Robin Camacho's House Advantage

Moving Day Has Arrived

Tue, 27 Oct 2009 12:48:00 -0800

This is the last entry on the old blog system.

Please alter your book marks to reflect the new WordPress site:

robin.lvablog.com

Short Sales - It's The New Black

Sat, 24 Oct 2009 21:48:00 -0800

So I'm in class earning my Certified Distressed Properties Expert (CDPE) designation, and who am I surrounded by? REO agents. Hmmmm...why are REO agents learning to help people avoid foreclosures? Don't they make their living selling foreclosures for their clients - the banks and asset managers?

I think you all know how I've always felt about short sales. I preferred root canals and blind dates. Up until recently, only 1 in 8 were successful, and I hated to set my clients up for heartbreak when there were so many great REOs to pick from. Now the approval rate is about 1 in 3. Things are looking up for distressed sellers hoping to avoid a game-ending foreclosure, as well as for buyers looking for a bargain.

Short sales can still be a nightmare when one of the agents (especially the listing agent) isn't experienced at persuading banks to accept less than what's owed. While my own closing ratio is already very high, I'm told the average approval rate for CDPE designees is over 80%. With over 10,000 CDPE designees nationwide, you sellers may want to ask your agent to show you their credentials.

Why are REO agents getting CDPE designations, then, when they get a listing if the bank forecloses? Someone moved their cheese - the writing is on the wall. Whether forced or just resigned to it, banks that were unwilling to work with people struggling to meet their mortgage payments are much more receptive to short sales now. More short sales means fewer REOs. Fewer REOs means fewer listings for REO agents.

Contrary to popular belief, homeowners can't just do a short sale to avoid their debt. A homeowner with $400,000 in liquid assets isn't likely to be approved for a short sale just because he no longer wants to owe twice as much as Joe Neighbor, who bought the same house last month for half the price. There must be an actual hardship, such as loss of income or impending loss of income, divorce, a death in the family, relocation demanded by a job, or other hardship that prevents a homeowner from making payments.

It's exciting to be in a room full of real estate agents that have a common goal of helping people avoid foreclosure. Short sales are still miserable; sellers still walk away empty-handed and without a home. But at least sellers who absolutely can't make their payments walk away with much less damage to their credit than a foreclosure or a bankruptcy would cause.

Guess if things ever slow down I'd better revise my own website and take back all those dismal things I've told reporters about short sales. With REOs in short supply and privately-held homes still largely overpriced, short sales are becoming increasingly attractive to my buyers.

Las Vegas Home Sales Remain Strong

Sat, 10 Oct 2009 10:30:00 -0800

Just a few quick statistics on the market before I run to show homes to a client looking for a second home:

Median price rose to $138,000

4039 homes were sold in September

44% of sales were cash

That cash figure is phenomenal. It's the investors. Easy to see where the smart money is being invested right now.

I wrote 3 offers on Thursday and had 2 of these accepted on Friday. I think I'll sell one or two more before the weekend is out. At this pace we may not see our normal holiday slowdown until December 24.

With Reflection Bay Golf Club closed at Lake Las Vegas, homes there are selling unbelievably low. If you're looking for a second home, this is a great time to look. Do your research on this one so you are aware of the bankruptcy issue. It's the uncertainty that's driven the prices so low. I never recommend this to investors (too far out for most renters), but for a second home in a postcard-pretty setting, this might be ideal for you. Plan to hold until they get their issues resolved.

How To Buy A Las Vegas Foreclosure

Fri, 09 Oct 2009 20:41:00 -0800

If you've made more than one offer on a Las Vegas foreclosure lately, you'll totally get this.

With banks finally trying to spread their REO listings among more than a small handful of listing agents, we come up against new roadblocks, er I mean navigate new systems, daily.

Prices have climbed, albeit a nearly imperceptible rise. With multiple offers on nearly every home, some buyers are getting very frustrated. With fewer than 1600 REOs on the market today, you need to have the right offer to get it accepted.

Expect a roller coaster ride if you are shopping for a bank-owned home in the Las Vegas area right now. Not one of those smooth new highspeed coasters that glide quietly and seemingly effortlessly through the ride. More like that old mad mouse coaster on the Santa Cruz Boardwalk that jars your spine and frays your last nerve.

Use an experienced Realtor, friends. That's my best advice for today.

Nevada Law Change Impacts Loan Officer / Real Estate Agents

Mon, 28 Sep 2009 19:05:00 -0800

There are some upset mortgage officers in Nevada tonight.

As of October 1, real estate licensees in Nevada can no longer hold a mortgage license. I don't know why everyone hasn't known for months, but many are just getting the word from the mortgage banks today. And no one is very happy that the State of Nevada forced every mortgage agent to spend $200 and sit for a 30-hour course earlier this year, only to force them to choose between state licenses.

All Nevada mortgage officers must now be W2 employees of a mortgage company. Real estate licensees can no longer be an employee of a mortgage company.

Personally, I don't think this is bad for the public. I've served my clients as a dual agent many times, and it can be very helpful to my client when I am on top of the mortgage as well as the real estate transaction. But as much as I hate to say this, not every agent is ethical.

I prefer not to do mortgages; I don't think it's easy to be the best you can be if you are torn between two industries. I think when real estate agents and mortgage agents are forced to pick between the two, you will find part-timers leaving the industry. And as complicated as real estate transactions have become, that's not a bad thing for the public.

Why People Buy Second Homes in Las Vegas

Fri, 25 Sep 2009 19:30:00 -0800

I got home from the Bahamas on Saturday planning to spend a few more days in my sun/rum/time continuum, that zone of complete relaxation. I made the mistake of letting my office know I was back in town. So here I've been since Sunday working 15 hour days again. Not that I'm complaining - I LOVE what I do. Being a Realtor is better than being an astronaut or a major league pitcher. I'm just no longer moving like I'm wading through molasses.

The market has barely slowed, with a nominal drop in sales in August. September is usually slow as a new school year begins, but the pace remains brisk.

Dean and Jan just had another offer rejected; this one was more than $70,000 over list price. This time I'm shocked; this was a great offer. There must have been a very strong cash offer.

First-time homebuyer Dustin just made an offer on 3 homes, and was very fortunate to have an offer accepted. It's not easy getting FHA offers accepted right now. When the bank asked for Dustin's "highest-and-best" offer on another, they had 80 offers on the house.

Flying back in to find temperatures in the mid-90's, I had an "aha" moment. People come to Las Vegas for the casinos, the great food, and the shows - but they move here for the weather. My clients who buy their 2nd homes and retirement homes in Las Vegas buy here because they can wear shorts when they come here in November.

FOR SALE: Snowblower, shovel and ice scraper. Never used, still in box. Ahhhh, Las Vegas. It's fall, and it's gorgeous today.

Las Vegas New Home Prices Continue to Rise

Sat, 19 Sep 2009 09:06:00 -0800

The price of new homes sold in Las Vegas in August rose 1.7%. That's the 3rd consecutive month in which the price of new homes sold has risen, albeit slightly. More evidence suggesting that we hit bottom a few months ago.

Nearly 3900 homes were sold overall in the Las Vegas area in August. That's a very slight decline from July, but a large increase over August of 2008. The percentage of sales attributable to foreclosure was barely over 70%. That's down from 82% in the spring, and reflects the increase in the number of sales of non-bank owned homes, whether resale or new. With a shortage of REOs, more privately-owned homes are selling.

Naturally, with a shortage of bank-owned homes we are seeing flippers in the market again. If you are buying a resale home and are using a mortgage, find out when the home was purchased last. Many lenders won't finance a flip, so if the home you want was sold recently, check with your mortgage agent up front to see if it's going to be a problem.

I'm still enjoying a little R&R in the Bahamas, where the "no-see-ums" feast on me as I float, half awake, on a mat in the ocean. The diving in the Exuma Islands isn't spectacular, but Gavin and Nick, owners of Turtle Diving, rewarded us with a one-hour layover at Chat N' Chill on Stocking Island after our shallow dives yesterday.

It will be hard to get back into heels when I return to work...a dilemma I face every year around this time, when I generally return from some down-time in the Caribbean.

Demand for Las Vegas REOs Remains High

Wed, 16 Sep 2009 13:09:00 -0800

Incredibly, the demand for Las Vegas homes is still strong, even in traditionally-slow September. One of my clients just had an offer rejected at $60,000 over list. The winning cash offer trumped our 30%-down offer.

Dean and Jan have been looking for a home for at least a year. I don't know anyone who is better at getting offers accepted than I am, but we have been bested time and again. Initially, their offers were too low, against my advice. There were 2 good offers I was sure would be accepted last week, but weren't. Yet, I just had 5 of 7 cash offers submitted last week for another client accepted!

But Dean and Jan have very good taste, and there are a lot of cash buyers in the market who have the same good taste. Fortunately for this couple, we are entering the slow season. With less competition, we should be able to find something soon. I take it personally when they find a home they love and their offer is rejected. This time was like a punch in the stomach. We had a great offer. Woulda, coulda, shoulda...it's tough to compete with all cash right now.

I've noticed that some banks are pricing houses way too low in the past 2-3 weeks. That doesn't mean they can be had for that price, even for cash. I couldn't convince an investor 2 weeks ago to ignore the list price and go by the comps, so he missed by a long shot. I can't imagine why banks are listing homes at $110,000 when there are good, recent comps in the $165,000 range on the same street! Or why they are listing homes with $400,000 comps for $325,000. But be forewarned - my agents and I are seeing a lot of it this month. And while I actually can imagine why, I'll let you draw your own conclusions.

I'm in the Bahamas, on a very sleepy island, enjoying some sand, sun and rum. Not enough sun, but that's the drawback of visiting Exuma, or any island, in hurricane season.

I usually travel to the Caribbean in the low season because no one else does. What a great time to get to know the owners of local establishments such as Dee, of Santana's Cafe, and her mom, a.k.a. Mom, of Mom's Bakery next door. Dee served up a tender lobster, just pulled from the ocean by her husband. And shared some great photos of the celebrities who manage to find her little corner of the world.

Exuma is a relatively undeveloped island of 6,000 inhabitants. It can't compare to Grand Cayman or even Turks and Caicos - but it's a great place if you're looking for rum punch and a good cigar from you-know-where!

I'd better go chase some sun before the rain returns. Oh, wow, I just saw a fight between the former hotel owners and the guy who is managing it for the new owners. That's probably the most excitement this island has ever seen. Now, back to sun and a rum punch.

Las Vegas Homes $1,000,000 Off Sale

Thu, 27 Aug 2009 00:24:00 -0800

I just don't get it some days.

Yesterday my partner Ron Branson and I showed a 9,000+ square foot Spanish Trails home to a nice young woman and her mother. They loved this impeccable home, and arranged to have Ron show the mother's husband a short time later.

This incredible home on the golf course sold for $4 million previously. It was foreclosed on at $3.5 million. It was immaculate. The master bedroom was the size of a small house, and you'd almost need a golf cart to travel between the "his" and "hers" master bedroom closets.

The price is less than $1.9 million. There's a lot of money to be made on this house. These opportunities don't come along every day.

If I had a dollar for every house I could pick up a quick million on... Well, I'd have a dollar.

My Cool New Tool

Fri, 21 Aug 2009 00:44:00 -0800

I'm checking out the incredible new tool Ron just bought for me - a miniature keyboard that is Bluetooth enabled. Unbelievable...I'm typing on a little keyboard hooked up to my cell phone! Ron apparently doesn't want me to have any excuse to miss my blog writing. And now I don't! This is incredible.

A Complete List of All Las Vegas REOs is Now Available

Thu, 20 Aug 2009 00:43:00 -0800

Cash is King, once again. I know this is Las Vegas, and you were thinking that Elvis is the King. (Elvis is dead. No, really.) Cash is back - it's the new black.

I've never seen so many banks ready to take less money for cash offers. Of course cash is always preferred, but in today's market the discount for cash is greater than it was in the past. Don't get too excited - even cash buyers are most often paying list price or above lately. But buyers using OPM to buy their foreclosure property are finding they can't offer enough. OPM is SO early 2009.

Before late April and the surge in offers, buyers using FHA or conventional financing were forced to offer quite a bit more than cash buyers to get an offer accepted. But with homes appraising low and banks forced to lower their price or put the REO back on the market, banks are salivating over cash offers which are generally not going to fall out of escrow over appraisal issues.

The big downside for Las Vegas residents is that so many of the homes are being bought up by out-of-state investors who really aren't invested in the community so much as the property. These aren't speculators that will bail out; these are investors who intend to buy and hold for the cash flow as well as future appreciation. But first-time homebuyers are struggling to buy at a time when homes are affordable again. I help my investor clients make money, but every once in awhile I enjoy a warm, fuzzy feeling when I can help a local family buy their first home.

Prices are remaining steady. Intuitively I think I'm seeing that REOs are coming on the market at slightly higher prices, but this is based on anecdotal information at this time. Don't be surprised to see that prices are rising very slightly.

Lots of new changes that I'll share with you soon. You'll have noticed some of these on the website already if you are a regular viewer. The feedback on the changes has been very positive, with many homebuyers raving about the newly automated Top 10 and the list of all Las Vegas bank-owned homes.

Has Las Vegas Real Estate Hit Bottom?

Mon, 03 Aug 2009 00:27:00 -0800

Do you recall what you were doing on the afternoon of April 24? I generally can barely recall what I was doing yesterday, but I will always remember April 24. That's the day the Las Vegas real estate market appeared to hit bottom.

Unlike most Realtors, I've been extremely busy for the past 2 years. My LasVegasAdvisor.com clients are generally buying second homes or investment homes, and are savvy enough to be buying in this market, especially in the fall and winter when there is less competition for homes. So I'm always busy.

However, April 24 just felt different. Throughout late 2008 and early 2009, I'd been getting almost every offer accepted. But on April 24, I sat back in my seat at the end of the long day, reflecting on the fact that I'd had two offers refused that day. Suddenly, multiple counters on REOs was again the norm, just as in the summer of 2008.

No one has been willing to call this the bottom of the market, but simply for fear of what might happen next in an economy that only Great Depression-aged folks have any experience with. I'm one of those who hasn't been willing to say we've hit bottom. However, I've been quietly telling my buyers since late April that they'd better buy right now, because prices were stabilizing.

Prices were stable in May and June. For July, we actually saw a 1% increase in the median price of single family homes; the first price increase in a long time. The figures you'll read in the newspaper show prices holding steady for July; however, those figures include condos, age-restricted communities and mobile homes. Since these are all a fairly insignificant part of the market, statistically speaking, we don't track these. For single family homes, the price has risen slightly.

Like I've said dozens of times, we won't know it's the bottom of the market until it's in the past. On April 24, I wasn't ready to call it the bottom, but I had a strong hunch it was. Only time will prove me right, but I think we're looking at the bottom in the rearview mirror. We may be slow in rebounding, but I can't envision prices falling further across the board.

I expect to see prices hold firm throughout the slow season coming up, barring a major catastrophic event such as a collapsing economy. Or banks releasing those phantom 30,000 nonexistent REOs we keep hearing about. If you haven't bought, you should find less competition (fewer multiple offers) throughout the winter. But expect this winter to be the last time you'll find Las Vegas foreclosures at these prices.

The pendulum is ever so slowly starting to swing the other way - finally. Come February, expect buyers to rush back to the market and drive prices up somewhat higher.

Las Vegas Housing Shortage? Well, on Foreclosures Anyway.

Tue, 21 Jul 2009 18:01:00 -0800

If you blinked you probably missed the bottom of the market. For the first time in a long time, prices are rising slightly. In June approximately 2400 bank-owned single family homes were sold. There are now only 1990 single family REOs listed. That’s a 24-day supply. Do the math – it’s a shortage. And the median price of single family homes has risen slightly.

Has anyone noticed that the Top10 looks different lately? Perhaps it isn't as noticeable on LasVegasAdvisor.com as it is on our flagship site, Top10RealEstateValues.com. But a quick look will reveal some exciting changes to both sites.

WE DID IT! After a year of promising to bring our clients and my readers valuable information on a more timely basis, Ron has finally found a format that meets his high standards. Top10RealEstateValues.com was a very novel approach when we launched it, but it's success made it tough to keep up with the demands of our clients. It was time to grow.

We'll be announcing the cool new features to a wider audience very soon; there are still more revisions that we need to have in place before we officially roll this out. But two exciting changes that you'll notice right away make this site even more unique, and exponentially more valuable to homebuyers and investors.

First, the Top10 is completely automated. My clients and readers will know ALL of the good deals on Las Vegas foreclosures as soon as they are listed. No more waiting for Ron to post the 10 best values on REOs with each update; now the best deals hit the website within an hour of being listed on the MLS! The website is now updated hourly. And in this hot market, this is information you can use.

The second new feature is the list of Las Vegas foreclosures that closed escrow in the past 24 hours, complete with sales price. The feedback from investors has been very positive. There's much more to come, but these two features alone make this the most valuable research tool out there for those looking to own their own piece of Las Vegas.

So, has anyone noticed I've been missing-in-action for a month? It only appears that way. I've actually been busy building a much larger team so that I can handle my growing client base while still maintaining my reputation for personalized service.

The Robin Camacho Team now has 10 real estate agents, and has expanded to include commercial real estate services. Every client is special to me, and many have become friends. And I like to take good care of my friends. So grow we must.

If you haven't yet signed up for our SmartAgent software, contact me. This phenomenal little cell phone application is making life a lot easier for my buyers who like to drive around and do their own research before we actually look at homes.

Housing Shortage in Las Vegas?

Sat, 20 Jun 2009 09:07:00 -0800

If I said we had a housing shortage, people would think I'd lost my sanity.

It certainly feels like a shortage. If you look at raw numbers, the fact is that we still have an oversupply of homes in the Las Vegas area. But with most of the homes on the market priced well beyond what buyers are willing to pay, most homes just aren't going to sell any time soon.

If I had a dime for every time I heard someone say, "The seller needs to get real and drop the price if he wants to sell it," I'd take all those dimes and buy every REO I could get my hands on right now. When you have a mortgage that's twice the value of your home today, you can't sell it except as a short sale or by coming out of pocket with a big chunk of money. No matter how motivated most sellers are, they can't drop the price low enough to sell their home.

So we have an oversupply of homes for sale. But with only 2100 REOs on the market and fierce competition for those homes, it feels like a shortage. The good news for some sellers is that their homes are getting shown more now. With strong demand for homes today, and fewer REOs on the market, buyers are beginning to look at some of these privately-owned homes again. I'm seeing increased activity on my listings. This may change again, at least for awhile, when the banks release more REOs.

Here at Top10RealEstateValues.com, we continue to grow. I'm proud to introduce 3 new agents. Lucy Stewart is a former Clark County zoning director, and brings a wealth of knowledge in land use and planning to our team. Linda Masciola has years of experience in real estate sales. Patricia Hernandez is bilingual, and a former restaurateur. I'm disappointed to have lost Cailin, who moved on; she is a bright young woman and future superstar.

We recently introduced a cellphone application to a limited number of our clients who agreed to be "beta testers". This application allows our clients to search for homes very easily from their own cellphones - very handy for clients who want to drive neighborhoods and view homes without being trapped in the back seat of a Realtor's car. Buyers can find the price on any house on the MLS, and this gps-based application will map other homes for sale in the neighborhood. So far the feedback is great: easy to use, fun, and very helpful in finding the best deals in any area. We'll roll this out soon to all of our clients; in the meantime, if you'd like to be a beta tester, just ask.

As an aside - my clients can't accuse me of holding them hostage, trapped in the back seat of my car until they buy! I drive a Corvette; a two-seater. As any of my clients who've been out looking at homes with me can attest to, riding with me would be a very scary experience. My driving style could best be described as Creative, Freestyle Driving; those white lines and road signs are merely suggestions. My clients prefer to follow me in their own car, quickly becoming adept in Intuitive Driving techniques. What is Robin about to do? Will she turn on that street 12 feet ahead without ever slowing down or even using her turn signal?

So I'm not the hard-sell type. I sell a lot of homes; I must be doing something right. I think people appreciate that I'm there to advise and counsel, not to "sell". I listen well, and I show my clients just what they tell me they are looking for. When I take them to the perfect home, they make an offer. I don't ever want to influence someone's decision; I prefer to help buyers see the pros and cons in any home they view. After all, that's how I want to be treated.

What if My Las Vegas Home Doesn't Appraise?

Sat, 13 Jun 2009 10:09:00 -0800

It's times like this that make me so happy to be a Realtor.

Real estate is all about giving people the key to their new home - their new lifestyle. It's not about recognition, as your broker would have you believe. It's not just about being a community leader, as the real estate association would have you believe. It's not just about the paycheck, as your kids seem to believe.

It's about calling Kris and Sandi late on a Friday night to scream, "Congratulations!" because you know they are going to be so excited - and you get to be a part of that. It really is this simple; being a Realtor is about opening that door and standing aside while your clients walk into their empty new home, with nothing in hand but a key, their dreams and some ideas. Being a Realtor is fun, and I'm so excited that I have the best job in the world!

After 13 months of working to help this disabled vet and his wife buy a new home, I got to make that call tonight. A year of struggling to get credit issues resolved, and pleading with Kris to keep his spirits up every time he suffered another defeat. Finally, we’re home.

Four weeks ago we thought we were there, just as we have several times in the past. But after clearing every hurdle you can imagine, the appraisal came in at $135,000 on their $155,000 home.

I offered a rebuttal when the appraiser said the value would come in under $130,000. I showed why this particular model was more desireable than the comps the appraiser was using. This helped, but the appraisal still came in very low at $135,000. My clients have shopped for a year; they know full well they couldn’t get an offer accepted on this house today for $155,000. With 1862 REOs on the market today, homes are generally selling for above list price.

My clients love the home they’ve been trying to buy for 2 months. Before we start looking for another home, I suggested, let’s just see if the bank will reduce the price to appraised value. The banks don’t have to do this; the house would sell again for $155,000 to a buyer with a conventional loan who can pay the difference in cash.

