Real Estate Investing in Las Vegas Returns to Historic Trend

Real estate investing in Las Vegas is back on the historic trend lines according to the latest market data to be released by title companies. This is both good and bad news.

What this means is that real estate prices for single family homes in Las Vegas, which shot up disproportionately for three years beginning in 2004 and peaking in 2007, have now returned to the trend line that they always “should” have followed.

This may be bad news for some homeowners who purchased during the 2004-2007 price boom and were hoping for a speedy market recovery to recoup their recent losses. Instead, what will most likely occur, is a slow, but steady rise of real estate prices here in the Las Vegas valley that mirrors the average national appreciation rate of approximately 5.4% annually over the past five decades. At that rate, many of these distressed Las Vegas homeowners may have to wait 10 or more years to see their properties return to their purchase price.

However, this return to the average trend lines may be good news for new investors flooding to the area to try their hand at real estate investing in Las Vegas. Now that the average trend line has been reached, it seems unlikely that property prices will drop much further. And, because rents have not declined nearly as much as property prices, rental units are cash flowing better than ever in the Las Vegas valley. This creates a perfect investment opportunity where investors can receive monthly positive cash flow on their properties and expect steady, yearly appreciation.

If you are interested in learning more about real estate investing in Las Vegas, please contact Glenn Plantone.

Glenn Plantone
Wynn Realty Group
Office: (702) 656-3264
Mobile: (702) 769-9872
Email: gsplantone@gmail.com

www.viewpointequity.com

New Ways for Las Vegas Mortgage Brokers to Earn Commissions

The credit crunch and economic downturn have affected everyone here in Las Vegas, but perhaps none so much as those looking for financing for a home and those who make their living locating that financing. If you are a Las Vegas based mortgage broker or other finance professional and have had to turn clients away because they cannot meet tightened credit guidelines...we have a solution, for you and for your clients.

We specialize in purchasing quality, newer homes in great neighborhoods. We acquire these properties for well below current market value through bank-owned REO foreclosures, short sales, and trustees’ foreclosure auctions. We fully renovate these homes so they are turn-key and move-in ready. We then offer them to buyers who, like your clients, want to purchase a home but are not quite ready to qualify for traditional funding at this time. We offer lease option contracts of anywhere from 1 to 5 years based on your recommendation of how long it will take your buyer to improve their credit and become eligible for traditional financing.

This is not a theoretical scenario. I am the #4 ranked buyers agent in all of Las Vegas and my team and I have sold over 100 homes and completed over 25 of these lease option placements this year alone!

We have truly been able to create a win-win situation for everyone involved. Your client is able to immediately take advantage of historically low home prices by locking in a purchase price that is 50-60% below values of just a few years ago. By putting down a small deposit of between $3500 and $5000 at the beginning of the lease term (100% of which is credited towards the purchase of the home at the end of the lease period) and receiving a rent credit of between $100 and $300 per month, your client is able to quickly and easily save their down payment while living in their own home.

The best part is that you, as a Las Vegas mortgage professional referring a client into this program, are able to make money three times throughout the transaction. First, we will pay a referral fee of between $1000 and $2000 for every lease option tenant we place into a home. The exact referral amount is based on the amount of the lease option deposit fee we collect. Second, once we place a lease option tenant into a home, we immediately turn around and sell the home to a buy and hold investor as a turn-key investment property. You will be able to work with this investor to obtain financing on the property. (Usually this is via a 25% down investor loan.) Lastly, at the end of the lease term, you are able to put your client into a conventional loan in order to purchase the property.

Don’t turn clients and commissions away any longer! Start earning money on every potential lead. For more information on this wonderful opportunity, please contact Glenn Plantone at Wynn Realty:

Glenn Plantone
Wynn Realty Group
Office: (702) 656-3264
Mobile: (702) 769-9872
Email: gsplantone@gmail.com

www.viewpointequity.com

Bank of America to Resume Foreclosures After Final Quarter Hiatus

Bank of America, the nation’s largest mortgage service company since acquiring Countrywide in 2008, announced that they will resume foreclosing on homes Wednesday, December 1st. This comes after the banking giant self-imposed a foreclosure moratorium in the wake of the “robo-signing” scandal that received wide spread media attention in 2009. While this news is undoubtedly another blow to beleaguered homeowners, it comes none too soon for investors looking to purchase post foreclosure properties. In the final quarter of 2010, investors have found slim pickings at Trustees’ Sale auctions across the country.

