Some of the Easier Banks to Work with on a Las Vegas Short Sale

Some of the easier banks to work with on a Las Vegas short sale: Aurora, Nationstar, Wells Fargo, GMAC, Wilshire, HSBC, OCWEN, Specialized Loan Servicing

If you have mortgages with one of the above institutions and believe that you may qualify to do a short sale of your Las Vegas Home; then help may be easier than you think. The number one threat to successfully selling your home via a short sale (assuming you have a legitimate hardship and need to sell for less than you owe your bank) is the name of the bank on your mortgage statement.

I’ve found the above institutions understand the value of approving a short sale in an upside-down market such as Las Vegas is currently experiencing. The alternative is foreclosure, period. Foreclosed homes usually net less for the banks, so not approving the short sale is simply illogical. Lenders can get the homes off their books without ever having to take possession of the home—less liability, lower exposure to loss.

Banks that can make a decision on approving a short sale inside of 6 weeks will give those sellers a far better chance to complete a short sale as the end buyer will not get impatient and bail on the deal.

Sellers who can no longer make their mortgage or who will soon arrive at that point, give us a call to see if your lending institution has a reputation for really working with borrowers.  We can be reached at 702.376.0088 or you can complete the form to the right.  You can also read our most Frequently Asked Short Sale Questions.

Buying a short sale in Las Vegas is becoming a much more attractive option for home buyers as our currently inventory has been slashed in recent months. Of the 11,760 homes for sale right now in the Las Vegas valley, only 2,575 are bank owned foreclosures. As a buyer, if you factor in homes that will not be in your price range, reside in areas that do not interest you, as well as the condition of the home not being to your liking, that 2500 figure quickly gets whittled down. Of those few homes that may draw your attention, we are frequently seeing multiple offer situations and your chances of being the winning bidder are further reduced! Buyers get worn down with this process. Imagine having to go out and look at 25 homes a week in the heat of Las Vegas, put in offers on the couple you actually like, only to get shot down. This process can continue for weeks.

As an alternative, buyers have begun to turn to homes being offered on short sale terms. There are advantages to buying short sales vs bank owned.

1. You get to lock up your home under contract right away. A good agent, proficient in short sales, will know how to get that seller to commit to you as a buyer. Remember, sellers can still forward additional offers to the bank even if you have a contract, so having a strong agent, who can keep the seller committed to you is essential.
2. The real estate industry has becoming more adept at processing short sales in this market saturated with distressed sellers. Short sales have always existed, but never has the industry been forced to deal with the volume of foreclosures and short sales. Although not perfect, it is easier than a year ago, and getting better.
3. You often get to see how the home is being treated. With many short sales, they are often occupied, giving you insight into how they home is being maintained, something not available when you are making offers on vacant foreclosures. Also, the landscaping can also be saved, since all utilities are on at the property. Foreclosures usually take at least a couple of months to bring to market, and by that time the hot temperatures may mean you will have to schedule a trip to the local nursery once you move in to replace your burned out landscaping.
4. Sellers are usually very cooperative. They rarely fight you on seller contributions for closing costs, because they don’t care. They are not getting any money from the proceeds of the sale anyway. They are very appreciative of you as the buyer, because you (and your money!) are their ticket out of an impossible situation.

Most of the information out there about short sales is all negative; the pitfalls, drawbacks, etc., and very little about the upside. That is the purpose of this article, to show the benefits. To understand more about the short sales, continue to read through our blog as many topics regarding short sales here in the Las Vegas valley are covered. For immediate assistance, please give us a call at 702-376-0088.

I have been corresponding with a potential Las Vegas Property Management client for a few weeks now.  The initial contact I received was an email asking about our services, fees and an idea of how much his property would rent.  As soon as I received the email, I began to do some research on the condo located in Henderson, Nevada but I couldn’t find the unit number he provided, it didn’t exist.  I sent an email back to him and within a few minutes he sent me the correct unit number as he had the numbers mixed up.  I did my research and sent him an email with details about our services, fees and rental rates.