Last night, I received the signed Addendum lowering the price to $135,000. And then I woke my client’s up with the good news. Hey, this is hard work…I have to find my fun somewhere.

We’re going to have one helluva housewarming party. It’s all good.

Where Have All the REOs Gone?

Thu, 11 Jun 2009 18:23:00 -0800

The foreclosure tsunami continues to recede. As of this morning, there are only 1,899 REOs listed on the MLS in Las Vegas, creating the shortage that is resulting in multiple offers on everything from McMansions to doghouses.

According to a group of Asset Managers who held a panel discussion for the Nevada Association of Hispanic Real Estate Professionals in Las Vegas yesterday, we may see the banks releasing more REOs to the market soon. This should help relieve the feeding frenzy that is making offers of $10,000 to $20,000 over list price commonplace.

Juan Martinez, NVAHREP President, did an incredible job of bringing a group of Asset Managers from various banks together to face a sea of Realtors at NVAHREP's monthly luncheon. Over 500 Realtors turned out to find out firsthand what on earth happened to the assets.

With most moratoriums having expired, we should see some of those REOs that the banks have been holding back show up on the market soon. No one yet has an accurate count of the number of empty bank-owned homes that remain unlisted. Our Top10 researcher, Ron, found at least 6,000-10,000. I've heard figures as high as 30,000, but I don't think there are anywhere near that many.

Expect to see a steady stream of REOs hitting the market as the tide rolls back in. Not a tsunami. Look to see REOs - and good deals - coming to the market over the next 3 or 4 years.

There Really is a Bulk REO Santa Clause, Virginia

Tue, 02 Jun 2009 16:16:00 -0800

Got $1,000,000?

Oh, why didn't I put together that investment group I've been thinking about? If I weren't so busy selling real estate, I'd sure be busy buying real estate.

I just got wind of a bank holding 3400 REOs for bulk sale at well below current market value. Minimum purchase is 60 homes. You need $1,000,000 in the bank to look at the inventory. If I had that I'd have paid cash for that 2009 ZR1 by now, and spent my change on REOs. Wow, you can buy 3-bdrm. houses here for much less than a Corvette. That's sad. Not for my investor clients, of course.

In case you haven't noticed, we are now down to a 3-4 week inventory of REOs. It's kind of eerie watching thousands of Realtors shaking their heads in unison, wondering why the banks aren't releasing REOs?

When are they going to make a real estate agent Bobblehead, anyway? I guess when we can all start shaking our heads up and down again, instead of side-to-side.

Las Vegas Foreclosures in Short Supply

Mon, 25 May 2009 23:11:00 -0800

I feel like a creep.

I've had at least half a dozen LVA readers or existing clients ask me lately why I haven't been writing my blog, House Advantage. LVA reader Judy T. hit the nail on the head, asking if I'm out contributing to the phenomenal surge in sales.

Yes, I am.

Pending sales of Las Vegas homes have risen from approximately 6,000 to nearly 10,000, laying the groundwork for another very strong selling season. Sales for May should exceed April numbers, which already compared to sales figures in the peak of the market in 2003-2005.

The number of foreclosures is now at a 5-week supply. Last summer, when the inventory of REOs dropped to only a 3-month supply, we saw homebuyers struggle to get their offers accepted in the face of stiff competition. As of late April, buyers have again found themselves competing for the nicer bank-owned homes.

In the past 4 weeks, I've seen offers well over list price rejected. Many buyers have had to make offers on 6 to 10 houses before they find a home. If you're just starting to look, expect to make several offers, and to find yourself in a multiple offer situation.

I hear rumors that the banks may release more foreclosures in June and July. I never thought I'd say I hope the banks list more REOs for sale, but I was wrong. If banks are holding back some of the REOs, as many people believe, wouldn't it make sense to list these when demand is so high and the market can absorb these?

Las Vegas Home Sales Skyrocketing (Again)

Sat, 11 Apr 2009 11:05:00 -0800

It only took a question from a reader to get me back to my computer. We've been showing hundreds of homes, writing dozens of offers, and literally pushing escrows through a system that's becoming bogged down as sales skyrocket here in Las Vegas (more on that later). As much as I enjoy sharing information and my thoughts, it gets tough to sit down and write sometimes. But I always have time for a reader's question, and this is one of those questions that I think other readers might share.

Jodie S asked what the entry "Exclusive Right" means in the Status field on the MLS. This is the most common status for a home that is currently for sale and available. This designation, which is an agreement between the seller and the listing broker, indicates that the listing office is entitled to a commission, regardless of who sells the home. To homebuyers, it merely indicates the home is available. (Well, it should mean that; in REO Land it does not always...more on that later, too!)

If the seller maintains the right to sell the home (a FSBO, or "for sale by owner") without paying the listing office a commission, this type of agency is "Exclusive Agency." This type of agreement is much less common; obviously, most listing brokerages want the right to earn a commission if they are marketing a seller's home.

Other common status designations are P (pending) and C (contingency). If an offer has been accepted and a sale is pending, one of these designations is used. Pending should indicate that there are no contingencies except for financing. Contingent should indicate that the sale is pending, but is contingent on something other than financing; e.g. bank approval of a short sale, sale of another home, or any of numerous contingencies that a seller has agreed to. Once the contingency has been satisfied, the status should be changed to Pending.

In REO Land, many listing agents are not updating the status in a timely manner when an offer has been accepted. This is a tremendous waste of time for both homebuyers and Realtors. This can be very frustrating for homebuyers who learn that the house they just fell in love with, which was listed in ER status, is actually in escrow, or that the bank is negotiating with another buyer and isn't looking at any more offers.

Listing agents often just don't get around to updating their listing in a timely manner. Many now blame it on the seller, saying that their asset manager won't let them update the listing until escrow closes. We at Top10RealEstateValues.com think that common courtesy dictates that these agents at least make mention in the "Agent-to-Agent" remarks that the bank has accepted an offer or is not looking at offers. So when I am crowned Queen, this will be the Rule of the Land.

Until then, my agents and I try to call in advance to find out whether there are offers on the home, and especially whether the bank has already extended a Counter Offer to another buyer. That gets a little tough to do when we are showing 10 or more homes in a day, but we especially try to do it on the homes that look great on paper.

A few more status indicators: T (Temporary) indicates that the home has been temporarily taken off the market. This is sometimes used lately when a home receives so many offers that it becomes difficult to respond to more. It's also used when an agent needs a little time to clear up some matter before putting it back on the market. W (Withdrawn) indicates that the home has been taken off the market, and the listing agent does not expect to list it again. S (Sold) indicates the home was sold recently; wheareas H (History) indicates it was sold more than 6 months ago.

And as I promised, more on sales skyrocketing. My blog is getting long, so I'll keep it short. Sales for March were further proof that sales are rising fast in this market. We are selling more homes now than we were at the peak of the market several years ago. March sales were nearly 3,000 homes, up by 30% in Februay. As my client said in the recent edition of Business Week, "Why wait for the bottom of the market when the deal is right?" (Yes, that's me in the April 13 Business Week photo with another client, who recently had an offer accepted. They just forgot to mention my name after having a camera crew follow us all day!)

With an increasing number of homebuyers competing for the attention of lenders already swamped with refi applications, it's taking 45-60 days to close an escrow lately. Every facet of the system seems to be bogged down, except the part where my agents and I show homes and write offers! Banks are taking longer to get fully-executed contracts back to us. Escrow officers are taking longer to close as sellers take longer to respond with their pieces of the puzzle. And lenders are swamped, resulting in turn times far longer than they were just 60 days ago. Even cash deals are taking 30-45 days; we can't close until the selling bank is ready.

It's still nearly impossible to predict when prices will begin to rise. Foreclosures are coming on the market at a faster pace than sales. As long as inventory rises faster than we can sell these homes, we aren't likely to see price stabilization. I believe the worst is behind us, and as my client told Business Week, the deals are right. He's buying a very clean 4-bdrm. home in a great community that will provide positive cashflow, and he's not waiting until prices start to rise to make a good investment.

More later on an interesting trend of lower-end homes coming on the market, and why that might be.

Wake Up, Roger, and Own Your Own Piece of Las Vegas

Sun, 22 Mar 2009 11:53:00 -0800

I've been showing Roger homes for two weeks. He and his wife, Lisa, need to buy quickly; or so he told me three weeks ago when he first called me. Roger came to me through his employers, who had used my services to buy five homes in the fall. I was highly recommended, and Roger had just gotten out of a nightmare transaction with an inexperienced agent. We both agreed he needed the help of an experienced Realtor to find a home given his tight deadline.

On the first day of Weekend 1, we viewed five REO homes, all priced well because those are the only homes I show my clients. Roger didn't find anything he liked. On Day 2 of that weekend, Roger viewed four more REOs...still nothing. It's not that I wasn't showing the right homes; sometimes buyers think they want a certain type of home, but once they start looking they discover what they really want. I'm quite accustomed to this education process. While many investors will buy the first time they view homes, many first-time homebuyers and buyers of retirement or vacation homes really aren't sure what they want until they've looked a bit.

On Day 1 of the second weekend, we viewed seven homes and found three that Roger wanted to make an offer on, knowing he would be happy with any of the three. I quickly wrote up the offers, and then waited. And waited. And waited. Waited for Roger to sign everything and get it back to me. Waited for Roger to get his revised prequal letter from the bank's preferred agent. Waited for Lisa to find the time to come by my office to sign. Waited for the grass to grow.

By the time I was able to fax the offers to the bank's agents nearly 36 hours after viewing, other offers had been accepted on two of the homes, including one that Roger probably would have gotten with his $11,000-over-list price offer. His last remaining offer is about $26,000 short, and it will not be accepted. Some times clients prefer not to take my advice; almost without exception, their offers don't get accepted.

On Day 1 of Weekend 2, Roger selected six of the listings I'd sent him to view. When we met, he'd come up with another three listings that didn't meet his parameters. Now I've realized he's all over the board, and I feel like we're taking one step forward and two steps back every time we meet. But at least I've been able to impress on Roger and Lisa the need for speed. Three offers written, signed, and faxed back to me within an hour of looking at the last home. In that regard, we're making some progress.

Of the three offers we wrote last night, only one has a chance of being accepted. Two offers are for $10,000-under-list price, and in addition to that Roger is asking for 3% for closing costs. He really doesn't seem to want a home as quickly as he professes to need one. One offer is $1500 above list, but with 3% for closing costs it is about $3000 under what the bank is looking for.

I am ALL about finding the best deal for my clients. But once again, I must remind Roger - these homes are already priced well below their true value; you can't build these homes for the list price! Mortage rates remain historically low. This year, first-time homebuyers who qualify will get a tax credit of up to $8,000. This convergence of positive factors is not going to last much longer. So I'm trying hard to help him take advantage of these factors before the opportunity is gone. Roger, that.

A quick glance at the statistics shows that approximately one-third of recent sales were sold for more than 101% of list price. Another one-third were sold for 96% to 101% of list price. Only one-third were sold for less than 96% of asking price. So if you really want a bank-owned home, be prepared to pay right around asking price if you want a 50/50 chance of getting your offer accepted. Banks like cash or big down payments; if you are putting only 3.5% down and want help with closing costs, you will have a much stronger offer if you are over list price. If you are paying cash, you may be able to offer a bit under list price. If you find a clean REO in good condition in a good location, you are probably not the only one who has good taste...there will be other offers on the same home.

It's a Dry Heat, as We Say in Las Vegas

Sat, 21 Mar 2009 21:47:00 -0800

We've been extremely busy again; so busy that the Top 10 hasn't been updated for a bit. I know, I know ... but everyone is looking to buy right now. Offers and open escrows come first. Today I've been showing homes all day to three buyers and writing offers for two, as well as doing some research for a few other clients. Another long day.

I'm pleased to announce that I've just hired my first agent referred by a Las Vegas Advisor reader. Cailin Nicholson's mother-in-law, an LVA reader, sent her my way. Cailin's very enthusiastic about working with buyers, and I'm confident that she's going to help take great care of our clients. Which will leave me more time for mopping up floods.

Okay, it was one of those "it was funny afterwards" kind of horrific mishaps. And one of those things that make a Realtor's life challenging. It's a good thing I love what I do. Being a Realtor is the coolest job in the world!

Hale and Tomi and their adorable little baby boy flew out from Pennsylvania to inspect their new Las Vegas second home prior to closing. They arrived early in the morning, after I'd had three hours of sleep. I'd been working for three solid days to throw a Caribbean party for 55 close friends, making the jerk pork, fried plantains, and fresh papaya dressing by myself ... all the while fielding client requests and showing homes. I was tired, but it was just a matter of opening the door to let my clients and the home inspector in. After that, I'd head for the airport to catch a flight to Suquamish to visit my family ... and sink into a much-needed nap on the plane.

Flipping a light switch as we walked in the door, I froze when I heard a loud hissing sound. Realizing it was the sound of running water, we all headed for the kitchen to see if someone had left the faucet on. My heart sank when we rounded the corner to find water gushing out from under the kitchen sink. The home inspector jumped to try to stench the flow of water that propelled 1 feet' across the kitchen and onto the carpeted dining room, as I stood there thinking, "Oh, crap." I immediately called the bank's agent; Seven days later I have yet to get a return call.

It appears the previous owners left a water main open when they removed the dishwasher and all other appliances after losing the home. We got the water shut off after 30 agonizing years (or was it seconds?), and gazed at an empty house with a flooded kitchen early on a Saturday morning. But not for long.

The home inspector grabbed the one thing he could find in his truck to mop up all those gallons of water -- a T-shirt. I threw the few paper towels I could find on the floor to try to stop water from entering the dining room, and ran to find the nearest store. Fifteen minutes later, mop in hand, I began removing the water as fast as I could, one mophead-full at a time.

While Hale opened all the windows upstairs to keep air circulating until my researcher could get there with a wet vac, I mopped furiously. By now the water had spread about six feet into the carpeted dining area, but the kitchen floor was dry. I was never so happy that Las Vegas is so dry; the dampness would be completely gone within hours.

Off I went on the run, heading for home to pack before speeding to the airport. The way my day was going, I called my son before leaving to say my goodbyes. I was certain I'd be hudsoned; the first-ever Southwest flight to ditch in the Puget Sound.

I barely made the flight. I settled into my seat, knowing that when I touched down there would be a message from Hale and Tomi asking me to cancel their purchase. Surprisingly, there was not, and I thoroughly enjoyed my 48-hour trip.

The day after the due diligence period ended, I contacted Hale to see if he wanted me to let the escrow company know we were ready to close. I about fell over backwards when Hale asked if my assistant hadn't told me that he'd sent a certified letter canceling the purchase at the 11th hour! All I could think of was, "Gosh darn it, how can I protect his earnest money when the deadline has passed?" (I wasn't really thinking "gosh darn it", but this is a family-friendly blog.) I've never let a client lose their earnest money. I was crestfallen. I called my assistant to fire her, but couldn't reach her.

Funny, funny Hale. He was text-teasing. Had I reached my assistant, Hale said, she could have told me how happy they were with their new Vegas home. Had I reached her, Robin said, I'd have shot first and asked questions later.

According to Hale, the deal was cinched when I bought that mop and started mopping. I got a warm, fuzzy feeling all over, though it wouldn't have occurred to me to do anything less than the right thing.

I hope Hale doesn't notice that I didn't clean very well where the refrigerator had once been!

How Far Will Mortgage Rates Fall?

Thu, 19 Mar 2009 12:38:00 -0800

Mortgage rates are falling fast, thanks to the Federal Open Market Committee's statement increasing support for the mortgage market. U.S. central bankers announced plans yesterday to buy as much as $300 billion of long-term Treasuries, and to more than double mortgage-debt purchases to $1.45 trillion, in an effort to lower home-loan and other interest rates. The statement from the FOMC stated that its main rate would remain at almost zero, quite possibly for an “extended” time. The rate for a 30-year fixed was just under 4.7% this morning and is likely to fall a bit further. Some newsmakers opined that rates could fall to 4.5%.

While this is good news for homebuyers who are buying right now, this poses two potential problems for homebuyers who are still stalling on their decision to purchase.

When the economy begins to rebound, the sudden influx of money is expected to lead to inflation. Anyone who remembers the double-digit interest rates in the 1980's may want to think twice about waiting in hopes that housing prices will drop further. There are already many REOs on the market that you can buy for less than the cost to build; at this point, these can be purchased with really low-cost financing.

Another problem which will likely worsen is already causing headaches for my buyers. As rates drop, the mortgage lenders are flooded with requests to refinance. Already the lenders I work with are busy with refis, including "short refis," and buyers -- who generally get preferential treatment due to escrow deadlines - are waiting an extra four or five days for loan approvals.

I've had to request extensions to the close of escrow date for three buyers this month due to lender delays. Not only will these three buyers need to pay more interest up front if these close after the last day of the month, but they may very well incur "per diem" charges of $50 to $100 per day -- the fee charged by the bank when the buyer fails to close on time due to no fault of the seller.

If you have a home in escrow, be sure that your lender is going to be able to close in a timely manner. I am e-mailing or phoning my buyers' mortgage officers every day advocating for a timely close. When yours is one mortgage application in a stack of applications, make sure your Realtor is looking out for you and is in constant contact with your lender and the title company. And if you aren't going to be able to close on time, make sure it's the seller's fault!

On Las Vegas REOs, Banks Frequently Get List Price or More

Tue, 17 Mar 2009 23:27:00 -0800

With an increasing number of REOs coming on the market in the past 90 days, it’s still too soon to predict when prices will stabilize. Sales are down a bit for February, but should rise in March. Having broken the law of Supply & Demand, the Las Vegas real estate market is attracting frontier-type investors -- men and women who aren't afraid to brave the risks inherent in the new REO gold rush.

I continue to hear how bad the economy is, but my phones continue to ring off the hook. It seems some days that everyone and his cousin is looking at homes. Quite a few clients are making offers, but those who insist on trying to lowball the banks are walking away empty handed. Out of 1,731 sales of single family homes in February, the banks got less than 90% of list price on only 211 homes. Conversely, the banks got 100% or more of asking price on nearly one-third of REOs sold.

If the home is old or in disrepair, you may be more likely to pick the home up for less than asking price; the same holds true if you are paying cash. But then again, you may have to pay more than asking price; it depends on numerous factors. Since every deal is a unique transaction, I discuss these factors with my client as we structure an offer likely to be accepted.

Sales of existing homes for February were 2,187 as compared to 982 for February 2008. At this rate, I’m confident that sales will remain brisk into the fall. With all the REOs hitting the market, expect to see some more great deals through the next few months, at least.

Record Home Sales in February for at Least One Las Vegas Realtor

Thu, 05 Mar 2009 10:19:00 -0800

HELP WANTED: Aggressive, experienced Realtor with impeccable character, rock star potential and Mother Theresa work ethic. Must be drug-free, yet somehow able to work 24/7 with no sleep or food. Only individuals with 3-4 hands will be considered as you will need to simultaneously answer 2 phones (often while driving), write and fax offers, respond to text message inquiries, research property listings, give back to your community, open lockboxes, and gulp down your meals in 90 seconds or less. We offer a challenging but rewarding career; your satisfaction comes with handing homebuyers the keys to their new home. Pay is commensurate with your ability to put your client's success before yours.

This is the ad I wish I could post. Instead I'm preparing to post a duller version less likely to offend or invite litigation. We're caught shorthanded once again, thanks to the loss of two agents and an administrative assistant. The assistant is a real loss, and we're working to replace her so that Ron and I can both cut back to 12-hour workdays. As for the agents -- anyone who doesn't want to work hard and is looking for an easy paycheck with minimal effort isn't going to last in my employ.

While February home sales will be down throughout the Las Vegas Valley, it will be the best February on record for my team, and likely my third-best sales month in nine years. I had the pleasure of meeting several Las Vegas Advisor readers from across the country and help them begin searching for their retirement or investment home. And I got to know several LVA readers better; it's a real treat for me when I develop friendships with this group of clients -- as I've always said, this is such a great group of savvy, warm, fun-loving people.

There's not a lot to say about President Obama's plan to stabilize housing prices with his foreclosure-prevention plan. Details that have been released indicate there may be some help in store for homeowners who are behind on their payments. But as for the billions of dollars pledged to help homeowners who owe more than their home is worth, there are no real details. A nice PR coup with no real meat. Who do you know that owns a home which will appraise for anywhere near 95% of loan-to-value, thereby allowing them to refinance? Those are the homeowners least at risk of walking away from their home.

Las Vegas Homes Appreciate 3% in 2009

Mon, 23 Feb 2009 13:45:00 -0800

That blog title wasn't entirely b.s. to grab your attention; according to the annual recap of home values, ONE of our 58 Las Vegas zip codes actually saw appreciation in 2008. So technically speaking, it's true. I'm looking for something that my fellow agents can get excited about in real estate today, and that's all I can find. The depreciation in 57 of our local zip codes has certainly attracted my type of clients - investors and savvy retirement or second home buyers - to the market.

I don't need to find something positive to cheer me up; I wrote offers for 5 clients in the past 10 days. My phones are ringing off the hook, and my Inbox is flooded with email. And I just closed that $32,000 home for a LasVegasAdvisor reader who plans to remodel the home and live in it, so I'm feeling pretty cool and cocky today.

As for the annual recap of home values in Las Vegas by zip code; well, one man's tragedy is another man's opportunity. I don't say that to be flippant. But cash is king again, and those who are investing in Las Vegas real estate now will reap the rewards in the not-too-distant future. And thanks to recent rule changes and tax credits, even princes and princesses with a little cash on hand can find a mortgage to buy a personal home, too.

Beating Out the Competition on a Las Vegas Foreclosure

Wed, 18 Feb 2009 23:57:00 -0800

I've been helping Kevin and June look for a home in the $220,000 range for 2 weeks. They are moving down from a beautiful $700,000 home previously valued at over $1m. They simply want to downsize; the kids are gone and they want to get their San Diego condo paid off before they retire.