Fannie Mae and Freddie Mac also made an announcement on November 24th that they will resume the auction sale of homes that have loans serviced by Bank of America, Chase, PNC Financial and others.

The last several years have seen several cessations and moratoriums on foreclosure proceedings that have caused the pool of available investment properties to dry up until the next wave of foreclosures begins. Many agents have struggled during these times to find suitable properties for their clients. My unique approach to securing homes for my investor clients has insured that we at Wynn Realty Group have actually thrived during these past several years of market flux.

We focus on purchasing properties wherever the best deals are available at the time. This includes Trustees’ Sale acquisitions, short sales, traditional listings and REOs. Once we purchase a property, we perform the necessary rehab and find a lease option tenant. We sell the properties to our investor clients as turn-key, hands off investment opportunities. The properties are already rented to a lease option tenant with CAP rates of between 10-14%. This provides investors with a low risk, low maintenance property with high appreciation potential and built in equity. We also offer partnership opportunities for investors looking to finance our rehabs for an even larger annualized rate of return.

As an example, we recently purchased a 4 bedroom home, 1800+ square feet, only three years old for $84,100 at the Trustees’ Sale. We resold the property only 17 days from the purchase date for $110,000. This particular home did not need any rehab and my investor partner made an amazing 288% annualized return on his money.

A second deal was a 1454 square foot town home with 2 car attached garage (also built in 2007) that we purchased for $70,100. After a quick clean up, we placed a long term renter in the property and resold it 40 days from acquisition date for $88,000. We partnered with an investor on this deal who saw a $6000 return on his money in a little over a month.

We can fully document all of the 24 flips that we have completed just this year alone! If you are interested in purchasing turn-key, high quality investment properties with renter in place; or if you like the idea of partnering on our rehab projects, please contact me to talk about real estate opportunities here in Las Vegas.

Wynn Realty Group and Glenn Plantone - Go With the Flow!

Glenn Plantone
Wynn Realty Group
Office: (702) 656-3264
Mobile: (702) 769-9872
Email: gsplantone@gmail.com

www.viewpointequity.com

Glenn Plantone is the 4th Busiest Buyers’ Agent in All of Clark County, Nevada!

Based on official escrow data for Clark County, Glenn Plantone is the 4th Busiest Buyers’ Agent in all of Clark County, Nevada for the third quarter of 2010. In the third quarter, Glenn closed on 17 properties for his buyers. (This doesn’t count the additional properties that Glenn listed and sold as a seller’s agent.)

Glenn Plantone specializes in identifying excellent investment opportunities for his investor clients in the greater Las Vegas area. Recent data has shown that over 50% of all current buyers in the Las Vegas market are investors, and this is the niche that Glenn has chosen to focus on. He currently represents buyers from China, Canada, and all across the United States and specializes in helping these out-of-town investors purchase turn-key real estate investments in Las Vegas with CAP rates upwards of 12%.

Glenn has recently moved to Wynn Realty Group in order to spearhead a new branch office completely devoted to understanding investors and catering to their needs. Glenn and his team buy and sell houses, condos, townhomes, and high rise condo units. They do short sale flips and purchase properties for investors at the Trustees’ Sale. They work with owner carried financing and negotiate short sale listings with an in-house negotiator. They also have a property management division dedicated to handling investors needs and making it easy for investors from all over the world to own cash-flowing property in Las Vegas.

