Is Las Vegas Real Estate Undervalued?

After reading the title, I know you are probably thinking, yeah right, but just hear me out for a second. 

Could the Las Vegas Real Estate Market be undervalued?  I think without a doubt the answer to that question is yes.  Below I have listed some key points to why I believe the Las Vegas Real Estate Market is undervalued.

1. Homes priced below $150K are selling above list price.  (The average median home price in Las Vegas is $141K.  A significant drop from the high in June 2006 of $315K)
2. Homes that are priced below $150K are receiving multiple offers.
3. Homes priced below $150K are receiving offers within hours of being placed on the market for sale.
4. Standing inventory has steadily decreased over the last year even though we are seeing an increase of bank owned properties hitting the market.
5. 13 Consecutive months Las Vegas home sales have increased compared to the same month from the previous year.  Even though unemployment is over 10%.
6. There has been an increase in foreign investors purchasing homes in Las Vegas.

These are all signs to me that indicate the Las Vegas Real Estate Market is undervalued.  I know there other so called real estate experts that are predicting the 2nd wave of foreclosures, which could happen but I have been hearing that since mid 2008 and here we are, 13 consecutive months of increased home sales compared to the months from the previous year.  On the flip side to the 2nd wave of foreclosures, the Obama Administration has passed legislation that is helping Las Vegas Homeowners to modify their home loan allowing them to stay in their homes with a more affordable mortgage payment.

Nobody knows what’s going to happen over the next 6 – 18 months but I am confident the Las Vegas Real Estate Market will begin to see home prices stabilizing and standing inventory will still be on the decline.

After reading this and you still don’t think the Las Vegas Real Estate Market is on the road to a recovery, then check out this article by the New York Times indicating that Las Vegas is showings signs of rebounding.

When I decided to get into the business of Property Management in Las Vegas, I knew I needed someone that had experience to teach me the ropes.  After interviewing a few property managers, I decided that JoAnn Davis was the right one to teach me.  JoAnn has been a licensed real estate agent since the mid 1970s and has been doing property management for the last 5 years.  When we first began to talk, she told me crazy stories about what she has experienced in her years and I chuckled and thought to myself, “business just isn’t done that way anymore.”

Boy was I wrong.  Some of our recent Landlord clients have told me some crazy stories of what their previous property managers were doing which just blew my mind.  One client advised they were no longer receiving rent checks and he called his property manager.  She advised that the tenant moved out last month and he asked why didn’t you tell me and she said she forgot (are you kidding me).  He then asked if she was going to get it rented and she said she would work on it.  After 3 months and no contact, he called his property manager and asked for an update and she advised that she rented it a month ago but the tenant needed some time to get the rent but yet the tenant was living in the property.  When he told me this, I was in shock that this Las Vegas Property Manager was in business.

I had another client advise they noticed their monthly deposit for rent had changed so she called the property manager.  The property manager advised the last tenant broker their lease and moved out so she rented it to someone else for a lower amount.  My client was very upset that the Propety Manager never contacted her to let her know what was going on and then to top it off she rented it for less without consulting with her.

I have heard many other stories and I am sure other property managers have as well.  I just can’t believe that there are property managers in Las Vegas that operate like this and are still in business?  My advice for any landlords looking to hire a Property Manager in Las Vegas, ask lots of questions and request to speak with some of their current clients.

Las Vegas tops cities for upside down mortgages, which is the reason why over 35% of homes for sale in the Las Vegas Valley are Short Sales.  A short sale is when the Lender/Bank agrees to take less than what is owed on the mortgage, commonly called a short payoff.  Completing a short sale is a better option than letting your home go into foreclosure.  As a foreclosure will have more of a negative affect on your credit than a short sale.

If you decide to sell your home as a short sale, we recommend you consult with a Las Vegas Real Estate Attorney and a CPA as there can be legal and tax implications with a short sale.

