Investors looking to make a great return should consider purchasing an investment property in Las Vegas says CNN MONEY.
I have been working with a few investors looking to purchase investment properties in the last couple of years. Some of my clients have bought 1 income property, and others have bought 4-5 properties. CNN Money earlier this year claimed Las Vegas and the best city to buy an investment property/rental property for those looking to put their money into something a little more stable than the stock market. “Overall, the highest ratings are in markets where home prices have fallen substantially,” said Ingo Winzer, founder of Local Market Monitor. “Home prices in these markets are also below average, so empty homes are easily turned into competitive rental properties.”
The cities were ranked by estimated future returns compared with the projected national average return. According to Local Market Monitor’s data, for example, investors in Las Vegas who rent out the properties they buy now will have a 4.7% higher return than the 5.3% national average.”
Some neighborhoods in Las Vegas have seen a drop in home prices from the peak of the market as much as 65%. Many of the available homes for sale here in the valley are priced so low per square foot that the replacement cost to rebuild is higher than the purchase cost. When prices are cheaper to purchase than to rebuild, investors start to flock towards the market. Consistently over the last year, 48-54% of our transactions were purchased with CASH. That is a massive amount of money flowing into our city. Always follow the cash.
For those out of town investors looking to capitalize on our prices and great cash flow, the biggest question I get is where they should purchase. I almost always answer their question with a question to get a better sense of what your goals are. Are you going for appreciation? Are you going for cash flow? Are you holding long term? Are you trying to flip properties? Do you have a time frame? Are you a foreign national? Most of the investors I’m speaking to say they want appreciation AND cash flow.
The most rent-able investment properties with some of the best cash flow have these attributes:
- 1400+ sq ft
- 3 bedrooms
- 2 bath
- 2 car garage
- small yard
- Rents for $900-$1200
- Taxes will range from $1500-$2000 a year
- Home Owner’s Association fee vary depending on Neighborhood
These types of homes can be purchased for $90k-$140k depending on the area and upgrades. This falls in line with our median home price in Las Vegas which is $130,000. If you’d like to get a better quality home above the median price, I would recommend looking at property in the $190k-$225k price range. In this price range I would try to get a home with these attributes:
- 2500 sq ft
- 4 bedrooms
- 2-3 baths
- 2-3 car garage
- bigger lot size
- Rents for $1800-$2300
- Taxes will be $1800-$2600 a year
- Association fees will vary depending on the community.
I work with a property manager to whom I refer all of my investors. She can help rent out your property, collect rents, screen applicants, and help with repairs. I definitely recommend using a property management company when purchase out of state as it’ll help reduce the stress and headaches.
Some popular neighborhood that I’ve helped investors purchase rental income properties:
These are just a few of the most popular areas in the Las Vegas valley. There are plenty of great communities that would be perfect for a rental home.
If you would like a free relocation guide to Las Vegas, please click this link.
Please feel free to contact me directly, at 1-866-589-1646 for more information regarding your real estate investments. Feel free to start your own search of the MLS below. This system is updated hourly and is more current than Realtor.com. You can save your favorites, get notified of new properties, and track prices. I have the ability to send you properties with very specific search terms, so if you need a specific type of property please call me.
Felipe Crook
Prudential Americana Group Realtors
1-866-589-1646
felipe@felipecrook.com
The Las Vegas housing market is heating up….and it’s not just the summer heat. Over 4,471 properties sold last month compared to 4,185 homes from June of 2010 showing a nearly 7% increase in number of sales while 3,900 properties sold in May of this year. Part of that increase has to do with our [...]
The Las Vegas housing market is heating up….and it’s not just the summer heat. Over 4,471 properties sold last month compared to 4,185 homes from June of 2010 showing a nearly 7% increase in number of sales while 3,900 properties sold in May of this year. Part of that increase has to do with our prices. The average home that sold in June of this year sold for $151,682 and was approximately 1900 sq ft. With 52% of all of those transaction being CASH, investors and first time buyers are capitalizing on our incredible prices. CNN Money reported that Las Vegas had the best rental property market in the country for investors. I’m currently working with a lot of investors who are looking to produce passive rental income, with many getting returns on their investment of 9-15%!