A short time later he responded and asked if I would be able to meet with him while he was in town working on the unit.  So of course I agreed.  Well today was the day I met with him and his wife.  During the appointment, they asked me several questions pertaining to renting their condo, my experience and why I would be the right Las Vegas Property Manager for the job.  As the appointment drew to a close, I asked them if they had a chance to interview any other Property Managers and his reply was a bit shocking.

He advised that out of all the Property Managers in Las Vegas that he emailed, I was the only one that caught the Unit Number mistake in his email.  It wasn’t like they could have a done a search based on his name and received the correct Unit Number because at the time he was in the process of buying the condo and it was still in the name of the Lender.   So how were the other Property Managers able to provide rental rates without knowing if the unit was a 1 or 2 bedroom unit?  He never provided that information, all he provided was the address.  Makes you wonder how some people are even business!

Many homeowners who purchased their Las Vegas Home between 2004 and 2007 are most likely upside down, unless they put a substantial amount down of at least 40%.  With home values dropping from a high of $315K in June 2006 to today’s average price of $140K can make selling your home very difficult and most likely will require you to sell it as a short sale.  Unfortunately, just because you want to sell your home does not mean the Bank/Lender is going to agree to take a loss without some type of hardship such as job relocation, job loss, divorce or death.  So depending on your financial situation, renting your home for the next 3-5 years could be an option to selling.

Giving the state of the economy, the Las Vegas Rental Market is doing well.  Many former homeowners are now becoming renters as they have lossed their home to foreclosure or sold it as a short sale.  For those that lost their home due to foreclosure will be unable to purchase a home for 5 years, making them an ideal long term renter.  Knowing that there is still a market for rentals, the next step is determining what your home could rent for based on what other homes have rented for in the area.  The rental price could be the determining factor on whether you can afford to rent your home out or if the negative cash flow is going to force you to sell your home.  The last thing you want to do is rent your home out knowing full well you are going to let it go in foreclosure as this is very unethical and could cause a hardship for the tenants when they are forced to vacate the property.

If you are in a position that is forcing you to sell or rent your Las Vegas Home, it is important to contact the right real estate agent.  Chances are, if you are going to sell your home, you will need a real estate agent that specializes in short sales and remember there could be legal and tax implications.  If you are going to rent your home, I would recommend having a Las Vegas Property Management Company handle the management of your property.

If you have any questions about the short sale process, feel free to contact Paul Rowe at 702.376.0088.  If you are thinking about renting your Las Vegas Home and are in need of Property Management Services, feel free to contact Tony Sena at 702.376.7379.

Las Vegas Real Estate sales of single-family homes, condos and town homes hit a record of 4,702 in June, beating the previous record of 4,414 set in June 2004 according to the information released by the Greater Las Vegas Association of Realtors.  The main reason for the increase in home sales is the average sales price of $140,000 which is considerably less than the average sales price of $242,000 in June 2004.  The drastic drop in home prices has made it affordable for first time home buyers once again and lucrative for real estate investors.

Majority of the Las Vegas Properties that sold in June were single family bank owned homes and short sales.  Condo and town homes also saw an increase in sales compared to June 2008.  This can also be attributed to the drop in the average sales price which is bringing real estate investors to the Las Vegas Real Estate Market. Many real estate investors are buying condos with cash and then placing them on the market for rent with a Las Vegas Property Management Company.

Now that Banks and Lenders have lifted the moratorium, we should see a rise in bank owned homes hitting the market over the next 5 to 7 months.  This should fuel homes sales even more as many real estate agents are receiving multiple offers on their bank owned home and even short sale listings.  The bad news is the increase in bank owned homes for sale could drive down the average sales price even further as Banks and Lenders price the properties below market value for a quick sale.  Either way, don’t expect Las Vegas Home prices to increase any time soon.

We are a team of professionals that can assist you in all aspects of real estate in Las Vegas, from condos to multi-million dollar estates.  We pride ourselves on providing top-tier service for all our clients, but we do recognize that there is a big difference between residential homes and luxury real estate.  It is not just another property, it is a home that defines a lifestyle.