With home prices dropping again in April, short sales will continue to be a large portion of the inventory for sale in Las Vegas.  Just a few years ago in June 2006, the median home price was $315,000 and now sits at a little over $141,000.  There’s no wonder why majority of Las Vegas Homeowners are upside down on their home.

If you need to sell your Las Vegas Home but are upside down and are not sure where to turn, contact Sena & Associates today at 702.376.0088.  We will explain the short sale process to you and then recommend why our preferred Real Estate Attorney with Paladin Legal Center should handle the short sale negotiations.

The premier residential and resort destination in Southern Nevada is Lake Las Vegas, which is located in Henderson, Nevada.  Lake Las Vegas is situated on a privately owned 320-acre lake.  Nestled away from the hustle and bustle of Las Vegas, it’s still conveniently located only 20 minutes away from the famous Las Vegas Strip and McCarran International Airport.

Not sure if you want to make Lake Las Vegas your permanent home or a 2nd home?  Why not stay at the resort destination as Lake Las Vegas features world-class resorts including the AAA Four Diamond-rated The Ritz-Carlton, the AAA Four Diamond-rated Loews Lake Las Vegas Resort, and the 40,000 square foot MonteLago Village Resort.  This is an ideal opportunity to see first hand if Lake Las Vegas is a place you could call home.

Lake Las Vegas offers its Residents and guests’ two championship golf courses, spas, full-service marinas, sailing, kayaking, fishing, swimming, walking, hiking and biking.  There are 19 distinct neighborhoods that are sure to meet the needs and desires of any savvy buyer.  Whether you are looking for a custom home, waterfront or courtyard villas, Lake Las Vegas is sure to amaze you!

If you would like to take a private tour of residential homes for sale in Lake Las Vegas, please contact us at 702.376.0088 or complete our contact form.

I must say that I am shocked at some of the stories that I have heard from our clients about some of their previous Las Vegas Property Management Companies.  Needless to say, not all Property Management Companies in Las Vegas are the same.  If you have an investment property in Las Vegas and you are thinking about hiring a Property Manager to maintain your property, make sure you research a few companies before selecting one.  Selecting the right property manager can make all the difference in the world.

A few things you should expect without question from your property manager:

• Proper Licensing
• Experience
• Marketing
• Tenant Screening (credit and criminal checks, references, past landlords, etc…)
• Rent Collection – You think this would be obvious but after some of the stories I have heard, it’s not
• Monthly Accounting Statements
• Maintenance

These are just some of things you should expect from your property manager.

One area that is often over looked by many when looking for a property manager; do they work full time in the property management field?  Many property managers offer property management to make extra income while they spend most of their time working with their clients that buy and sell real estate.  If your property manager isn’t working full time in the property management field, it’s hard for them to keep up with the ever changing laws and most importantly, making sure your tenants are maintaining your property.

So if you made the decision to find a Property Management Company in Las Vegas to maintain your investment, make sure you do your homework and find an experienced property manager.

If you would like to speak with one of our Property Managers about your Las Vegas Investment Property, feel free us a call at 702.376.7379.

Las Vegas Loan Modifications

Many Las Vegas homeowners are upside down or behind on their mortgage payments.  We receive several questions from our clients about how they can avoid foreclosure by doing a loan modification or short sale.

While the politics, procedures, and guidelines for a successful Las Vegas loan modification literally change every day, per our short sale / loan modification attorney, there are still some basic fundamentals that you can be aware of.

As Las Vegas short sale specialists, we work closely with a local law firm to ensure our clients’ individual cases are handled by a legal expert who is bound by law to protect their financial interests vs the bank’s.

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Las Vegas Loan Modification FAQ

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What is a Loan Modification?

A loan modification is simply a restructuring of the current loan terms between the borrower and the lender.  Lower interest rates, longer term, principal reduction, or a principal forbearance are a few examples of how a loan modification can help a homeowner lower their monthly mortgage payment.

Why would agree to a loan modification?