Of course, Glenn is always welcoming new clients, so if you are looking to invest in this exceptional Las Vegas market, please contact Glenn for more information. However, Glenn is also currently seeking dedicated, motivated agents for his expanding office. Glenn currently has more leads than he can handle and he needs to bring a few good Las Vegas real estate agents onto the team to help close deals. If you are such an agent and would like to increase your income substantially, come speak to Glenn about working with the company that follows the flow of the Las Vegas real estate market.

Wynn Realty Group and Glenn Plantone - Go With the Flow!

Glenn Plantone
Wynn Realty Group
Office: (702) 656-3264
Mobile: (702) 769-9872
Email: gsplantone@gmail.com

www.viewpointequity.com

MGM 3rd Quarter 2010

The third quarter of 2010 has officially ended and it’s time to take stock of recent developments at the MGM Signature Hotel/Condo project. I have been following this particular property for over two years and have published a quarterly update throughout that time. This quarter is particularly noteworthy as it has brought the opportunity for fractional ownership in the MGM Signature towers for the first time in the history of the development. (More on that later in this article.)

Beginning with the sales data: In my second quarter, 2010 MGM update, published on my blog August 17th, 2010, I stated, “I am ready to go on record at this point and say that we have seen the bottom of this market as far as pricing on MGM Signature units is concerned...demand has accelerated so steadily for these units that I believe demand is now outpacing supply.” This prediction has certainly come true. In the third quarter, we watched sales of one bedroom units increase slightly from 24 units in the second quarter to 26 units in the third quarter...but the significant change came in the average price per unit sold. In the second quarter of 2010, the average one bedroom unit at the MGM Signature sold for $218,000. During the third quarter, this price went up substantially to $227,000. Another telling statistic is the decline in the number of one bedroom units selling under $200,000 (6 units in the third quarter, down from 9 in the second.) As this article goes to press, there are no listings for one bedrooms under $200,000.

Although the average price for a studio unit in the third quarter remained steady at $155,000, we saw yet another sharp increase in sales volume. 53 studio units (sometimes referred to as junior suites) closed in the third quarter, up from 41 units in the second quarter, which was already up substantially from 36 units in the first quarter of 2010.

There are currently zero bank-owned REO units of either type available for sale at the Signature towers. There are 5 short sales available for one bedrooms and 24 short sale studios listed. The remaining 11 one bedroom and 33 studio listings are regular re-sales.

As I stated at the end of the second quarter, demand is now exceeding supply at the MGM Signature. If you are at all interested in investing in this property, now is a great time to do it. I track all four possible methods of acquiring a unit (short sales, REOs, re-sale, and units purchased directly from the trustees’ sale) in order to get my investors the best possible entry price into the property. As a result, I currently have the lowest priced strip-side studio unit available in the entire property. It is priced at $144,000. (Contact me if you are interested.)

Another option we have just put in place is for those of my clients who have expressed an interest in owning a portion of an MGM unit that they can use for vacations, etc. We have just put together a fractional ownership plan that works perfectly for those who want to invest a lot less money and still control a four week block of time at the MGM Signature. We are currently offering fractional options on two different units. The fractional shares sell for $14,995 and include all maintenance fees and HOA dues for the first year. Each share is entitled to four, separate, full weeks of use of a strip-side unit with balcony. Investors who do not wish to use the unit for the entire share can place the unit in the rental pool and earn revenues on the room for any un-used nights.

If you are interested in purchasing a unit, or a fractional share of a unit, at the MGM Signature Hotel/Condo, please contact me for more details. I have specialized in this property for years and would love to help you acquire a piece of the Strip.

Glenn Plantone
(702) 769-9872
gsplantone@gmail.com

Come Visit Las Vegas to Buy Real Estate and Stay at the MGM Signature for Free!

Those of you who have followed my articles over the last several years, know that I successfully “called” the bottom of the Las Vegas real estate market in May of 2009, months before the news sources announced the same thing. (See my blog entry of May 27th, 2009: http://vegasforeclosures.blogspot.com/2009/05/las-vegas-real-estate-market-bottom-is.html .) It has been a year and a half since then, and prices have remained steady. We are in a pricing plateau of sorts. As a result, it continues to be a great time to purchase investment or vacation properties below market prices and below builder replacement costs here in the Las Vegas valley.