Las Vegas has always been an exciting market for real estate, and now is no different. So often when I’m first meeting buyers to explain the market and show market stats, they are shocked at the speed and competitiveness of real estate in the desert. The national trends do not always reflect what is happening in our local market. It’s crutial to work with a Realtor who understands and communicates the market so you don’t miss opportunities. If you would like to see all available homes in Las Vegas for Sale and search like a Realtor would click the link to the left. You can also learn about Las Vegas Neighborhoods here. The National Association of Realtors recently reported:
Existing-home sales eased in June as contract cancellations spiked unexpectedly, although prices were up slightly, according to the National Association of REALTORS®.Sales gains in the Midwest and South were offset by declines in the Northeast and West. Single-family home sales were stable while the condo sector weakened.
Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 0.8 percent to a seasonally adjusted annual rate of 4.77 million in June from 4.81 million in May, and remain 8.8 percent below the 5.23 million unit level in June 2010, which was the scheduled closing deadline for the home buyer tax credit.
Lawrence Yun, NAR chief economist, said this is an uneven recovery. “Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market including an unusual spike in contract cancellations in the past month,” he said. “The underlying reason for elevated cancellations is unclear, but with problems including tight credit and low appraisals, 16 percent of NAR members report a sales contract was cancelled in June, up from 4 percent in May, which stands out in contrast with the pattern over the past year.”
Yun cited other factors in the sales performance. “Pending home sales were down in April but up in May, so we may be seeing some of that mix in closed sales for June. However, economic uncertainty and the federal budget debacle may be causing hesitation among some consumers or lenders.”
The national median existing-home price for all housing types was $184,300 in June, up 0.8 percent from June 2010. Distressed homes – foreclosures and short sales generally sold at deep discounts – accounted for 30 percent of sales in June, compared with 31 percent in May and 32 percent in June 2010.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.51 percent in June, down from 4.64 percent in May; the rate was 4.74 percent in June 2010.
Key Issues
NAR President Ron Phipps said home sales should be higher. “With record-high housing affordability conditions thus far in 2011, we’d normally expect to see stronger home sales,” he said. “Even with job creation below expectations, excessively tight loan standards are keeping many buyers from completing deals. Although proposals being considered in Washington could effectively put more restrictions on lending, some banking executives have hinted that credit may return to more normal, safe standards in the not-too-distant future, but the tardiness of this process is holding back the recovery.”
Phipps added that lower mortgage loan limits, due to go into effect on Oct. 1, already are having an impact. “Some lenders are placing lower loan limits on current contracts in anticipation they may not close before the end of September. As a result, some contracts may be getting cancelled because certain buyers are unwilling or unable to obtain a more costly jumbo mortgage,” he said.
Total housing inventory at the end of June rose 3.3 percent to 3.77 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace, up from a 9.1-month supply in May.
All-cash transactions accounted for 29 percent of sales in June; they were 30 percent in May and 24 percent inJune 2010; investors account for the bulk of cash purchases.
First-time buyers purchased 31 percent of homes in May, down from 36 percent in May; they were 43 percent in June 2010 when the tax credit was in place. Investors accounted for 19 percent of purchase activity in June, unchanged from May; they were 13 percent in June 2010.
The balance of sales was to repeat buyers, which were a 50 percent market share in June, up from 45 percent in May, which appears to be a normal seasonal gain.
Single-family home sales were unchanged at a seasonally adjusted annual rate of 4.24 million in June, but are 7.4 percent below a 4.58 million pace in June 2010. The median existing single-family home price was $184,600 in June, up 0.6 percent from a year ago.
Existing condominium and co-op sales fell 7.0 percent to a seasonally adjusted annual rate of 530,000 in June from 570,000 in May, and are 18.0 percent below the 646,000-unit level a year ago. The median existing condo price5 was $182,300 in June, up 1.8 percent from June 2010.
Regional Performance
Existing-home sales in the Northeast fell 5.2 percent to an annual pace of 730,000 in June and are 17.0 percent below June 2010. The median price in the Northeast was $261,000, up 3.1 percent from a year ago.
Existing-home sales in the Midwest rose 1.0 percent in June to a pace of 1.04 million but are 14.0 percent below a year ago. The median price in the Midwest was $147,700, down 5.3 percent from June 2010.
In the South, existing-home sales increased 0.5 percent to an annual level of 1.86 million in June but are 5.6 percent belowJune 2010. The median price in the South was $159,100, down 0.1 percent from a year ago.
