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The term of “flipping” generally applies to buyers who purchase a property or properties, and then immediately put the properties up for sale, looking for a fast turnaround and quick profit.

Some scenarios involve “finders,” people who work with investors. Their purpose is to find and investigate properties for sale that meet an investor’s criteria, similar to a broker or Realtor, but unlicensed, and in many states illegal.

Since “finders” are basically engaged in the business of bringing buyer and seller together, they are, in fact, acting as unlicensed brokers. Furthermore, investors, knowingly working with “finders” may be skirting the law as well.

In fact, most are untrained and do not have the skills or resources needed to properly evaluate the fair market value or profit potential of a given property, as would a licensed Las Vegas Real Estate Agent or broker.

Although no knowledgeable investor would associate or work with “finders” some naïve investors think that through these finders they can buy and immediately sell real estate (or “flip”) for a fast and easy profit. Nothing could be further from the truth!

Buying properties and immediately selling for a quick profit requires exceptional negotiating skills, and an in-depth market knowledge gained through long experience. In fact, it is a market strategy that only the most skilled and astute of real estate investors can consistently profit from.

The real estate crunch of the past few years has unfortunately created a false impression among naïve dreamers that anyone at any time can become an overnight real estate millionaire.

There has also been a proliferation of so-called real estate “Gurus” who write books and conduct expensive seminars, that propose to show how anyone can gain financial freedom through real estate, buy property with no money down, etc.  A few may offer good advice, but others are just money making schemes for the authors and seminar holders.

Additionally, many fraudulent real estate practices have been  associated with flipping, as get rich quick schemers have evolved practices designed to skirt the law, such as using false appraisals to alter the real fair market value of a property, kickbacks, falsified loan documentation, quick claim deed manipulation, and more.

In a market of zero price appreciation, legitimate flipping, for the most part, can make money only on rare occasions, and only if handled by the most skilled of investors. As housing prices begin to rise, flipping becomes a bit more advantageous.

It pays to remember that even when the market is good, and flippers can make a profit, consideration has to be given to the fact that the property may take a more than anticipated time to sell, and if so, did the buyer pay cash or will there be mortgage payments to consider until the property is sold?

If the property is a rehab, what about the costs involved in repair?

Approach any real estate deal with caution, and remember, if a deal looks too good to be true, beware!

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702.376.0088.

If you are a new player in the Las Vegas Real Estate Investment game, one of the first steps you should take as part of an investment strategy – that you have hopefully planned out meticulously – is to find a good real estate agent to partner with you.

Find an agent who is in sync with your strategies (some agents prefer not to work with investors,) and has the experience and expertise to help you achieve your goals. You need an agent who can help you find and qualify the good deals, handle much of the details, and one who has worked with investors before.

Although word of mouth is one of the best ways to find a qualified agent with a solid track record of success and great references, Las Vegas Real Estate Investment Clubs are another source.

When discussing your plans with an agent you are considering partnering with and who is interested in working with you as well, be sure to explain exactly what kinds of properties you will interested in buying. Assure the agent that you will both make money from this partnership, and that you are a high-energy, aggressive and eager investor.

Another thing to keep in mind, is that if your buying strategies involve sending out a flood of low-ball offers in order to consistently close deals, some agents would rather not work with you.

That is why it is so important for the agent or agents you are interviewing to understand what your investment strategies and goals really are. You have to be as forthright and honest with them as you expect them to be with you.

Now, what about buyers? Certainly, your strategy for investing in Las Vegas Real Estate has included contingencies for dealing with willing buyers who are handicapped with marginal credit.

Many of your buyers may be able to acquire a mortgage on their own, but buyers with a passable, but not very impressive FICO score, probably would not qualify with most lenders.

This is where another very important member of your investment team, your mortgage broker, steps in. If you are closing on properties monthly, you are going to attract brokers willing to work with you. Find a broker who has the expertise and lender contacts to obtain mortgages for people with marginal credit.

Don’t expect miracles, however. A buyer must meet certain, even minimal standards of acceptance, but if those criteria are not met, obtaining a mortgage will not be possible.

If you are a quick-turnover investor, you will need a broker who can close deals quickly, and will be available when needed. Assure the broker, as you did your real estate agent, that you want everyone on your team to make money. Consistently closing deals will be all the assurance they need.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702.376.0088.

Negotiating to buy distressed properties from a lender certainly shouldn’t trouble the conscience of an investor; however, some investors feel pangs of guilt when trying to negotiate a deal with a Las Vegas Homeowner in financial difficulty.