Their home is stunning - the pool and landscaping cost nearly $200,000. The home is immaculate and tasteful. So, finding a home in the $220,00 range that they will love has been a challenge.

Last night a listing popped up for a home that sounded good on paper. June and I ran right over to see it, and she loved it. It's a nice 1-story, 2500 sq/ft home in Mountains Edge with great landscaping and the 3-car garage they needed. The home was listed at $230,000, and was far superior to the 1-story homes we've already viewed in the $210,000 - $220,000 range.

When we arrived after 6:30 another agent was showing the home. It had been on the market for a few hours and had already been shown at least 3 times, and after dark at that. The bank's agent wanted 2 to 3 days for a response, and I knew there would be offers coming in the following day, when mere mortal agents got around to showing it to their clients. There was no time to waste, and I convinced June to write the slightly-above-full price offer immediately.

At 10:00 p.m., when I had the signed offer back from Kevin and June, I submitted the offer to the bank's agent. I asked him to send it to the bank early today, even though we didn't have the Countrywide prequal letter that was needed. I had a prequal letter from Direct Access Lending, but often the banks try to regain some of their loss on REOs by capturing mortgage business; by forcing buyers to prequal with their institution they have a shot at the loan.

No problem - I knew my buyers could qualify. What I didn't know when I begged that agent to submit last night without the CW prequal was that my buyers had ignored their loan officer's pleas to send her what she needed for a preapproval. When I asked their DAL loan officer to get the Countrywide prequal letter for us this morning, I learned Kevin hadn't sent the agent the documentation she had requested. Countrywide won't issue a prequal letter without seeing the documentation.

My clients have high FICOs and have great income. Often, when people know they can buy, they ignore my advice to have the prequal in hand when we go shopping. Nothing is more heartbreaking than missing out on the perfect home because you were so sure you could just get the prequal when you found a home you liked! On a clean REO priced to sell, it's likely others will want the house as well. Waiting for the bank's preferred mortgage agent to get around to prequalifying you can take a day or two. In the meantime, if other offers come in you now have competition.

I have another client who just waited FIVE days for the bank's preferred agent to contact her and provide the prequal. The agent refused to submit the offer to the bank's asset manager until the bank's preferred agent prepared his own prequal letter. The house is a mess, so it's unlikely we'll be competing on this one. But if we'd waited even a day or two for the prequal on a more desireable home we may have been out of luck.

As for Kevin and June - we got lucky. The agent agreed to submit the offer early this morning, and we had an acceptance before the other offers could pour in. I'm sure it was the "pretty please with sugar on top" that got him to give me special treatment; I'm not ashamed to beg. But he shouldn't have accepted it without that, and we should have lost this opportunity. I had to promise the CW prequal tomorrow along with my next-born (fooled him!).

Please, dear friends and readers, heed my advice. Have a prequal letter in hand and be sure that you have provided your documentation when the loan officer requests it. A preapproval letter is even more likely to get your offer accepted. As busy as I am, I can generally only show homes to prequalified buyers. Since most Las Vegas Advisor readers are eminently qualified, I often do a quick telephone prequal myself. But that's not going to help you if you're in town for 2 days to buy a home and you can't get a prequal in time to lock up your dream home.

Using the $8000 First-Time Home Buyer Credit for a Down Payment

Tue, 17 Feb 2009 23:39:00 -0800

Two exciting things on the home front in the same day? (Get it? “Home” front? Oh, sometimes I kill myself.) I’m up late sharing this information, which I just managed to track down, because there are some exciting possibilities here. Especially for those of you with young adult kids who haven’t bought their first home yet.

The “perhaps it will stimulate” bill included important changes to that $7500 first-time home buyer loan – er, tax credit – as amended by the American Recovery and Reinvestment Act of 2009 (HR 1). My favorite is a provision that allows buyers to alter their tax withholding to save up for a down payment and buy late in the year!

Changes to the first-time home buyers tax credit program include:

1. The maximum tax credit is now $8,000 or 10% of the home purchase, whichever is less.

2. Home buyers (either spouse if filing jointly) who have not owned a principal residence during the 3-year period prior to the purchase are eligible for the tax credit. Owning a vacation home or rental home doesn’t disqualify you.

3. Married couples’ “modified adjusted gross income” (MAGI) must be under $150,000; single filers’ MAGI must be less than $75,000. Partial tax credits may be available for married couples when their MAGI is over $150,000 but under $170,000, and for single filers who have a MAGI of more than $75,000 but less than $95,000.

4. Home buyers who qualify but don’t intend to purchase a home till the end of 2009 may elect to alter their tax withholdings (up to the amount of the tax credit) in order to save up money for a down payment. The taxes must be repaid to the IRS, however, if the purchase of the home does not occur.

5. The credit is available to buyers who purchase and close on a home on or after 1/1/09 and before 12/31/09.

6. The law allows taxpayers to elect to treat qualified 2009 purchases as a 2008 purchase and receive the tax credit on their 2008 tax returns.

7. The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes.

8. You must own the home for at least 36 months to avoid a recapture or repayment clause.

Damn it, Jim, I’m a doctor, not a tax accountant. Wait, I’m not even a doctor. I’m merely a Realtor, and not qualified to give tax advice. Please consult your accountant or tax advisor to be sure you’re eligible before making the decision to buy a home or make changes to your tax status.

Fannie Mae Rule Change Will Spur Investment in Las Vegas Foreclosures

Tue, 17 Feb 2009 10:41:00 -0800

Finally, a move by Fannie Mae that should help reduce the number of foreclosures on the market. For investors, this is a double-edged sword; financing is more accessible, but the result could be increased competition for the best deals, especially as spring draws near. For homeowners upside-down in their homes, rising prices would be a long-awaited boon.

Fannie Mae has increased the cap on the number of Fannie Mae-financed homes that an investor can own, from 4 to 10. In Fannie Mae's words:

Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery.

Fannie Mae wants to serve investors with a track record of owning and successfully managing rentals. Fannie Mae has no interest in providing financing for Johnny-Come-Lately investors who jump in and leverage OPM full tilt, later losing the homes back to the bank. But for investors with skin in the game and experience, credit is now more readily available.

Fannie Mae will now allow investors to finance up to 10, 1-unit homes when they meet the following guidelines:

* 25% down payment

* Minimum 720 credit score

* No bankruptcies/foreclosures in last 7 years

* No late mortgage payments in last 12 months

* 6 months of PITI reserves for each financed property

* 2 years of tax returns; must show rental income

Hindsight is always 20/20. Should you still think waiting on the sidelines is a good idea, you're very likely about to see the bottom from your always-accurate rearview mirror.

Another Late Night for Las Vegas' Magical Real Estate Fairies

Tue, 10 Feb 2009 22:31:00 -0800

Looks like we'll be working very late tonight to help Jamie and Cory find another home. I've got a pot of Jamaican Blue Mountain Coffee started...the last of my whole roasted beans until I can get to Grand Cayman again. Sigh. I've promised my clients that they can go to sleep knowing that the Magical House Fairies are taking care of everything while they sleep.

Jamie and Corie had their dream home ripped from their grasp today when the bank that owned the home dissolved. This really nice young couple had already signed the bank's Counter Offer, and were chomping at the bit to move in on the 1st. All we needed was that fully-executed contract. Which will never come.

It could be months before the bank that now owns this home gets around to relisting it. This is only the second time a bank has canceled one of my clients' offers. Fortunately, banks almost without exception make good on their verbal Counter Offer. But when they can't, it's heartbreaking for the excited and anxious homebuyer.

However, Jamie and Corie got right back up on that horse, and within 4 hours of getting the bad news we found a home they like even better! It's newer (2005), priced a little lower at $137,500, and has a much better floor plan. It's all good out here in the wild, wild west.

So I just rushed back to my home office and put together an offer. Once it's signed and faxed back to me at 10:00 p.m., there is an awesome agent on the other end that has agreed to upload this to the bank for me tonight. With luck we were fast enough on the draw to lock this up before everyone is out shopping for homes on the weekend.

This is the part of the game that I love: putting my experience and creativity to the test. I never mind working evenings, but getting a lender and another agent to work with me after hours isn't as simple as it sounds. Believe it or not, there are still some 9-to-5ers out there that don't realize yet that things have changed. In this real estate market successful Realtors and mortgage agents are working twice as hard to get deals closed. Ask any agent who's thriving in this market and they'll agree with Thomas Edison: "The problem with opportunity is that it is dressed in overalls and looks like work."

Horse, wild west, fast on the draw? What's with the western motif, you ask? So do I. I talk funny when I'm tired.

Ahhhh, I smell coffee. Time to grab a quick cup of java and get back to herding the Magical House Fairies who will be putting the finishing touches on this deal well after midnight.

$1250 per Month Rent for a $59,900 Las Vegas Home

Sun, 08 Feb 2009 21:05:00 -0800

Have my last few columns started with "Now I've seen everything?" Every day I see something else amazing, and I want to share it with my readers. Of course, I can't blog every day or I would...but I feel like I'm repeating myself with the "I can't believe" line. But I am constantly astounded by deals even I never expected to see.

Readers who've been with me for a year will remember Gui Zhong. Gui has purchased 2 rental homes from me in the past year, and we're writing an offer on another home tonight. Gui's strategy has changed somewhat; like many of my readers, Gui is looking to pick up homes priced at under $120,000 that should cash flow.

Today we're writing an offer on a home priced at $59,900. This 1422 square foot home in an older golf course community has 3 bedrooms, and 3 baths. It sold for over $240,000 in 2004. There is nothing spectacular about this house visually. However, the comps are renting for $1200 - $1250 per month.

There will be many offers submitted. I don't think the home will sell for less than $74,000, and I'm trying to convince Gui to offer that amount. He won't, and the house will go to some other lucky homebuyer. But even at $74,000, that is probably going to be the best investment that buyer ever makes.

I need to set aside a little time and organize an investor's club so that my girlfriends and I can put our spare change into buying homes that will produce monthly cash flow! Future appreciation will just be icing on the cake.

$2 Million Las Vegas Home for Half Price

Tue, 27 Jan 2009 21:22:00 -0800

Yesterday my plan was to write an offer for $1.1m on a home that appraised for twice that amount a few years ago. My clients, Mike and Sonya, would have owned that stunning home soon. What is so hard to understand about "NOW"?

Sonya loved this home. It was the perfect home for her and Mike, their two girls, and her mother. This home, in a prestigious guard-gated community in Henderson, was one of the very few higher-end homes that have ever made our Top10. It is so unusual to find a luxury home that is selling for half of it's previous value, though it is now commonplace in the lower price ranges.

I showed Sonya the house in the afternoon, and then showed it to Mike after dark so they would be able to submit an offer in the morning. He agreed with Sonya that he wanted the home, and I agreed to call the listing agent for status in the morning.

When I reached the agent the next morning, I learned the bank was reviewing an offer but had made no decision. If we could get our offer in quickly, the bank would review ours as well. The bank was reviewing a less-than full price offer, so a full price offer would have secured the home for my clients.

Why is it that some buyers can make a quick decision and others can't no matter how urgent it is? I told Mike and Sonya immediately that we would have to write the offer in the morning. Yet into the early afternoon I was still responding to completely irrelevant questions such as, "Which bank owns the home?" and "When was the other offer submitted?".

Needless to say, the bank accepted the other offer before Mike and Sonya could even commit to a time to write the offer. I had absolutely nothing to give the bank that might have derailed this long enough to get our offer in.

My clients are heartbroken. This was the deal of the century on the perfect home, and they missed it.

This couple had only called me on the same day we viewed the home. I've since learned that they have lost out on several other homes they wanted, and that they'd been jumping from agent to agent. As a result, no one was around to alert them that this house was available when it was first listed, or to be sure they had their prequal letter handy when they needed it. I'll now work with Mike and Sonya so that they are in a position to move quickly when the right house comes along again. They need to be able to get to "yes" before the door closes.

$29,900 Las Vegas Home with Pool

Sun, 25 Jan 2009 22:53:00 -0800

Now I've seen it all.

On Friday I had an offer accepted on a home that was priced at $29,900. The couple whose offer was accepted, Las Vegas Advisor readers, made a cash offer of $32,100.

Sure, for $32,000 the home obviously needs a lot of work. But the lot is worth more than that! The homes in the neighborhood are currently valued at about $70,000 to $80,000, and 2 years ago sold for twice that.

It's not the $1.13 million home I'm writing an offer on in the morning. But this couple will own it free and clear. And even though I actually lose money when I sell a home in this price range, it just tickles me to see someone reap the benefit.

I love what I do.

Las Vegas Real Estate Comeback Could Be Rooted in it's Globalization

Sun, 25 Jan 2009 22:48:00 -0800

Who is Richard Lee, and why is his upbeat attitude making me so happy?

Richard Lee is a Vice President with First American Title in Las Vegas. More importantly, to me at least, is that Richard Lee is SO on top of things that when he speaks about the state of the market in Las Vegas, most of us in the industry strain to catch every word that springs from his golden vocal chords. I’m probably only imagining that he sounds better than most humans, but his words are certainly music to my ears. Richard Lee is one of the foremost authorities on development in Las Vegas, and any time I know he’s speaking I try to be there.

About 4 months ago, I had the opportunity to hear Richard speak on the state of our real estate market. Often viewed as the biggest cheerleader for development in Las Vegas, Richard usually boils over with justifiable enthusiasm. This was the first time I’d ever heard Richard speak to a group in less than excited, confident tones. While his long-term prognosis was good overall, he was somewhat subdued.

Yesterday I had the opportunity to hear Richard speak again, this time at our monthly Nevada Association of Hispanic Real Estate Professionals luncheon. When that guy smiles when he speaks of the future of Las Vegas, I get a warm, fuzzy feeling all over. Maybe it was just the champagne I imagined myself using to toast our comeback in the near future; nevertheless, I left the room feeling upbeat and positive. While I just wrapped up a record sales year, I’m very cognizant that homeowners are still losing or giving up their homes, and many of my fellow real estate professionals are struggling to hang on.

While we all know that some big projects dried up faster than a wet t-shirt in the Vegas sun when credit became scarce, many aren’t aware of some major projects that are still slated. Not today, but soon. I won’t steal Richard’s thunder, but this man is highly regarded by individual and institutional investors across the country; when Richard talks, people listen. Everyone wants to own their piece of Vegas. The globalization of Las Vegas that is making this city the world’s favorite “meeting place” ensures that it will come roaring back.

A long-time Las Vegas developer, now deceased, used to have a sign in his office that always made me smile. “Lord, let there be one more real estate boom. And this time, don’t let me piss it away.” It won’t be today, but it will be. And this is why investors are snatching up properties today.

What Will Happen with Las Vegas Real Estate in 2009

Thu, 22 Jan 2009 22:16:00 -0800

I have put off my 2009 prediction as long as I can; one reader just called me on my delay. It's very hard to have confidence in anything in an economy that most of us have never experienced. People are buying homes – lots of homes – and there are many more foreclosures to come. But for those of you who are looking to pick up an investment or vacation home – get ready! The opportunity has never been greater.

Sales have slowed a bit, which can be expected during the winter. However, sales are still double what they were this time last year. I expect to see sales begin to rise again by the end of February. Indeed, call and email volume is already picking up rapidly. This is often a good sign that sales will rise soon, though all bets are off in this economy.

Last year I really went out on a limb when I predicted we would see the bottom of the market in terms of sales by late February. We did; sales rose rapidly after that. Sales are still strong, and if they only remain constant that’s a good thing. But I predict an upswing in sales as more investors jump in, lured by prices that are often below replacement cost.

In January of 2008, there were 3,779 Notices of Trustee Sale filed in Clark County. In December, there were 7699. For the first half of this month, there were more than 4500 Notices filed. It’s impossible to extrapolate this into an accurate foreclosure estimate; there are now so many factors, such as loan modifications, that could render such an estimate inaccurate. But it isn’t difficult to predict that more foreclosures are coming.

Banks are pricing homes to sell in 2 to 3 months, and continue to drop the price on a foreclosure until the price appears irresistible and it gets snatched up. As more foreclosures hit the market, we should expect to see prices drop further. On the other hand, increased demand in the spring and summer will probably keep prices from dropping as rapidly as they would if no one was buying.

Prices are still falling, and I predict that they will continue to fall for at least 90 to 120 days. Unfortunately, you won’t know when the market has reached bottom until prices are already rising. Investors picking up properties right now are aware that prices will probably drop further; they just aren’t very concerned when they are buying houses for less than one can build them. Better to lose a little “paper” value and regain it when prices rise than to pay too much for a home when prices rise.

For those of you who have been holding back, I suggest you get ready to buy. The competition will become fierce in the spring and probably throughout the summer. At that time you’ll not only be competing with investors, but you will be competing with anyone looking for a personal residence as these buyers tend to jump into the market beginning in April.

REO Counter Offers

Wed, 14 Jan 2009 00:10:00 -0800

After several months of looking, Tye and Suzie finally found the perfect home on New Years Day. This 3500 sq. ft. home had everything they wanted, and as an REO it was priced to sell. As soon as the bank opened for business on January 2, I was working the phone to get it accepted. Again, "pretty please with sugar on top" did the trick, and by the end of the day we had a tentative acceptance, with management approval coming on Monday.

When Monday rolled around with no "official" written Counter, Tye started to get nervous. Did the bank hate his offer? No, the bank's asset manager just didn't seem to get that VA loans are zero-down loans. Monday passed, and then Tuesday, and Wednesday. Each day I would call the bank’s agent only to be told that the “official” Counter hadn’t been approved by management. By now Tye was getting irate, and despite my continued assurances that the written Counter would come, he began to talk himself out of the perfect home. So it shouldn't have come as a surprise to me that when the Counter finally arrived on Thursday, Tye refused to sign it. "I wouldn't sign this Counter if I were buying the house with your money" is never a good sign.

It's hard to watch Tye shoot himself in the foot and talk himself out of a great deal. He got the price he wanted, the repairs he wanted, and the terms he wanted. He was buying the home under market value, even in this market. But because his issues were with standard clauses in an REO contract, I thought this might be a good time to discuss some of the differences that you will see when you buy an REO versus a home from a private owner.

Tye's biggest objection was with the "per diem" language in the Counter. Banks are concerned that houses will fall out of escrow, and that owners will drag the escrow out much longer than necessary, while the bank is losing money every day. Every REO contract now has a "per diem" (late fee) clause that allows the bank to charge the buyer a daily fee for each day closing is delayed beyond the scheduled closing date.

Tye's Counter called for a $100 per day "per diem" if Tye were to ask for, and be granted, an extension due to no fault of the seller. Tye felt that, since the bank took nearly a week to make a firm decision, the bank should pay him a late fee. I'd like to live on the planet where banks are out to give away money. (I’d have that 2009 Corvette I’ve been drooling over.) Despite my assurances that I've never had a client incur a per diem fee, Tye was incensed. How could the bank demand such a thing? They can, and they do. They also give a buyer ample time to close, and there is no reason to fear paying this fee if you are doing your part to close on time.

Generally an REO Counter will ask for a 45-day escrow. This bothered Tye, who wanted to close in 28 days. The escrow date is always “on or before,” but I could not convince Tye that we could close in 4 weeks if everything was in place. Some banks are even asking for 60 days.

Tye also took issue with the clause that stated that the buyer could not renegotiate after the home inspection was completed. I always request a due diligence period in which the buyer can do the inspection, and then cancel without risking the earnest money deposit if the inspection is not satisfactory. This clause would have allowed the bank to keep the earnest money deposit if Tye decided not to purchase the home after the inspection. However, this is the third contract I’ve seen recently where the bank gave the buyer time to do the home inspection before signing the Counter.

Most banks allow anywhere from 4 to 24 hours for the buyer to sign a Counter before the Counter will be void; the buyer then has the home inspected after signing. This bank gave Tye five days to sign the Counter! Tye insisted he was being given zero days for due diligence when, in fact, the bank was giving him a chance to do his due diligence before he even had to commit to buying the house. The bank would not negotiate with another buyer until the five days had passed, so Tye actually had an advantage; he was able to tie up the home for five days without having to commit his earnest money funds.

Tye and Suzie simply got cold feet, and were unwilling to accept the standard clauses in a contract. Every REO will have similar clauses, and there is no reason to fear these. A good agent won’t let her or his clients take on unnecessary risk. If you are working with an experienced real estate agent, your agent will thoroughly review the Counter before presenting it for your signature.

Las Vegas Home Sales Still Soaring

Fri, 09 Jan 2009 13:29:00 -0800

Hello, friends. Where did the past 3 weeks go!?

We just wrapped up an incredibly successful year at Top10RealEstateValues.com. We are still struggling with growth issues, and I appreciate all of you who have written and are so patient. I can't believe it's been a year since I started this blog; in fact, I am late getting to my annual prediction! (Next issue.)

We are STILL working on the site changes. What we've done with Top10 was trailblazing - but this isn't easy stuff. My brilliant researcher is attempting to automate the site so that we can bring even more top deals to my clients, and more frequently. But it's not easy.

In the meantime, sales in Las Vegas are still rising. (http://www.lvrj.com/business/37325269.html) I sold 27 houses in 2008, placing me among the top buyer's agents in Las Vegas. I feel very blessed to have been nicely rewarded for something I do for the sheer joy of matching buyers with the perfect home.

So here we are at Top10RealEstateValues.com, still working on upgrades and planning for an exciting new year while we're already realizing the goals we're still setting! It's been a great year with our LVA clients, and I want to say again how much fun it's been to make some great new friends and acquaintances.

The article referenced above is also a great reminder why people are buying right now. Whether or not it's the bottom, clients are picking up homes at less than replacement cost, and with interest rates as low as we're likely to see. When prices rise, today's buyers are going to be happy they bought today.

2009 Las Vegas Market Prediction Coming Soon

Mon, 15 Dec 2008 14:56:00 -0800

In a previous column I mentioned Tony and Lyla, who had purchased 3 homes in about 60 days. We now have their 5th home in escrow; 4 of these are in the same development. By buying rentals in the same neighborhood they have reduced their management costs. They've invested nearly $900,000 in cash in this market, and it's been such a pleasure to help such nice people build their real estate portfolio with REOs.

