Paul Rowe of Shelter Realty Completes CDPE Short Sale Designation Course

Las Vegas, NV – February 5, 2013 – Shelter Realty

Shelter Realty’s top producing short sale listing agent recently added the CDPE (Certified Distressed Property Expert) designation to his license after completing their intense two day course on January 29^th, 2013. The Charfen Institute which created the CDPE course has established itself as the preeminent training program for short sales.

The need for qualified short sale agents in the Las Vegas real estate market has dramatically increased after the market crashed in 2008 and sellers needed a viable alternative to foreclosure.

When asked why Paul took the course despite having already closed nearly one hundred short sales already, he replied: “It is important for sellers to know who is a true expert and who is not. I had the experience and plenty of short sale closings, but it is also important for future clients to see that I have completed formal training as well.” The CDPE designation is something the public recognizes and helps them during their evaluation period when deciding if an agent has the skills necessary to guide them through very difficult circumstances.

Paul also belongs to other short sale groups such as Short Sale Genius, Short Sale Superstars. “Constant training is necessary to serve my clients, he said. Nobody has all the answers, especially in a rapidly changing field like short sales. The way we do short sales is dramatically different from just a few years back. I belong to work groups with agents and other real estate professionals from across the country which provide valuable support should a short sale transaction begin to encounter serious difficulties.”

You can reach Paul Rowe by calling Shelter Realty at (702) 376-7379 or by emailing info @ ShelterRealty.com or by filling out a contact form on the Shelter Realty website.

Las Vegas Short Sales: Bank of America Issues Changes to Short Sale Programs

Bank of America came out with a few changes to their short sale programs today. The first change mostly affects flippers. Short sales closed through Bank of America now have deed restrictions upon re-selling the property. The home cannot be resold within 30 days (aimed directly at double-closings). Furthermore, the home can only be resold for 120% of the short sale price within 90 days after the short sale closes. Many flippers use high interest, liquid funds and often want to sell the home quickly to avoid high holding costs.  This will not in all likelihood stamp out flipping but the trend is clearly designed to hamper it. The banks are upset that money is being left on the table that they did not recover on the original short sale.

The other set of changes relate to seller incentives for relocation expenses from Freddie Mac and Fannie Mae if they are the institution which holds the note that Bank of America may be servicing on behalf of your mortgage. Fannie and Freddie may pay up to $3,000 on short sales except in the following cases:

1. The borrower is required to contribute funds or execute a promissory note.
2. The borrower has Permanent Change of Station (PCS) orders and receives a Dislocation Allowance (DLA) or other government relocation assistance.
3. The servicer has knowledge that the borrower is receiving relocation assistance from another source other than the servicer.

It should be noted that if the seller is receiving incentives from another source for the short sale and it exceeds $3,000 and this is a Freddie Mac or Fannie Mae loan, then no incentive will be paid in addition to the alternative incentive payment.

There are now multiple incentive programs related to Bank of America serviced loans; some in excess of $30,000. If you know that some point your upside down mortgage is unsustainable then it is important to check out all your options that may provide a graceful exit from the situation and maybe even get some money on the way out as well.

You may call Shelter Realty for a personal assessment to explore if a short sale is a good option you. Call 702-376-7379 or complete our contact form.

Reprieve for Las Vegas Home Owners: Mortgage Debt Forgiveness Act Extended until Jan 1, 2014

Las Vegas home owners of primary residences who were facing foreclosure in 2013 would have faced serious tax consequences without this extension. The original Debt Forgiveness Act of 2007 signed by President Bush allowed for owners of principle residences who either were foreclosed upon or who short sold their home to avoid significant capital gain taxes. Owners were exempted from the heavy taxes as long as their home was considered a principle residence during the preceding five years and the debt forgiven was used to purchase the home or were used as documentable improvements to the residence.

Congress has now extended the Act through 2013 which will help both types of owners, those who get foreclosed and those who want to do a short sale. Owners who know they cannot get a loan modification and are considering a short sale have a clearer path to selling their home and debt relief.

Any persons with questions may call Shelter Realty for a personal assessment if a short sale is a good option for them. He may be reached at 702-376-7379.

