Did Archimedes understand real estate?

“Give me a lever long enough and a fulcrum strong enough I can move the earth.”  Archimedes said this hundreds of years ago, yet some people are afraid of using ANY leverage in this real estate market.  I have investors contacting me with $100,000 in cash and they want to buy $100,000 worth of real estate in Las Vegas because they don’t want to end up over leveraged.  I understand.  A large part of the reason we are in this mess is that we got overleveraged.  But some leverage is always good.

Let’s first look at values.  There are plenty of homes in great neighborhoods listed for $70 per square foot.  There are certainly a few listed lower like the one that came on the market today built in 2005 and in move in condition for $50/ sf (call me if you want to buy it).  So you buy a 3 bedroom / 2 bathroom rental for $100,000.  You have the money to pay cash and you don’t want to over leverage yourself. You collect about $900 per month in rent. OK, great!

BUT what if you decided to put down 50%, and buy 2 of them?  First of all, you should have no trouble getting the loans.  Second off, your monthly mortgage payment on EACH property is only about $315 per month (with moderate credit)!

Now are you SURE you don’t want to use at least a little leverage? C’mon! I’m not suggesting that you abandon your beliefs altogether or become irresponsible with your money, but that is reasonably safe, wouldn’t you say?

The prices on Las Vegas real estate are ridiculously low.  Don’t wait for the bottom to start investing here.  You won’t know where the bottom was until it’s gone.  Really.  What are you waiting for?  If you would like information, with no cost or obligation, please contact me.
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Is this the perfect storm?

My new partner has been a realtor in Las Vegas for over 15 years. He has never seen this many homes in escrow (or even close).  Right now there are almost 10,000 homes in Las Vegas under contract.  That’s crazy! Or is it? Right now we have 5 things happening in Las Vegas at the same time that are causing all of this demand for properties under $300,000 here.

1. The months from March through June are historically the best 4 months for real estate sales in Las Vegas.

2. Interest rates are at historical lows. 30 year fixed rates are under 5%

3. The $8,000 first time home buyer tax credit is causing people to believe that they can’t afford not to buy their first home right now.

4. The media is finally telling people that it is time to buy. Sunday’s Las Vegas Review Journal newspaper had an article called “Why houses look better and better” and that is just one such article of many across the nation.

5. The median price is down to $135,000 in Las Vegas.

So, is it the perfect storm? Well it is certainly having those types of results.  Right now in Las Vegas approximately 75% of the houses being sold are selling for full asking price or HIGHER.  Properties are hitting the market and being fought over by investors and would-be home buyers alike. Is it because there is a shortage of properties?  No, it’s because the banks are really desperate to unload these properties so they are pricing them below what the drastically reduced market sees as reasonable. 

The game is tricky though, and you need to be careful. For example, I know a condo complex where you can buy a 1 bedroom condo near the air force base for about $30K! The problem is that there are so many of them available, it still might not be a good investment. But if you are looking to live there, on an FHA first time home buyer loan, your principal and interest payment is going to be less than $150 per month!

Less than $150 per month!

Less than $150 per month!

Less than $150 per month!

Are you ready to get serious about buying Las Vegas real estate?  What are you waiting for?  If you would like help buying real estate in Las Vegas, whether for your personal use, or for investment, please call me.

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Even the Mansions in Las Vegas are cheap now!

OK, I haven’t been here lately. I’ve been very busy. Lousy excuse, I know.

Here is how crazy pricing has gotten on Las Vegas Real Estate. Just a few hours ago, I was in a gated community in the south part of Las Vegas, in a mansion that was more than 6500 square feet of luxury and decadence. The master bedroom closet was bigger than many bedrooms and even had a refrigerator in it like in the new Heineken commercial. 5 bedrooms, 4 1/2 bathrooms, 3 living rooms, 4 car garage, 2 laundry rooms, expensive tile and stone everywhere, circular staircases – you get the picture. I can’t believe you could build this house for less than $200-$250 per square foot (and I’m sure that’s low). Now it did have some maintenance issues, but basically it was in good shape. Probably less than $20K in repairs needed.

Are you ready?

Are you sure?

You’re not going to believe it.

I didn’t believe it when I saw it on the MLS.

I had to go see it with my own eyes.

$71 per square foot. The bank is selling this house for less than $500,000. It JUST hit the market.

Are you ready to begin investing in Las Vegas real estate?  Now is the time.  Really.  What are you waiting for?  If you would like help buying real estate in Las Vegas, whether for your personal use, or for investment, please contact me.


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