A strategy that my team has been using quite successfully over the last year, involves purchasing short sale properties at below market value rates, performing light rehab on the properties and then placing lease option tenants in the homes. Using this strategy, we are currently generating 12-14% returns (CAP rates) for our investor clients on single family homes in the Northwest. The investors purchase turn key properties, fully rehabbed, with lease option tenants already in place and begin earning 12-14% on their money right away. And the best part is that these are phenomenal returns will only improve over time as rents increase and home prices appreciate.

If you have been waiting for the right time to jump back into the real estate investment market in Las Vegas...now is the time! If you live outside the Las Vegas valley and are interested in purchasing an investment or vacation property, we would like to extend to you a very special offer. We have recently purchased three beautiful units at the MGM Signature Hotel Condos and are inviting all of our clients to come stay with us for two complimentary days at the MGM while you explore potential investment real estate in Las Vegas. Please call Glenn for more details on coming for a visit.

REOs Depleted at MGM Signature Condos - Glenn Plantone Once Again Offers Lowest Priced Strip Studio at $144K

I have been following the MGM Signature Hotel Condos for the past three years and have watched as many of the units that originally sold during the height of the real estate boom for hundreds of thousands of dollars moved back to the bank as foreclosures. These units later re-entered the market as bargain-priced REOs. However, as the real estate market has continued to rebound in Las Vegas, interest in the MGM Signature property has risen steadily. This increase in demand has caused prices to begin to creep up and the number of available REO properties to shrink. In my article of April 27th, 2010 entitled “Short Sales Continue to Rise at MGM Signature Towers,” I predicted that, by the end of 2010, we would see a complete shift away from REO foreclosures at the MGM Signature. I predicted that the number of available REO units would continue to drop throughout the year and be replaced by short sales and other forms of private party selling. I also anticipated that the occupancy rates for the rental pool at the MGM Signature would rise this year as compared to 2008 and 2009.

These predictions have come true. As of this writing, the number of available REO units within the MGM Signature complex has dropped to ZERO. Also, year-to-date, the management company for the Towers has been able to average an 86% occupancy rate for the property with an average room rate of $121 per night for strip side studio units.

Because I specialize in the MGM Signature Towers, I have been able to list and sell several of these units to investors who are using them as vacation properties and/or cash flowing them in the rental pool. I currently have a 10th floor unit available with a beautiful strip view. It is in the third building with the pool just below. (125 East Harmon Ave.) At $144,000, this unit is the lowest priced strip side studio available in the entire complex. If you are interested, this purchase must be a cash offer and you need to act quickly. This unit will not remain available for long.

Glenn Plantone
702-769-9872
gsplantone@gmail.com

For Investors Seeking a Secure 24% Return

Many of you, who have followed my articles and blog posts over the last several years, know that I advocate having the qualities of a chameleon if you are going to succeed in real estate investing. What I mean by this is; that you need to be able to constantly change and adapt to new buying and selling environments, in order to take advantage of the particular set of circumstances in which you find yourself. Every market presents opportunities. Great opportunities. Lucrative opportunities. We, as real estate investors, must simply know how to adapt ourselves and our skill sets in order to take advantage of these opportunities.

For the last several months, I have been purchasing short sales, trustee sales, and REO properties here in Las Vegas and successfully reselling them quickly and profitably to investors.

Here’s my formula:

1. I buy the homes for approximately $10,000 - $25,000 under real, current market value. I am able to do this because I pay cash for the homes and am willing to write hundreds of offers in order to acquire those few “gem” properties.
2. I specialize in the northwest part of Las Vegas and I only purchase homes that were built in 2004 or later. This strategy enables me to be intimately familiar with each neighborhood and be confident in my acquisitions.
3. We have two construction crews who are constantly working and are able to quickly rehab the homes for an average of $1,000 to $5,000.
4. We maintain an active list of lease option tenants who are looking for nice properties in the northwest area. Once we finish rehabbing a property, we are able to rent the homes very quickly to these lease option tenants.
5. Lease option tenants pay higher than market rents, put down large non-refundable lease option deposits, handle their own maintenance issues, and do not require property managment fees. As a result, they are the perfect tenants for investors.
6. Once this process is complete and the lease option tenants are in place, we quickly sell the property to one of my cash investors who are looking for a great return on a turn key, hands off investment. Our investors love the fact that we are currently providing them with properties that average a 12-14% capitalization rate (cap rate.)