Las Vegas area resale inventory is still showing a shortage of available homes for sale. Whether more foreclosed homes will come out on the market or not, you currently hardly see any bank owned homes available here in Henderson.

Responding to current market conditions, new home builders are confident and raising prices aggressively. I was told that we had to win a lottery to get a parcel of land we wanted to purchase. It reminded me of the bubble boom time.

A young couple from overseas signed a contract in July for a new home, since then the builder raised prices a couple of times totaling over 20 thousand dollars.

KB Home sales person Barry Goodman sent us pictures of the afore mentioned home construction every week.

Here are some pictures of the home (Inspirada, Henderson)

Aug 5, 2012 Trenching

Aug 11, 2012   Post Tension Slab

Aug 18, 2012   Framing

Aug 24, 2012   First floor completed

Sep 2, 2012     Second floor is done

Sep 8, 2012     Windows put in place

Pictures provided by: Barry Goodman / KB Home

For more information on new homes, please contact Atsuko Winston at 702-461-5694 or Sachi Reeske at 702-324-8678.

Tired of the hustle and bustle of Las Vegas?

While it is true Las Vegas is considered Sin City, even the most ardent of Sinners must eventually repent. And what better place then in the rolling hills of the Tuscan inspired community of Seven Hills. This is truly one of those magical places that can whisk you away from where you are and take you far away to the romance of the Italian countryside and yet still give you breathtaking views of the Las Vegas Strip.

Many of you may wonder what the significance of Seven Hills is. It’s said that it was named after the Seven Hills that Rome was built on. Though it is more of Tuscan design than Roman, the feeling of Italy is still here. You can see it’s impression on every stone. I doubt either Roman courtesans or the Emperor himself would find fault with this beautiful community.

Seven Hills is located only about 20 minutes from the strip in the Henderson area and is literally minutes form the heart of Henderson, so shopping and entertainment are never far away. The community is broken up into around 25 different communities, each with it’s own Italian name, lest you remember you are still in Vegas. There are gated communities within gated communities giving an even greater air of exclusivity. Within these communities the properties vary immensely from beautiful town homes to incredible Tuscan villas.

Are you looking for a nice evening out with the family, but don’t want to go too far from home? Shared amongst the residences are 4 large parks with tennis, volleyball, basketball, and even soccer fields. Maybe you’ve had a hard day at work and are looking for something a little more serene? How about a picturesque walk through one of the many winding paths or perhaps a relaxing bike ride on one of the bike ways. Or possibly, you would rather just sit and relax, and gaze at the surrounding mountain views above, or the Las Vegas strip lit up at night, down below.

Are you looking to live in the luxury the emperor himself might have lived in? There is a place for you here as well. The Estates at Seven Hills is one of the most exclusive communities in Henderson. And for those of you that love golf it’s the perfect place to reside. Within the Estates lies what Golf Digest named one of the top 10 new golf courses in America. The Rio Secco Golf Club. It was designed and constructed by none other that Rees Jones. The course itself has some of the most breathtaking views around and the homes that border the course offer some incredible views of the course itself as well as the Las Vegas Strip. If you find the course too challenging, don’t feel bad, it’s even given some professionals a run for there money. Luckily for you however, the Butch Harmon School of Golf is also located here so you should be able to improve your game in no time.

So whether you are a courtesan or an Emperor, or just a loving family looking for a magical place to live, Seven Hills is waiting for you. Come home to the Tuscan countryside, come home to Seven Hills. For more information on homes in the Seven Hills area, please call 702.376.7379

Thinking of buying or renting a condo at The Martin in Las Vegas? Three words location, location, location!

Cross over the hardly used Harmon bridge making use of amenities, such as Range Rover car service along with concierge service providing any tickets to shows or sporting events, ensuring an effortless night on the town.  Or simply get away from the Las Vegas hustle and bustle by using the main road the martin is located on and hit the freeway off Tropicana.  Planning a visit to your home away from home? Call ahead and have the concierge stock your condo with food before you come into town for a weekend stay.

Once you pull up to The Martin allow white glove valet attendants to take care of parking your car and even give it a detail if you wish.   Why go out when you can stay in? The health and wellness programs, fitness center and yoga studio, spa, steam rooms, and cabanas poolside will ensure a full day of relaxation, while the house cleaning service takes care of the to do list in your residence.