The main purpose of a loan modification is to reach a mutually beneficial agreement between a lender and borrower that prevents foreclosure or future payment defaults.  With the rapid decrease in Las Vegas property values, prolonged sale times due to an over abundance of listing inventory, and the tightening up of mortgage guidelines for new purchases, lenders that acquire properties through foreclosure stand to lose significantly more money than potentially working out a new payment arrangement with a current borrower.

How do I qualify for a Las Vegas loan modification?

This is slightly a tricky question, so please refer to the legal disclaimer below.

The Making Home Affordable Modification program is a government sponsored loan modification plan that was designed to help up to 9 million American homeowners avoid foreclosure by reducing their monthly mortgage payments to something more affordable for a five year term.

To qualify for the Obama Modification Plan, you need to live in the home you are modifying, the balance cannot be more than $729,750 for a single unit, there has to be a significant hardship, and the possibility of foreclosure has to be imminent.  Since this is such a new program, the various servicers, lenders, and other financial institutions are still learning how to adjust with the guidelines.

Qualifying for any other form of a loan modification that does not fall under the Making Home Affordable guidelines requires a negotiation process between the borrower, investors, and generally a servicer who may act as the middle filter.  Since the lender / servicer’s main priority is to protect their investor’s financial interests, it is important to be familiar with any violations in the real estate or mortgage contract that potentially contributed towards your current financial hardship.

To answer this question more specifically, qualifying for a loan modification is a process that involves proving to the lender / servicer that you have the ability to make future mortgage payments on time based on a calculation of  a new rate, term, principal amount, and your income, assets, and employment.

We are finding that equity, or the amount a home is underwater, does impact a lender / servicer’s decision as to whether or not they would approve a borrower for a loan modification or short sale.

Do I need to be  late on my mortgage to qualify for a loan modification?

No, under the Making Home Affordable Modification Program, the guidelines state the a borrower does not have to be late on their mortgage to qualify for a loan modification.  If your lender has forced you to go 90 days past due before they are willing to start the modification negotiation process, it is important to speak with an attorney about your legal recourse.

What if I am already in foreclosure?

Foreclosure can be postponed while a loan modification is attempted, but it is vital to file the proper paperwork as soon as possible.

What if I have assets, can I still get approved for a loan modification?

Since most lenders weigh their decision for a loan modification based on the threat of imminent foreclosure, having a significant amount of available capital does not strengthen your case.  However, there are several other factors that can be taken into consideration, including monthly budget, lender or RESPA violations, employment and income.

Will the lender require an appraisal or inspection?

Yes, the lender may require that your property is inspected to determine the livable condition as well as the market value.

Can I do a loan modification on my own?

Yes, it is possible to work out a solution directly with your lender / servicer that lowers your monthly payment.  Just be aware of any hidden language in the new contract that requires you to sign away your legal rights to litigation.  Other things to pay close attention to are the terms of the new loan, whether or not your mortgage becomes a recourse vs non-recourse loan, if there are any balloon payments 15 – 20 years out, and the difference between a lower rate vs a longer term.  There are literally hundreds of details that can mean the difference between the perception of a lower payment vs an actual fair loan modification.

What if I have already failed on my own, is there still hope with the help of an attorney?

Yes, most homeowners or real estate professionals are not well versed in real estate / mortgage contract law.  Actually,  most of the loss mitigation consultants or case managers at these large financial institutions are still learning the process.  Knowing your legal rights, how to write a hardship letter, and who makes the final decision can give you a significant advantage for a successful loan workout.

A complete forensic loan audit may uncover several lender violations that your bank may not want to address court.

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*Legal Disclaimer – Please keep in mind that we are a real estate company that specializes in listing and marketing Las Vegas short sales.  Since there are several legal logistics and details that apply to each individual scenario, we refer our short sale clients to a trusted local law firm that understands real estate / mortgage contract law.  As a result of our trusted relationship, they have offered to give our clients free consultations to answer any personal  loan modification or short sale questions.

