-contained water feature that hosts a many special events including dragon boat races, boat tours, dinner on a gondola, a floating ice rink in the winter, and of course fireworks on the 4th. Other events include free movies on Thursday evenings in the central square, art shows, and live music.

So go outside this 4th of July. Enjoy the people you seldom get to see or spend time with the people you love the most. And most importantly, have a great safe and sane 4th of July.

Short Sales - Long Process

Many of us in real estate joke that the phrase "Short Sale" is an oxymoron because short sales are anything but short. Of course, that's not what a short sale is.

A short sale is when the mortgage holder agrees to take less than is owed on the mortgage to satisfy the loan. In otherwords, if you owe $100,000 on your mortgage, but can only sell for $80,000 and your mortgage lender agrees to take that as payment in full, you are selling "short."

The most common question I get is why do short sales take so long. Its a complicated process to explain. When you get an offer for less than you owe on the property, the offer is sent to your lender or lenders if you have more than one mortgage, so they can decide whether to accept that amount or not. After an offer is submitted to the lender, the lender then has to assign it to a negotiator, or someone who will manage the process. This first step can take up to 90 days depending on who the lender is and the workload of each negotiator.

After a negotiator is assigned, they review the offer as well as all the financial documentation submitted by the homeowner or seller. They look to see if the seller has a true financial hardship and if the offer is reasonable for the property, geographic area and what is going on in the market there. If the negotiator needs more information about prices of similar properties in the area, they will order a BPO or Broker's Price Opinion which is basically a real estate agent's opinion of what the property compares at in terms of market value.

Now armed with this information, they will review the offer. Some negotiators must submit all this accumulated documentation to their superior or even a committee for review and a decision. Sometimes, they must even submit all this to the original or current investor who holds the mortgage for a decision on whether to accept, counter or reject the offer. You can see how this can bog down the entire process.

Finally, after getting the okay or responses from everyone they need to get approvals from, the offer is accepted, countered or rejected. This process can take up to 6 months, sometimes longer. Many of us are often surprised that the lender does not foreclose, but often it is entered into the system and taken out of or away from the foreclosure department while the short sale is negotiated.

It doesn't always take a long time. As lenders have had to deal with more and more short sales, some have developed a much more efficient system to deal with them, giving guidelines to the negotiators on what a reasonable offer would look like, terms, what they as the lender would be willing to pay for in costs for the buyer, etc. This can cut down significantly on the amount of time it takes to get a response from the lender(s) for a short sale.

Many buyers get tired of waiting for the response. In our market in Las Vegas, this time lag could cause a property to drop more in value making the offer made less than attractive. For example, I was involved in one short sale that between the time the offer was verbally accepted by the lender and receipt of the written acceptance by the lender, the property had dropped $30,000 in value lower than the verbally accepted offer. Of course, the buyer was not interested in paying $30,000 more for the property than it was now worth, so the buyer refused the counter. On the other hand, because a short sale property had already been assigned a negotiator, I completed a cash deal on a short sale in 8 days from offer to closing.

In the Las Vegas market, as I'm sure in other markets as well, there is a little less competition on short sale properties. The process deters many buyers as well as real estate agents who don't want to deal with the phone calls, documentation, and more.

If you are considering offering on a short sale property, do a little bit of homework. Talk to your agent about the process to decide how knowledgable they are on the subject. Find out if a negotiator has been assigned or if you're starting at the beginning of the process. Great deals still abound on short sale properties, but make sure you understand the process and how it may or may not affect your offer by the time it gets accepted.

If you'd like more info about the short sale process or short sale properties in Las Vegas and the surrounding area, I can be reached at LasVegasExpert@yahoo.com.

Henderson working on New Heritage Park Center

I have recently moved back to Henderson. I love that it's close to all the activity of the Las Vegas Strip yet far enough away to truly be the suburbs.

The part of Henderson I live in is a rural preservation area. We have no streetlights, neighbors have horses, all of the lots are big and all the houses are custom. Of course, the downside is some of the homes are much older and they reflect it. But the tradeoff is worth it to me. We have quail and bunnies hopping around the yard, its very quiet other than the birds chirping, and having only lived in my house a little over a month, I have already met my neighbors.