After a long hard day of relaxation why not take advantage of the beautiful Las Vegas Strip views and entertain some friends or simply catch up on your favorite tv shows via direct tv satellite which is included in the your low HOA fees.  The Martin takes care of you , your pocket book and well being!

For more information about about buying, selling or renting at The Martin, give Len Musurichan a call at 702.308.1003 or send him an email at len @ shelterrealty.com

Bank of America today is offering anywhere from $5,000 to $30,000 for “enhanced relocation assistance” to homeowners that qualify. I will get into some of the details in a moment. Bank of America told us in the email, that homeowners should contact a real estate agent familiar with their programs. Some homeowners may already have been notified by mail. Since too many home owners stop looking at their correspondences from their mortgage banks, the banks have turned to real estate professionals to make contact with these borrowers who may not be aware of the opportunities and financial incentives available to them.

Some of the details include:

• Borrowers must have their real estate agent initiate a short sale with Bank of America prior to the end of this year and the sale must close prior to Sept 26, 2013. If you already have a short sale working you are not eligible for this particular program, though other incentives such as HAFA short sales and Bank of America Cooperative short sale programs may still be available.
• Investors as well as owner-occupants are both eligible
• The amount you are eligible for is usually determined once the bank has performed their own valuation of the home by sending out an appraiser or real estate agent to perform a sales valuation known as a BPO (Broker’s Price Opinion).
• Incentive may be used as relocation expenses for the borrower or to pay towards junior liens. This can be very useful if you have a 2^nd lien which could interfere in a short sale
• The homeowner must participate in one of the Preapproved Price Short Sale Programs, such as:

HAFA (Home Affordable Foreclosure Alternatives), Bank of America’s Cooperative Short Sale Program; specific investor participation and eligibility criteria do apply to these programs.

• Cannot “double-dip”. If you are receiving an incentive from another program, that amount would be deducted from the enhanced relocation incentive program. Example: you are receiving $3,000 HAFA incentive and were eligible for $20,000 from enhanced relocation program; you would only receive $17,000 at closing.

In addition to this potential benefit, closing a short sale in 2012 also other incentives a homeowner should be aware.  May homeowners of their primary residences can be exempted from up to $500,000 of loss that would normally be taxable thanks to the Mortgage Debt Forgiveness Act of 2007 signed by President Bush. This Act expires December 31, 2012, so it is important to get going right away.

Please contact me here at Shelter Realty by calling 702-376-7379 or emailing info @ shelterrealty.com.

A Japanese client said:

“There are some reports and information warning of another major earthquake, I want to get out of Japan”.

People in so many cities and towns are troubled by the risks of natural disasters.  Las Vegas has been spared from major natural disasters of the kind this client is worried about, such as earthquakes, hurricanes, tornadoes or tsunamis.

Most of days are sunny, and we can enjoy the sheer beauty of colorful sunrises and sunsets and picturesque desert views each day.

Grand Circle Tours which visit great national parks, such as Grand Canyon, Monument Valley, Bryce Canyon, Arches,and Zion leave from Las Vegas and come back to Las Vegas. The popular town of Sedona is 5 hours away.

It’s no fun for many people, if you’re in a rural area and there isn’t much to do, but Las Vegas offers world class shows and restaurants, a line up of all the brand boutiques and many signature golf courses. You can play tennis and racket ball free without any reservations. Play poker all day and night, nobody will complain, you can even get a chance to be a millionaire.

That’s why, Las Vegas is one of the most popular retirement destinations, but not only retirees, it is possible to work on the Internet away from the office for months at a time. It’s not unusual for a day-trader to be making buy-orders beside the pool in his backyard facing a golf course.

Such luxurious life style can be realized here in Las Vegas at a very reasonable price.

After the bubble burst, the overreacted market resulted in many Las Vegas properties in being highly undervalued some economists say, now ordinary people who are out of state or overseas can acquire second homes here. It is also possible to purchase a second home with friends who have similar tastes in their life style.

The world is an exciting place, why not break out of the ordinary?