Please contact us @ 702-376-0088 for more information.  Since they do place first priority on homeowners who need immediate help, we’d like to please ask for your cooperation and to contact us to see if we can answer some basic questions and get you set up prior to meeting with them.  We will respect your privacy and understand how sensitive every one’s individual situation can be.

Are you responsible for managing residential or commercial real estate in Las Vegas?  Thinking about retaining a Las Vegas Property Management company?  Consider the following points.

Does the company offer “full services”? Are they able to supply tradesmen to answer every need – plumbing, electric, landscape and so forth?  Consider finding a company that hires and manages its own maintenance staff.

Does the company contracts out some functions? If they do, are references available for these subcontractors? You should shy away from a property management company constantly trolling through the yellow pages for subs.

Is the company insured and bonded? Can the company provide you with current certificates of insurance policies and bonds? Do they carry workmen’s compensation insurance, which is a requirement in the State of Nevada?

Does the company have references? Will the company provide you with contact names and numbers of current and former clients that you can contact directly?

Is the company accessible 24 x 7? Will your tenants be able to reach them any time, day or night, to report an emergency?

Is the property management function the primary portion of their business? You want your property management company to be dedicated to that function, not a sideline of a real estate company.

Does the property management company invoice you on a regular basis for work done? You should have a clear understanding of their standard charges, along with charges for extraordinary service, along with an understanding of terms of payment.

Most importantly, put yourself in the place of your tenants – whether commercial or residential. Would you be comfortable working with the property management company you are considering retaining. If you are, it’s probably a good fit and the start of a comfortable, professional relationship.

If you would like to speak with one of our Property Managers about your Las Vegas Investment Property, feel free to give us a call at 702.376.7379 or complete our contact form and we will contact you.

If you are fortunate enough to invest in a property suitable for short term rentals in a resort area like Las vegas, you should be working with a full services property management company. Doing so will enhance your return on investment, while protecting the integrity of your property.

A local full services property management company will work with you to set rental rates based upon your property’s characteristics and appropriate seasonality. They will be able to market your property to a broad base of qualified renters. They will make sure that your asking rental rates are competitive with other similar properties.

The company will make reservations for renters for you. They will coordinate renting the property out with your usage of the property. They will collect rental and damage deposits and amounts due, they will work to optimize the rental days and income, and they will enforce any reservation cancellation clauses for you.

When your property is rented, the property management services company will inspect the property before the arrival of the renters, making sure that the property is clean, appropriately stocked and does not have any outstanding maintenance issues. While your renters are using the property, the property management company is available to answer any calls for service requests. When the renters leave the property, the management services company will make sure that the property is clean, do any repair or maintenance issues and get the property ready for the next renter. On a periodic basis, the company will do annual or seasonal cleaning and maintenance tasks.

As the owner of the property, you are relieved of marketing and sales, answering service request phone calls, cleaning and maintenance and much more. The property management services company provides all these services, in addition to generating accounting and tax information for you.

This is, above all, a contractual relationship. When you retain a company, check their references. Talk to other home owners who use them. Ask if they have the necessary insurance and bonds. Find out if they are easy to reach in case of an emergency. Make sure you understand their fee structure.

A good relationship with a property management service company will have no surprises and will enhance your investment and when you do use your property yourself, it will be a stress-free experience.

If you would like to speak with one of our Property Managers about your Las Vegas Investment Property, feel free to give us a call at 702.376.7379 or complete our contact form and we will contact you.

Property management refers to the management of residential, commercial, or industrial buildings. Property managers find tenants, collect rent and fees, manage building maintenance, assist homeowners’ associations and advise on litigation issues. Though property managers often deal with multi-unit residential and commercial buildings, landlords who own single-family dwellings may also choose to hire a company to manage their property.

For multi-unit complexes, such as condominiums and townhouses, the property manager serves as an adviser to the homeowner’s association, which is responsible for common area maintenance and improvements.

In the United States, many individual states require property managers to hold a real estate license. Organizations such as the National Association of Residential Property Managers (NAPRM) offer certifications to property management professionals that ensure ethical and professional behavior. To obtain a certification, a manager must log a certain number of hours managing properties and take training classes offered by the association.