If you are a creative investor with a conscience, you are not trying to take unfair advantage of anybody. You are not a predator. Instead, you will be attempting to promote a win-win situation that relieves the homeowner of his/her burden, and creates a profitable deal for yourself. This can be done, and is frequently done.

Las Vegas Homeowners in financial difficulty, and who are in danger of losing their home, but are not as yet in a pre-foreclosure situation, would certainly welcome the opportunity to sell at a fair price, and the lender would equally be freed of the expense and difficulties involved in foreclosing and trying to recoup at least a part of their investment.

Seems only fair that the investor should earn a certain profit for his efforts and output of funds. Besides, depending upon the condition of the home, the investor may have additional expenditures for repairs and upgrades necessary to increase the property’s value.

If the homeowner is already in a foreclosure situation, the investor must contact the borrower first, and cannot approach the lender or learn details of the borrowers overall financial situation from the lender without written permission from the borrower.

Once the negotiation process has begun, the investor, regardless of whether dealing with a bank, private lender, or a government agency ( FHA, VA, etc.,) will no doubt have an exit strategy that will include contingency clauses in the proposal. These clauses basically gives the investor an “out” if, for example, the appraisal report is negative for one reason or another, or if a home inspection reveals certain serious problems, such as structural damage.

Additionally, the investor may -unless it is an all cash purchase- specify in the proposal agreement that the purchase is contingent upon the investor obtaining financing under specific terms and conditions.

We are only scraping the surface at this point, since there are many other factors to consider as an investor in foreclosure and pre-foreclosure property.  Since this type of real estate investing can be as complex as it is profitable, it probably should be avoided by a new player in the field, and left to the expertise of a more seasoned investor who conferences with advisers that have considerable experience in this specific area of real estate investment.

Negotiating the purchase of a pre-foreclosure, buying a property at a foreclosure auction, or purchasing the foreclosed property from a lender each take a different negotiating tactic which will be covered in brief in the second part of this article.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702.376.0088.

The Las Vegas Condo-Hotel Concept

The veritable explosion of high-rise condo construction in Las Vegas has not only dramatically altered the city’s skyline, but has considerably altered the lifestyle of many Las Vegans, and the repeat visitors to our city.

Prior to  the proliferation of hi-rise condos in Las Vegas, repeat visitors such as vacationers, businessmen and women, and high rollers would primarily check in at a hotel, motel or, depending on the reason and length of stay of the visit, rent a private home on a temporary basis.

The availability of conveniently located luxury condos convinced many of these repeat visitors that it would make economic sense to purchase a Las Vegas Condo home of their own, that in the long run would build equity, and be more cost-effective than renting a hotel room or suite and dining out for every meal.

Additionally, many investors were attracted by the offer of many of the big name luxury hotels such as the Ritz-Carlton, Sonesta, Starwood, Hilton, Trump, Four Seasons, etc. to purchase units (condo-hotel homes) that are part of the hotel structure, or luxury units built as adjacent structures to the hotel, such as Palm Towers, for example.

These condo hotels offer owners who plan to use their purchases as vacation homes, or use the condo intermittently on business trips, the opportunity to temporarily rent out their units when the owners are away.

Benefits are twofold.  The owner agrees to place the property into an organized rental program, saving the unit owner the trouble and expense of self-advertising, and rental revenue, shared with the rental program operator, allows a portion of the rental fees to be credited to the condo owner.

The operator of the rental program who shares rental fees with the owner, performs a number of services on behalf of the property, among which are marketing the unit to temporary renters as a hotel, maintains the property, supervising the front desk, overseeing housekeeping services, providing- concierge services, and food and beverage services.

Another attractive aspect of condo hotel ownership that has appealed to investors is that these units can be sold at anytime by the owner at his/her discretion.

The vacation home convenience and income potential of owning these units was an irresistible attraction to many investors who are frequent Las Vegas visitors, however, these purchases have proven just as vulnerable to the downturn in the nation’s economy as has the rest of the housing industry.

Additional information that a potential condo-hotel unit buyer should be aware of before considering this kind of investment will be covered in a follow up article, and will include such details as:

• Typical buyer/management agreements
• Guarantees –if any – offered to the buyer
• Analyzing the units for best location, amenities, etc.
• Key elements to look for when analyzing the profit potential of a condo-hotel purchase

Feel free to give us a call at 702.376.0088 with any questions about the Las Vegas High Rise Condo market.