I have perfected all the pieces of this process to the point that we are generally in and out of each property in less than 30 days. We are currently averaging a 25 day turn around over the course of our first 20 deals this year.

If you are interested in becoming a funder for one of these flips, your money will generally be tied up for approximately 30 days and will have a guaranteed return of 24% annualized. You will always be in first position with a deed of trust against the property.

I am currently seeking funders with a minimum of $50,000 to invest who are looking for a safe, secured, guaranteed return of at least 24% annualized.

If you are interested, please contact me for more information:
Glenn Plantone
Wynn Realty Group
Office: (702) 656-3264
Mobile: (702) 769-9872
Email: gsplantone@gmail.com

www.viewpointequity.com

Glenn Plantone to Join Wynn Realty Group

We are proud to announce that Glenn Plantone, noted Las Vegas real estate expert and full-time investor and real estate professional has joined the growing team at Wynn Realty Group.

Glenn is a leader in locating and capitalizing on profitable real estate investment opportunities in the Las Vegas area and beyond. He is also the foremost, recognized expert on the MGM Signature Hotel and Condos high rise Strip development. Glenn has been quoted repeatedly by such notable news sources as CNN Money, the Las Vegas Sun Business Journal, the Las Vegas Review Journal, realtor.com and many others. He is also the founder of the Real Estate Insider Club and has welcomed many high-demand keynote speakers to the club including Las Vegas Mayor Oscar Goodman and Than Merrill of A&E’s hit TV show “Flip This House.”

Wynn Realty Group is founded upon hard work and integrity driven service to its clients. Opening an office in October at the “Village at Centennial Springs”, Wynn Realty is poised to continue to make its mark on the Las Vegas real estate market. In addition to welcoming Glenn to the team, Wynn Realty Group is seeking a limited number of real estate professionals who understand that the only way to work is with a 100% commission brokerage. You know who you are. If you are interested in finding out more about this opportunity, please contact Wynn Realty at 702-953-4999 for a private conversation about your future.

If you would like to follow Glenn and his insights on the Las Vegas real estate market, visit his blog at www.vegasforeclosures.blogspot.com

MGM Signature Towers is Offering Fractional Ownership Opportunities For the First Time!

MGM Signature Towers is Offering Fractional Ownership Opportunities For the First Time!

Many of my regular readers know that I have been covering the MGM Signature Towers property for a few years now. I have watched as the project was built and the new units sold for between $480K and over $1 million. I covered the decline of unit values as the bubble burst and prices plummeted to 30% of their original highs. Now, I am excited to offer a first-ever opportunity for the MGM Signature...fractional ownership.

Many of my clients have expressed to me their desire to enjoy the privileges of MGM Signature ownership but have not wanted to pay the $150,000 + price tag (in cash) necessary to acquire a strip-side, balcony unit at today’s new, low prices. In response to this demand, Greg Darroch and I have developed a fractional ownership plan that allows participants to control 30 days (one full month) of ownership in an MGM Signature, strip-side, balcony unit for only $17,995. During the 30 days of owner time, owners can stay at the property themselves, have friends and family come to visit, use the property to entertain business associates, or keep the unit in the rental program and earn nightly income.

We currently have available two side-by-side, connecting studio (junior suite) units, each with a strip side view and a balcony. There are a total of 24 fractional ownership shares available, as we will have 12 ownership shares per unit. Those who are interested can also purchase one share of each unit. Those who choose to do this, will be allowed to secure the same time blocks on both units so that they can use them together when they visit. Each studio unit sleeps 4 people, so having two connecting units provides a sleeping capacity of 8.

