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.