What does the national real estate data tell us? Maybe nothing.
As many of you may know, yesterday the national real estate data came out for the month of December 2008. What did the data say? Existing home sales up 64%, median home price down 15.3% to $175,400 compared to December 2007 numbers.
Now I don’t have the December numbers for Las Vegas, yet, but in November, existing home sales were up 79.0%, median price $173,900, down 31.5% compared to November 2007.
Have Las Vegas homes really lost that much value? Well, they certainly have lost that much perceived value. What do I mean by that? When the prices were rising astronomically, homes could not have truly gone up in value that quickly, but people perceived that that they did, so they paid the prices. I remember seeing a map that showed that real estate in Summerlin, went up 73% in one year (I thought I still had that map somewhere, but can’t find it). Then prices came back to a reasonable value. So what is the real value of the real estate in Las Vegas? When will it stop declining here in Las Vegas? Nationwide? You might want to ask Barack Obama – I certainly don’t know. What I do know, is that it will go back up, eventually, and when it does, if you bought some, you’ll be smiling! And if you bought right, you’ll be drinking umbrella drinks someplace warm and sunny, anytime you want.
So how do you buy real estate right in Las Vegas? For starters, visit www.MyFastEasySale.com, click the “Wholesale Buyers” link, and fill out the form. After that, I’ll show you some real values, and tell you why they are values.
Currently, Short Sales: make up 31% of all Las Vegas real estate listings on the MLS, and Bank Owned listings make up 38%. This means that Short sale and REO listings are just under 70% of total listings, but is one of those a better route than the other? It depends.
Right now banks actually own more inventory than has hit MLS. The houses that they have released into inventory they seem to be prepared to deal with now. The last 3 offers I have written on bank owned properties have all received a response within just a few days. Offers on short sale properties seem to take much longer – often because of the owners of the property. In order to submit your short sale offer to your bank, they need to see financials from you. Recent bank statements, pay stubs, a hardship letter and more. Many homeowners are just not emotionally up to the task. It’s quite draining to look down the barrel of financial hardship. If you’ve never done it, I hope you never do, and if you have, then you understand. These people aren’t just losing something, they are losing their home, the safest, most wonderful spot on planet earth.
There is certainly an upside to the short sales however; the condition of the property. Someone trying to short sale their home is trying to ‘do the right thing’, instead of just walking away. Because of that mind set, the properties are often in pretty good overall condition. This is often not the case with the REO homes. Many of the people who have been foreclosed on and evicted (even if they were at one time trying to ‘do the right thing’) felt abandoned, harassed or otherwise victimized and lashed out as they left; leaving their former house in very poor condition.
So what is my recommendation? To contact me so I can help you make the right decision for you on Las Vegas Real Estate. Visit www.MyFastEasySale.com, click the “Wholesale Buyers” link, and fill out the form so I can start helping you today!
Anytime you can be more efficient, you’re better off, right?
As I was logging into WordPress to blog from a different computer today, I was struck by how much I love my little password tool. Now, Internet Explorer will remember your usernames and passwords, but there have been so many security issues with IE over the years, I would never trust it with my private information. I have several online accounts that have a log-in, as do most people. Of course there are passwords I would never care if anyone learned (like sidestep.com or driver.com – great resources), but there are also passwords that are critical to me, (like my bank account and my dubli.com account).
And I know people who consistently use the SAME username and password everywhere they go on the internet. Are you one of those people? Think about it, if you are, and someone knows ONE of your log-ins, then, they know ALL of your log-ins.
In any case, almost a year ago, a friend told me about a VERY secure little tool called Roboform that resides on your computer, and remembers all of your passwords for you. For your really important accounts, it can generate super secure passwords for you. If you’re like me, you’ve always stayed away from those because they were too hard to remember.
So how does Roboform help you when you are on a different computer? There is a portable version that resides on your portable USB or U3 flash drive (often called a jump drive). Like the PC version, it can only be accessed with a master password, so it is secure, even if it is lost or stolen. With all of my online accounts, and all of my DIFFERENT log-ins, I’ll bet this software saves me 2-3 hours per week, and increases the security of my online accounts. To check it out for yourself, visit www.MyFastEasyPasswords.com. Roboform is even trusted by the Better Business Bureau. I bet you’re going to tell all of your friends about it. It’s just that great!
