LVRE.com

The Threats to Yield

Wed, 01 Feb 2012 09:22:06 +0000

Many investors are attracted by the high yields that Las Vegas offers, with Realtors advertising 10%+ annual returns on all-cash residential purchases, but that is only part of the story. Yields that look good on paper can rapidly compress under the pressures of vacancy, delinquency and operating costs.

Subscribe via the box to the right

Just enter your name and email address

Name:

Email:

This article looks at three different asset classes (condos, single family homes, multi-family) and examines how the choice of asset class can have a significant impact on the net return. I have owned all three asset classes in the last year, and had properties generating yields as low as 5%, and as high as 20%.

Potential pressures on a condo yield:

One of the advantages as a condo owner-resident is that water, trash and sewer are all included in the monthly Home Owners Association (HOA) fee. However, as a landlord this is a disadvantage because the HOA fee is a fixed cost during periods of vacancy.
Las Vegas is awash with cash buyers, many of whom are buying at historically low prices in condo communities. Not only is this increasing the number of rental units, it is also increasing the number of landlords with lower rental rate hurdles to clear to meet their return targets. These factors combine to increase vacancy and lower rents.
Condo units are uniform in layout and amenities so it is difficult to position an asset as unique when marketing it for rent. Price tends to be the biggest distinguishing factor and the condos with the lower asking rents are those that lease first – it only takes a couple of condo owners to lease at below market rents, and you will either have more vacancy than you planned for, or a lower rental rate that you budgeted for.
As a result of foreclosures being bought by investors there are more single family homes available as rental properties than has historically been the case. This is increasing the competitive pressure on condos, especially with some houses being rented out for as low as $800 p/m.

To read more subscribe via the box to the right

Terrible Mistakes Sellers Make

Wed, 01 Feb 2012 08:12:57 +0000

Terrible Mistakes Sellers Make

This article discusses the five most common mistakes that sellers make. These mistakes end up costing a lot of time and money in the sales process. Whether you are going to sell the property yourself, or use an agent, make sure you don’t shoot yourself, in the foot by making these mistakes. Below is an excerpt from the article.

Subscribe via the box to the right

Just enter your name and email address

Name:

Email:

1. Choosing a Bad Agent

The worst mistake you can make is working with an agent who does not understand the tactics that are required to sell a property in today’s competitive environment. The simple truth is that most listing brokers put a property on the MLS, and wait for the calls to come in. The next level of service is a broker who lists a property on the MLS, holds an open house, and conducts a mail shot campaign in the local neighborhood. That’s nice, however, open houses and mail shots are tactics that generate new buyer leads for the broker, but rarely sell the property. The sad truth is that sellers represented by these traditional brokers are being sold short as they are not reaching all the potential buyers as quickly as possible. This results in homes staying on the market for longer than is necessary and selling for less than the maximum achievable price.
When selecting a broker to list your property make sure that they are familiar with the strategies discussed in this article. The second thing to gauge is whether they have the energy and dedication to get your property sold – knowing the tactics required is one thing, but implementing them effectively takes hard work.

2. Setting an Unrealistic Price

Sellers want to get the maximum achievable price, but sometimes greed drives them to list at above market value…

To read more subscribe via the box to the right

Foreclosure Scams

Wed, 01 Feb 2012 05:53:59 +0000

Foreclosure Fraud

There are a number of scams being played out in the distressed Las Vegas real estate market. They target individuals desperate enough to make poor decisions. As a buyer it’s important to be aware of these scams so that you do not get caught up in costly litigation, or have your purchase delayed. This article explains the five most dangerous scams. Below is an excerpt from the article.

Subscribe via the box to the right

Just enter your name and email address

Name:

Email:

Scam 1: The Buy-to-Rent Play

Buying from someone who is the victim of a rent-to-buy scam can leave you with a legal mess that takes time and expense to clear up. Here is now the scam works…
A homeowner is under water and has been served with a notice of default. They are approached by a company proposing that since they have better credit than the homeowner that they can refinance the loan and solve the problem. The owner just needs to surrender title to their home, and they can remain in the property on a rent-to-buy contract while the refinancing is arranged. The former homeowner can hardly believe their luck because they are paying the same as their mortgage, can remain in their home, and will not have a foreclosure on their credit history.

However, the reality is that the company takes title with a promise to assume the loan without a real intention to repay it. They simply collect rent from the former homeowner up until the default, and make no attempt to refinance the loan. The foreclosure is then recorded against the original borrower.