Las Vegas Luxury Homes and Estates require considerable time as well as a specially designed marketing program in order to attract the right buyers. We have the resources to attract those qualified buyers and match them with your prestigious home.

Any Las Vegas Real Estate Agent would be privileged to list and sell a multi-million dollar property, however; not every agent has the experience combined with the techniques to do so successfully.  We offer a customized marketing plan designed to get your luxury home sold in less time and with less stress.

We start by focusing on your customized marketing plan.  This involves defining and describing your property accurately and creatively, professionally photographing your home, setting up a virtual tour, and maximizing your homes internet exposure.  We specifically target buyers searching for luxury real estate by ranking our website on all the top search engines.  In turn, your luxury home will be one of the most viewed world-wide.  It is essential that luxury homes and estates are clearly defined. Marketing a home as distinctive as yours requires uncommon knowledge and creativity. High-end Las Vegas Homes and Estates are unique because of their quality, historic significance or eminent location.

We have the resources to generate the greatest number of prospective buyers for your Las Vegas Luxury Home.  We use a wide variety of methods to market your home; display advertising in national and international editions, placements in premier home magazines, customized press releases, and direct mail are only a few of these techniques. We continually prove that we can market homes to the maximum number of qualified buyers worldwide, as well as handle every inquiry with discretion, efficiency and sophistication.  Our website provides potential buyers access to virtual tours, expanded listing information, and a property search. Considering that over 80% of all buyers search the internet for available properties, a top ranked website like ours is always beneficial.

We are dedicated to helping you sell your Las Vegas Luxury Home and providing you with the type of service you deserve.   We appreciate the opportunity for an interview, so please contact us when you are ready.  We have the experience, knowledge, and ability to properly market your luxury home.

For a confidential interview, please contact Tony Sena at (702) 376-7379 or complete the contact form to the right.

Finding the right Las Vegas Property Manager could mean the difference in your property being rented and maintained or sitting vacant and costing you money.  Even though most property management companies in Las Vegas offer the same services, not all companies follow through with their services.  I get several calls a week from real estate investors stating their property managers aren’t providing monthly accounting statements, rent money isn’t arriving on time or at all and there is no communication.  This is why our clients have access to their account via a link to our property management software, we automatically deposit all rent monies by the 10th of the month and we always keep our clients updated on the status of their property.

Another key aspect in property management is properly screening tenants.  Unfortunately, most property managers never even meet the tenant until they are signing the lease or picking up the keys.  They choose the tenants based on the information they receive on the credit reports, criminal background check, employment check, rental history and reference checks.  An area that is commonly over looked in the screening process by property managers is interviewing potential tenants.  Sitting down for 15-20 minutes can tell you alot about someone and is just another factor in screening a potential tenant.  Being a former City of Henderson Police Officer, I have years of experience interviewing subjects and I rely on my experience when I sit down and interview potential tenants.  I feel my experience makes me the ideal Property Manager to find the best tenant for your investment property.

So if you just purchased an investment property in Las Vegas and need a Property Manager or looking to replace your current Property Manager, give us a call at 702.376.7379 and I will be happy to go over our services.  We are available 7 days a week for all your Property Management needs.

Recently, I was very pleasantly surprised to receive a call from Countrywide (now known as Bank of America since the acquisition) regarding one of my Las Vegas Short Sale files. Usually, the communications goes in one direction, with me doing all the calling. The bank negotiator needed some updated information on the file, namely, a 2008 tax return and an updated worksheet detailing the monthly financial obligations of the sellers.  The negotiator gave me a deadline of 6 days to get her the information.

I left a voicemail and emailed my sellers about the information the bank needed and if they could fax it to me as soon as possible. It so happens that my sellers have moved out of State, so communication is anything but immediate. Knowing this might be a problem, I emailed the negotiator that I would do my best to get the info but we might need a couple more days to get them everything as a weekend was going to fall within the 6 day period.  As a show of good faith, I emailed all the information I had on hand to the bank and explained I was working on the balance.