Now, back to the people who use the same log-ins (or even very similar ones) for all of your online accounts, I want you to make changes NOW (please). Identity theft is a very real problem, and I don’t want you to be the next victim.
So, here is what I want you to do.
Go to MyFastEasyPasswords.com then download and install the software. Use it free for 30 days.
Go to an important web site that you use
Log-in (Roboform will ask you if you want it to remember – go ahead and say yes)
Change your password
Write the new password down
Log out
Log back in with the new password
Overwrite the old password with the new password in Roboform
Go back to step #2 until you’re can’t remember any others
Have more than one log-in on a particular site? For example, I have a business log-in and a personal log-in for my banking. When you save the log-in, you get the opportunity to name it. Roboform offers you a name, based on the Title of the web page you are logging in on. If it offers you ‘ABC Bank’, simply name it ‘ABC Bank – Personal’
Don’t wait until the market hits bottom in Las Vegas to start buying real estate. Let someone else pay the bill while it continuies to decline, and cash in later.
I think the question I get most often is, “Jeff, what if Las Vegas Real Estate has not hit bottom? If I buy now, and it continues to decline in value, what do I do then?”
Great question, so let’s start by taking a look at a graph I got off of Zillow.com awhile back. If you look at this, it certainly does not indicate that we have hit bottom.
So let’s look at how we can be sure that won’t work against us. I grew up in California, where I have seen the Real Estate markets swing radically every few years. I remember I had a friend many years ago, who got divorced, and refinanced his home to give his former wife her her share of the divorce settlement. Shortly afterwards, the local market began to decline steeply and within a couple of years my friend was alarmed to discover that he owed more on his house than it was worth. He asked me if I thought he should ‘walk away’ from it like many others were doing. I first asked him if he could still afford it (of course this was long before exotic mortgages, and he had a 30 year fixed rate loan), and he stated that he could. I then asked him what he was going to do if he sold it, and he said he would rent a place for himself. The obvious solution was to continue paying the mortgage and live there, so he did. Several years later, he was getting remarried and moved into his new wife’s home. When he went to sell that house, it sold for much more than he owed on it.
So what if you bought real estate, and someone else was paying the mortgage for you? Would it really bother you if it declined in value? For the first time since 1991, there are a lot of single family homes in Las Vegas that can rent for more than the mortgage payment (as well as the RE taxes, property insurance, maintenance and property management fees). When the property is producing positive cash flow, you can afford to wait for it to go back up in value! Think about it, your tenants will cover the expenses on the house, while it continues to decline in value, until it finally goes up!
So WHAT ARE YOU WAITING FOR?
Las Vegas real estate is ON SALE.
Get yours now!
To contact me so I can help you make great decisions on Las Vegas Real Estate, visitwww.MyFastEasySale.com, click the “Wholesale Buyers” link, and fill out the form so I can start helping you today!
High end Las Vegas rentals just became more available, but that is not a concern for the typical investor.
Trump Tower Las Vegas
I remember when I was still buying in Las Vegas before I stopped and then started again. (Did you follow that?) In other words, a couple of years ago.
When the Trump Tower Condo-tel project was announced, my partners and I looked into buying some of the units pre-construction. The initial thought was to buy 5 @ a price tag of roughly $600,000 each at pre-construction pricing. We would ‘flip’ 3 of them after completion and keep the other 2 luxury vacation rentals. Well, we did the math and it did not appear to be very lucrative, so we never went any further with it. (I still get emails once in awhile from the sales associate.) I remember that the first tower had nearly sold out and they began preparing to pre-sell the second tower.
Fast-forward to the present day. Almost 400 of the 1,282 units have closed. That’s it. All of the other buyers have walked away and Trump has this enormous alligator on his hands, eating away at his cash. The hotel rooms have been so underused, that when a friend of mine stayed in one of the condo-tel units this week, he simply asked if he could get a nicer room and they gave it to him. Much nicer. He paid less than a suite at Encore or Bellagio, and had a spectacular view of the ‘Strip’.
So, Trump is now listing all of his units for lease, including studios, one bedrooms, two bedrooms and even the penthouses.