The green light may turn red at on December 31st 2012 for sellers of their personal residences who may want to do a short sale in Las Vegas. The Mortgage Debt Forgiveness Act of 2007 expires on December 31st of this year. This Act allowed for sellers who were foreclosed, sold via a short sale or completed a Deed-in-Lieu of foreclosure to be exempted from any tax liability related to their mortgage debt on their principle residences as long as a few basic conditions were met. Debt used to either purchase the home or used for improvements (must be documented) to the property was eligible for exemption.

When a home is sold at a loss to the bank, a gain is realized by the owner. How could this be when the home plummeted in value many would wonder but it works like this: The bank loaned a homeowner $350,000 to purchase a home. They only got back $175,000 after a short sale. The bank lost $175k. The homeowner gave them back $175,000 less than they borrowed. That portion is considered a gain and could be taxed at the owner’s normal income tax rate…ouch! The Mortgage Debt Forgiveness Act addressed the insanity of punishing devastated homeowners even further than merely losing the home by also taxing them.

Unfortunately, this benefit is now coming to an end. Given the fact that a Las Vegas short sale frequently takes 4-6 months to complete when you factor in the extra time a buyer needs to close on a home, homeowners that want the certainty of knowing they can still take advantage of the Mortgage Debt Forgiveness Act of 2007 need to take action. There is a clear mandate for sellers to sell their home in 2012, but not beyond. Any rumors of an extension to the Act are just that right now…rumors.

This article is not meant to be used as tax advice and is only a discussion of the general principles related to the Mortgage Debt Forgiveness Act of 2007. Only a tax professional can and should be consulted to know the impact of a short sale based on your personal circumstances.

Paul Rowe manages the short sale division at Shelter Realty. If you would like to speak to him directly, please call Shelter Realty at 702-376-7379 or email him at info @ shelterrealty.com.

One of the realities of real estate is that it needs maintenance and upkeep. The older a property the more issues tend to arise that will cost investors, landlords and homeowners more and more money. The trend in Las Vegas is to invest in newer property that will have less maintenance issues and in turn less tenant phone calls. The idea is to keep the management costs to a minimum. Many companies will manage older property because of the additional time and expenses that tend to come with older property. However, you may be missing out on some great deals and fantastic opportunities to make money or find a home if you set your sites on only newer property.

There are ways to limit the future issues that will come up with an older property and they often do not cost as much when done in advance. The major expenses come in when you find out a water line running through the attic springs a leak which can lead to the replacement of the ceiling, insulation and light fixtures. Another major headache can if the water heater is located inside the property and not in the garage. If the water heater leaks or rusts enough to leak out the bottom you could have a repair bill out of this world.

The question is whether you can do things to limit major issues and expenses to make it worth while to consider an older property as a home or investment. You may be able to find what you want in investment property in Las Vegas today that is only a few years old but this will not always be the case. The housing stock will get older and older. If you are not willing to consider properties more than 10 years old you will be limiting your opportunity to find great deal.

How can you avoid some of the headaches and costs of owning older property in Las Vegas? The number one answer is better preparation and planning. You will have to account for somewhat higher maintenance costs that are completely normal in older homes. In order to cover the higher costs you will have to look for property that will get slightly higher cash on cash return than newer units. This is simple enough to by just looking for slightly undervalued property in rental areas that have monthly rental pricing that has remained strong. There are many of these areas in town and there often is far less difference in rental pricing then there is in home price variation. Rental rates seem to fluctuate less over large areas of town where home prices can be much more inconsistent.

Once you find the property you like you can evaluate any issues that may lead to more management complications. Nearly everything can be fixed in older homes but there is always a price to pay. Some things are just not worth fixing if it will mean you will spend 10 years trying to recoup the cost. However, most property can be put in perfectly good rental condition by spending a reasonable amount of time and money before you find a tenant.

I will go into more detail about the minor and major things you can do to make owning an older rental property another profit center for you portfolio.

Has your nest egg become your anchor? Just about everyone is in the same position. We can help get your head above water again and allow you to take control of your future. Call me today and find out your best options to get out from under your monster mortgage. Don’t let the housing crash control your future. You have options.

Leverage is the number one reason you can get such great returns on real estate. Most people don’t understand leverage or understand the principals that make leverage such a fantastic tool in your real estate investing arsenal.