I was thrilled to see that the City of Henderson is building a brand new Heritage Park Center which will offer an indoor aquatic center which will be open to the public as well as be used by Clark County School District swim teams. There will also be a therapeutic warm pool. This facility will also offer a new Senior Community Center, offering lots of amenities and services including activity center, billiards, computer room, crafts, television room, card and dining rooms, and a library. Bus service will also be available.

If Henderson sounds like a good option for you, don't hesitate to call or email me to help you find a new home in this great community.

Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com
www.HeatherSellsVegas.com

Las Vegas - Ghost Town?

I was on the phone the other day with another investor living in a different market. He told me he heard that Las Vegas was becoming a Ghost Town. The market was so bad here, people were leaving Las Vegas in droves.

I had to chuckle. Although, yes, we have the distinction of being the worst or almost the worst real estate market in the country with the highest number of foreclosures, we have another new honor. We are also in the top ten of undervalued market, with our market being considered up to 40% undervalued. Read about it here: http://money.cnn.com/2009/06/04/real_estate/home_affordability_soaring/index.htm.

Of course, this article doesn't mention, or maybe they don't know, that 50% of the properties currently listed for sale are under contract, and another 10-15% are juggling multiple offers. When typically pulling properties off the MLS to show a client, you would just search for what's available, choose the ones to show and go. Today, because of this market being very competitive, you need to call the listing agent or their team and see how many offers are on it. In fact, its not uncommon to hear there are 4 offers, 10 offers, 25 offers or more, or even that they are no longer accepting offers because they're countering all the ones they currently have.

So yes, we have a lot of foreclosures, but first time buyers and smart investors are snapping them up as fast as they get listed. If you've been sitting on the fence waiting to get a deal, I wouldn't sit there too long.

Loan Modifications - Real or Fraud

Loan modification options are being offered everywhere. "Let us help you save your home from foreclosure." "We can lower your payment." Are these options real or a scam?

Loan modifications do exist, and yes they are real. However, caution should always be taken before you sign up with a company to do your loan modification. Don't automatically assume that because they say their process is backed by an attorney that their program is any more legitimate.

First, what is a loan modification? A loan modification is when your mortgage lender agrees to adjust your mortgage payment. That adjustment may be temporary or permanent. They may change the terms of your mortgage from adjustable to a fixed rate. They may lower the payment for 1-5 years, or permanently. They may suspend or allow you to stop making payments for a few months but put that amount on the back end of your loan, meaning you pay the same but you'll just pay on your mortgage longer. It all depends on your lender and what type of loan you have. It also depends on what caused you to require a loan modification, how long your financial situation will take to correct itself, and when or if it will improve.

Many people pay loan modification companies out to desperation in order to stop their foreclosure and save their home. Often they pay $1,500 to over $7,000, and then later discover that not only did the loan modification not get approved, the company may not have done anything to stop their foreclosure at all. I'm not saying that every company offering loan modifications is a fraud, but you first need to know if you're even eligible.

As painful and as scary it might be, call your lender. Make sure you get to the department that will actually be able to help you with your loan modification. Don't tell the receptionist who answers the phone, they don't know anything, can't help you and don't care. Make sure you speak to the Loan Modification department. Yes, there usually is one. If they won't help you or tell you you're not eligible, ask them why. This is the information you need to make a decision whether to seek outside help or not.

If you really can't face speaking with your mortgage lender, my next suggestion is call a local real estate agent who specializes in short sales. If they understand this market and understand what makes a successful short sale, they should be able to either explain whether a loan modification will be a good option for you as well as explain all your other options including short sales, foreclosure, deed-in-lieu, etc. If they don't know these things or can't explain them, call another agent. This is an avenue I recommend to everyone because its FREE advice. Loan modification companies have the goal of getting your money whether or not you're a good candidate, and even if they say they'll refund your money, wouldn't you rather not spend it before you find out they can't help you?

If your financial setback is temporary, this may be a great option for you. However, if you have no equity in the property, or your income will not improve in the near future, you're probably better doing a short sale on your property.