The lowest price is $1,600 a month for a one-year lease on a studio. One bedrooms are as low as $2,600 and a three-bedroom penthouse is $6,500 for a one-year lease. Those same units are $7,500 a month for those who only want it for three months and $7,200 a month for a six-month lease. Of course those are furnished nicely.
In the past few months, some staff members were let go and that reduced services. By bringing in more people as tenants, they should be able to increase jobs again. So has ‘The Donald’ started another trend? Are the unsold units of the condo-tels around the country going to be leased as year-round rentals? I’m certain that they will, and until the economy turns around, if you are in the market for a pretty high-end rental anyway, my guess is you’ll be able to get a significant upgrade in the short term.
The good news for me, is that these units are certainly not competing for any of the lower end rentals. That market is still strong, as long as you know what neighborhoods to buy in. If you have money and / or good credit and are ready to take advantage of the deeply discounted Las Vegas real estate market, please contact me. I have deals coming out of my ears and all of the resources in place to help you get them repaired, rented and managed. In a few years, I’ll be happy to help you sell them for a very nice profit.
Las Vegas real estate is ON SALE.
Get yours now!
To contact me so I can help you make great decisions on Las Vegas Real Estate, visitwww.MyFastEasySale.com, click the “Wholesale Buyers” link, and fill out the form so I can start helping you today!
Now is the time to invest in Las Vegas real estate.
Alright, I’ll admit I have let this blog get ‘stale’, but no more. I have a new motivation! I love being right! Since August, I have been blasting my email list telling them that they should come and invest with me in Las Vegas real estate. Why? Well a number of reasons come to mind. First of all, Las Vegas had the 2nd highest foreclosure rate in the country, it’s true. And most people will run away from that. DON’T.
For more than 15 years, between 5,000 and 8,000 people have moved to Las Vegas – and the trend shows no signs of slowing.
The median home price in Las Vegas as reported by the Las Vegas Review Journal on 9-10-08 is only $210,000.
Wal-Mart is building a distribution Center just outside of Las Vegas and they require that EVERY vendor have a warehouse within 50 miles.
McCarran Airport can no longer handle the volume of traffic, so the city is going to build a second airport.
Single family homes can produce positive cashflow as a rental for the first time since 1991 – if you can buy an investment property that will cash flow, then it truly doesn’t matter how long it takes to appreciate, as long as it does (and boy, will it ever!)
Despite the fact that Las Vegas real estate has dropped an additional 28% in the past year, sales are up 15% year over year! This is the part where I tell you how I was right. Forbes Magazine and Forbes.com just released a list of the top 10 cities that you should be buying real estate in. #1? You guessed it! Las Vegas! For the other 9 cities, go to Forbes.com and search for the writer Matt Woolsey. I’m not hear to talk about #2. After all, second place is just the first loser, right?
So, what qualifies me to help you navigate Las Vegas real estate for the best deals?
I have purchased over 30 investment properties – I have made money on most yet lost money on others – I have skinned my knees and learned a lot of valuable lessons.
I lived in Las Vegas from 1993 to 2003 and am very familiar with the city. In fact I still own and help run a successful Las Vegas business. I have just returned for the sole purpose of investing in real estate.
I know the hot areas, I know the war zones.
I have solid connections with REO Brokers, contractors, Title companies and more.
I have access to a woman whose sole job is to find FREE money for down payments for First Time Homebuyers through local and state programs (if you are looking to live here or flip property she is invaluable).
I own the phone number 702-SELL-NOW and run ads to buy houses year ’round in Las Vegas.
I also know a secret about WHY Las Vegas will be so profitable over the next 5 years, but I will only share that with serious investors.
Are you a serious investor? Do you want to buy in the real estate market that is poised for maximum long term profit? Whether you are a cash buyer or ready to finance, contact me, and we’ll discuss how I can help you find great investment property in Las Vegas.
To contact me so I can help you make great decisions on Las Vegas Real Estate, visitwww.MyFastEasySale.com, click the “Wholesale Buyers” link, and fill out the form so I can start helping you today!