In recent years, the industry has increased its use of software to help manage properties. Available programs let managers maintain different sizes and types of properties, track tenant information, schedule work orders, and organize accounts payable and receivable. The use of software enables smaller companies to compete in the industry.

A major advantage of a property manager, especially for out of state landlords is their knowledge of the local rental market. Property managers can survey average rents for similar properties in the area and determine the fair market value. They are also often available on a 24-hour basis to deal with maintenance emergencies that might otherwise cause property damage.

If you are in need of Property Management Services, Shelter Realty offers full service Property Management.  You can reach a Property Manager at 702.376.7379.

I have been receiving numerous phone calls and emails asking if a Loan Modification will affect your credit.  With so many inquiries on this topic, I am assuming there are others that would like to know the answer to this question.  Loan Modifications do not affect your credit.

If you are current in your mortgage payments, a Loan Modification will not affect your credit.

A loan modification is simply a re-negotiation of the terms of your mortgage with your current lender or lenders.  Whether it is a reduced interest rate, longer term, forbearance or a principal reduction, the main objective of a loan modification is to create an affordable mortgage payment that works for the borrower’s current financial scenario.  A loan modification is a contractual agreement to change the terms of the existing mortgage, and because there is no effect on the timing or non-payment of the loan, the credit reporting agencies simply do not see the changes, much less report on them.

If you are currently behind more than 30 days on your mortgage payment, chances are your Lender has already reported you to the credit agencies and your score now reflects a derogatory item.  Completing a Loan Modification might actually help you become current with your mortgage payments and place you in a payment that you can actually afford.  Bringing your mortgage payment current as quickly as possible will minimize the damage to your credit.

Establishing a timely mortgage payment history may actually help improve credit scores, especially if it makes things easier to pay other monthly credit obligations.

If you think a Loan Modification might work for you, I highly recommend having an Attorney with the Paladin Legal Advocacy Center represent you.  Call today to make an appointment for a free consultation at 702.376.0088 or you can attend one of their free Loan Modification Seminars held every Wednesday at 6 pm.

One of the most popular areas for people to rent these days is Las Vegas, Nevada.  Long known as one of the best cities to visit in the world, it is now becoming a place where people come to live.  Whether you are looking to buy or rent a home in Las Vegas there are many residential homes, condos, and town homes to choose from in and around the Las Vegas Valley.

There is a Las Vegas that exists outside the famous “La Vegas Strip.”

The neighborhoods in Las Vegas tend to be the typical culprits of urban sprawl, with partitioned sub-divisions all over the city.

All in all, Las Vegas provides a ton of things to do and things to see, even beyond what you might find on Las Vegas Boulevard. It features excellent restaurants, lots of great entertainment, shopping and only a 20-30 minutes drive to Lake Mead National Recreation and Mount Charleston.

If you need any assistance in locating a home for rent in Las Vegas, don’t hesitate to contact us today at 702.376.0088 or complete our contact form.

Rental Homes in Summerlin

If you are interested in renting a home, condo or town home in Summerlin, it’s certainly an option to consider. Located just west of Las Vegas, this 22,500 acre master planned community is known for its beautiful natural surroundings, its focus on arts and the environment. Summerlin is only 15 to 20 minutes away from the famous Las Vegas Strip and 30 minutes away from McCarran International Airport.

If you enjoy the outdoors, Summerlin is only minutes away from Red Rock, world famous for its rock climbing faces and Mount Charleston. Mount Charleston offers skiing and snow boarding in the winter and hiking in the spring and summer.

If you prefer recreation in the Summerlin area, you could always choose to golf at one of the nine golf courses in the area.  Summerlin also offers shopping centers, ballet theater, restaurants and activities that provide something for everyone’s pleasure.

If you need any assistance in locating a home for rent in Summerlin or Las Vegas, don’t hesitate to contact us today at 702.376.7379 or complete our contact form.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.