There are a number of issues in which a  Las Vegas Property Manager becomes involved when working with a Homeowners Association, issues that involve tact, people skills, communication and thorough knowledge of – in the State of Nevada – NRS 116 – Common Interest Ownership (Uniform Act).  The manager is often called upon to interpret different aspects of NRS 116 to guide the HOA Board of Directors in decision making or to suggest a consultation with the HOA attorney, if necessary.

One situation which frequently causes emotional reactions by homeowners in Las Vegas relates to xeriscaping of grass areas in front of condominium units.  While these areas are actually not owned by each individual homeowner and are considered common elements, those homeowners who prefer retaining the grass feel that a vote should be taken and no changes made without majority decision.

However, Homeowners’ Association Boards believe that planting drought tolerant landscaping saves money and that xeriscaping is strictly a Board decision.

In this matter, the property manager has to put aside his or her own personal preferences and either guide the Board to the appropriate section of NRS 116 or refer them to their attorney for a legal opinion.

The decision almost always causes one faction of the community to be resentful and the manager must help the Board to present the ruling to the homeowners in a tactful manner to avoid creating long lasting hostile feelings among dissenters.

Another often emotional issue relates to removal of one or more of the members of the Board of Directors.  This occurs when either an unpopular decision is made by the board in its entirety or if the actions of one or more officers are found to be offensive by a number of the homeowners in the community.

This is not an action to be taken lightly and requires a good deal of planning by the aggrieved homeowners who must obtain a specified number of signatures on a petition calling for a special meeting for a removal election.  Experts in Las Vegas Residential Property Management have stated that  recall of a board member is usually difficult.

The property manager is responsible for guiding the homeowners through the intricacies of a removal election.  In the latest 2009 update to NRS 116 Community Association information, it has now become easier to remove members of the executive board.

In order to remove a board member, if at least 35% of the voting members (homeowners) vote in favor of recall, then the board member or members are removed.  To be specific, if there are 100 voting members in a community and 35 of these individuals vote – with only 18 homeowners voting in favor of removal, then the recall process is successful.

Condominiums

Investing in Las Vegas condominiums is no different than any other real estate property investment. Knowledge of current market conditions, working with an experienced, knowledgeable Realtor, and having a real estate attorney and CPA on your team will certainly help to ensure that intelligent investment decisions will be made.

In the recent past, certain cities, such as Miami and Las Vegas, for example, experienced explosive growth in condominium construction, and condo homes were being sold as fast as they were being built, with even pre-construction units being quickly snapped up.

Current market conditions, particularly in these two cities, reflect an entirely different scenario. Despite a glut of willing buyers, and an equal glut of distressed condo units on the market, many selling at “bargain” prices, sales are not overwhelming, and the inventory of unsold units remains high.

Does that mean that investing in Las Vegas condo units as rental investment properties should be avoided, particularly during these difficult economic times? Certainly not! Many of these kinds of investments can still become profitable, if careful planning and forethought are the guidelines used before making a purchase commitment.

Forecasting the future of any investment is never a sure thing, particularly in a downside marketplace, with no firm indications as to when and to what degree an upturn will occur. However, investment knowledge and skills, backed by reliable advisers will certainly maximize the chances of an investor making the right choices.

Condos are still popular with young professionals and retirees, and offer many amenities not available to the average apartment dweller or single-family homeowner, such as workout rooms, spas, swimming pools (sometimes more than one), tennis courts, concierge services, secured parking, building and condo unit security systems, libraries, card rooms, a clubhouse, and, balconies, city,  or mountain views, and more.

Another big plus for many condo dwellers, is they do not have to deal with the many maintenance issues involved in single-family home ownership. Some condos are part of a mixed-use development complex, with retail shops and restaurants on the premises.

Investing in condo conversions, however, are unlikely to offer the same profit potential as complexes designed and built as condominiums. Condo conversions are simply apartment buildings, with units originally rented on a lease basis, and are now tenant owned.

Cosmetic changes, simply painting the premises and possibly landscaping the property may be the only upgrades from apartment complex to a condo conversion the owners are willing to make.

Chances are, the building is an older structure and may have expensive plumbing, electrical, heating, cooling and structural problems in the near future –or sooner.

Overall, although a condo investment may not realize the future value appreciation of a single-family home, they are normally less expensive an investment, and with careful investigation and planning, a good way to leverage your real estate investment dollars.

Next time a real estate agent shows up at your door and advises you need to move out as the home has been foreclosed, ask them if it is a Fannie Mae-owned foreclosure.  If it is, you can inquire about a month to month lease with Fannie Mae and stay in your home.  By signing a month to month lease, this will give you an ample amount of time to locate a new property to rent or purchase without the stress of having to vacate immediately.