Rates are still under 5% for a 30-year-fixed. I hope my readers have taken advantage of this...who knows how long it will last?

While November slowed down a bit while we enjoyed a little vacation, December is another strong month at Top10RealEstateValues. I'm taking a mandatory 30-hour refresher course to maintain my mortgage license, so I've been busy with that as well. I don't have time to do mortgages, but I like to keep my license active so I can refer my clients to a reputable loan officer. I'm seeing an increase in the number of "prequal" requests from my various websites, which is a good sign that people are ready to buy.

Last year at this time I predicted that we'd reach the bottom of the market in terms of sales in mid-February. I was very accurate; sales began to climb just as our stats foresaw. And it was so much fun that I'm going to go out on a limb and do it again. So watch for my next big prediction before the new year!

I hope everyone is enjoying the run-up to the holidays. I'm going to have to get out and start shopping this weekend, and do my bit to get our economy on track.

Are We There Yet? Are We There Yet? Will This Las Vegas Housing Ride Ever End?

Thu, 04 Dec 2008 21:44:00 -0800

Just for the hell of it, I asked Ron to run some stats last night. We haven't been doing this on a regular basis for months; it's pretty obvious to everyone where the market's been headed. It was interesting to note that the median price of homes in escrow in Las Vegas dropped 30% this year. Ouch. I think Vegas is the best place to invest right now - but it's so hard for we cheerleaders to be effusive right now, even when the rest of the country is suffering along with us.

Ben Bernanke's support for efforts to prevent further erosion of the housing market encompasses some fresh and interesting ideas. With estimates showing that up to 20% of U.S. homeowners may be "buried" in a home that isn't worth what they owe, preventing further price erosion is good for all of us. Let's hope the powers that be vet Bernanke's ideas quickly, and that these elected officials get off their butts and do something constructive soon.

If the Treasury can drive some interest rates down to 4.5% by buying up more mortgage-backed securities, that would certainly help some homeowners avoid foreclosure. There are many ideas on the table, and perhaps if our "leaders" could agree on a few of the better ideas, and actually begin to move the rock forward by implementing these, we could slow down this speeding train and avoid a derailment.

NOTE: FHA is lowering it's maximum lending limit for the Las Vegas area from $400,000 to $287,500. The change takes place on January 1. As I said last week, this may be the perfect month to buy in Las Vegas. These limits won't apply to many LVA readers, who enjoy more financial stability than average Americans; however, it may be a great time for your kids to buy their first homes if they are looking to live in sunny Las Vegas.

Speaking of LVA readers: I had the good fortune to meet with two LVA readers yesterday. It's not the first time I've met with two or more LVA readers on the same day, but this month is always a slow month. So it was a treat to be selecting homes to view with one LVA reader and have dinner with another San Francisco-based reader who recently bought a home here.

I had a great time with both, and learned more about their common interests in Las Vegas and gaming. LVA readers knows much more about finding good deals in Vegas than we locals do! Both of these clients spoke highly of Jean Scott's Frugal Vegas blog, and convinced me that I need to start making friends through posting to the boards. I also learned about "meet-ups" from a client who has made some very good friends through LVA. Sounds fun!

The Perfect Storm - Not! - In Las Vegas Real Estate

Wed, 26 Nov 2008 10:55:00 -0800

I'd love to say I just returned from Grand Cayman, but it's actually been nearly 3 weeks. I arrived home just in time for our Top10 researcher, Ron, to leave for Grand Cayman for 2 weeks. A very nice way for both of us to cap off our best year ever, but it always takes a few days to shake off the sand and rum and store our dive gear when we return. My October and November clients were treated to some Jamaican Blue Mountain coffee - one of the world's best - in their goodie baskets. And maybe a Cohiba or two. :)

Thanks to the Feds, this just may be the best month ever to buy your Las Vegas retirement or vacation home. The Federal Reserve and the Federal Home Loan Banks' announcement that they will buy up to $600 billion in mortgage-backed securities quickly sent the 30-year fixed rate to near lows for 2008.

For all of you who told us you wish you had bought during the 2004 boom, this is your chance. With housing prices at 2003 to 2004 levels and 30-year fixed rates at close to 5%, this is a real opportunity. Factor in that the banks are hungry and this is typically the slow season with fewer buyers in the market, and I think you have a recipe for success. If a Perfect Storm connoted something good, I guess I'd call it that.

If we had a Top10RealEstateValues.com award, the 2008 winners would definitely be Tony and Lyla. This couple, who are enjoying a very successful year rehabbing foreclosures, bought 4 homes in 60 days. These nearly-new 3-bedroom REOs were picked up for $142,000 to $191,000. Once the economy picks up and housing prices begin to rebound - as always happens - they will be sitting on a nice little real estate portfolio.

Those of us here at Top10RealEstateValues.com want to wish each of you, our clients and readers, a very happy holiday tomorrow!

Robin, Ron, Phyllis, Darwin and Michelle

Mortgage Rates are Falling

Mon, 29 Sep 2008 16:37:00 -0800

Everyone and their uncle wanted to buy a Las Vegas home in August. As I said, I suddenly developed the Midas Touch. I am just beginning to get caught up as escrows close before the end of the month.

Gui bought another house, and if you've been with me since I started this blog, you'll remember Gui. This one was as difficult as the last - but I still love this guy. Folks, keep in mind that a cash offer is a cash offer. At the beginning of the year we were writing cash offers and converting these to financing, but lenders are really getting ticked off if you try this now. I did convert one from cash to financing last week, but the seller would not agree to this on Gui's; he had to bring cash to closing or lose this deal.

In an unusual twist, Pete and Dominique became LVA fans through the real estate page instead of the other way around. After seeing the opportunities in Las Vegas, this couple traveled here from Winnipeg last week and headed home big winners. (I change the names to protect confidentiality; this lovely client said she always wanted to be called Dominique!) After making offers on 5 properties, their "highest and best" offer, on the condo they wanted most, was accepted at $74,100. They were thrilled, but it got much better. The listing agent didn't get the increased offer back to the seller on time, and this lucky couple bought their condo for $61,600: the original offer. They returned home from Las Vegas feeling like they'd won a $13,000 jackpot.

Mortgage rates are bouncing around today. If you are waiting to lock a loan, I highly recommend you contact your mortgage agent quickly. If you need a referral to a mortgage agent, please feel free to contact me.

For my Canadian readers: Yes, that's us you saw on Global TV BC's "Viva Las Vegas" weekend story on Canadians investing in Las Vegas homes. Several wrote to tell me they recognized Ron. Unfortunately, the reporter didn't mention either Top10RealEstateValues.com or LasVegasAdvisor.com.

Investment Homes with Cash Flow

Tue, 16 Sep 2008 13:19:00 -0800

According to the Las Vegas Review Journal, some lucky people are making money on foreclosures. The writer interviewed some of us in the industry who are thriving in this market (http://www.lvrj.com/business/28385054.html), but neglected to interview any investors! And while this is still not a market for flipping homes, savvy investors continue to gobble up some great rental properties.

Mike F, the LVA reader I mentioned recently, just closed on his $54,000 2-bdrm. rental home yesterday. He had closed on his $70,100 2-bdrm. condo late last week. Ahhhh, the sweet sound of cash flow coins dropping into the register. Cha-ching.

My phone was ringing yesterday over my comment in the article, and I'm now looking for homes for several new clients. From listening to these readers/callers, it appears not all Realtors put their client's needs first. Go figure.

Mortgage rates are down. If you haven't locked your loan yet, you should check in with your mortgage banker today to discuss whether it's time to lock.

New Cap on Investment Homes

Tue, 09 Sep 2008 11:50:00 -0800

With it's last dying breath as a privately-held company, Fannie Mae instituted new guidelines that may seriously impact real estate investors. Mortgage rates are dropping as a result of the fed's takeover of Fannie Mae and Freddie Mac; however, the new guidelines for investment properties include additional fees and restrictions.

Fannie Mae just rolled out new mandatory loan fees for investment property mortgages ranging from 1.75% to 3.75%, based on loan-to-value ratios. And for those who can't sell their home and convert it to a rental when they buy a new home--and there are many, at least in Las Vegas--it will be much tougher to qualify for a mortgage.

These "accidental" investors must have 30% equity in the "converted" property to use the rental income on a mortgage application; if they don't meet this threshhold then the entire mortgage payment is counted as a monthly income loss! This won't affect many LVA readers, but it will certainly affect thousands of homeowners, when qualifying for a mortgage is further from their reach than it already was.

The rule that could affect more successful, experienced real estate investors (and this includes a number of LVA readers) is the new cap on the number of investment properties that can be financed. Fannie Mae just reduced the cap from 10 properties to 4. If you own 4 properties with mortgages, an application for another investment home--and even a second/vacation home--will be denied in underwriting.

But, of course, there is a loophole. Fannie Mae no longer considers a home under ownership if it is held by a corporation - even if the borrower is the sole owner of the corporation. It's time to move your investment properties into LLCs if you haven't done so already.

I see no sign of the market slowing down any more than it normally would in September. Sales do typically drop off by about half in the winter months. With down payment assistance disappearing, there may be fewer qualified buyers in the market in the foreseeable future. Put these 2 factors together and I think we'll see less competition for the best deals for a few months. If you've been holding off, it's time to buy.

The Las Vegas Market is on Fire

Fri, 05 Sep 2008 15:49:00 -0800

On July 26, I triumphantly returned after my son's burns were healing, announcing that I would be back on a regular basis and with some exciting enhancements to the Top 10. And on July 27, I was blessed with the Midas touch. As a result, we are working 15/7 to bring great deals to my clients

I know many readers have noticed my absence and thought I was unavailable. Others apparently have not, and still came looking for me. I have 4 open escrows right now for three LVA readers purchasing Las Vegas investment or vacation homes. Every one is an interesting story, but I haven't been able to sit down and share these. I am literally working nonstop, living on diet coke and whatever I can find in the vending machine, to help my clients get some great deals.

I apologize, dear friends. I am truly overwhelmed trying to help my clients make hay while the sun shines!

We are half way to having a beta version of our new website ready, and will soon invite you to help us test it. The Top 10 will soon feature even more great deals, and will include specific categories such as condos, great deals in highly desireable areas, great deals in lower-end and higher-end homes, and more.

While you can already have a search customized to help you become familiar with the market, readers only find this out after they've contacted me about a specific property. In the near future you will be able to request a search from the Top 10 page. With a few clicks, you can ask to view listings that meet your parameters, which you can peruse in the comfort of your home or office. Who needs a pesky Realtor stalking them? I know you'll contact me when you're ready to buy.

I finally hired a production coordinator yesterday - yeah! This will soon free me up a bit to focus on finding great values for my clients, and get back to sharing information with you.

I found one lucky LVA reader a small home for $54,000 last month. Mike (the name has been changed to protect the savvy investor) came to Las Vegas hoping to buy one small rental property, and had enough left over to buy a condo for $70,000 as well! I have another client who is buying 3 investment homes at the same time, and another LVA reader buying his second Las Vegas investment home.

This market is not for the faint-of-heart. Shortly after my prediction late last year that we would hit the bottom of the market in terms of sales, we saw sales shoot up. Sales have remained high. I think the best deals will be found in September, and then perhaps in November and December. The market generally slows down in these months; fewer buyers may be competing over foreclosures.

While none of us could foresee what gas prices and other economic maladies would do to our local economy, which was faring better than the national economy, investors understood the long-term value in investing in Las Vegas. So did many baby boomers who bought their retirement home a little earlier than planned, to take advantage of the incredible values.

Las Vegas House Sales Remain Strong

Sat, 26 Jul 2008 00:21:00 -0800

It’s been 30 days since I had to pull back in certain areas due to my son’s burns. I am happy to say that my son is now out of the hospital, that he will probably not need a second surgery, and that one arm, at least, is healing very well. I was forced to limit my activities to serving my clients and taking care of my son; unfortunately my blog and media interviews had to be set aside for a bit. Even my Top 10 suffered as we could only update it weekly. I’m happy to say I’m back, and I’m ready to ramp up my activities – yeah!

I want to sincerely thank some really incredible Las Vegas Advisor readers. I received many kind inquiries, and so many “get well wishes” from people I’ve never met except via e-mail. One reader actually apologized for intruding on me, and asked me to assign an agent to help him. But LVA readers are preferred clients, and I no longer allow an agent to be your first point-of-contact. I was happy to help him, as I’ve continued to help my other clients. I can’t express how much my reader’s compassion and kindness meant to me; I feel like part of a big LVA family. Thank you to each of you who wished us well – I won’t forget.

Wow, who could have imagined that our economy would get so out-of-whack so quickly? I was able to follow the financial news on my Blackberry in my son’s hospital room; some days it’s very hard to predict whether we’ll survive this roller-coaster ride. Las Vegas is a great investment; my faith has been rewarded as sales have outperformed national trends. But some days this ride can give one butterflies in the tummy.

Nationally, housing sales were down for June. The market reacted very unfavorably to yesterday’s news. But, again, who cares how many homes sold nationally when you’re looking to buy your second home in Las Vegas? June sales were down nationally by 2.6%; with that news and $126, I can buy a barrel of light, sweet crude oil.

Sales in Las Vegas rose again in June. In fact, June sales were comparable to sales in August, 2006 – the peak of the market, and just before this coaster headed down that really steep part of the track where we hold on for dear life. Prices have fallen back to where they were in mid-2004. However, prices aren’t falling as fast as they were, and sales remain strong. As I always say, the pendulum will swing the other way again…it has to. But some days you have to wonder how many twists and turns this roller coaster will take before it stops.

I expect to see July sales slow somewhat as our typical busy season draws to a close. But I expect sales to remain much stronger than last year at this time, now that the “sales bottom” is behind us.

Some of this feels like typical Presidential election year scare tactics; but thanks to $4 per gallon gas, a mortgage market meltdown and a few other headaches, some of this feels very, very real.

I hope your family is faring well in this economy.

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Time out for family

Mon, 30 Jun 2008 18:11:00 -0800

Editor's Note: Robin informs us that her son suffered second- and third-degree burns six days ago. At present, she is caring for him in the UMC burn unit. "It has been impossible to get to a computer, much less work!", she writes.

Our thoughts and prayers are with the Camacho family, as we wish them a speedy and whole recovery from this great misfortune. -- David McKee

Relocating to Las Vegas

Thu, 19 Jun 2008 14:50:00 -0800

I've just returned from Gig Harbor, WA. I spent 5 days visiting with my daughter after attending her graduation from Evergreen College. I’m 3-for-3: three kids, all three now college graduates. A writer, an attorney and a chef. I feel I’ve accomplished a major milestone in my own life, even though they did all the homework. I’m very proud of Taryn, Riana and Jordan ... and I’m looking forward to a life of free legal counsel, books dedicated to Mommy Dearest, and gourmet dinners.

In my ongoing attempt to keep you informed, I’d like to share the Las Vegas Chamber of Commerce's relocation guide. I invite you to log on and bookmark this resource. Since it was produced by the Chamber, as you can imagine it is dominated by the Chamber’s business members. You won’t find me here, and you won’t find my favorite restaurants, either. As always, feel free to ask me specific questions. But this is a helpful reference guide, even though biased in some areas.

Two other references that I frequently provide to my clients contain valuable information on our schools and on crime.

And now, readers, it’s back to our online tour of Las Vegas with Lucy Stewart, LAS Consulting. We hopped off the bus at Palazzo in our last visit.

On your left is Bellagio, which was built in 1998. Inside you will find the Conservatory and Botanical Gardens, where the displays are changed out five times each year to reflect the current season (winter, Chinese New Year, spring, summer and fall). In front of the hotel is an 8-acre artificial lake, home to the large dancing water fountain synchronized to music and known as the Fountains of Bellagio. Fiori di Como, Dale Chihuly’s famous handblown glass flowers, is the world’s largest glass sculpture, covering 2,000 sq. ft. of the lobby ceiling.

Caesars Palace, built in 1966, is one of the oldest properties still standing on the Strip. Long-time Las Vegas visitors will remember Evel Knievel’s unsuccessful attempt to jump the hotel’s fountain in 1967. His son, Robbie Knievel, completed the stunt in 1989. Caesars Palace is home to the Forum Shops, the highest grossing mall per square foot in the U.S.

Next up on our tour is The Mirage, built by Steve Wynn and opened in 1989. A $600,000 mock-up of the erupting volcano was built before the real one could be approved. Southwest Gas had to grant special permission for the natural gas to smell like Piña Colada rather than rotten eggs. Visitors know the Mirage as the home of the White Tiger Habitat, which still remains after Siegfried & Roy closed in 2003 after 13 years at the Mirage.

And we’ll hop off the bus at the Venetian, which combined with The Palazzo is the world’s largest hotel. Next stop when we hop back on the bus -- Wynn Las Vegas.

Be Ready to Pounce When You Find the Right Home

Thu, 12 Jun 2008 23:11:00 -0800

Robby has been looking to move up to a bigger home. For 90 days we've been in an Internet relationship as Realtor and client. I send Robby an automatic message each time a property that meets his parameters is listed for sale. When a new property is entered into the MLS, within minutes Robby knows about it. In a competitive market, you need to have information quickly.

Robby wants to capitalize on the buyer's market by moving up to a bigger home with a pool. He's owned his small Las Vegas home for 10 years. Just like almost anyone who bought their home before 2003, Robby knows he can buy a nice home at a low price today, and rent his current home for enough to cover the payments on his home equity loan. Someone else will pay off his current home, and he'll improve the quality of his life while building wealth.

I was really excited for Robby when he finally found the home he wanted yesterday. It took him 5 minutes to decide he wanted this REO. Not because the home was outstanding; Robby is just comfortable with making quick decisions. Unfortunately, Robby wasn't quite as ready as I thought he was, and being unprepared to move quickly just caused him to lose the home that took us 3 months to find.

Within minutes of meeting to view the home, we agreed to write an offer for $210,000. This was several thousand under the asking price, but the home was definitely in need of a $12,000 rehab. As I whipped out an offer form, I asked Robby to write a check for the earnest money deposit. But Robby doesn't carry checks, I learned. Okay, no problem; we rushed to the bank together to get a cashier's check.

Since we were at the bank, why not kill two birds with one stone? I asked Robby to get a statement so I'd have the proof of funds we would need to submit the offer. Robby has a prequal letter, but decided at the last minute that he wanted to pay cash. No problem; the banks used to like cash ... let's just get a statement to show the bank the $210,000. But Robby couldn't get a statement without making arrangements with his stockbroker.

I can put together a complete offer with all disclosures in less than 30 minutes. In this market, you need to submit your offer quickly. Often we rush and are forced to wait 7 days for a response while the bank's agent plays little games. But still, the goal is to get the offer submitted quickly in hopes that the bank will accept your offer before other offers start pouring in. This home had only one offer on it.

By the time Robby was able to provide his proof of funds, the home was gone. The bank quickly accepted another offer. It didn't matter how fast I moved; my prequalified buyer couldn't provide his proof of funds until this morning. Between late yesterday and this morning, the house was sold to someone who undoubtedly had no problem getting a bank statement and an earnest money deposit quickly.

I don't think Robby will make that mistake again.

Is it the Bottom of the Market?

Wed, 11 Jun 2008 16:55:00 -0800

The "soft market" hit of 5% for our designation as a "declining market" has been lifted. This is great news for the Las Vegas real estate market, and another sign that we may be on the road to recovery.

Lenders were requiring an additional 5% down in certain areas hard hit by foreclosures. With this requirement removed by many lenders, more buyers will have the savings to qualify for a mortgage.

I just found the Reuters article on rising home prices that I referred to yesterday. With sales continuing to rise rapidly, I am ready to go out on a limb and predict that prices will rise in June as well.

Is it the bottom? Who knows? It's been a rocky 18 months. Real estate is local; however, if homebuyers read tomorrow that the national economy is going to hell in a handbasket, it will be tempting to hold off on making big decisions such as real estate. If the national headlines say that we haven't reached the bottom of the national real estate market, buyers may take this to mean that prices are still dropping in Las Vegas. Today, prices are rising in Las Vegas.

Las Vegas House Prices Have Likely Hit Bottom

Tue, 10 Jun 2008 15:05:00 -0800

“It’s only a matter of time until the pendulum swings.” How many times have I said this, dear readers? It looks like we just might have reached the bottom of the market in Las Vegas. And not just the bottom in sales that we saw in February, as I'd predicted. Yep, I'm talking the long-awaited bottoming out of prices.

About 6 weeks ago, I noted in this column that certain neighborhoods appeared to be stabilizing. In two neighborhoods, I couldn’t find houses for clients for the same price that two other clients had paid just a few weeks before. Anecdotal evidence of a bottom, but I was seeing a trend.

Earlier this week, a Las Vegas reporter wrote that Las Vegas housing prices had returned to their 23-year historic norms, based on several factors. More good news for Las Vegas homeowners.

Also this week, figures for May were released indicating a price increase for the first time in many months. It’s too early to tell whether this is a pattern. But my gut feeling is that prices are beginning to rise, in large part a result of the pressure on the lower end. I’m waiting for confirmation from my researcher.

Investors have been competing to add investment homes to their portfolios as out-of-state buyers rush to get their Las Vegas vacation or retirement home while the prices are so low. This pressure on the lower end of the market may very well be the beginning of the pendulum’s swing. It certainly feels like it when my clients are frequently unable to buy houses at the list price.

One Las Vegas Advisor reader from Canada has made 7 offers on investment homes in the past 2 weeks. All were close to list price, and at least half were at list price or over. Only one offer has been accepted. And then the poor guy was detained by Customs for 7-1/2 hours for carrying a little too much cash. Missing his flight put him at risk of completing his due diligence within the stated deadlines; we're seeking an Addendum extending the deadline so that he doesn't miss out on a great opportunity.