Existing-home sales in the West declined 1.7 percent to an annual pace of 1.14 million in June and are 2.6 percent below a year ago. The median price in the West was $240,400, up 9.5 percent from June 2010.
Felipe Crook
Prudential Americana Group
1-866-589-1646
FINALLY! We’re number 1 for something other than being the worse market in the US! I’m so glad to read this article from CNN Money touting Vegas as the best place to purchase investment properties. I have been working with three big investors looking to scoop up some investment properties right now while prices are [...]
FINALLY! We’re number 1 for something other than being the worse market in the US! I’m so glad to read this article from CNN Money touting Vegas as the best place to purchase investment properties. I have been working with three big investors looking to scoop up some investment properties right now while prices are low and rents are trending higher. Over 50% of our sales have been paid for with CASH! That is such a large amount of money flowing into our city that people are starting to take notice. What other metropolis can you purchase a home built in the last ten years for $100,000? This city now has 2 million people, many of whom make a good living but don’t want to buy, so what do they do? Rent baby!
With rents climbing and rentals in high demand, investors are being lured to investment properties, taking advantage of low housing prices and interest rates. Nearly 20 percent of home purchases in May were for investment purposes – that’s up from 17 percent in 2010, according to the National Association of REALTORS®.
CNNMoney recently ranked cities by its estimated future investment returns. “Overall, the highest ratings are in markets where home prices have fallen substantially,” says Ingo Winzer, founder of Local Market Monitor. “Home prices in these markets are also below average, so empty homes are easily turned into competitive rental properties.”
Here are the top 5 markets in terms of investment return:
Las Vegas
Average home price (2011): $130,100
Projected home price (2014): $120,000
Gross rent (2011): $922
Projected gross rent (2014): $966
Detroit
Average home price (2011): $97,800
Projected home price (2014): $94,600
Gross rent (2011): $681
Projected gross rent (2014): $764
Warren, Mich.
Average home price (2011): $97,800
Projected home price (2014): $94,600
Gross rent (2011): $681
Projected gross rent (2014): $764
Orlando, Fla.
Average home price (2011): $165,200
Projected home price (2014): $166,200
Gross rent (2011): $980
Projected gross rent (2014): $1,148
Bakersfield, Calif.
Average home price (2011): $131,000
Projected home price (2014): $128,500
Gross rent (2011): $736
Projected gross rent (2014): $829
For the full article about from CNNMONEY click here.
I my experience through out most of the valley, rents for single family homes range from $1000-$1500. Location, amenities, upgrades, and sq footage can change that number drastically. Obviously the bigger homes rent for a lot more than a 2 bedroom home. I always, ALWAYS recommend that if you’re looking to invest in a property, buy a minimum of a three bedroom, 2 bath, 2 car garage home. These are the most common homes that people look for when you go to resell it. I’ve had a hard time selling properties that only have 2 bedrooms, or ones with a 1 car garage. Even a tandem garage (one where there is enough room for two cars right behind each other) is a harder sell than a traditional two car side by side garage.
Most of the investors looking to buy rental properties in Las Vegas tend to look at entry level homes, but there are a few investors looking to purchase luxury properties here in Nevada. Obviously the capital required is significantly higher, but the appreciation potential tends to be great as well. The Median rent for a property with 4000 sq ft plus is $3500. If you are considering purchasing a rental property in Las Vegas, please give me a call toll free at 1-866-589-1646. I understand the needs of an investor and can help you navigate through a successful transaction with the best return for your money. If you want to search for rental properties in Las Vegas click this link and start your search from home. This website has everything that is currently available on the MLS and is updated hourly. Realtor.com and Trulia tend to be a bit behind when a property goes under contract. I can also provide more specific rental statistics and a referral to a quality property management company.
Felipe Crook
Prudential Americana Group Realtors
Las Vegas, NV 89117
1-866-589-1646
Nevada has passed laws protecting the LGBT community from housing discrimination. Have you experience discrimination? File a complaint.
I had the privilege of going to a meet and greet with Assistant Secretary for Fair Housing and Equal Opportunity John Trasvina this morning at AFAN. It was a small group of activists wanting to learn more about what HUD is doing to protect the LGBT community. Unfortunately, the Fair Housing Act doesn’t currently cover sexual orientation as a protected class. The seven protected classes include: race, color, religion, national origin, sex, disability, and familial status. Until our legislators pass legislation to protect discrimination against LGBT, the Fair Housing and Equal opportunity office is trying to use “gender expression” under the protected class of gender as a way to enforce fair housing.