I got a phone call from an investor a few days ago, who wanted to know if I was interested in partnering on a deal with her…
I got a phone call from an investor a few days ago, who wanted to know if I was interested in partnering on a deal with her. I asked her to explain the deal to me. She said it was a duplex in Plymouthand that she was paying $257,000 for it. The sellers had it rented to handicapped people that were going to be leaving when it was sold. The owners were taking their tenants to a new building. I asked her what the rents were, and she said that the owners would not disclose because of the type of tenants. I asked her what the property was worth and she said that the comparable sales showed it was worth about $257,000. I asked her if it was going to have a positive cash flow according to projected rents. The numbers that she shared with
me told that with NO vacancies ever, NO property management costs, NO maintenance issues, an interest rate that she HOPED she would get and 20% down, it would have a small positive cash flow.Then she spoke of what a good location it was and other positive factors, attempting to convince me (and herself) that in a declining real estate market, this was a good investment.The first thing I want you to know is that this investor could have been ME. Everyone runs into a deal now & then that for any variety of reasons they feel the need to make it work.
I nicely (I hope) reminded her that there are 3 reasons to buy real estate;
1. Positive cash flow – You MUST take into account;
a minimum of 10% vacancy rate (higher if the area calls for it),
at least 10% of collected rents for maintenance,
10% for property management (even if you manage it yourself)
interest rate 1% higher than you expect to get for your mortgage
lower rent than you expect – unless the tenants already exists
taxes
insurance
2. Significant discount – Minimum 20% if you are not going to have a
positive cash flow
3. Higher and better use – This one is only for experienced investors
If you are not getting at least one of the above 3– – – – –
Then ask yourself one more question;
‘Do I want to be an investor or a gambler?’
If the answer is gambler, then go ahead, it may possibly pay off for you,
but stop attending Investment meetings and go to G.A.
(Gamblers Anonymous)
If you have recently purchased your first home, or are considering doing so in the next year, here is good news for you . . .
If you have recently purchased your first home, or are considering doing so in the next year, here is good news for you!
One of the programs included in the new housing bill signed by President Bush recenlty is a $7,500 homebuyer tax credit. While this tax credit has benefits, it is important to understand that this “tax credit” is actually an interest-free loan which will be repaid over a period of 15 years.
Below is a Q&A that summarizes the program’s features that was put together by the National Association of REALTORS®.
Q: What is the Amount of Credit?
A: 10 percent of the cost of home, not to exceed $7,500
Q: What properties are eligible?
A: Any single-family residence (including condos, co-ops) that will be used as a principal residence.
Q: Is the tax credit refundable?
A: Yes. It reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.
Q: Is there an income limit?
A: Yes. The full amount of credit is available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). The benefit of the credit phases out above those caps ($95,000 and $170,000, respectively).
Q: Is this program for first-time homebuyers only?
A: Yes. A portion (6.67 % of credit) has to be repaid each year for 15 years. If the home sold before 15 years, then the remainder of credit recaptured on sale.
Q: What is the effective date of the program?
A: The credit is good on home purchases on or after April 9, 2008
Q: When does the program conclude?
A: July 1, 2009
Q: What is the tax credit’s interaction with Alternative Minimum Tax?
A: The credit can be used against AMT, so credit will not throw individual into AMT.
Visit http://www.BluefishCoveHouse.com to see how to live on the ocean cheap and easy in Marshfield Massachusetts
OK, now that I have your attention, check this out. I have been investing in real estate for awhile now, and I have to tell you, last summer, I found the greatest little beach house in the Brant Rock area of Marshfield, Massachusetts! Most beach front property in the Marshfiled/Duxbury area will cost you more than $500 per square foot of living space. Why? Simple! When you buy a home on the beach, you pay more for the land than the house. If you have a lot of land and a little house, you’re going to pay plenty. If you have less land, and more house then you get more for your money. Who wants a big yard to care for when you live on the ocean anyway? Why spend more time doing yard work and less time on the beach? This house has a small lot, and therefore costs less!
So, why am I telling you this? Because this great Marshfield beach house has been renovated, and it’s now for sale. The best part? You don’t need good credit to qualify to purchase it. You could live in the great little community of Brant Rock (right next to Duxbury). Not looking to move? This is a great investment property which gets up to $2,600 per week as a summer vacation rental. For more information visit http://www.BluefishCoveHouse.com