I have another client from New York who has 4 offers out; 3 are decent offers. None of these offers are at list price, despite my urging. All have pools, which makes them much more desireable at this time of year. None are cash offers. So this poor guy is starting out with 3 strikes against him. Like Gui Zhong, he'll strike out a few times before he listens to my advice.

If you are considering buying a Las Vegas property, you might want to check out our Top 10 Real Estate Values, and schedule that trip you’ve been putting off.

Las Vegas Continues to Grow

Tue, 03 Jun 2008 00:52:00 -0800

I swear, I don't know where the time goes. It is so difficult to sit my butt in my chair and update readers on our market when I'm out selling REOs! I'm sure it will be much easier when the busy season is over. Right now I need to work hard while my business is booming. I need to squirrel away some provisions so that I'll be able to survive a long, cold winter.

Okay, you caught me. We don't have long, cold winters in Las Vegas. The truth is, I have my eye on the 2009 Corvette. I love my 2006, but come on--have you seen the photos of the 2009?! It's on my screen saver, and I fall asleep thinking about the day I can buy the new model. I can't complain; thanks to our Top10 real estate values, I won't need to join the exodus of agents leaving both the real estate and mortgage industries. I'm a simple girl; I'll be perfectly happy if I can buy the last 2009 model remaining on the lot when the 2010 model rolls out.

I spent half of Friday with a Reuters reporter from D.C. working on a story on Las Vegas foreclosures. The reporter tagged along while I showed houses to LVA readers from Chicago and San Francisco. I must say I glowed with pride when each of these investors said they had become interested in Las Vegas real estate after viewing my Top 10. I'm eagerly anticipating that story; maybe his conversation with an REO listing agent will uncover the answer to a burning question I have: "So, when you sold your soul to the devil to get all those listings, did it occur to you that you'd still need to do business with the rest of us when the market returns to normal? 'Cuz if it did, I'm sure you'd be less inclined to make me look bad while you keep my clients on pins and needles waiting 10 days for a response."

As promised, I am going to take readers on an “online tour” of Las Vegas with my good friend, land use consultant-to-the-stars Lucy Stewart. Before Lucy was helping developers gain approval for their projects, she served as a zoning administrator for ClarkCounty. Lucy recently helped plan the American Planners Association annual conference here in Las Vegas, and served as a “tour guide” for planners from across the country. Covered on my abbreviated version of Lucy’s tour will be the newest Sin City projects and expansions.

All Aboard the Las Vegas Planners Tour 2008, Part I.

Welcome to Las Vegas! We begin our tour today driving north along Las Vegas Boulevard, better know as The Strip. While the strip is the best known image of Las Vegas, it's actually not within the City of Las Vegas, but rather within unincorporated ClarkCounty, in the Townships of Paradise and Winchester. ClarkCounty consists of over 8,000 square miles and is home to 5 incorporated cities and 19 unincorporated townships.

MGM Mirage’s CityCenter project - CityCenter is a 76-acre mixed-use development located on the west side of the Strip, between the Bellagio and the Monte Carlo resorts. At $7.4 billion, it is currently the most expensive privately-funded project in the western hemisphere. When complete, CityCenter will have:

   - One 61-story, 4,000-room hotel tower
   - Two 400-room high-end, non-gaming hotels including Las Vegas’ first Mandarin Oriental
   - Approximately 2,650 luxury condominium and hotel/condominium units
   - A retail district featuring approximately 500,000 square feet of retail, dining and entertainment under a crystalline canopy of unprecedented brilliance.

CityCenter represents the largest single new employment opportunity in the history of Las Vegas. This project will create 7,000 construction jobs and 12,000 new permanent positions once it opens in 2009.

Venetian Hotel and Casino - The Venetian Hotel and Casino’s new expansion, the Palazzo, was completed in January 2008.With 7,128 hotel rooms, two casinos, nearly 1 million square feet of retail and 2.3 million square feet of convention space, the Venetian and the Palazzo combined are the largest hotel in the world. The Venetian boasts Bouchon, Thomas Keller’s French bistro. Okay, this isn’t new—but it serves some of the best food in Las Vegas!

Las Vegas is ever-changing, constantly reinventing itself as it grows up. I’ll return to our Tour frequently in upcoming musings, moving from the strip out into the communities that make Las Vegas a great place to live, work and invest.

Las Vegas Home Sales Rise Due to Foreclosures

Tue, 27 May 2008 14:57:00 -0800

Damn, I'm good. It's hard to buck what everyone else is saying, but with real-time information, I know what I know.

Thank you to my financial buddy, Brandon Foor, for forwarding today's Wall Street Journal article on rising home sales in certain markets. Perhaps the nameless reader who wrote the nasty comment on my blog will believe the WSJ when they say the same thing ... four days after I did.

My researcher can beat up your researcher.

Las Vegas Home Sales are NOT Declining

Fri, 23 May 2008 16:34:00 -0800

Before you ask: No, Las Vegas home sales are not declining as one would think if one read Bloomberg's article this morning. I read it, and here's one who has local statistics. Real estate is local; this morning's story is undoubtedly correct on a national level. But if you're looking to invest in Las Vegas, it really isn't relevant to your goals whether sales are declining or rising in Suquamish, WA or Berryville, AR.

Sales of existing homes in Las Vegas are rising, not declining. In April, LV housing sales rose over the same month in the previous year (year-over-year sales) for the first time since 2005.

Once again, the sky is not falling. We're going through a rough patch, that's for sure. You can't buy a home here and expect to flip it...duh. My worst nightmare (as expressed in March) became a reality to some extent when the national economy did get bad enough that it began to impact our local residential real estate market. But I'm one little voice that continues to point out the obvious--that Las Vegas is a great place to invest in real estate.

A few of my clients who bought homes here in December and January are getting a little nervous. Prices have dropped, and dropped rapidly at a time when sales began to climb rapidly. These clients bought their homes at well under market value. But if you buy a home for 10% less than comparable homes in the same neighborhood, prices have to drop another 10% before your home is worth only market value. You have an equity cushion when you are buying well under market value.

So where have I been the past 10 days? Really, really busy. Sales are still rising rapidly. Prices are declining at a steady rate. Certain neighborhoods appear to be stabilizing, but it's still too early to see whether there is a pattern.

Competition for the best houses is making it very difficult to get your offer approved. My clients who heed my advice--even though they are certain that banks want to dicker on price--usually fare well. Banks don't want to dicker. They don't want to start bidding wars; they want clear, concise offers that will allow them to make quick, sound decisions. And they definitely don't want to deal with incomplete offers submitted by inexperienced agents who leave asset managers wondering what an agent actually meant.

I've had the pleasure of helping quite a few Las Vegas Advisor readers in the past two weeks. Every single LVA reader I have met has been personable, fun-loving and enjoyable to work with. I've had my share of difficult clients, just as any Realtor who's been in the business awhile has. But LVA folks are in a class of their own, and are just a great group of people: magnanimous, farsighted, and appreciative.

In this past week alone, I've shown homes to LVA readers from southern California, Calgary, and the Bay area. I've had the pleasure of telling one LVA reader today that her offer was accepted on a great little rental home in a very desireable community, and closing escrow for another reader on his Las Vegas vacation home. I feel so fortunate that I've been able to meet such genuine, warm LVA subscribers and help some of them boost their real estate portfolios. And although I've known Anthony Curtis for 8 years, I had no idea he was so widely and affectionately regarded by people from all over North America.

I even had an LVA reader agree to teach me to play poker! I'm really excited, and I'm starting to feel like part of the family.

Las Vegas Investment Homes - A Primer

Tue, 13 May 2008 23:54:00 -0800

Everyone wants their piece of Las Vegas. In fact, some people want several pieces; these are generally the ones who want their piece of the pie a la mode...with cash flow on top! There are actually some homes in Las Vegas selling for less than the price to build them, and with rents that will cover the mortgage payments. This is a welcome turnabout from 2 years ago, when everyone was feeding the alligator.

I'm inundated lately with calls from investors looking for a few rental properties for their portfolio; people approaching 50 and looking to buy their retirement home early while prices are so good; buyers looking to buy a vacation home cheap; and homebuyers who've been "waiting for the right time" to buy. When you don't hear from me for several days, it's because all of us here are working late into the night, every night.

Every day I speak with investors new to this market; their questions are always pretty much the same. Today I provided a brief overview to a prospective client from southern California who is looking to buy 3 or 4 rental homes here. I thought many of my readers would find this basic "primer" on investment properties of interest. It is by no means all-encompassing; it is a compilation of responses to questions I'm asked repeatedly.

Las Vegas is currently enjoying a strong rental market. In 2003 and 2004, many apartment buildings were converted to condos, taking many of these units out of the rental market. In 2007 and 2008, many homeowners lost their homes and are now forced to rent, bringing new tenants to the rental market. These factors, along with our resilient economy, contribute to a strong rental market. Our property management office has a difficult time keeping enough inventory on hand to fill the demand right now. Although there are many vacant homes in Las Vegas, the numbers are deceptive; these include all of those REOs that are not available for rent.

There are a number of areas that the majority of investors ask about. I field the highest number of calls regarding rentals for Summerlin and Green Valley. However, investors are buying homes in many other developments as well, where the high foreclosure rate has resulted in some incredible values.

Rental amounts vary by community and the size of the home. You will want to review the comps when you've determined what community you want to purchase in. Rent on a "typical rental" (3-bdrm/2 bath) home averages $1200 to $1700 per month. That's a very wide range; obviously the goal is to find properties with the best cash flow potential.

Following is a brief description of some of the developments throughout the valley:

SOUTHWEST: Southern Highlands and Mountains Edge have a number of foreclosures, and as a result there are some great deals here. The areas hit hardest by foreclosures are the areas that were built out in 2003 to 2007, when Las Vegas dirt was very expensive and buyers simply needed to be able to fog a mirror to qualify for a 100% stated income loan.

Mountains Edge was the #1 community in the nation for new-home sales in 2007. Both of these developments were very popular before the market downturn. The guard-gated golf course community of Rhodes Ranch is located here. These areas are within 15 to 25 minutes of the Strip, unless you head west on I-215 at exactly 5:00 p.m. You'll only make that mistake once. Good deals on REOs can be found for about $85 to $110 per square foot--far, far less than these homes sold for originally.

Closer in, The Lakes is another area popular with investors. You won't find the incredible deals here like you'll find in Mountains Edge or Southern Highlands as there are fewer REOs here.

NORTHWEST/WEST: Summerlin is the most sought-after by investors, homeowners and renters. Prices are higher here, and there are fewer foreclosures. A very good deal here can be found for about $127 per sq. ft. and up. Homes here and in Green Valley have retained their value better than in many other areas. Summerlin is located in the west and somewhat to the north, about a 25-minute drive from the Strip.

There are some great deals in the far northwest; this area has been hit hard by foreclosures. Here you can find great deals on REOs in the $83 to $98 per sq. ft. range. There is a surfeit of very large homes in the northwest; this, too, has contributed to the high foreclosure rate here. The far northwest is a 30- to 40-minute drive from the Strip.

NORTH: Aliante in North Las Vegas is very popular, and there are some very nice REOs here. These homes are about 30 minutes from the Strip. Expect to find REOs in good condition in the $95 to $110 per sq. ft. range. Closer to the Strip is an area of newer homes that have been very hard hit by foreclosures. This area of North Las Vegas is close to Steve Wynn's old Sahdow Creek golf course, and about 15 to 20 minutes from the Strip. Good deals on REOs can be found in the $75 to $90 per square foot range in a gated community.

SOUTHEAST: Green Valley Ranch, Green Valley Anthem and many areas of Henderson are very sought after. Prices and rents are higher here, and good deals are harder to find. Like Summerlin, this area has retained it's value well. Silverado Ranch is about 10 to 15 minutes from the Strip, and there are some good deals to be found here. East of the airport is for the most part an older, more established community; REOs are harder to find here.

EAST: This is not an area where I get many requests from investors. There are some great deals on REOs, and I think less competition from investors results in some real steals in this area. Good deals are generally in the $73 to $90 per square foot range. Sunrise Mountain to the far east is home to a newer development with some standing inventory at fairly good prices. There are many large custom homes at the base of Sunrise Mountain, and it's not easy to get cash flow in this area as home prices can be high while rents are not. There are fewer foreclosures in this area, fewer new developments, and fewer Common Interest Communities and HOAs.

I have left out many wonderful communities where you can find a great deal on an investment home. But it's been another long day, and Mr. Sandman is standing behind me ready to push my nose into this keyboard. As always, feel free to ask if you have specific questions.

Insuring Your Las Vegas Home or Condo

Fri, 09 May 2008 16:25:00 -0800

As my readers know, I often share a reader's question if I think the answer may be useful to other readers. Richard C wrote, "Thanks for the information on escrow. We don't use title companies here; my attorney has always handled my closings. Can you tell me if my title insurance covers my property for physical damage?"

Richard, the simple answer is "NO!". Title insurance is issued by the title (or escrow) company in the form of a "title policy". The title policy insures that you are receiving "marketable title" to your property; in other words, that no claims such as liens exist against your home at the time of issue.

Physical damage to a property is covered through hazard insurance policies. Since it's been about 20 years since I've been a licensed insurance agent, I turned to my "insurance expert buddy", Lorin Bronston of Liberty Mutual. Never one to shy away from using my network to get free answers or advice for my clients, I asked Lorin to explain the basics of homeowner coverage for this out-of-state buyer.

Having moved here from southern California to attend UNLV, Lorin's seen miles of dirt become beautiful, lush developments over the past 20 years. He's a weekend NASCAR official ... I'd pay for the privilege of officiating or announcing at a race! Anyway, Lorin weighs in here for the first time on insurance practices in Nevada.

Many buyers purchasing their first home in Nevada are pleasantly surprised to learn how reasonable homeowners insurance is in our state. While some of this information will seem very basic to homeowners who already own homes in Nevada, we are seeing a large influx of out-of-state buyers who aren’t at all familiar with insurance practices and policies in our state.

For the first time in many years, the price you are going to pay for a home is in line with the value of the home for insurance purposes. In the past, mortgage lenders would require you to carry enough insurance to cover the mortgage balance. In most cases, this was more coverage than was needed to replace or rebuild the home in the event of a total loss. This in turn meant homeowners were paying for higher coverage just to pacify the mortgage companies. Now you’re getting more value for your money.

The type of homeowner insurance you require depends on your situation. If you are purchasing a property for a primary residence, then a standard policy will apply. Standard policies provide adequate dwelling coverage to rebuild or replace the home in the event of a total loss. This type of policy also provides coverage for your personal belongings, liability coverage in the event someone gets hurt, and for loss of use if you need to be “put-up” somewhere because your house is in an unlivable condition.

If you are one of the many buyers purchasing a rental property, you need to cover only the structure itself as the contents belong to your tenants. The structure would be protected in case of damage due to fire, wind, or lightning; the contents would not be covered. Many rental property owners require their tenants to carry a “tenant policy” which provides coverage for their personal belongings while in the property.

Condo coverage differs from detached homes coverage in that condo associations cover the building itself, including the roof. In these cases, you only need to cover your unit from the “studs” in. In other words, you need to provide coverage for the interior of your unit (e.g. appliances, carpets, cabinets and personal property) for damage or theft.

Because Las Vegas is a great place to live or visit, many non-Nevadans are buying vacation homes here. If you’re buying a home that you plan to leave vacant most of the time, you should discuss this with your insurance agent to be sure you have the right coverage in place.

The local media continues to “inform” us on how bad things are in the real estate market. The reality is that home sales are continuing to rise quickly. I know this from the number of requests I get for insurance binders from my clients, mortgage lenders, and title companies. I’m on the frontlines, so to speak, since insurance is a mandatory item to close escrow on a property.

Your Realtor, mortgage agent, title company and insurance agent should work together to help you make the purchase of a property as painless as possible. Generally the insurance premium will be paid through the mortgage process, and your mortgage agent will help you secure coverage, or ask you to contact me to arrange for a binder. If you are a cash buyer, you will likely be ordering your own insurance.

Liberty Mutual does business in all 50 states and many countries, so if I can answer a question for you please feel free to contact me at Lorin.Bronston@LibertyMutual.com.

Lorin is my fellow Board member for Speedway Children's Charities, and I mention this only so I can plug our upcoming golf tournament! If you love golf like you love Las Vegas, I hope you'll come out and join us for some sun and fun as we raise money for children's charities in Las Vegas on June 2.

Las Vegas Foreclosures Most Sought After

Mon, 05 May 2008 18:13:00 -0800

She's baaaaaaaccck...

During the mid-paleozoic era of my teen years, dentistry was not as advanced as it is today. I've been recovering from a second dental surgery in just 3 weeks to correct the last of 3 failed root canals. This last one was much tougher to recover from. It didn't stop me from showing lots of properties, but I haven't felt like doing much beyond taking care of my clients.

It may take me a few days to get caught up, but I've got some interesting information from the recent American Planners Association conference held in Las Vegas last week. I stole the notes from the bus tour from my land use consultant colleague, Lucy Stewart of LAS Consulting, so I'm going to share the highlights shortly! Ms. Stewart is a former Clark County zoning coordinator and is now Consultant-to-the-Stars (or developers, any way); she's promised to provide my readers with information on land use matters and growth trends in Las Vegas now that the APA's national conference is behind her.

Just an interesting note: prospective homebuyers are searching for foreclosed homes in Las Vegas at a higher rate than anywhere else in the nation. I knew that intuitively; the competition is driving up sales figures. People searching through AOL's search engine are looking for foreclosures in Las Vegas at a higher rate than any other city.

Being the most sought-after city in foreclosure searches is partly due to our vibrant economy, the tens of thousands of jobs to be filled in the next 18 months, and the availability of investment properties that will cash flow now. Of course, no one is complaining about the incredible weather, lack of state income tax, or the exciting nightlife.

There's a certain cachet in having a second home in Las Vegas, and now it's within the grasp of more people.

Condo Prices in Las Vegas Rose in March

Sun, 27 Apr 2008 13:58:00 -0800

Sales are up ... no news there. But for all of you who write asking about condos, take note: condo prices are beginning to rise. There are fewer than 5,400 condos on the market, and I think I've had 6,000 inquiries about condos! (Okay, it's substantially less ... but LVA viewers ask about condos A LOT.)

I'm recovering from dental surgery, but still out showing houses today to out-of-state buyers. One couple is looking for their retirement home seven years early. They want to take advantage of the low prices, and will use the home as a second home or rental until they can retire to warm, sunny Las Vegas. The other is escaping Seattle's cold, wet climate.

My Seattle client is looking for a home with a pool, and asked a very typical question: Does a pool add to the resale value of a home? The answer is "Yes, somewhat." More importantly, a pool adds to the desireability, and when the weather begins to turn warm here in April, pools are in big demand throughout August.

A pool can add anywhere from $10,000 to $25,000 to the value; about $16,000 is typical. Most people are looking in a specific price range, and the pool is just a bonus. The home with a pool will likely sell faster.

Many clients say they want a pool, but a house with a yard large enough to accommodate a pool will suffice. If you want a pool, try to find a house with a pool. That pool that may add $16,000 resale value to your home will cost you around $35,000 if you put it in after buying the house.

Prices on Las Vegas Homes May be Nearing the Bottom in Certain Neighborhoods

Tue, 22 Apr 2008 16:30:00 -0800

I’ve noticed a bit of a phenomenon that suggests to me that prices are beginning to stabilize in certain areas. Overall, prices are still dropping while sales are rising. However, we may be reaching the bottom in specific developments.

In December, I sold a nearly-new 3,100 sq. ft. REO to a client in the southwest area for $380,000. This was a great buy, but prices dropped again early this year, and a few more houses came on the market at a lower price. Today, I can’t find this model listed for anywhere close to this price. The most recent sales are $400,000 and above.

I have a client trying to buy a similar home in good condition for $375,000, but the bank countered at $415,000 and is standing firm. We’ve countered the counter at $385,000, and I’m working to educate the listing agent on why the bank should accept our price. We’ll see who wins. Unfortunately for his seller, the agent is taking it personally, as though it’s his home. He’d be doing his seller a favor by sending over the comps, but I can’t seem to get him to understand that.

In January, another client’s offer was accepted on a 3,000 sq. ft. home in very good condition for $249,900. There were similar homes that he could have bought for $245,000 to $255,000. He closed escrow in late March. Now I’m trying to find a home for his friend, but homes similar to the model he bought are selling for at least $260,000. His friend just offered $270,000 for a similar home in good condition, but our offer was rejected for a higher offer!

The only difference in both of these situations appears to be the timing. Same models, same condition, but what was available in December and January—when almost no one was buying—is selling for more today. Too early to tell if this pattern foreshadows a trend. But I’m sensing that prices have stabilized in these 2 communities when you can’t buy the same house for the same price you could 60 days ago. More buyers, more competition…supply and demand at work.

I’ve shown houses and written offers this week for clients from Alaska, Saskatchewan, San Diego and Calgary; but no one from Las Vegas! Investors are scooping up the best deals, as are out-of-state vacation and retirement home buyers. I hate to see so many locals miss these opportunities. By the time they get that it’s time to buy, the houses will cost more.

Nearly 4400 Sq. Ft. Home in Mountains Edge, Las Vegas for $369,900?!

Mon, 21 Apr 2008 18:30:00 -0800

The last few days have been a whirlwind of showings, Offers and Counter Offers. Maybe it’s the incredible weather—that always brings people out to look.

Or maybe it’s opportunities like the 4,392 square foot home in Mountains Edge for $369,900. That’s certainly the reason offers are flying fast and furious from my desktop today. This house was priced at $84 per square foot—unheard of for this community, where the next-best deal I found in the same development will probably sell for $115 per square foot (to another of my clients).

The home sold new in 2006 for $840,000. It just fell out of escrow, and the bank set a very short window for cash-only offers. The previous owner stripped out all of the kitchen and bathroom fixtures, and all kitchen appliances. It needs about $30,000 to $45,000 in rehabbing, including replacing some horrific vinyl in the kitchen and baths.