If you'd like more information on loan modifications and short sales, don't hesitate to call or email me.

Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com
www.HeatherSellsVegas.com

Working With Investors - Do Your Homework!

As a real estate agent, I'm sure you've had lots of wanna be investors come out of the woodwork who want to take advantage of this great opportunity in purchasing and reselling REO and short sale properties. They tell you they have funding, provide you with a proof of funds letter, and have you start making offers. However, when its time to close, they don't follow through and the deal falls apart. WHAT HAPPENED?

The key is in understanding what kind of financing or proof of funds they actually have. I've discovered some investors only have transactional financing, meaning they only have funds to close the property and intend to resell the next day to another buyer. Although that's fine, if its legal in your state, and the title company is willing to perform a double close transaction (some are and some aren't), make sure you know the facts on the other end of the deal ..... in other words, know your investor's exit strategy. Does the investor intend to buy and hold, resell immediately, or rehab then flip, etc. Knowing this ahead of time is very important.

I'm not saying don't work with investors -- this is a great time to work with investor buyers. Investors are currently buying a majority of the properties in Las Vegas right now, absorbing a lot of short sale and bank owned properties for amazing prices. However, it is a must to understand your investors exit strategy in order to manage the first, and maybe subsequent transactions, getting you multiple commissions.

If they plan to hold the property for at least 90 days to resell to an FHA/VA buyer, make sure your investor has that type of financing in place so you don't get surprised when the deal doesn't close. In otherword

Publish Post

s, do your homework on your investor/buyer. It will save you a lot of time, effort and commissions, not to mention wear and tear on your reputation working with other agents in your community.

Now get out there and make some money!

Las Vegas in 2009 - Good Deal or Not?

I read lots of blogs, twitters, and all kinds of bulletin boards and articles on real estate. I can't help it, its become an obsession. I not only follow real estate in Las Vegas, but I also follow real estate across the country, how other markets are doing, and what is considered a good deal.

Everyone is now speculating again about Las Vegas. For a while, Las Vegas was the darling of the real estate world. We were experiencing record appreciation, so much so, that many people who shouldn't have been investing in advertently drove up the prices in our market, setting us up to fail. There was no way we could continue at 15-25% appreciation a year -- it just was bound to end. And boy did it end.

In 2008, Las Vegas homes dropped up to 31% in value - WOW!!! We're now back to 2002/2003 prices. Homes are selling for about $100 a square foot. You can't build a nice house for that today. Of course, there are some hold-outs who want to believe their homes are worth so much more, and if you've built a really high end home with tons of custom touches or its on a substantial amount of acreage, it may be worth a little more. However, you must realize that until the remaining homes get absorbed and we get caught up with the homes still to come on the market, $100 per square foot give or take is the reality.

Many buyers and investors are taking notice. The thing that just came out and shocked me the most, we are still in the top 10 of states with the highest growth! We're still growing at the rate of almost 2% per month in population. What does that mean exactly?

It means that even though our real estate is at low, low, undervalued prices, Las Vegas still represents a great opportunity to be here as things smooth out. Interest rates are at all time lows! I'm working with lots of investors and buyers who are able to take advantage of this. In fact, some investors are coming in with a new business plan - buy the property with the future tenant in mind. In other words, if buying property and lease optioning it makes sense to you (it certainly does to me), then let your tenant pick the property. Of course, check out your tenant before you rent to them, but realize this is a great opportunity to pick up tenants who make good income but lost their home to foreclosure because they bought with an adjustable mortgage that was going to reset to 2 times their payment and couldn't go from paying $2500 a month to $5,000 a month.

This is the time when you can get great properties that will cash flow for you, buying bank owned properties at a steal, putting less than $5000 into it with paint, carpet and maybe some appliances and having it provide you great income. As the market gets better, and it will in the next 2-3 years, your tenants can buy or, if they move on, the property will cash flow even better for the next tenant/buyer.

This is your chance to do what everyone else was doing to make money in real estate 20 years ago. Don't let this opportunity pass you by. I'm not.

Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com
www.LuxuryShortSalesandREOs.com