It may seem like an elaborate scam just to get a few months rent, but consider that some foreclosures can be delayed by as much as eight months, and these scam artists have many victims to generate thousands in bogus rents each month. The crux of this scam is that many victims do not realize that transferring the deed does nothing to transfer what they owe on the mortgage.

T o read more subscribe via the box to the right

Las Vegas Spring Oaks

Fri, 27 Jan 2012 16:59:18 +0000

Showing properties 1 - 5 of 5. See more Spring Oaks.
(all data current as of 2/6/2012)

$69,900 : 4251 Sanderling Cr 319, Las Vegas

2 beds, 2 full baths

Home size: 1,008 sq ft

Year built: 1988

Days on market: 24

Walk Score®: 83
$45,000 : 4140 Gannet Cr 251, Las Vegas

1 bed, 1 full bath

Home size: 724 sq ft

Year built: 1987

Days on market: 27

Walk Score®: 72
$70,000 : 4120 Gannet Cr 259, Las Vegas

2 beds, 2 full baths

Home size: 964 sq ft

Year built: 1987

Days on market: 54

Walk Score®: 74
$29,000 : 4330 Sanderling Cr 82, Las Vegas

1 bed, 1 full bath

Home size: 612 sq ft

Year built: 1989

Days on market: 82

Walk Score®: 75
$58,800 : 4150 Sanderling Cr 456, Las Vegas

1 bed, 1 full bath

Home size: 724 sq ft

Year built: 1988

Days on market: 139

Walk Score®: 75

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Foreclosure Hot List

Thu, 26 Jan 2012 02:35:35 +0000

Getting a Free Foreclosure Hot List is as easy as 1,2,3:

1. Click Register using the top left button below

2. Search for the foreclosures that you want (select area, price etc.) and click View Results

3. At the top of the results you will see that you see the green button for Email Alerts, just click that and you will get the foreclosures that meet your criteria as soon as they hit the market. You will be first to see the bargains

What’s my home worth

Sun, 22 Jan 2012 00:33:02 +0000

Here is the text that I want to the left of the Zestimate box:

If you are satisfied with a computer algorithm to crunch some numbers and throw out a figure that could have as much as a 10% margin of error then please make use of the Zestimate tool on the right.

However, if you would like a far more accurate report that is put together by an actual human being with detailed market knowledge then please complete the form below.

We will include information on how actual selling prices compare with list prices in your area, and information on how homes are selling within a 5 mile radius.

There is no cost or obligation for this valuable service. For a FREE Home Evaluation, please fill in the information requested.

[contact-form]

Las Vegas Homes Values

Everyone would like to buy at the bottom of the market, after all those that do will see the most capital appreciation. So are we at the bottom of Las Vegas real estate pricing? That’s impossible to answer, and the wrong question to ask. As with stocks, the smart investors buy on the way up, not by speculating on whether we are at the bottom. The better question to consider is whether the market is showing any signs of stabilizing, and whether Las Vegas home values are moving back up.

If you asked that question in early 2010, you would have seen stable pricing for the prior year, and even signs of slight uptick in the summer. Many investors thought they were coming at the bottom at that time, only to find that prices declined yet further in 2011. There is a downwards trend line that started in 2007 and continues today. But there is clearly a deceleration in the decline, with the 2009-2011 rate of decline nothing like the 2007-2009 freefall.

So are the investors that bought in 2010 disappointed? Well if they bought right they have enjoyed an 8%+ net annual yield from the rental income on their property and will continue to do so year after year until they decide to sell. If they bought with a medium or long term view then they are likely comfortable to hold during this period of slow deceleration and wait for the market to improve. Buyers today with a similar mindset and time horizon have a greater chance of meeting their goals than those buying in the expectation of a rapid increase, after all the fundamental driver of Las Vegas real estate value, the local economy, remains weak.

One interesting statistic of the 2011 year of decline is that more existing local homes were sold than during any other year on record. In total 48,186 local properties were sold in 2011, including 38,153 single-family homes and 10,033 condominiums and townhomes. If demand remains at its current high levels, or increases, then the market will eventually work through its distressed inventory, at which point upwards price pressure would have a surer footing.

Through December, 58.3 percent of all homes and 63.7 percent of all condos and townhomes sold within 60 days. That compares to November, when 58.7 percent of all homes and 65.9 percent of all condos and townhomes sold within 60 days. This pace of sales, along with the volume is a positive sign that the market has the capacity to work through its foreclosure inventory.