First let me define leverage in the way it applies to real estate. You use leverage when you buy a $200,000 property with a 20% down payment and borrow the rest of the money from the seller or the bank. If you paid cash for the property you would need to come up with 200,000 and change at closing to take over a piece of real estate. You would be using no leverage and you would be looking for a return on your capital that would be similar to what you would get in other investments. If you made $2400 in rent per month and after expenses put $1500 cash in your pocket each month you would make $18000. This $18,000 would be your yearly return on capital invested. It is a good return and it is possible to make a good living buying property for cash. You can calculate your cash on cash return by taking your $18,000 profit divided by your $200,000 investment.

The number is given as a percentage. You would end up with a return of about 9% for the year. This is a good return on capital but not nearly what you can get if you use leverage to make your purchase.

Let me give you the same example but with a 20% down payment. You would have to bring $40,000 to the closing for your down payment and you would be financing $160,000 from the seller or the bank. Rates are relatively low now but they tend to be higher on investment property but I will use 6% rate of interest on the $160,000 financed. We can calculate what it will cost you in interest the first year by taking 6 % of $160,000. The amount of interest on your loan will be $9600. You are paying $9600 the first year of your loan in interest to use leverage. If you fully amortized the loan you will pay $959.28 a month principal and interest.  This also leaves you the 160,000 in cash that you would have been investing in one property available in your bank account for other purchases so you are keeping your options open to buy more real estate.

Let’s take a look further at my example and see if you can actually make more money by using leverage.

You will still receive the same 2400 payment for rents per month except now we need to add in the interest cost into the calculation. You will still be taking in the 18000 a year but you have to pay your mortgage or at least the cost of interest out of cash flow.  You will pay principal and interest of $11,511.36 out of your gross rents and your free cash flow at the end of the year will be only $6489 in our example. It looks like a lot less but let’s pencil out what return you can actually get by using leverage and not paying all cash.

We take the $6489 net gain for the year and divide it by the amount of capital invested which is 40,000 this time. So what looks like smaller gain in income becomes a much greater return as a percentage of your capital because the new calculation comes out to over 16% return on your investment.

Leverage is the key to profiting from real estate. It is possible to double or triple your return on capital invested by financing a portion of the deal. The lower your down payment the greater your return on your money.

If you have any questions about investing in Las Vegas Real Estate, give us a call at 702.376.7379!

The real estate rental market in Las Vegas is competitive and also very lucrative. As a real estate investor, you’ll want to make sure you take some simple steps to make sure your rental property is the home that prospective tenants choose. Here are some simple tips to make sure your Las Vegas Investment property rents quickly.

1. Competitive Price

The monthly rent price is your first step in getting prospective tenants through the door of your Las Vegas investment property. Setting your price is pretty simple. Ask your property manager to run a competitive rental analysis of the other rental properties in your neighborhood.

They can tell you what’s a good price for your Las Vegas rental property. A good rental price will make sure you get interest from prospective tenants, but getting them in the door is only half the battle.

The next two steps will make sure your home is the home that quality tenants choose over the competition.

2. Flooring, Paint, and Window Coverings

Homes with new paint and clean carpets are always going to rent faster than those without. As a rental property owner, just accept the cost of replacing carpets and painting after tenants move out as a cost of doing business. People may live in places with dirty carpets and walls, but they usually won’t choose to move into one.

Also, many of the tenants I meet with actually prefer tile and hard wood floors to carpet. So installing some pergo or tile is a good way for a property owner to avoid having to replace carpets every few years.

Another simple way to make your place stand out from the competition is to put nicer blinds up on your windows. You don’t have to put plantation shutters on all the windows in your rental property, but some low cost faux wood blinds with thick slats look a hundred times better than the cheap aluminum ones. Take a look at the bigger picture and spend the money to get a tenant in and paying rent as quickly as possible.

3. CLEAN!

I am shocked how many rental properties I show that are filthy. You obviously won’t be able to clean your rental property every day, but a good cleaning after a tenant vacates and every two weeks that your property is vacant will help to insure that your property won’t stay vacant for two months.

Rental Properties in Las Vegas take anywhere from a few days to a few months to rent. Taking these simple steps will keep your Las Vegas rental property ahead of the competition.