What should you do if you are discriminated against for housing? While the Federal laws are slower to act, Nevada has been quite progressive with passing legislation this session to protect the LGBT community. Both SB331 and SB368 passed this year, which is great news for the struggle for equal rights for our community. If you have experienced discrimination, please file a complaint! It’s so important to make sure our voices are heard so we can end this type of ridiculous behavior.
To file a complaint, please contact:
HUD- Office of Fair Housing staff:
Janie Lopez: janie.o.lopez@hud.gov / (702) 366-2107
Nancy McCloskey: nancy.mccloskey@hud.gov / (702) 366-2161
You can also visit http://www.HUD.GOV/FAIRHOUSING
Our Legislators need to hear from us as well. They need to know that any type discrimination is unacceptable. Please contact your legislators below:
| Senator Harry Reid (D- NV) | 202-224-3542 | 202-224-7327 | http://reid.senate.gov/contact/index.cfm |
| Senator Dean Heller (R- NV) | 202-224-6244 | 202-228-6753 | http://heller.senate.gov/contact_form.cfm |
| Representative Shelley Berkley (D – 01) | 202-225-5965 | 202-225-3119 | http://berkley.house.gov/contact/email-me.shtml |
| Representative Vacant ( – 02) | 202-225-6155 | 202-225-5679 | None Currently Available |
| Representative Joe Heck (R – 03) | 202-225-3252 | 202-225-2185 | https://heck.house.gov/contact-me/email-me |
They are listening to us. Make your voice heard!
Felipe Crook
Prudential Americana Group Realtors
Las Vegas, NV 89117
1-866-589-1646
I recently closed two short sale transactions here in Las Vegas Nevada- both with lenders who don’t have the best track record for being easy to work with. My team has been working on short sales since 2009, and we have closed over 30 short sale transactions with many different banks including, Bank of America, [...]
I recently closed two short sale transactions here in Las Vegas Nevada- both with lenders who don’t have the best track record for being easy to work with. My team has been working on short sales since 2009, and we have closed over 30 short sale transactions with many different banks including, Bank of America, Citibank, Wells Fargo, LBPS, Aurora Loan Services, Chase, EMC, AMC, Specialized Loan Services and a few other smaller banks.
If you are having trouble making payments and you’ve tried the extremely frustrating process of a loan modification, a short salemight be an option to consider. What is a short sale? A Short Sale is when a seller is upside down on their home, and they try to sell it. The bank who hold the mortgage has to approve the sale by reviewing all of the seller’s financial documents, the market value, and the seller’s hardship. If the bank approvals the short sale, the seller and buyer can proceed with the transaction and sell the home. Now, that is a grossly simplified version of a short sale. Short sales are not the most fun transaction to deal with. Many times the banks will ask for the same documentation over and over again claiming they never received it, or they’ll ask for the same information on a different type of form, or they will ask for completely random things that are odd, weird, or annoying. That is part of the process. It’s frustrating, a little painful, and tedious. However, getting a short sale approved and hopefully cancelling thousands of dollars of debt is such a great relief to many sellers that they are willing to deal with the process. The goal in doing a short sale is to get the bank to release their right to pursue a deficiency judgement (the remaining amount of the loan after the sale). For example, a home was purchased for $300,000 in 2005, sold as a short sale in 2011 for $150,000. The deficiency amount is roughly $150,000. It’s important to have the proper verbiage in your approval letters stating that the bank with waive their right to pursue the balance.
Here are actual examples of an Aurora Loan Services Short Sale Approval Letter and an LBPS Short Sale Approval Letter:
LBPS Short Sale Approval Letter:
Aurora Loan Services Short Sale Approval Letter:
Some positive changes in law have taken place in Nevada recently:There are changes to debt collection as to short sales in Nevada. This bill has many points, from Seconds to Guarantors. For real estate sales the major change is effective July 1, 2011. There are certain restrictions on the ability to recover deficiency at all by Junior Lien Holders of a secured note created after June 2011. But the 5 star change, is that as of July 1, 2011 junior lien holders (and perhaps senior) have only six (6) months to file suit against a home owner after the foreclosure.