On the following Monday, my assistant received an email from the negotiator stating she was missing some items. It was obvious that she did not read my previous email, so we fired off another message stating we were working on getting the info and would need a couple of more days. We also sought clarification of one item in particular, and asked her to explain it, and of course, help gain a delay in the deadline.

The next day, we get an email stating she cancelled the file and we would now have to start all over. Luckily, I complained to a supervisor that is was ridiculous to cancel the file when we were actively working to get the requested info. Sure, that negotiator gets a file off her desk, but now it goes on to someone else’s, only this time, a lot of work which was previously done will have to be needlessly repeated.

I could rant all day about this bank and person (the negotiator) who should have employed some common sense when evaluating a deadline, but this simply illustrates the challenges Las Vegas short sale agents have to overcome on a daily basis. I will not let this setback stop me, but it is a very stark reminder that we cannot get these deals closed without the cooperation of our sellers. The banks make us wait around for weeks and than out of the blue we have gather time sensitive information. Failure to do say may have significant consequences. As this situation demonstrated, sellers must stay in contact with us at all times and be ready to produce information as needed.

Is it necessary to hang your Las Vegas Real Estate License with a franchise company like a Century 21?  I thought so.  When I got into the business back in 2001, I hung my license with a Century 21 franchise in Henderson, Nevada.  I really didn’t realize the cost of doing business at a franchise like Century 21 until I received my first closing check.  Being a new agent, I was on a 50/50 split but I didn’t realize I lost an additional 6% for the franchise fee.  How is that a 50/50 split?  After a few more closings, I sat down and looked at my options.  Was I really receiving a benefit hanging my license at a franchise like Century 21?  Was it really worth 6% on every transaction I closed just to hang my license at a brand name real estate company?

Maybe a few years ago it did make sense to hang your real estate license with a franchise like Century 21 but in today’s real estate market, it makes no sense.  The shift to the Internet has leveled the playing field in the real estate industry.  Buyers are using the Internet to search for homes and sellers are using it to find a real estate agent who can sell their home.  This is why I don’t understand why a Las Vegas Real Estate Agent would hang their license at a franchise that charges 6% for every transaction they close like a Century 21.

Let’s look at another example of why it doesn’t make sense.  Las Vegas home prices peaked in June 2006 with a median price of $315K and currently the median home price is $141K.  The average real estate commission in today’s real estate market is $4,230 compared to $9,450 in 2006.  Anyone that loses that kind of income is going to notice a serious hit to their pocket book.  With that kind of loss of income, why would you keep paying the same fees you were paying in 2006?  Your fees are still the same but your income isn’t.

In today’s Las Vegas Real Estate Market, if you are going to hang your real estate license at a real estate brokerage, you better be receiving something of value.  Whether it be low monthly licensing fee, real estate leads or a generous split, it needs to make financial sense.  The cost of doing business has not decreased, so every dime you can cut from your expenses is very important.

Every dollar you make from your real estate business is very important and to give away a few hundred dollars per closing just to be associated with a brand name company is not worth it.  Like I said earlier, I hung my license for over 4 years with a Century 21 Franchise that charged me a franchise fee on every transaction I closed.  I must have given away over $10K dollars during that 4 year period and for what.  Since I started my real estate brokerage, Shelter Realty, Inc., I never had a client tell me they wouldn’t work with me because I wasn’t associated with a brand name real estate company.

So back to my original question, why are you giving away a few hundred dollars in franchise fees on every transaction just to be associated with a brand name brokerage?

If you are a Las Vegas real estate agent whose interested in joining our real estate team, we have opportunities for you.  For more information, fill out the form on our Las Vegas Real Estate Career page or call us at 702.376.7379.

Renting a Las Vegas Home can be very scary in today’s real estate market.  With so many homes going into foreclosure, it’s hard to know if the home you are renting could be next. Many times, renters find out the home they are renting foreclosed after the fact which doesn’t give them much time to find a new home to rent, pack and move.  Well now there is good news for renters in Las Vegas. The US Government just passed the “Helping Families Save Their Homes Act of 2009”.