But some lucky cash buyer (I hope my client!) will get an incredible deal on this today.

My last blog entry, Nevada Escrow Practices, received double the number of views-in-the-first-48-hours than my average. What’s up with that? If you have a topic of interest (and who would have thought escrow was so interesting?), please feel free to share; I’ll address it in my blog if it’s appropriate.

Nevada Escrow Practices

Wed, 16 Apr 2008 13:44:00 -0800

I frequently receive questions from my readers in my personal e-mail, and I make it a point to respond to every question. It just occurred to me that some questions repeatedly pop up, and sometimes the answer is universal enough that it will be of interest to a broader audience. In that spirit, I’m going to devote this column to escrow practices in Nevada.

What is an escrow company, you might ask? Okay, you might not—but some of my Canadian readers have. Apparently escrow companies do not exist in Canada; at least not in Moose Jaw. Escrow involves setting up an account where a neutral third party (the escrow company) holds a buyer’s funds and all pertinent documents until the instructions of both the buyer and the seller are carried out, allowing the transaction to close.

In Nevada the buyer generally selects the escrow (or title) company; however, the current trend is for the banks holding foreclosure properties to select their preferred escrow officer. Since the buyer doesn’t usually know an escrow officer, the buyer’s agent will usually select a title company at the time the offer is written. The earnest money deposit check is then made out to that title company, and held in escrow with other funds, invoices and documents.

Realtors develop close working relationships with their preferred title officer over time, and will deal with someone they know is knowledgeable and accessible. Investors may have escrow officers that they prefer to work with, but more often it is the real estate agent that makes the decision. After all, even though escrow agents are completely neutral, the agent wants to work with an escrow officer that returns their calls quickly, is proactive, and possesses good troubleshooting skills.

Escrow officers can be a great source of information on a range of complex real estate matters. Trish Gladd, LandAmerica Commonwealth Title, gave me this handy publication to share with my readers. It’s an educational publication written for real estate agents, but it’s a very handy reference guide to the escrow process in Nevada, California and Arizona. And since these are all community property states, it’s wise to be familiar with your choices for holding title to property in Nevada. This guide has a helpful chart that details vesting options on pages 22-24.

Escrow practices vary widely in many states. Since many of my readers are from California, Nevada, Canada, and the eastern United States it really would not make sense to compare the practices of so many different areas. But if you are reading this blog, your interest is in Nevada real estate. I trust this publication will help you to understand escrow in Nevada.

Maybe You Should Think Outside the Box on Las Vegas Foreclosures

Mon, 14 Apr 2008 13:01:00 -0800

I received an interesting comment from Judy, a reader, regarding good investment areas in the Las Vegas area. I'll respond more fully later, but I found it fascinating that so many "experts" are telling Judy where to invest and where not to invest. Some savvy investors are now looking to those less-desireable, less competitive areas that she's being told to avoid!

We all know Summerlin and Green Valley are great places to invest. The competition for good deals is also very steep. There are places in this area where you can buy a similar home for tens of thousands of dollars less, yet the rent is close to what you will get on an investment home in Summerlin. Don't get me wrong--I LOVE Summerlin ... location, location, location. But don't overlook areas where the prices are so low that you can more easily find positive cash flow. Price, price, price.

I'm now up to 6 on the number of above-full price offers that clients have had rejected in the past 6 weeks. I showed houses near Shadow Creek Golf Course this past weekend to a client referred by a former client, Gui Z. Gui finally closed on his home in this area in early April. He purchased his home in move-in condition for $249,900. When he made the offer in early January, no one was buying. Even though prices are not going up, it is difficult to find a similar house in this area listed for less than $265,000 now--there are more buyers competing for these homes.

REOs in Summerlin and Green Valley--in fact nearly everywhere--are getting multiple offers. Perhaps it's time to think outside the box, and look to some of those areas that aren't getting as many offers. There are some real gems out there, and the competition is not as stiff.

Las Vegas Homes for $57 Per Square Foot

Fri, 11 Apr 2008 16:51:00 -0800

It’s been an interesting week in Las Vegas real estate. I’ve seen three homes this week listed at $57 per square foot or less, which is incredible. Almost unbelievable, really. So is it too good to be true? It is for all but one of those many buyers who made offers on these homes.

Houses do not sell for $57 per square foot in Las Vegas unless they are seriously trashed; even then it’s highly unusual. One had fire damage, and may actually sell for that price. But another was in nearly move-in condition and listed at $81,500. My office alone wrote three offers on this one. With a steady stream of agents in and out, I’m sure the listing office received dozens of offers. We submitted very clean cash offers of $105,000, but our offers were rejected. I won’t know what it sold for until it closes, but this $81,500 home definitely sold for over $105,000.

I almost hate to see homes listed for this price. They generate lots of leads, but we’re not here to gather leads … we’re here to find great deals for our clients. Someone probably got a good deal on this home … but paid over $105,000 for this $81,000 listing. So dozens of people wasted their time, when they might have gotten their offer accepted on another good deal.

Listing a home that far under a realistic market price isn’t helping anyone, except the listing agent who gets additional leads to follow up on. There are some incredible deals to be had in the $70- to $80-per-square-foot range, and investors are scooping these up. Occasionally something will sell for less than $70 per square foot on the MLS. Keep in mind that you may very well need to offer full price or more on an REO that’s priced too low; however, you’ll still walk away with an incredible deal.

Everyone Wants Their Las Vegas Retirement Home

Wed, 09 Apr 2008 20:27:00 -0800

I’ve had several readers ask questions recently, and I think the answers to these two would be of interest to most of my readers:

Deb recently asked why she read in my blog that sales are increasing, yet read the following in a Yahoo story: “Sales of new homes fell in February for the fourth straight month, pushing activity down to a 13-year low as the steep slump in housing continued." First, real estate is local; the national news does not always reflect what is happening in any given state, city, or neighborhood. More importantly, we specialize in resales; the Yahoo article was about new home sales.

Single family home sales were up approximately 34% in March. People thought I was crazy in November when I said we were nearing the bottom in terms of sales, and that we should see sales start to rise in late February. Okay, I may be crazy — but I’m also smart! I don’t have a crystal ball, just accurate statistics and the nerve to go out on a limb and make a prediction. I’d like to tell our readers when prices will hit a bottom, but for that I’d need a crystal ball and maybe that cool software that helped Denzel Washington go forward in time a bit. Or was it back in time?

As a reminder: while I will find any type of home my client wants, my research covers about 85% of all resales listed on the MLS. Because they are statistically insignificant, we exclude mobile homes, age-restricted homes, condos and rural areas from our research findings. $3m condos can really skew the statistics, as can these other types of single family residential dwellings. So there’s your answer, Deb, and thanks for asking.

John asks: “Robin, you talk about vacation and retirement home sales; have you seen an increase in non-U.S. buyers? With the dollar so low versus other currencies, has anyone focused on the foreign buyer?”

John, there is a major influx of foreign nationals picking up second homes in Las Vegas. Many of these are from Canada, and they are almost exclusively cash buyers. I’m sure some agents are targeting foreign investors; with our Top10, I don’t need to market — they find me!

People are lured to our market by the incredible values right now, so even when their own currencies are bouncing around a bit they are still looking for homes here. People from all over the world love Las Vegas; now that we are seeing these great investment opportunities here, a number of people are looking to buy their retirement home well before they actually retire.

Will the National Economy Affect Las Vegas Housing Prices?

Tue, 08 Apr 2008 16:33:00 -0800

I’ve received a couple of questions regarding financial news lately, and how the national economy will impact the Las Vegas housing market. As we all know, the nation’s economy has been on a roller-coaster ride for weeks, beginning with the Bear Stearns near-collapse.

With the financial experts all over the board, it’s really difficult to say whether this will impact our housing market or even our economy. Las Vegas’ economy is very resilient. Pending sales are still rising; this is a pattern that should continue, barring an apocalyptic event such as our national economy collapsing.

I checked in with my friend, Brandon Foor, who’s a professor of finance and management. Brandon tells me that this is the wildest market he’s ever seen. While pundits are questioning if we have reached a "bottom" in the financial market, Brandon thinks we're far from it.

Brandon tells me that the U.S. got hit first “simply because we have the most credit; therefore, we will be hit the hardest by this global credit crunch.” The "whispers" of the Fed getting involved in bailing out homebuilders is good news for real estate. And while it barely made the news, Brandon was very encouraged by Russia’s decision to start buying back the U.S. dollar. As time goes on, more countries will follow suit, and that’s very healthy for our economy.

The IMF released its annual Global Financial Stability report today, which foreshadows further credit crunch problems and mortgage-related losses of nearly $1 trillion.

My researcher posed an interesting theory a few months back. I have no idea if it’s correct, but it certainly is interesting. Every state has different foreclosure laws; these laws dictate varying timeframes that lenders must adhere to. Las Vegas has been hit very hard by foreclosures, and for awhile it looked like the problem was limited to just a few cities where housing was being touted as “overvalued”. But was Las Vegas really so different than the rest of the country, or the tip of the iceberg?

A lender can foreclose on a house very quickly in Las Vegas, whereas it would take more than a year in New York and some other states. Could it be that we just saw this trend first in Las Vegas, and other areas will just be feeling the pain when we are recovering? If any of our readers have the answer to this, please feel free to comment!

Nothing like a little dental surgery to take all the fun out of one's day. More later, when the pain and numbness wear off!

Las Vegas Home at $100,000 Under Market Value

Mon, 07 Apr 2008 21:22:00 -0800

Gui’s Story: The Final Chapter. Wow, what a twisted tale. For those of you who have been following my blog since its inception, you’ll remember Gui, The Man Who Would Not Heed Advice. This deal really tested my patience and my sense of humour. (I think I’m going to start inserting a “u” for all of my Canadian readers. Don’t worry; the novelty will wear off soon. But they’re such pleasant people and nice to deal with.)

Gui finally closed escrow on his home yesterday. This deal should have closed on February 22, as that nice mortgage agent that Gui found on the Internet promised. Against my advice to go with a local mortgage professional, Gui insisted on saving $250 by using an agent he found online.

Never mind that Gui risked his $3,000 earnest money deposit when that clown of a mortgage agent didn’t know how to read an appraisal. When I finally got my hands on a copy, I convinced the construction elves to sneak in at night and make a few small repairs. Even then, it took that mortgage agent another week to close a simple loan. Gui had a $117,000 cash down payment tied up for 2 weeks; I’m guessing it wasn’t worth the $250 he saved.

But all's well that ends well; his $249,000 home just appraised for $350,000. He not only bought way under market value, but this house will cash flow all day long. We'll be looking for another one shortly.

My staff and I have been really busy, and I’m afraid my blog has been sorely neglected lately. My apologies, dear readers. We really had no idea how popular our Top10 would be, and we’ve experienced some growing pains. I’m hiring a new admin support person and two more agents, and will soon be able to devote more time to keeping you up to speed on the Las Vegas market.

Countrywide Cap Will Help Buyers

Mon, 31 Mar 2008 15:32:00 -0800

I'm working on a blog entry addressing several important questions I've received from readers this week.

But I interrupt my research to share something important that just crossed my desk. Just over an hour ago, Countrywide notified all of its brokers that broker compensation would be capped at 4%, including yield spread premium-plus points and fees charged by the broker to the borrower.

Had lenders not allowed brokers to charge much more in the past, we'd have fewer foreclosures in the present. Many professional mortgage agents work for compensation that averages 2% to 2.5% and would not feel right about charging a client 4%. On the other hand, there are many unscrupulous mortgage brokers that will charge a client as much as they can get away with, up to the limits considered "high cost loans" under federal law.

This is good news for homebuyers. It's likely Countrywide is anticipating sweeping industry reform and is being proactive.

While I am focused on my real estate clients, I maintain my mortgage license. As a mortgage banker who couldn't sleep at night if I'd ever made 4% on a mortgage, I salute Countrywide. We all have the right to make a good living. And 2% to 3% is a damned good living.

Las Vegas Housing Prices Will Bottom Out Soon

Mon, 24 Mar 2008 12:00:00 -0800

Things are looking up in the national housing and financial news this morning. Housing sales are up for February. Of course, readers of this blog have known since early in February that houses are selling in Las Vegas, thanks to my valuable research. However, the news that housing sales are up nationally came as a surprise to most investors.

If you've been reading since this blog's inception, you'll recall that I predicted the February rise back in early January. I first predicted the bottom of the market in terms of sales back in early December, before my blog existed.

I suppose it would be cool if I could provide you with the same cutting-edge research for the national real estate market. But then, this is Vegas, baby! This is the city loved around the world. Why would you buy your vacation or retirement home anywhere else?

More good news: Federal Home Loan Banks were given the go-ahead today to purchase up to $150 billion more in mortgage-backed bonds. All of these signs bode well for the Las Vegas housing market. More mortgages = more demand. More demand will = higher prices in the not-too-distant future.

My clients holding Bear Stearns stock this morning can breathe a little sigh of relief. No, you're not getting your $30 per share back. But $10 is better than $2.52.

Las Vegas Condo Scene

Mon, 24 Mar 2008 01:41:00 -0800

I attended the Las Vegas Highrise & Condo Association meeting on Friday. This is the first time I've attended a meeting of this dynamic group, and I was very impressed. Cliff Korman of Kirkor, the architectural firm on Sullivan Square project, spoke at length on sustainable highrise development. I'm sold. The Viridian Group's Kiki Bandilla serves as the LVHCA's president.

In response to the numerous requests I am getting from clients looking to buy a condo in Las Vegas, I am going to begin spotlighting some of the better condo projects in town. Tomorrow I'm touring Juhl in downtown Las Vegas. I'll share some information as well as my thoughts on this project in my blog. I hear it has 120 floor plans.

For those of you who have been following Gui's Story: I've lost track ... I think we're on Part 5 or 6 of the deal from hell. I've never seen a deal like it. The title company apparently lost the file! Every day I'm all over that escrow officer, assembling the pieces for her again before troubleshooting the next problem. Looks like she's finally going to be able to get this closed on Tuesday, and I can wrap up the final chapter.

There are so many REOs in escrow right now that seller's agents and title companies are way behind. Deals that were taking 10 days are now taking weeks. My clients are ready on their end, but the banks are taking much longer to get everything to the title company. Utilities and HOAs are overburdened with requests for pay-offs on REOs -- another area where delays are occuring more often.

If you're planning to make an offer on an REO, expect the response to take up to a week. I had an offer approved the same day on Thursday, but more often than not the banks are slower to respond as sales continue to rise.

Mortgage Rates Dropped (Or, I Told You So)

Thu, 20 Mar 2008 12:33:00 -0800

If you read my entry on March 4, you received some insight on which direction mortgage rates might take. I shared with you Brandon Foor's comments to me on the matter of refinancing.

Those readers who followed my suggestion to get ready should have already heard from their mortgage agent today. The rate for a conforming 30-year fixed is at 5.5%. If you haven't locked your refi or purchase loan, I suggest you speak with your mortgage agent ASAP.

The Best Time to Buy a Home in Las Vegas

Tue, 18 Mar 2008 13:15:00 -0800

Mountains Edge was the #1 selling master planned community in the nation for 2007, with sales almost double the second-place Phoenix community. Another Las Vegas community, Providence, was #5 in sales. I recently sold an REO at Mountains Edge to a client at an incredible price. No other similar model has sold for less than the price he paid, but he is understandably nervous about the number of REOs that have sold at below-market values since he bought. Mountains Edge homeowners should feel good about the strong sales; this is a great community and its continued desirability bodes well for future values.

I spent two hours reading this morning's housing and financial news, and what did I learn? That there is very little consensus on housing, mortgages, the stock market, and recent moves by the Federal Reserve. At times like this I'm comforted by the fact that real estate is local. Locally, our sales on existing homes are skyrocketing. Homebuyers are picking up great deals, and barring an apocalyptic event such as a national meltdown, Las Vegas homes should begin to rise in value in 2008.

The Fed just reduced its federal funds rate by 3/4 percent to 2.25%. There is a lack of consensus as to whether this and Sunday's moves by the Fed will help or hurt.

Mortgage experts are divided as to whether to lock your mortgage rate immediately. The 10-year rate rose this morning, and one local mortgage banker expects to see midday adjustments due to deteriorating conditions. Another local mortgage banker tells me that it is definitely not time to lock rates. It's unusual to get two opposite opinions from two very experienced mortgage bankers, but "dissension" seems to be the key word for today. It's important to note that mortgage rates are driven by mortgage bonds, and not by the fed funds rate.

Building permits and housing starts are down across the nation. For Las Vegas, 155 building permits were issued in January and 107 in February. Locally, 5,895 permits were pulled in 2007, down from 9,765 in 2006. While this could signal further loss of construction jobs in Las Vegas, with the exception of a few resort projects in trouble, commercial construction should fuel the need for housing in 2009.

There was more ... much more. It's a scary time for the U.S. economy. It can seem overwhelming. But in my corner of the world, it looks like the best time to buy a home, whether it's a vacation home, a rental, a retirement home or your primary residence.

A Runaway Train?

Mon, 17 Mar 2008 17:09:00 -0800

Holy crap. I left town for 4 days, and apparently my assistant neglected to maintain the world in good working order while I was gone. While I was checking on an investment property on the Puget Sound and downing fresh oysters with my Bainbridge Island Winery Siegerrebe, the economy was teetering on edge.

The Las Vegas real estate recovery train has left the station, and the only thing I can see that could make it derail is a huge downturn in the nation's economy. While I'm hoping the Bear Stearns sale achieves the Fed's goal of containment, my thoughts are with my real estate investors this morning who were still holding Bear Stearns' stock.

I've got some client calls to make and homes to show. I'll get back to you, loyal readers, later today. In the meantime, let's hope this thing hasn't turned into a runaway train.

Who's for Renaming Sin City "REO Vegas"?

Tue, 11 Mar 2008 20:10:00 -0800

The Federal Reserve announced today that it will lend Treasuries in exchange for securities backed by mortgage debt. This is a huge step by the Fed, and was coordinated with European and Canadian central banks. The Fed's latest effort to encourage liquidity in the financial markets was behind the run-up in the stock market today.

The Fed is widely expected to drop the federal funds rate next week, but watch mortgage bonds to see what direction mortgage rates may head. For right now, banks don't appear to be overly anxious to increase their lending despite the Fed's $200 billion program.

If I lived anywhere but Las Vegas, I think I'd buy into the doom-and-gloom forecasting that's so prevalent right now. I'm a bit worried about my duplex on the Puget Sound in Suquamish, WA, but much more concerned about my sister's homes in Rocklin and Roseville, CA. While their values have plunged, I have yet to figure out how anyone can afford to buy a home in California in the first place!

Even with our southern Nevada economic indicators looking weak, I'm confident that Las Vegas housing will continue its rebound. Only time will tell us if we'll slow down again as we go into the traditional slow season late in the year. With all the foreign investment dollars pouring into our city, I don't anticipate anything worse than our typical seasonal slowdowns.

In the meantime, pending sales continue to go up, up, up ... and I had another full-price offer rejected this week. My readers might recall my previous statement that banks are getting 96% of their asking price for REOs. They are now averaging 98% of asking price, and nearly 20% of REOs are selling for above asking price. Certainly, the banks have finally lowered the prices to unload some of these homes. But this figure also reflects that buyers are competing for the best deals.

Who said "bottom of the market" first? Oh yeah, that's right ... it was I.

Disappearing Mortgage Loan Officers

Sat, 08 Mar 2008 14:41:00 -0800

Gui's Story, Part IV - How is it that there could be a Part IV to this story when I wrote on February 14 that Gui would be closing on his Las Vegas investment home in 10 days?!

I'm very patient and quite accustomed to dealing with difficult people. It's very, very rare that I've ever had to fire a client. Gui is lucky I have a sense of humor.

Once Gui finally had an offer accepted, he came to view the house again. He brought with him a friend, another very nice gentleman who also lives in San Diego. Although Gui already had a home in escrow, he wanted to accompany us while I showed his friend houses in the same neighborhood.

Naturally, Gui found another home he liked better. That can happen when you are buying an investment home; after all, you're not in love with a home you are buying for your portfolio. So I had to extricate Gui from an escrow, which tends to tick off the seller. Since this occurred during the time period when prices were dropping rapidly, I knew I was protecting my client's interests when we found the same home, in much better condition, for $5,000 less.

I happily reported that Gui's Story was nearing an end on February 14.

By February 17, Gui and his mortgage agent had seemingly been victims of alien abduction. The sales contract gave the mortgage agent permission to provide loan updates to the seller, yet for two weeks I was unable to get a return call from Gui or his mortgage agent. The title company wasn't pressing us to close; no news was good news as far as I was concerned.

When I suddenly got an email from Gui's mortgage agent on March 4 telling me that loan docs were ready, it was like hearing from a ghost from the past. The e-mail came one day after I finally had to inform the seller's agent that my client had disappeared. After all, we were to have closed escrow on February 22.

The loan agent was carrying out my client's wishes by ignoring my calls. Once I got my client to understand that the due diligence period had expired and he was going to lose his earnest money, suddenly the loan docs -- and the mortgage agent -- materialized. But was it too late to salvage the escrow?

Incredibly, the title company had made a computer error, and the seller assumed the delay was the fault of the title agent, whom the seller had selected. We were thus able to get the extension we need. Incredibly, docs were signed yesterday -- long after this deal should have been dead.

Keeping your agent guessing makes it really tough to represent your best interests. Like I said, Gui's lucky I have a sense of humor and was willing to help him revive this. I'm sure that mortgage agent thought he was helping Gui. However, if it weren't for the title company's snafu Gui would have lost his earnest money when he failed to perform on a contract.

Some mortgage agents don't know when they are hurting their client. Nevada mortgage agents don't have to sign a Duties Owed form that formalizes their commitment to represent their client's best interests. While I won't name names, there's an agent out here that will never hear me say a positive word about him when I'm asked for a referral.