A civil action by the junior lien holder against the home owner after a foreclosure sale of the real property or a sale in lieu of a foreclosure sale may only be commenced within 6 months after the date of the foreclosure sale or sale in lieu of a foreclosure. This six month rule section applies only to an action commenced after a foreclosure sale or sale in lieu of a foreclosure sale that occurs on or after July 1, 2011. But that is only foreclosures you ask? Nope. It is for short sales also. A “sale in lieu of a foreclosure” is a short sale. Sale in lieu of a foreclosure means a sale of real property pursuant to an agreement between the seller and lender in which the sales price of the real property is insufficient to pay the full outstanding balance of the obligation and the costs of the sale. The short sale (close) or foreclosure (trustee sale) must occur after July 1, 2011. Then, the Second Lien holder has 6 months, NOT SIX YEARS as was previous rule, to file a law suit for debt collection. Here exactly what the law says,
A civil action not barred by NRS 40.430 or section 3 of this act by a person to whom an obligation secured by a junior mortgage or lien on real property is owed to obtain a money judgment against the debtor after a foreclosure sale of the real property or a sale in lieu of a foreclosure sale may only be commenced within 6 months after the date of the foreclosure sale or sale in lieu of a foreclosure.”
This Section 3.3 this act apply only to an action commenced after a foreclosure sale or sale in lieu of a foreclosure sale that occurs on or after July 1, 2011.
The explanation of this Section from the Legislature is here –> Existing law authorizes a creditor under an obligation secured by a junior mortgage or deed of trust to bring an action to obtain a personal judgment against the debtor only if the action is commenced within 6 years after the date of the debtor’s default. (NRS 11.190) Under property securing such an obligation is the subject of a foreclosure sale, a trustee’s sale or a sale or deed in lieu of such a sale, the creditor may bring an action to obtain a personal judgment against the debtor only if the action is brought within 6 months after the foreclosure sale, the trustee’s sale or the sale in lieu of a foreclosure sale or trustee’s sale.
Read the entire bill here——-> http://www.leg.state.nv.us/Session/76th2011/Bills/AB/AB273_EN.pdf
If you would like a free consultation regarding short selling your home here in Henderson or Las Vegas, please give me a call toll free at 1-866-589-1646. All information is strictly confidential. I ALWAYS recommend my short sale clients speak to an attorney and an accountant to understand the legal and tax ramifications of a short sale.
Felipe Crook
Prudential Americana Group Realtors
7475 W. Sahara Ave Ste 100
Las Vegas, NV 89117
1-866-589-1646
Existing-home sales slipped in April, although the market has managed six gains in the past nine months, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, eased 0.8 percent to a seasonally adjusted annual rate of 5.05 million in April from a downwardly revised [...]
Existing-home sales slipped in April, although the market has managed six gains in the past nine months, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, eased 0.8 percent to a seasonally adjusted annual rate of 5.05 million in April from a downwardly revised 5.09 million in March, and are 12.9 percent below a 5.80 million pace in April 2010; sales surged in April and May of 2010 in response to the home buyer tax credit.
Lawrence Yun, NAR chief economist, said the market is underperforming. “Given the great affordability conditions, job creation, and pent-up demand, home sales should be stronger,” he said. “Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market, along with a steady level of low appraisals that result in contract cancellations.”
Obstacles to Recovery
A parallel NAR practitioner survey shows 11 percent of REALTORS® report a contract was cancelled in April from an appraisal coming in below the price negotiated between a buyer and seller, 10 percent had a contract delayed, and 14 percent said a contract was renegotiated to a lower sales price as a result of a low appraisal.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84 percent in April, unchanged from March; the rate was 5.10 percent in April 2010.
“Although sales are clearly up from the cyclical lows of last summer, home sales are being held back 15 to 20 percent due to the very restrictive loan underwriting standards,” Yun said.
All-cash transactions stood at 31 percent in April, down from a record level of 35 percent in March; they were 26 percent in March 2010. Investors account for the bulk of cash purchases.
NAR President Ron Phipps said the lending community needs to return to sensible standards. “We want to ensure that qualified buyers will be able to own their property on a sustained basis from a sound credit evaluation, but banks needn’t be so stingy as to only lend to those with the highest credit scores,” he said.
“Very high shares of cash purchases, and high credit score requirements, have led to historically low default rates among home buyers over the past two years. This trend implies a gulf is opening between those who can and cannot have access to the American dream of home ownership,” Phipps said. “At the same time, existing guidelines from Freddie Mac and Fannie Mae must be fully implemented so all appraisals are done by valuators with local expertise.”