The “Helping Families Save Their Homes Act of 2009” became law on May 20, 2009.  It included provisions to protect tenants from eviction as a consequence of a foreclosure affecting the property being rented.  The new law requires tenants be given 90-days notice prior to having to vacate, and allows them to stay through the remainder of their lease, if the home will continue to be a rental property.  The protections of this law apply only to “bona fide” tenants – who have a written contract, the lease was the result of an arms-length transaction, and the rent is not substantially less than the fair market rent for the property. Under any conditions, tenants may still be evicted if they violate the lease terms.  These provisions expire on December 31, 2012.

With the passing of the “Helping Families Ave Their Homes Act of 2009” renters can feel a little more at ease if they get the bad news that the home they are renting has foreclosed. They will have ample time to get their affairs in order and locate a new Las Vegas home to rent.

If you are looking for a home to rent in Las Vegas, feel free to give us a call at 702.376.7379 and we can assist you in finding a home for rent.

Call me crazy but I don’t understand why there aren’t any lending programs for Foreign Investors.  Right now in Las Vegas, home prices are at historic lows and it’s drawing the interest of real estate investors from all over the world.  I get numerous emails and phone calls every day from people outside the United States inquiring about Las Vegas Home prices and the process of buying a home in Las Vegas.  Unfortunately, I have to inform them that if they don’t have cash for the entire purchase, they won’t be buying an investment property in Las Vegas.

Doesn’t real estate play an important role in the economy?  I think we all know the answer to that question is an emphatic “Yes”!  So why aren’t there Loan Programs for Foreign Investors?  Many of these large Banks like Wells Fargo and Bank of America could easily create Loan Programs for Foreign Investors that required Foreign Investors to put down at least 30%, open a bank account in the US and anything else they would need to lower their risk.  In most real estate markets like Las Vegas, home prices have pretty much bottomed out thus minimizing the risk for the Banks if the Foreign Investor defaulted, especially if they required 30% down.

Creating loan programs for Foreign Investors will benefit local real estate markets and the economy in several ways.

1. More buyers will enter the local real estate markets absorbing many of the foreclosures that are plaguing neighborhoods.
2. Requiring a minimum of 30% down will generate a large cash infusion for banks, increasing their ability to lend money.
3. It will generate much needed tax revenues for local and state governments.

I am sure we could list numerous reasons as to why there should be loan programs for Foreign Investors but what I want to know is “why aren’t there any loan programs for Foreign Investors.”  What am I missing?

Anyone that is following the Las Vegas Real Estate Market is aware that home prices are at historic lows. Due to the fact that Las Vegas has been leading the nation in foreclosures, Banks and Lenders have been placing homes on the market far below market value which is driving down home prices. Even though many Las Vegas Homes are selling above list price, the fact they are priced so low is still causing home values to fall.  This trend could continue as foreclosures are still prevalent in the Las Vegas Valley.

With such great deals to be had, Investors are flocking to Las Vegas just like they did in 2004 and 2005 but the big difference is the price of the homes.  If an Investor purchased a home in 2005 and rented it, chances are their mortgage payment was higher than the amount of rent they collected.  In today’s real estate market, you can find great deals on homes that will net you positive cash flow.  We currently have several Property Management accounts where our Landlords are cash flowing over $400 a month.  That just wasn’t possible in 2005 unless you had put down a size-able down payment which really defeats the purpose of investing.

Even with the amount of rental homes hitting the Las Vegas Real Estate Market, rental rates have not fallen as demand is so high.  So many Las Vegas Homeowners have lost their homes and have no choice but to rent.  It will take years before they can buy a home again due to changes in lending guidelines and many won’t buy a home again due to the traumatic experience of losing their previous home.

If you are thinking about buying a Las Vegas Investment Property and want to know rental rates for a particular area, feel free to give us a call at 702.376.0088.