I'm not holding my breath waiting for this one to close. And I'm hoping the next time my readers hear about Gui, it will be in a sequel rather than a chapter titled Part V.

FHA Loan Limit Raised

Thu, 06 Mar 2008 15:59:00 -0800

Good news, Readers. FHA loan limits for the Las Vegas area have just been raised to $400,000. FHA loans are for first-time homebuyers, so if you are getting ready to help your kids buy a home, this could help you out. FHA loans require only 3% for a down payment.

Lenders can't do these loans at the higher limit today, but many are gearing up to be able to offer these by the end of the month. The $400,000 cap is for Clark County; click here to check loan limits in your area.

How Will Mortgage Rates Drop Again if the Banks Close?

Tue, 04 Mar 2008 18:16:00 -0800

I had an interesting conversation with my financial buddy, Brandon Foor, that got me thinking. My regular readers will remember that Brandon Foor is a college professor, teaching finance and related topics. Brandon relocated to Las Vegas earlier this year, and is a frequent contributor to my blog.

Media outlets such as Fox Business and CNBC have been portraying information in a manner that might lead one to think that lenders and banks are going to go through a banking crisis similar to the one in 1989. While the details elude me, Brandon reminds me that 584 banks shut their doors in '89 due to complications from debt and poor management decisions – mostly due to banks investing in oil and real estate.

According to Brandon, the FDIC had over 1,500 banks on credit watch in 1989. So how does this compare to today? The FDIC currently has 76 banks on credit watch. Just 76. Only three banks went bankrupt in 2007, compared to 584 in 1989.

The media is speaking about stagflation, hyperinflation and devastating foreclosure numbers — and the average consumer is absolutely panicked. Oil isn’t going down, gas is going to continue to rise and commodities appear to be strengthening.

So why did I find this interesting? Because much of this relates to bank interest rates to a degree. Many of us are wondering why interest rates are not dropping to the degree one might expect, given these and other factors including the recent cuts by the federal reserve. Brandon posits that it's because banks are refinancing thousands of loans right now and they’re trying to recoup losses. (As a reminder, mortgage rates are not tied to the fed funds rate; mortgage rates are affected by the price of mortgage bonds.)

Many of my clients are from out of state, and are pulling equity from their homes to buy a second home or an investment home in Las Vegas, before the prices begin to rise. Should you refinance right now? If I had a crystal ball, I could tell you with certainty. My hunch is that if you wait a month, you might be thanking Brandon for his foresight. But it’s just a hunch.

Rates are still low to begin with, so it might or might not be worth taking a risk. In any case, if you are thinking of refinancing you should have your 1003 completed and be watching for the next drop. When rates dropped to under 5.25% on January 22, it was a one-day window of opportunity; within a month the 30-year-fixed rate had jumped by over one full percent. It may pay to be positioned to move quickly.

Houses at 50% Off, Part II

Fri, 29 Feb 2008 11:00:00 -0800

My apologies, dear House Advantage readers. I've been in Arizona for a mandatory meeting. I was selected to participate in the Nevada Association of Realtors Leadership 2008 program, and our first meetings were in Scottsdale this week. It was very difficult to be away from my business for a week; however, continually enhancing my knowledge and my skills allows me to best serve my clients.

If you've been reading my blog since its inception, you may recall that in my very first blog entry I predicted that sales would begin to rise in late February, signaling the bottom of the market in terms of sales. I was dead-on in my prediction; in fact, pending sales began to skyrocket in the middle of the month. For those of you who have been sitting on the fence waiting for the bottom, it's time to act while you have the advantage of getting a jump on Mr. and Mrs. Typical Homebuyer.

In another sign of the rebounding market, two of my clients have had full-price cash offers on foreclosures rejected this week. It appears we are very close to the bottom of the market in terms of pricing, if we are not already at the bottom.

Jason M. submitted a highest-and-best offer at above full price, and we have yet to hear back from the bank. This generally indicates that the bank is negotiating with a buyer who submitted a better offer.

Michael T. revised his offer to a full-price offer, but too late -- the bank negotiated a counteroffer with another buyer. As I told my client, when a bank is selling houses for 50% off, don't try to nickel-and-dime the bank. Had he offered what he was willing to pay right up front, he'd probably have picked this up at what was still an incredible price. Instead, the other buyer won.

The short-sale-from-hell closed while I was in Scottsdale. This short sale was a four- or five-month process, and the toughest deal I've ever negotiated. A short sale generally takes six to 10 weeks, but I stepped into a mess that had been created long before I arrived.

In the final week, the seller demanded money from the buyer that he was not entitled to. A seller who sells short is not allowed to receive any part of the proceeds. A short sale is generally much less devastating to the seller's credit than a foreclosure, but this is little incentive to sign for a homeowner who no longer cares about repairing his credit.

The seller shared with me that he had no money to move and didn't even own a car to leave in! I went back to the lender to ask if they would have a problem with the buyer paying the seller's moving expenses. This seller had no car and no money to even move out. The bank understood that closing the deal with the seller still living in the home could pose serious problems for the buyer. Fortunately, the bank had no problem with the buyer paying moving expenses, clearing the way for this escrow to close.

So things went smoothly after clearing this last, difficult hurdle, right? Of course not. Things never go smoothly with short sales. One more, last hurdle: The buyer hadn't arranged to wire her funds until the last minute, despite my urgent reminders that the bank would not extend the deadline a second time.

The buyer thought that moving $610,000 could be done in a matter of minutes, despite my efforts to educate her that this was not the case. When she learned her investment broker had three days to provide the funds she'd requested from her account, we were already at the absolute, final deadline.

What could I do but pull off the impossible? When it comes to achieving an important goal, I'm not beyond begging to further my cause. "Pretty please with sugar on top" usually works, and in this case I was able to buy the 72 hours I needed to pull this miracle off.

Foreclosure Tour

Mon, 18 Feb 2008 01:02:00 -0800

I received a question from a reader today that made me chuckle. It was a valid question; and it gave me pause to think…and pausing is not something I’ve had a lot of time for in this market. With the accuracy of our Top 10 picks, we’re working with so many buyers looking for a good deal that I can get caught up in the wheeling-and-dealing. I can forget that some buyers are buying a home to love, not merely to get a good return on investment.

Among those who feel the need to blame investors for our market downturn, 2007’s catch phrase was “people need to remember that houses are homes, not inventory”. I appreciated this reader’s question because it reminded me that I need to slow down occasionally, and keep in mind that some buyers are planning to buy their dream home. Not a unit or an investment vehicle, but a home. In this reader’s case it is likely his last home.

Jerry and his wife plan to retire to Las Vegas soon, and I’ve agreed to help tailor a search for them. Jerry and his wife don’t buy homes for a living. While everyone who asks for my help tells me they are looking for a smoking hot deal, some people really are simply looking for a home to love.

I helped Jerry identify areas that offer the lifestyle he and his wife want to enjoy. He wanted to show me examples of homes that he’d researched before we met, so that I could understand what was important to him. We talked for several minutes about amenities. And then Jerry wanted to know if I offer “foreclosure tours” like he’s seen other companies hosting.

Not every foreclosure is a good deal--but nearly every good deal IS a foreclosure in this market. So I’m taking my clients on foreclosure tours, right?

Wrong. I’m the agent that is writing and submitting offers on those foreclosures while the other company’s tour bus is out driving around a group of people; some serious about buying, some not. By the time the bus arrives back at the broker’s office at 3 p.m., full of excited buyers ready to sit down with the agent to talk about writing an offer, I’ve probably already written and submitted my client’s offer before the bank opened—and that house was gone before anyone on that bus had time to mull it over. I’ve learned that in a competitive market I must excel at getting offers submitted and accepted.

My Top10 identifies the hottest deals in the valley. Once a property is posted on my Top 10, it generally sells within days—as opposed to many months, like most of the homes listed in Las Vegas. So my team and I are working at full speed to help my clients build their investment portfolios. We are working 10 to 14 hours every day, 7 days a week, finding hot deals, showing homes, writing offers, and then closing those deals. We’re not into dog-and-pony shows or gimmicks. Our energies are focused on bringing our clients the best values, not an afternoon of entertainment.

The best deals in this market are beginning to turn over quickly. If you truly want a good deal, you need to be ready to move quickly when opportunity knocks. If opportunity shows up at your door only to learn you’re riding around town in a tour bus, opportunity is probably going to get lost. Likewise if opportunity shows up and you don't have your prequal letter or proof of funds, prerequisites of submitting an offer on an REO.

For Jerry and his wife, my seek-and-secure, take-no-prisoners guerilla tactics can be intimidating. I love what I do, because I derive a great deal of satisfaction from helping people get what they want. Once in awhile I’m reminded that for some people, a great deal isn’t necessarily about future profit. So while I thrive on a market rife with opportunities—a market that allows me to draw on my creativity and trouble-shooting abilities—I often take on a client that needs more of my time and advice because, deep down, I truly believe that everyone benefits from home ownership.

Las Vegas Hold 'Em

Thu, 14 Feb 2008 23:50:00 -0800

Las Vegas Hold ‘Em

This is not a good market for flipping houses—I’ll say it again. It’s a great time to buy a house. It’s a terrible time to sell a house. Buy in a buyer’s market, and sell in a seller’s market.

It’s always hard to tell a client that this is not a good time to sell their house. When Don H. bought this home in December (yes, just 60 short days ago) I counseled him that this was not a market for flipping houses. I took the affirmative nods to mean that he understood this, and wholeheartedly agreed. Perhaps he was just blinded by my brilliance; if that’s the case, he seems to have gotten over it. Because here we are, a mere 60 days later, meeting to look at comps.

Don bought this house for $250,000 less than it sold for the last time it sold. In a normal market, he could probably turn this house the day it closed escrow, and pocket a nice profit. This is not a normal market, however—not yet. But auction fever has taken hold, and Don’s convinced he can buy homes for $1 at one of the many auctions he’s seen advertised. Don, an avid poker player, needs to remember that he’s got to know when to hold.

Fixing up a rehab home is a great way to turn a profit providing you sell when the time is right. It doesn’t matter how inviting that new spa looks—the home will not sell until buyers are buying again. While buyers are now returning to the market, they are gobbling up the best deals.

Don could sell this home now, pay all of the costs of the sale, and make a small profit. But as I tell all of my clients, real estate is a long term investment. In a year or two, Don will be able to cash in and reap bigger rewards for having invested at just the right time. Today I gave him a little lesson in how to play Las Vegas Hold ‘Em.

Fever and Loafing in Las Vegas

Thu, 14 Feb 2008 01:52:00 -0800

The Las Vegas market is heating up quickly, and this is a bad time to be out of touch with our readers. But here I am on Day 5 of my flu-induced writer's block, struggling again to make some sense through the haze. I'm seeing the light at the end of the tunnel. I guess that's a good thing as long as I don't go toward the light...

Every day I sit down at my computer intending to write about what is happening this week in the Las Vegas real estate market. Every day I remember how lousy I feel once I sit at the keyboard and try to think clearly. One more day and perhaps I'll be able to make some sense of the statistics my researcher keeps dropping on my desk. With the market taking off so suddenly, it's taken all my concentration just to stay on top of the flurry of calls and offers.

Pending sales are increasing at a much faster rate than even I expected. In one three-day period last week, pending sales jumped by 10%. Pending sales are at the highest level since February, 2007. As I predicted earlier, the general public will read in March that February sales were higher than January sales. Add to this the fact that foreclosures and price drops appear to be flattening out and we may soon be able to look back at the first half of February as the bottom of the market. I want to see the foreclosure and price trends continue before I am ready to call this a recovery.

Gui's Story, Part III: Gui didn't give me his checkbook, but he’s finally responding quickly to advice. Gui’s offer of $249,900 on a 3,100 sq. ft. home in a gated community in newer North Las Vegas was accepted, and in 10 days Gui will be closing on his first Las Vegas investment property. He’s going to do very well with this investment and I’m getting that warm, fuzzy feeling. Could be the flu, but I don’t think so.

President Bush signed the stimulus package today, bringing perhaps more relief to future homebuyers than to those already in trouble. The stimulus package raises caps on the loan amounts that Fannie Mae and Freddie Mac can buy, and more than doubles the cap on FHA loans. This move is intended to help subprime borrowers refinance, but the new FHA limit of $729,750 should open doors for a lot of new buyers. If you’re planning to help your child buy that first home, this is the time to do it.

Something About This Guy Just Ticks Me Off

Thu, 07 Feb 2008 11:03:00 -0800

Would you sell heroin to elementary school kids to put money in your pocket just because you knew you could benefit financially and get away with it? I wouldn't be surprised to see such financial advice on a national news Web site after the article I saw yesterday.

I was shocked to read an article on CNN.com yesterday suggesting that homeowners should "just walk away" from their mortgages. No, I'm serious ... it was even in the headline: "Homeowners: Can't pay? Just walk away."

Okay, so walking away from your mortgage is a civil matter, not a criminal offense. But am I the only one who thinks it's almost criminal when a national media outlet suggests defaulting on your mortgage because you no longer find it convenient to pay?

What would happen to our economy if lots of borrowers just walked away because their homes were worth $20,000 less than they paid for them? Equity is only real on the day you tap into it -- don't sell in a down market! Sell when you can cover your costs and, hey: no more loss.

I realize this sounds simplistic and that many homeowners have suffered great anguish in losing a home they could no longer pay for, due to unforeseen circumstances. But even though we know it happens, what responsible reporter would recommend that a homeowner walk away from a loan obligation when he or she didn't absolutely have to?! What would happen to your home's value if all your neighbors just turned their homes over to the bank?

Good thing for CNN that I'm one little voice and it doesn't matter if they just lost credibility in my eyes. You know, Mr. Reporter, I've heard there's an Anarchist Cookbook that can be found online [providing instructions on bomb-making, etc.].

Just because you have information doesn't always mean you should put it out there ...

I'm done ranting. Really, I shouldn't have read past the headline on that one. It's my own fault that I'm thoroughly disgusted over a really stupid article. When they make me Queen of the Western Hemisphere & All Points Appurtenant Thereto, I will banish this guy from my kingdom ... or at least restrict him to writing the society page feature stories for an alternative weekly paper in Beatty, Nev.

I saw another interesting article today stating that pending sales in December were down nationwide. This reinforces what I said yesterday about making decisions based on old data. Pending sales are up in February, so December's data is relevant ... um, how?

It's also a great reminder that real estate, like politics, is local. Why should I care what an oceanfront highrise condo in Miami is selling for when I'm looking to buy a single family residence in Las Vegas? If your real estate portfolio is national, or even international, then certain national statistics are going to be relevant to you, when timely.

But I don't think there are any serious investors out there who don't understand that real estate is local. These buyers base decisions on a number of local factors, including the local economy, the job market, rents, and other pertinent data.

Pending sales in December were down across the country? Ho-hum. Next!

Is This the Bottom -- or What?

Wed, 06 Feb 2008 15:13:00 -0800

I predicted in a Las Vegas Review-Journal article that we were nearing the bottom of the market last November. Wow, did that shake some people up. I received emails from a number of my clients stating that they thought I was crazy, and asking how we could be nearing the bottom when prices were still dropping. Yes, prices are still dropping ... but since you really only know that prices are rising after the fact, you've already missed a great opportunity if you wait for statistics that are 30 days old when you see them.

I am more confident than ever that we are at the bottom of the market in terms of sales. For the 11 months ending in October 2007, the number of sales decreased every single month. In November, sales were flat. Based on several factors, I predicted we were nearing the bottom and that, even with an expected holiday slowdown, we would begin to see sales rise early in 2008.

Sales of "resale" homes (single family residences listed on the MLS) in Las Vegas have remained flat for November, December and January. In a market that was devastated by decreasing home sales for nearly a year, flat is good. But it gets better, because pending sales are on the rise. I am going to make another bold prediction: I predict that, barring an apocalyptic event this month (such as mortgage products disappearing), February sales will be higher than January sales.

My clients already know my secret: I don't make guesses based on my feelings. Our research is real-time, not based on another firm's stats released at the end of the month. (My researcher can beat up your researcher.) So while I'm going out on a limb in predicting that February sales will be higher than January sales, I'm merely extrapolating using today's statistics.

It's simple supply-and-demand logic that once demand is rising, prices will follow. Perhaps sales will remain flat for several more months; I predict that they will continue to rise. We are seeing pending sales rising in what are traditionally the worst sales months of the year. In March or April, these sales will begin to show up in the statistics as escrows close.

In other words, the general public will be reading news stories that sales are rising soon. I work hard to keep my viewers on the cutting edge; I don't want our clients and viewers to hear about opportunities once they've passed. When prices begin to rise, I'll let my viewers know. In the meantime, I'm stating it once more: We are at the bottom in terms of sales. How long until the pendulum swings?

January Was a Good Month for Housing

Mon, 04 Feb 2008 12:07:00 -0800

Brandon Foor sent me an interesting item several days ago. While the last day of January saw the stock market end on a high note, up over 170 points for the day, it still does not counter the horrendous month for the stock market. January, 2008 will go down as the worst trading month in the history of the stock market, down over 7% for just the month. According to Brandon, it's important to note, however, how sectors perform. Financials, Consumer Staples, Utilities, Energy, and Technology all suffered big losses for the month.

So what was the best performing sector for the month of January? Housing--up over 5%.

So why was housing the best performing sector? Brandon tells me to look at Toll Brothers or any other high-end builder that has been hammered now for over a year. Plus, with the Fed lowering rates by 1.25 points in less than a week, this allows potential liquidity to hit all markets, including housing. Remember, Wall Street looks at things 6 months in advance, and housing is no different.

Beyond the Swanky Neighborhoods

Mon, 04 Feb 2008 10:08:00 -0800

The Las Vegas real estate market is picking up steam, as I predicted in the fall. Prices are still falling, making this a great buyer's market.

I'm showing quite a few homes in the 89081 zip code to second-home buyers and investors lately. This is not the swanky address that comes to mind when buyers are looking for location. It's a North Las Vegas zip code and home to Steve Wynn's old Shadow Creek Golf Course. What's attracting buyers are the nearly-new REOs selling for $74 to $84 per square foot for 2,700- to 3,200-square-foot homes, some in gated communities.

In one 89081 neighborhood, I'm showing nearly new REOs in the same development where construction workers are putting the finishing touches on new homes! It's a pity for the neighbors, who paid twice as much for their identical home 18 months ago, but the price of REOs -- and the proximity to I-15 and the Strip -- makes this a great neighborhood for a second home.

My client, Gui, is trying to buy a home in this area. We're in another "highest-and-best" situation, where a bank responds to multiple offers by asking buyers the top price they are willing to pay. This happens frequently now on the hottest properties in very good condition; competition is becoming so fierce on these that being the first offer in doesn't mean anything. The bank will sit on offers for the best deals, knowing a dozen more offers will soon follow. It's not unusual for these properties to sell for asking price or above; after all, they are priced well to begin with.

Fortunately, buyers who are willing to do a little rehabbing can find plenty of hot deals where the competition isn't as great. Since these properties are so new, many just need a fresh coat of paint and new carpet.

Of course, Summerlin and Green Valley are still considered the most desireable areas, and will always be a solid investment. The 89081 zip code, and other distressed-but-newer communities, can offer more buyers the opportunity to pick up that Las Vegas vacation home at a price they can afford.

I took a day off yesterday to watch the Super Bowl. I still haven't recovered, and I'm not sure that I will any time soon. No, not the alcohol...I recovered from that quickly. It's the heartbreak. I don't know if I can ever watch football again. I'm a fair weather fan, no doubt--the last time I got excited about football was when Joe Montana led the 49ers to the Super Bowl. (Uh-oh ... could it be that I just like gorgeous quarterbacks?).

It's very rare that I'll watch a full season of football. My 84-year-old mom is the real sports fan in our family and I got my passion for Joe Montana from her, a passion shared by my five sisters and one of my brothers. When Joe left for the Chiefs, I exited the sport. But then Tom Brady came along ...

I learned much more about the strategy this year. But what the hell happened yesterday, I sure don't know. As all my friends know, I'm very competitive. I don't have to understand a game to pick a side and start screaming my support. But I invested a lot of time and passion into Tom Brady this year, and I'm not so sure I want to do that again next year. Not unless George Clooney ends up quarterbacking a team. Any team.

Talk about Fantasy Football ... wait until my female friends see the team I put together.

Don't Make the Same Mistake

Wed, 30 Jan 2008 11:23:00 -0800

The Federal Reserve is widely expected to drop the fed funds rate another half-percent when the FOMC meets today. Every time the expectation is there for the rate to drop, clients decide to wait, incorrectly assuming that they will get a lower interest rate.

Mortgage rates are based on what is happening with mortgage bonds, not on what is happening with the fed funds rate. Sometimes a drop in mortgage interest rates will follow. Sometimes it may snow in Las Vegas the following day. Neither of these occurrences can be directly attributed to the drop in the fed funds rate.

When the FOMC dropped the rate by .75 percent, nine days ago, mortgage rates happened to fall dramatically soon after the announcement. I begged my client, Ted, to let me instruct his lender to lock his loan, saving him nearly a full point. Ted insisted he wanted to wait until the Fed was scheduled to meet again today, confident he would get an even lower rate. While I explained that the fed funds rate doesn't determine mortgage rates, Ted wouldn't budge. The following day, rates had jumped back up by .5 percent and he lost the opportunity to get an incredible rate.

My client Jenny, on the other hand, took my advice. Jenny locked her rate that day, and once she closes escrow she will save money every month for the life of her mortgage. She and her husband are already picking out the new toys they'll buy with the savings!

The only advice I would give is to watch rates daily if you are planning to use a mortgage to purchase your new home. If you are working with a loan officer already, make sure he or she is actively managing your mortgage, so that you will get a call if rates drop or programs change.

Houses at 50% Off!

Tue, 29 Jan 2008 17:08:00 -0800

Mix of good news and bad news for Las Vegas housing this month: Foreclosures and short sales are still rising. Prices slipped quite a bit in the past 30 days, and we are seeing more homes priced at 50% off of their previous sales price.