Price Stability
The national median existing-home price for all housing types was $163,700 in April, which is 5.0 percent below April 2010. Distressed homes – typically sold at a discount of about 20 percent – accounted for 37 percent of sales in April, down from 40 percent in March. They were 33 percent in April 2010.
“Home values, despite month-to-month volatility, have been remarkably stable in the range of $160,000 to $170,000 for the past three years,” Yun said. “Stable home prices in turn will steadily lower loan default rates, including strategic defaults.”
Total housing inventory at the end of April increased 9.9 percent to 3.87 million existing homes available for sale, which represents a 9.2-month supply at the current sales pace, up from an 8.3-month supply in March.
First-time buyers purchased 36 percent of homes in April, up from 33 percent in March; they were 49 percent in April 2010 when the tax credit was in place. Investors slipped to 20 percent in April from 22 percent of purchase activity in March; they were 15 percent in April 2010. The balance of sales was to repeat buyers, which were 44 percent in April.
Single-family home sales slipped 0.5 percent to a seasonally adjusted annual rate of 4.42 million in April from 4.44 million in March, and are 12.6 percent below the 5.06 million pace in April 2010. The median existing single-family home price was $163,200 in April, which is 5.4 percent below a year ago.
Existing condominium and co-op sales fell 3.1 percent to a seasonally adjusted annual rate of 630,000 in April from 650,000 in March, and are 15.0 percent below the 741,000-unit level one year ago. The median existing condo price was $167,300 in April, down 2.3 percent from April 2010.
Regional Performance
Existing-home sales in the Northeast fell 7.5 percent to an annual pace of 740,000 in April and are 32.1 percent below a year-ago surge. The median price in the Northeast was $225,400, which is 7.3 percent below April 2010.
Existing-home sales in the Midwest rose 5.7 percent in April to a level of 1.12 million but are 16.4 percent below a cyclical peak in April 2010. The median price in the Midwest was $133,200, down 5.1 percent from a year ago.
In the South, existing-home sales declined 4.1 percent to an annual pace of 1.95 million in April and are 9.3 percent below a year ago. The median price in the South was $142,800, which is 4.1 percent lower than April 2010.
Existing-home sales in the West slipped 1.6 percent to an annual level of 1.24 million in April and are 0.8 percent below April 2010. The median price in the West was $203,400, down 6.1 percent from a year ago.
Las Vegas Housing Market:
As of May 19, 2011:
Total inventory of Single Family Homes:
11,476 properties
5,554 homes are short sales
2,244 homes are foreclosures
3,678 homes are traditional sellers
3,389 homes SOLD in April which means there is a 3.3 month supply of homes on the market. Any time you have a 3 month or less supply, it becomes more and more difficult to secure a property for purchase. 40% of those transactions were paid for with CASH. That is a huge amount of money coming into our market. In writing offers for my current clients currently, I’m starting to see more and more multiple offers.
If you would like to search for properties in Las Vegas click here!
Felipe Crook
Prudential Americana Group Realtors
Las Vegas, NV 89117
1-866-589-1646
Source: NAR
After three straight months of declines, sales of new homes got a boost last month, jumping 11 percent, according to the Commerce Departments latest new-home sales report released Monday. New-home sales rose in March to a seasonally adjusted rate of 300,000 homes, up from Februarys 250,000. However, the number is still far from what economists [...]
After three straight months of declines,
sales of new homes got a boost last month, jumping 11 percent, according
to the Commerce Departments latest new-home sales report released
Monday.
New-home sales rose in March to a seasonally
adjusted rate of 300,000 homes, up from Februarys 250,000. However,
the number is still far from what economists view as a healthy
700,000-a-year pace for the sector.
The median price of a new home increased 3
percent from February to $213,800. New-home prices are about 34 percent
higher than the median price of existing homes, according to economists.
Regionally, new-home sales saw the biggest
boost in the Northeast, jumping nearly 67 percent in March. The West saw
an increase in new-home sales last month by nearly 26 percent; the
Midwest posted a 13 percent increase; and in the South, new-home sales
dipped 0.6 percent.
The new-home market continues to be battered
by a high number of foreclosures that continue to dampen home prices
across the country. With 1.2 million foreclosures forecast this year,
the new-home sales market may not see a major turnaround for years,
according to RealtyTrac Inc.