To qualify, renters must live in foreclosed properties at the time Fannie Mae acquires the property. Any single-family property is eligible including two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing. The properties must meet state laws and local code requirements for a rental property. Fannie Mae will not require security deposits. The properties will remain on the market for sale.

Fannie Mae will hire a real estate broker or property manager to manage the property and rental rates will be comparable to rents in the area.  If comparable rental rates are higher than what you are currently paying, Fannie Mae will look into a mutual resolution.  They will not require a security deposit which is nice as it won’t tie up any funds needed to secure a new residence.

For more information on this program, visit Fannie Mae.

One of the premier views on the Las Vegas Strip!  Sky Las Vegas is a sheik building located right on the boulevard.  This corner unit is on the 15th Floor and looks out directly at the famous Las Vegas Strip.  Sky Las Vegas has all the amenities you expect, such as valet, professional front desk service, fitness area, pool with four cabanas, spa, private theater for up to fifteen people, business center and racquetball courts.

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.

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?

This is part two of a two part blog on buying Las Vegas residential property. By now it is assumed you have a lender and I am your Realtor (if your in Southern Nevada), so it is time to start deciding your priorities. What are the most important things you want in a house?

The old joke is, what are the three most important factors in buying a house are——–location, location, location! Do you want to be close to certain schools? Do you want to be close to your work? Do you want to be far away from freeways, airports, fire stations (noise), 24 hr stores (lights), etc. How did the neighborhood look as you drove to the property? Are there cars on blocks in some drive ways nearby? Is there graffiti on the walls everywhere you look? What about having to many two story house around yours (privacy)? Do the neighbors dogs bark uncontrollably every time you go near your potential house? These are all important factors when deciding if a houses location is right for you.

What kind of amenities do you want in a house? Most people can quickly decide how many bedrooms, bathrooms and garage spaces they want. They can also determine story preference and minimum square footage they are looking for. What about minimum square footage for your yard? What direction you want the house to face (important in this climate)? Pool or no Pool? Grass or desert landscaping? Maximum age of the house? The more of an idea of what you want before you start looking, the better the Realtor can filter the choices presented to you.

The next step is to search for properties via the Multiple Listing Service (MLS). The MLS is a Realtor produced database of all properties (for sale by Realtors) in a given area. Take the time to sit down and review the pictures of prospective properties before you start driving all over town. Many times properties can be eliminated from consideration just by looking at the pictures on the computer. This is a huge time saver for everyone involved.

Now it is time to go physically look at properties. Pay attention to the condition of the neighborhood, especially everything directly around your potential house. If the neighbors are around, ask them what they think of living there. Look at the house for obvious problems like water stains, major cracks in the frame or foundation, unpermitted additions, etc. Are the problems you find structural or cosmetic? Do you want to take the time and expense to fix said problems? If the answer is no, move on, there are plenty of houses to choose from.

After you find a house you want to make an offer on, you have to go back to the computer to see what a reasonable estimation of it’s value is. Your Realtor should be able to SHOW you  (on the MLS) similar houses that have sold recently in the neighborhood. Remember to look at SOLD prices and to have your Realtor factor in Seller’s contribution to Buyer closing costs (if any) for a more accurate estimation of value.

Now that you have an estimation of value for your potential future home, it is time to write the offer. How bad do you want this house? You can start with a low offer and go up from there (but there are risks to doing so). How upset would you be if you lost the house to a higher offer? If the answer is VERY, start with a stronger offer. If you have looked at many houses and this is your dream house, is it worth losing for a few thousand dollars? Expect a counter offer and be prepared to negotiate (remember the seller wants to get as much as they can when they sell). Always make sure your offer is contingent on a professional inspection. This probably is the most expensive purchase of your life, don’t skimp on an inspection that might cost a few hundred dollars.

Now you have an accepted transaction, but the work isn’t over yet. Make sure you get every scrap of paperwork the lender asks for (in a timely manner). If you delay the closing because your lender didn’t have everything  he/she needed, it could cost you a lot of money. You could even lose your earnest money deposit and the house to another buyer. Don’t let anyone else (except your second opinion lender) pull your credit until close of escrow (COE). Your loan could be credit score driven and (most) times when your credit is pulled your score drops. Don’t buy any big ticket items on credit prior to COE  because it could effect you ability to get your mortgage (by changing your debt to income ratio). Most lenders will pull your credit right before COE to make sure nothing has changed to make you a credit risk. Don’t quit your job or change careers prior to COE, it may disqualify you for your mortgage. When in doubt, ask your lender for guidance before you do ANYTHING that may jeopardize your loan.