January home sales were again flat; keep in mind that this is at a time when sales should be taking a nosedive. Flat sales for November, December and January is a good sign for the Las Vegas housing market.

With pending sales rising, I still expect to see us reach a sales "bottom" early this year. It's hard to predict when prices will bottom out, but that will follow as inventory is absorbed.

You may have noticed the Top10 was looking a bit stale last week. My brilliant researcher just got back from vacation, and updated the site today. He's working on the 30 runners-up as well. All future island vacations for Ron are hereby suspended. Apparently updating this from Grand Cayman turned out to be more of a challenge than he expected. Or maybe it was the rum...

Check out the article on the best places to buy homes--Las Vegas is making a lot of these lists lately.

For those of you who were looking forward to Part II of Gui's story, we are getting close. I got a call that the house he wanted fell out of escrow yesterday. Gui understood that he needed to jump on it quickly this time and we're waiting for a response from the bank on his previous offer.

OMG

Thu, 24 Jan 2008 16:26:00 -0800

Oh my gosh ...

I just got the word that I received approval on a short sale for two clients at a price even I can't believe.

You might recall my earlier remarks about the deal from hell. This was the most difficult short sale I've ever accomplished, and possibly the most difficult real estate transaction I've ever closed.

When I last wrote on this topic, the seller was creating problems by interfering and being duplicitous. Once we got the file submitted, this homeowner settled down and allowed the process to flow. A wise decision on his part, since he was his own worst enemy.

Once the file was actually submitted for approval (a 70-day ordeal in itself), the buyer thought she could strong arm everyone. While attempting to browbeat me into unconsciousness may have given her some sort of pleasure, it certainly didn't accomplish anything ... final approval was up to the bank. Calling me three times a day and abusing my daughter and my staff nearly got her fired as a client ... but it didn't do anything to get a dispassionate loss-mitigation officer at the bank to move any more quickly.

This deal is a perfect example of why so many short sales are unsuccessful. Short sales demand perseverance, creativity, strong negotiating skills and good follow-through. Most agents or their clients give up. And when that happens, foreclosure usually follows.

The rewards for the buyer are huge on this deal. As for me, I'm pleased to save the seller from foreclosure. I made new friends and can take pride in a job well done. And that little bottle of Cristal that I'm going to treat myself to will taste oh so good. Cheers.

Proposed Stimulus Plan Includes Higher Loan Limits

Thu, 24 Jan 2008 12:38:00 -0800

The economic stimulus plan expected to reach President Bush for his signature in mid-February could bring some very welcome relief to buyers and prospective buyers of real estate.

The package includes a provision to raise the caps on FHA loans and home loans that Fannie Mae and Freddie Mac can purchase to $725,000. The current caps are $362,000 for FHA and $417,000 for Fannie Mae and Freddie Mac.

In high-cost areas where homes for $362,000 may not exist, it's tough for first-time homebuyers to purchase. FHA loans, which are not as FICO-driven as other loans, can be secured by first-time borrowers with a 3% down payment. Higher limits would allow more buyers to enter the market in areas designated as high-cost.

I'll be watching this to see what happens. I'll detail further implications to the Las Vegas real estate market as information arises.

A Little Help From My Friends...

Wed, 23 Jan 2008 22:06:00 -0800

Thanks to Brandon Foor for this interesting note:

"The Fed’s 75 basis point emergency cut yesterday has lowered local 30-year fixed rates in the Las Vegas area into the 5.5% range. These are some of the lowest rates seen in quite some time. While this is good news for consumers, it’s even better news for banks.

This allows major banks across the country to refinance their own debt and issues. Also, major reinsurers have suffered massive losses across the globe. Earlier today, Berkshire Hathaway bought a 3% stake in Swiss Re. Why does this matter? Because Warren Buffet knows when to invest in financials (Wells Fargo 5 years ago) and reinsurers (Swiss Re today). Hathaway commented this $812 million dollar investment will assume 20% of the reinsurer’s property and casualty business for the next five years. It’s not stated, but Hathaway will expect a 300-500% return on this investment.

Smart investors are bottom fishing in financials. The stock market has been down over 1500 points since January 2. How many times have you heard subprime with this drop? None. It’s a liquidity problem, and the Fed realizes this.

This will not be the last time the Fed cuts rates in the next two months."

Anthony Washington sent me his daily rates today. (Some of my clients know Anthony as the mortgage genius that I refer my clients to. I'm a licensed mortgage officer, but I am so busy with real estate sales that I arrange financing for only a handful of my clients.) Anthony's knowledge in structuring mortgage portfolios has helped many of my clients finance their personal and investment homes. And he's a funny, funny guy...who knows his stuff. I was amazed by the rates...in the low-5s.

I spent an hour calling my friends and family to tell them to look into refinancing today. This is my heads-up to my clients! Whether or not you are ready to take money out to buy your second or investment home, it's a great time to refinance your portfolio!

Mortgage Rates Drop

Wed, 23 Jan 2008 14:18:00 -0800

I just received an excited note from one of my mortgage colleagues stating that mortgage rates are at historic lows. I don't want to quote her rates because I know rates depend on an individual's overall credit profile...but I was amazed.

This is great news if you're looking to buy or refinance into a fixed rate mortgage. If you were planning to use funds from a home equity line of credit to purchase an investment or second home, you can take advantage of the lower prime rate as well.

I'm a licensed mortgage broker, but I am concentrating on my real estate clients this year. If I can answer any questions or provide you with a referral, feel free to contact me.

I'm Back!

Tue, 22 Jan 2008 14:30:00 -0800

I arrived home from Seattle to an interesting email from reader Bob F. The email included two articles that were very bearish on Las Vegas housing, predicting that Las Vegas house prices will fall further. I will be the first to tell you that house prices in Las Vegas will drop further. While we may be reaching the bottom of the market in the number of sales, we have not reached the bottom in price. Where the price bottom lies is a topic for debate.

According to the Case/Shiller index in late July, Las Vegas home prices were predicted to drop another 4%, roughly mirroring the 4% price drop of the previous 12 months. Within weeks, prices began to fall at a more rapid rate. Today, Professor Shiller is predicting that house prices in Las Vegas may drop another 14%, with no relief from falling prices until late 2009. A study conducted by Applied Analysis for southern Nevada home builders suggests that Las Vegas will experience a housing shortage by late 2009; we all know what happens to housing prices if there are more buyers than sellers. These conflicting opinions by two credible sources highlight the only thing we know for sure—that no one knows for sure when our housing prices will begin to climb.

What I do know about Las Vegas is what makes me bullish on future real estate values. Las Vegas has a very resilient economy; we don’t mirror national trends. There are tens of thousands of new jobs coming online that will attract new residents who need places to live. People from all around the globe want to visit and live in Las Vegas. Our prices remain much lower than prices in California, and that will continue to attract people from the sunshine state who are looking for second or investment homes. But I will say once again what I always tell my clients—buy for the short term gain, but hold for the long term gain. I don’t care how low you price your home—there has to be a willing buyer. Right now your average homebuyer is scared to buy.

Savvy buyers are buying houses here for tens of thousands of dollars under appraised value. Even though there is a chance that some or all of the short-term gain will be eroded if prices slip another 14%, the long-term gain is a near-certainty. Houses go up in value. Any reversal of that pattern is always temporary. If you buy a second home for 20% to 25% under today's market value and the price drops 14% before this trend reverses, how much will that really hurt you?

One of my clients just closed on a home that he bought for about $58,000 less than that home is worth today. He's not going to break a sweat if prices drop 14%; he may lose some of the gain he'd made on paper, but his home will still be worth more than he paid for it. And when prices rise, he'll ask me to sell that home and find another great deal for him.

This is not a market for flipping houses. It is a market for buying houses for well under current market value, and then holding those houses. When prices will begin to rise is anyone’s guess. But the statistics indicate that pending sales are beginning to rise. Sales for January and February will be low, as they always are. If you are looking to buy for the long term gain, this is a great time to buy. Once buyers return to the market, the opportunity for the best deals will be gone.

The cuts to the federal funds and discount rates this morning should bring some welcome relief as banks and many homeowners will be able to refinance their debts at lower rates. When I called my friend Brandon Foor to ask if the sky was really falling in his area of expertise, the financial markets, he talked me off the ledge. It will be interesting to see where we stand when the markets close today. I just opened a small E-Trade account in preparation for my first foray into the stock market. I know next to nothing about the stock market; I rely on the experts like Brandon. So when I read that the sky is falling, I get a little nervous about my area of expertise. My pulse has returned to normal, and I’m off to close another deal.

And for those who inquired—my daughter is doing well. Thank you for asking.

Bernanke's Remarks

Thu, 17 Jan 2008 19:47:00 -0800

Brandon Foor, a professor friend whose article graces our real estate page, has kindly offered to fill in for me for a few days while I’m helping my daughter recuperate.

Today, Federal Reserve Chairman Ben Bernanke spoke before Congress endorsing a quickly implemented stimulus package. Bernanke stated this could provide some major assistance against an economic downturn.

I thought we were already in a recession? If you listen to Fox Business or CNBC, a majority of analysts have already stated we’re in a recession.

“Housing itself,” as Bernanke stated, “will probably subtract more than one percentage point from GDP growth in the fourth quarter and may continue to be a drag on growth for a good part of this year as well.”

Earlier, Merrill Lynch reported their 4^th quarter earnings reflecting an abysmal subprime write-off loss of over $11.5 billion. In an interview with Maria Bartiromo on CNBC, John Thain, CEO of Merrill Lynch was asked about subprime and write-down. His response:

“...there is not much downside to our write-downs based on values.”

What Thain is trying to explain is the values of what they own have been lowed to the point it’s viewed as an interest-bearing investment. Their plan is not to write down any more in subprime, and liquidity is strong at Merrill.

Remember, when downside reaches it’s height, many people think recession is near. Here’s what leaders of financial institutions are saying to you: the bottom of subprime is in through our write-downs. The increasing liquidity of foreign investments is a very positive sign as well. So they are getting liquidity and are investing it in areas beaten to a pulp ... like real estate in battered markets.

What these comments say to me is: Have you bought your Las Vegas investment house yet?

I closed on my new Summerlin home two weeks ago.

It's C-O-L-D in Seattle!

Wed, 16 Jan 2008 00:32:00 -0800

That title wasn't just an attention-grabber. It really IS cold here in the Seattle area. My daughter had major surgery yesterday, and I flew up to help her recuperate. I'll return by Saturday.

In the meantime, my Blackberry, fax machine and laptop are getting quite a workout. All this new technology has made life so simple that I can now work all night reviewing the three offers I received on that approved Summerlin short sale today!

Selling Short

Sat, 12 Jan 2008 14:19:00 -0800

I despise this guy. With every fiber of my being, I despise this guy. And since I love people, and I’m actually very professional, you have to know I must really dislike this guy to say that! But because I’m a nice girl, I’m going to change the names to protect the stupid.

I’ve invested countless hours over the past two months to try to help my client, Sandy H., buy a house in a “short sale.” (FYI, I also despise short sales. But I have a good track record, so clients ask me to help them and I haven’t learned to say “Oh, hell no!” yet.) At best, short sales are difficult, low-paying, hair-pulling, pain-in-the-butt deals. When you have a buyer or seller either interfering, being deceptive, or trying to control a process they don’t understand, short sales can keep you awake at night and make you regret not going to beauty college. And this seller whom I despise, Will, has committed two out of three of these offenses, if not all three.

By way of brief explanation, a short sale is completed when a lender agrees to accept less than is owed on a property in order to allow a seller to sell a home with insufficient equity to cover the loan and costs of the sale. Generally, the bank takes a loss of tens of thousands of dollars. The seller, who’s likely to otherwise lose his or her home, walks away with no money, and may owe income taxes on what the IRS views as “forgiven” debt. The biggest winner is usually the buyer, if she hasn’t thrown up her hands in despair and walked away by the time the deal is finally approved by the lender.

Murphy was obviously a short sales expert when he crafted his law.

So why do I despise Will? Well, first of all, I just said that to blow off steam. Must be my involvement in non-profits, but I love people and will go out of my way to help even a stranger. Will has interfered so many times that the loss mitigation officer, sitting at a desk heaped with short sales requests, is ready to turn this one down just to get this guy off his back. My client, Sandy, will get this house for $400,000 under market value if this is approved--but equally important, the seller won't have a foreclosure on his record.

Will has run two buyers off with his arrogant and duplicitous behavior. He has no clue what he’s talking about (which, come to think of it, is very scary, considering he tells me he’s a licensed mortgage agent), yet insists on trying to negotiate a complex deal with no experience. He will not take advice, and he may shoot himself in the foot and lose his home. What’s that saying—the man who represents himself has a fool for a client?

Just a few short years ago, there were very few requests for short sales in Las Vegas —or pretty much anywhere else, for that matter. People made their mortgage payments, and it was all good. Unless you’ve been lost at sea for the past year, you know that, for various reasons, many homebuyers have found themselves in deep financial trouble or unable to make the higher payments when their ARM adjusted. The resulting rise in defaults has escalated the number of short sale requests from sellers who find that they can’t sell their homes for enough to cover the mortgage and closing costs; see here.

It’s all I can do not to scream when I see real estate agents with no short sales experience drag buyers or sellers through this process. Often, an agent will list a home at a price they hope the bank will accept, without even checking with the bank’s loss mitigation officer first! “The bank has to approve it—otherwise the sellers will lose their home,” the agent insists. Yes, and the banker also doubles as the tooth fairy when he’s not wearing his Santa suit and giving houses away. I hope this agent enrolled in beauty college after the bank foreclosed on her poor client’s home.

If you’re looking at a home being offered as a short sale, don’t waste valuable time chasing this house, only to find the price was someone’s wishful thinking. Affirm with the seller or his agent that the price has been approved by the bank before writing an offer. Or better yet, have your experienced Realtor affirm that, and help you avoid other pitfalls as well. Why not consider one of the thousands of foreclosed properties on the market? After all, many are nearly new, are in great condition, and banks are anxious to get these off their books.

Countrywide Sale

Fri, 11 Jan 2008 15:09:00 -0800

Bank of America agreed today to buy Countrywide, the country's largest mortgage company. This could affect short sale approvals as well as mortgage applications already under consideration. If you are trying to purchase a short sale and the lender is Countrywide, you can probably expect it to get even more difficult. But those Countrywide mortgage holders trying to arrange for a loan work-out or loan modification might soon find Bank of America more receptive to helping them avoid a foreclosure. Bank of America is picking Countrywide up at a fire sale price, and it's likely that they will want to help some of the defaulting borrowers avoid foreclosure.

I just received bank approval of a Summerlin short sale today! If you are a regular viewer of our Top 10, you know that great deals in Summerlin are hard to find. We never list short sales on our Top 10 unless the price has been approved (more on this subject tomorrow). This house was just approved at $238,000, and some lucky buyer is going to get a steal on a home in Summerlin.

Location, Location, Location and Price, Price, Price...cool. I knew I was good, but I even surprised myself on this one!

Gui Zhong's Story, Part 1

Fri, 11 Jan 2008 01:08:00 -0800

Just before Christmas, I helped my client, Gui Zhong, find a great deal on a rental home. Built in 2006, this North Las Vegas home was large and fairly new—typical of an REO (real estate owned, or repo) near Steve Wynn’s old Shadow Creek Golf Course, in the 89081 zip code. Priced to sell at $84 per square foot, I advised Gui that this property would sell for more than full price, and quickly. Everyone wants a great deal, and I invest my heart and soul into getting my clients a great deal; but come on, when a house is priced so that it will immediately receive multiple offers, don’t waste your time trying to save a few thousand dollars when you stand to pick up tens of thousands of dollars in equity!

We wrote the offer and submitted it within an hour of viewing the home. Gui’s cash offer was $4,900 under asking price, despite my advice. A competing, full-price offer was accepted over his offer.

Undaunted, Gui let me pick another house for him, as he'd gone home to LA by this time. He sat on the offer I’d drafted overnight, despite the fact that this house was priced as well as the first one I’d shown him. When he finally faxed me back the signed offer the next day, another offer had already been accepted.

On Day 3 of our quest to find a home for Gui, another home in the same area became available at an even more incredible price. At $74 per square foot, I knew this REO home was underpriced at $230,000 and would sell immediately--and for well above full price. I advised Gui to offer $250,000 cash, with no concessions from the seller. Gui did so, and I kicked into my aggressive mode. It’s ugly; you don’t want to be around when I’m negotiating a deal for a client. I’m big on win-win transactions; we win, we win…yeah!

Day and night I stalked that poor listing agent, knowing that time was not on our side. Some agents will hold off submitting your offer to the bank’s asset manager for days if you let them, buying time in the hope that they’ll get competing offers. My client had offered $20,000 over asking price on my advice, but so had two others. When the seller asked for our highest and best offer, Gui froze. Understandably, he was upset that a home had been offered for $230,000, yet he’d offered $250,000 and they weren’t selling it to him. But we can’t take this stuff personally.

I advised Gui to increase his offer to $260,000; he was upset with the seller and insisted on offering $255,000, and not a penny more. The principle of the thing, I guess—$5,000 more was less insulting to him than $10,000 more. The competing offer was accepted, and we missed this deal by only a few hundred dollars. The home last sold for well over $400,000, and Gui told me afterward that he’d been prepared to go to $260,000. Yet he lost out, because he made the same mistake many buyers make. He was sure that the bank expected a lowball offer and was prepared to dicker. Highest-and-best means exactly that. If the bank requests your highest and best offer on a repo, know that you have one shot at this point and make it your best —even if your best is to stand firm and reiterate your offer.

For Gui, there’s been a painful learning curve. If he has the intestinal fortitude to compete for the best deals, we’ll begin the search again when he returns from vacation next week. I generally don’t give someone three chances to ignore my advice and blow an opportunity, but I love this guy. He’s not afraid to make a decision based on photos, he has a great sense of humor, and he’s teaching me more about his culture. If he’d just give me his checkbook and let me pick out a house for him, I’d have already made money for him. After all my effort, the least he can do is give me his Macy’s card for a day…

Post-Holiday Cheer

Wed, 09 Jan 2008 17:36:00 -0800

Happy post-holidays, LVA readers. I hope that each of you received something as cool as my new Garmin Street Pilot 550 GPS system. I know each of my clients who bought properties in December received a great gift – LOTS of equity in their new investment home! I think I worked harder than Santa to fill their stockings, and seeing their little faces light up with glee was much more rewarding than milk-and-cookies after free-falling down a soot-lined chimney.

Judging by the flood of calls this week, the number of folks toying with the idea of buying is on the rise, as I predicted. Despite the traditional winter slowdown, the average homebuyers—who’ve been putting off buying a home for months—are starting to look. When Mr. and Mrs. Average Homebuyer perceive we’ve reached the bottom, they’ll start to buy. Savvy individuals, of course, don’t wait to see what the average homebuyer is doing. They get in front and lead the way, reaping the biggest rewards.

I can’t imagine a more perfect buyer’s market—and I thought 2004 was a sight to behold! The number of pending sales are beginning to rise, yet prices are still dropping; in other words, desperate sellers don’t yet realize that they can perhaps hold out for a better offer as buyers enter the market again.

Pending sales began to rise a bit in November, then flattened out again as the holidays drew close. November sales (closed, not pending) were flat, but take that as a good sign. For a year the number of sales dropped every month, then in November the slide halted. December sales closely paralleled November sales. This is historically the time when sales really begin to taper off--yet the downward sales spiral had flattened out!

By the end of February, pending sales should again begin to rise. A rise in pending sales in February or March generally means a rise in sales in March or April. And when the pendulum swings back and inventory is absorbed, prices begin to rise and … well, don’t wait that long to find you’ve missed the opportunity to get out ahead of the crowd on this one.

Welcome aboard!

Fri, 04 Jan 2008 17:05:00 -0800

Welcome to my inaugural post on my new--and first-ever--blog! I intend to keep you in the know, up to speed, and on your game when it comes to Las Vegas real estate investing. For all my big plans, however, what I'm feeling as I write my first entry is sheer terror. I can hand-pick an investment home that will add tens of thousands of dollars to your net worth tomorrow...but can I write a simple blog entry?

I read one blog on a fairly regular basis; it's a mortgage blog that keeps me on top of trends so I can better service my real estate clients. Sure, I've heard of blogs--who hasn't? I enthusiastically agreed to write a real estate blog as a service to Las Vegas Advisor readers...but what was I thinking? Does knowing your stuff qualify a real estate advisor to be a writer? You'll be the judge. Sitting down to write my first entry, I suddenly felt panic. No problem...I'll just research some blogs quickly and see what that's all about.

Ten minutes later, my confidence restored, I've decided I can write a blog as well as any teary-eyed 14-year-old girl who just heard that her boyfriend made out with that new girl. No doubt there are some phenomenal blogs out there (you'll see a few on this very site), but I'd rather focus my energies on what I do best: identifying great real estate values!

So, committed to bringing you valuable free advice to keep you abreast of opportunities in Las Vegas, I'm taking my stab at blogging, confident that my knowledge of building net worth through real estate investing will make reading it worth your time. What will you get from reading my blog regularly? You'll get valuable information on Las Vegas real estate that will help you take advantage of this incredible buyer's market.

This market won't last forever; indeed, I think we're nearing the bottom of it right now. And when the pendulum swings, as it always does, I'll continue to bring you information on where the best opportunities lie. If you're new to Las Vegas real estate investing, I suggest that you bone up on what's happening in the market right now. This primer should help you understand why Las Vegas is rife with red-hot REO opportunities today.

I'll post new material every chance I get, and I'll try to field questions and add more bells and whistles in the near future. I'll even introduce you to a few other experts in the fields of real estate and finance through virtual guest appearances on my blog, and we'll pick their brains for nuggets of sage advice...for free!

What did I teach you today about Las Vegas real estate? Absolutely nothing. But wow, I'm excited about tomorrow's entry!