However, while residential construction has
decreased considerably in recent years, reports have recently shown
building permits have increased 28 percent for apartment and condo
buildings.
Source: “The number of people who bought new homes jumped 11 pct., but pace is far below healthy level,” Associated Press (April 25, 2011)
If you would like to search for a new home in Las Vegas Click Here. Remember: Your realtor must accompany you on your first visit to a new home community. Buyer representation is FREE!
Felipe Crook
Prudential Americana Group Realtors.
Las Vegas, NV 89117
1-866-589-1646
A new bill to improve the process for approving short sales may soon bring relief to distressed home owners who are unable to keep their homes and hope to avoid foreclosure. The bill, introduced in the U.S. House yesterday and strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, would impose a deadline of 45 days [...]
A new bill to improve the process for approving short sales may soon bring relief to distressed home owners who are unable to keep their homes and hope to avoid foreclosure. The bill, introduced in the U.S. House yesterday and strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, would impose a deadline of 45 days on lenders to respond to short sale requests.
The legislation, the “Prompt Decision for Qualification for Short Sale Act of 2011,” was offered in Congress by U.S. Reps. Tom Rooney (R-Fla.) and Robert Andrews (D-N.J.). “The current short sale process can be time-consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a home owner from foreclosure,” said NAR President Ron Phipps.
“REALTORS® and consumers continue to raise issues about delays in the short sale process, because lenders are unable to decide whether to approve a short sale. After many months of delays, and with no response from lenders, potential buyers are losing patience and cancelling their contracts, often resulting in the property entering foreclosure. A short sale minimizes the negative impact on sellers and generally costs the lender less than a foreclosure,” said Phipps.
NAR has been actively pushing the lending industry to improve the process for approving short sales, which represent about 13 percent of recent home sales according to NAR data. Phipps praised Reps. Rooney and Andrews for their efforts on the bill and urged Congress to pass the bill quickly.
“As the leading advocate for home ownership and housing issues,
REALTORS®want to help more home owners avoid foreclosure by facilitating a short sale when a family is absolutely unable to keep their home; however, that can only happen if lenders and servicers approve short sale offers in a reasonable amount of time,” said Phipps. “Streamlining short sales transactions will reduce the amount of time it takes to sell the property, improve the likelihood that the transaction will close and reduce the overall number of foreclosures. This benefits sellers, lenders, buyers, and the entire community.”
What is a Short Sale in Las Vegas?<—–click here.
My team and I negotiate short sales for sellers who are unable to sell their home because of the property’s current value is less than what they owe. Their is a lot of paperwork involved in a short sale, and the number one factor in a bank’s approval of a short sale is a seller’s hardship. Typically the big three hardships are:
- Money
- Marital (Divorce)
- Medical
If you would like more information the short sale process, please contact me directly at
1-866-589-1646. My team has successfully negotiated over 30 short sales with Bank Of America, Citibank, Aurora Loan Services, LBPS, Wells Fargo, and a few other smaller banks. It’s absolutely essential you speak to a lawyer and tax professional regarding the implications of a short sale. I have a team of professionals I can refer to you if you need help.
Felipe Crook
Prudential Americana Group
Las Vegas, NV 89117
Realtor Magazine just release a short article about house flipping still being profitable. From my perspective in the field in Las Vegas, house flippers are continuing to make a huge impact on our market. I’m currently in escrow with two flipped houses that were purchased either from the court house steps or as a foreclosure [...]
Realtor Magazine just release a short article about house flipping still being profitable. From my perspective in the field in Las Vegas, house flippers are continuing to make a huge impact on our market. I’m currently in escrow with two flipped houses that were purchased either from the court house steps or as a foreclosure from the multiple listing service. With over 50% of the inventory of homes being in short sale status, many of the buyer’s I’m working with are sick of waiting 3 to 4 months for a response from the bank. If you take out all of the short sale homes, you’re left with REO/Bank Owned properties, traditional sellers, and flippers. Usually, the flipped properties are in excellent shape or “turn key”. Some of them might be a little higher than recent comps, but a lot of them are right in line with the markeMore investors are taking on the risk of flipping homes, despite falling home prices and sluggish real estate markets across the country. But investors say there are still profits to be made in the house flipping business.
Nearly 1 million homes were bought as investment properties in 2010, according to the National Association of REALTORS®, and a record number of buyers purchasing properties with cash currently are flooding the market.