There are plenty of reasons not to be excited about prospects for the Las Vegas home values:

Two-thirds of homeowners with a mortgage are underwater, and there could be as many as 100,000 additional homes foreclosed on in the next few years.
There were only 3,894 new build homes sold 2011 to 3,894, compared to 39,000 in 2005.
75% of all sales in the current market are either foreclosures or short sales. Some estimate that one third of all Las Vegas real estate will have been foreclosed by the time we are through the crisis.
The median price of single-family homes sold as part of a short sale in December 2011 was $125,000, down from $129,900 in November. More short sales would be an upwards pressure on average prices, however, 26.6 percent of all existing local homes sold during December were short sales. That’s down slightly from 26.8 percent in November, and down from a peak of 34 percent set in June 2010.
Bank-owned homes were 6% of all existing home sales in December 2011, matching the percentage in November. The Greater Las Vegas Association of Realtors reported that the median price of bank-owned single-family homes sold in December was $104,900, down from $107,640 in November.

Now ask yourself, has the market stabilized?

Now ask yourself, where else can I get an annual return of 8%+ on my investments? The answer to that question is what is enabling the Las Vegas market to correct itself, with over 50% of all residential acquisitions being snapped up by yield-driven investors. How long it will take to stabilize, and what price trends we may see at that time will be driven by a number of factors, including the health of the broader US economy.

Home Value Estimate

La Mirage Condominiums Las Vegas

Sat, 21 Jan 2012 23:12:37 +0000

Showing properties 1 - 3 of 3. See more Las Mirage Condominiums.
(all data current as of 2/6/2012)

$63,900 : 6250 W Flamingo Rd 47, Las Vegas

2 beds, 2 full, 1 part baths

Home size: 1,424 sq ft

Lot size: 6,098 sq ft

Year built: 1985

Parking spots: 1

Days on market: 9

Walk Score®: 72
$44,900 : 6250 W Flamingo Rd 76, Las Vegas

1 bed, 1 full bath

Home size: 879 sq ft

Lot size: 3,485 sq ft

Year built: 1986

Parking spots: 1

Days on market: 26

Walk Score®: 72
$36,630 : 6250 W Flamingo Rd 67, Las Vegas

1 bed, 1 full bath

Home size: 879 sq ft

Year built: 1986

Days on market: 101

Walk Score®: 72

Listing information deemed reliable but not guaranteed. Read full disclaimer.

[View with PicLens]

The Villas at Flamingo

Thu, 19 Jan 2012 06:39:28 +0000

Showing properties 1 - 4 of 4. See more The Villas at Flamingo.
(all data current as of 2/6/2012)

$29,000 : 5525 W Flamingo Rd 2016, Las Vegas

1 bed, 1 full bath

Home size: 870 sq ft

Year built: 1997

Parking spots: 1

Days on market: 31

Walk Score®: 71
$60,500 : 5525 W Flamingo Rd 1020, Las Vegas

2 beds, 2 full baths

Home size: 1,135 sq ft

Lot size: 1,135 sq ft

Year built: 1997

Days on market: 45

Walk Score®: 71
$30,000 : 5525 W Flamingo Rd 1005, Las Vegas

1 bed, 1 full bath

Home size: 870 sq ft

Year built: 1997

Days on market: 49

Walk Score®: 60
$54,900 : 5525 W Flamingo Rd 2026, Las Vegas

2 beds, 2 full baths

Home size: 1,135 sq ft

Year built: 1997

Days on market: 109

Walk Score®: 60

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Wed, 04 Jan 2012 07:24:24 +0000

Concordia At Green Valley

Wed, 30 Nov 2011 00:25:04 +0000

Showing properties 1 - 2 of 2. See more Concordia At Green Valley tract real estate.
(all data current as of 2/6/2012)

$175,800 : 2318 Reading Hills Av, Henderson

5 beds, 2 full, 1 part baths

Home size: 2,441 sq ft

Lot size: 5,662 sq ft

Year built: 2004

Parking spots: 3

Days on market: 101

Walk Score®: 43
$185,000 : 2334 Reading Hills Av, Henderson

5 beds, 3 full baths

Home size: 2,441 sq ft

Lot size: 5,662 sq ft

Year built: 2004

Parking spots: 3

Days on market: 139

Walk Score®: 38

Listing information deemed reliable but not guaranteed. Read full disclaimer.