Flipping homes for profit is easier in rising markets, but not many markets are reporting increases in home prices, analysts say. In Washington, D.C., Justin Konz of RestorationCapital says his clients are going through four of five properties a month and are making gross profit margins of 35 percent or higher.
Where to Find the Deals
Flippers mostly are finding their homes through foreclosures auctions, REOs, and short sales. They seek homes at rock-bottom prices that will have low fix-up costs, no more than about 5 percent or 10 percent of the purchase price.
In Florida, where investors are finding it more difficult to flip homes because of the drastic drop in prices and high inventories, flippers are targeting inner-city properties that are being sold at steep discounts. For example, some of houses are selling for $30,000 when they once sold for $200,000.
Perry Henderson, a real estate agent and investor in Austin, Texas, says the biggest opportunities in flipping are the “ugly” houses that have lingered on the market or “old houses that somebody’s grandma lived in for 40 years and didn’t do anything to. Now, she’s passed away and her family wants to sell quickly.”
Real estate investor Brian Fuller, who with partners buys and sells more than 200 properties a year in the San Diego area, says he’s drawn to the “biggest eyesore on the block.” He says they then ” turn it into the best looking house there. We’re helping pull up values in the neighborhood.”
Source: “Vulture Investors Flipping Their Ways to Big Profits,” CNNMoney.com (April 13, 2011)t.
If you would like more information on properties in Las Vegas, please contact me directly at 1-866-589-1646.
Felipe Crook
Prudential Americana Group Realtors
Las Vegas, NV 89117
1-866-589-1646
Housing Shortage on the Horizon? Mike Castleman, founder and CEO of Metrostudy, which tracks real-time data of the country’s inventory of new homes, says a housing shortage is looming that will soon will create a huge surge in demand for new homes. As such, now is the time to buy, he says. In the 41 [...]
Housing Shortage on the Horizon?
Mike Castleman, founder and CEO of Metrostudy, which tracks real-time data of the country’s inventory of new homes, says a housing shortage is looming that will soon will create a huge surge in demand for new homes. As such, now is the time to buy, he says.
In the 41 cities Metrostudy covers, 78,000 houses are either vacant and for sale, or under construction – that is less than a quarter of the new homes that fell in that category during the housing boom in 2006 and way below the level of a decade ago.
“If we had anything like normal levels of buying, those houses would sell in 2½ months,” says Castleman. “We’d see an incredible shortage. And that’s where we’re heading.”
The historic drop in new construction mixed with the decline in housing prices is laying the foundation for a dramatic recovery in residential real estate, Castleman told CNN. Castleman expects home owners soon will start returning, which will drive up prices in many markets later this year.
While demand remains low for new construction, he expects that to change. He foresees the recovery following a similar path as previous ones: A severe housing shortage will drive a big increase in demand.
“We’ll get a big surge in demand and the drywall companies will take a long time to ramp up, and it will take years to get new lots approved,” he predicts. “Buyers will show up looking for a house in a subdivision, and all the houses will be sold. The builders will tell them it will take six months to deliver a house.” But they’ll want the house so bad that they’ll “bid the prices up.”
Source: “Real Estate: It’s Time to Buy Again,” CNN (March 28, 2011)
Properties are moving very quickly in Las Vegas despite our economic bumpiness. The investors have targeted Las Vegas as a prime city to invest in real estate. 51% of all our transactions last month were paid for with CASH. Yep, people wrote a check to buy a house. That is a staggering amount of money coming into our market place. When investors pour tons of money into a market, be it stocks, bonds, or housing, that is where the deals are. Below, I’ve pulled together some of the top new homes for sale in the Las Vegas valley. Many of these properties are standing inventory, which means the builder has built the home and they are just waiting for a buyer. Often with standing inventory homes, the builder is much more motivated to sell them because they can’t get the next round of financing until it sells. You will often see builders include upgrades to the home for free, offer the closing costs to the buyer, and sometimes even buy down your interest rate on the loan.
Remember to have your Realtor present on your first visit to a new home community otherwise the builder’s employees will represent you AND the builder. You want an advocat who only looks out for YOUR interest!
Below are the top new home builders for sale currently in Las Vegas. If you’d like to see any of these homes, please contact Felipe Crook at 1-866-589-1646 for more information and to schedule a showing.
Prudential Americana Group Realtors