We are currently taking reservations for shares of these units. If you are interested, please contact Glenn Plantone for more information.

Glenn Plantone
Wynn Realty Group
Office: (702) 656-3264
Mobile: (702) 769-9872
Email: gsplantone@gmail.com

www.viewpointequity.com

MGM Signature Towers Second Quarter Update

I have fielded several requests recently from those who follow my regular blog and email updates on the MGM Signature Towers, for sales information from the second quarter of 2010. Those numbers have arrived and I’d like to share them with you.

Sales volume showed a marked increase in the second quarter of 2010 (April 1st - June 30th, 2010.) 41 studios sold in the second quarter, as opposed to 36 in the first quarter of this year. But, more impressively, one-bedroom sales doubled quarter over quarter with 24 one-bedrooms closing in the second quarter of 2010 as opposed to 12 in the first.

While median sales prices for both studios and one-bedrooms crept down marginally in the second quarter, I noticed that demand began to increase dramatically for these properties and, towards the end of the quarter, I was having to fight against a lot of competition to secure bargain priced units for my clients.

The average price for the 41 studio units that sold this quarter was $155,000. This is slightly lower than first quarter’s average price of $160,000. The high selling price for all studios was a strip side penthouse unit with a balcony (125-3015) that closed for $210,000. The lowest priced studio this quarter was a low floor strip side unit with no balcony that sold for $100,000 (145-403). The highest priced sale of units that have no balcony was unit 135-3403 that sold for $189,888 and the highest mountain side unit to sell was unit 145-1406 that sold for $160,000.

For those of you looking to invest or purchase at the MGM Signature, it is important to note that Strip side units usually sell for a $20K - $30K premium over mountain side units, and units with a balcony typically sell for higher prices than those without a balcony by about the same margin. Conversely, studio units with a balcony do experience a higher occupancy rate in the rental pool than those without.

For the 24 one-bedroom units that sold in the second quarter of 2010, the average price was $218,000, this is down $11,000 from the first quarter average of $229,000. The top selling one-bedroom unit was a strip side, penthouse unit (135-3401...if you are interested, I have a similar penthouse unit available right now) and the lowest seller was a low floor, mountain side, interior unit with a terrible view (145-208.) All one-bedroom units have balconies.

As I look at the current inventory of MGM Signature properties, there are 17 one-bedrooms listed. Of these, there are zero REO (foreclosure) listings, 4 short sales, and 13 regular listings. There are 58 studios listed for sale: 1 REO, 23 short sales and 34 regular listings.

I am ready to go on record at this point and say that we have seen the bottom of this market as far as pricing on MGM Signature units is concerned. I do believe that there will be a lot more foreclosures in these buildings, but the demand has accelerated so steadily for these units that I believe demand is now outpacing supply. In the final month of this quarter, we began to see prices creeping upward a bit. I am also noticing as I negotiate for my clients in the “front lines” of these transactions, that it is getting harder and harder for me to secure good units at great prices for my investors because the competition is becoming quite fierce.

As always, I will continue to keep a close watch on sales trends here at the MGM Signature Towers in Las Vegas. Please follow my blog or subscribe to my regular newsletters if you would like to continue to learn more about this project. If you have any questions about the MGM Signature Towers, or are interested in looking at units for investment or personal use, please don’t hesitate to contact me. I have lots of good information on occupancy numbers, proformas, rental info and the like and will be happy to help you.

Glenn Plantone
702-769-9872
gsplantone@gmail.com

CNN Money Labels Glenn Plantone One of the New Vulture Investors? Oh Well, I’ve Been Called Worse

They say any publicity is good publicity, and I couldn’t agree more. So when CNNMoney.com featured me in an article titled “Vulture Investors: They're Back - And Making a Bundle” I was...well... pleased. If by vulture, they are implying that I am swooping in to find life and profit in properties that are regarded by many as dead and worthless, then I can live with that analogy. And they certainly are right about investors in this market being able to make a bundle. I believe we are currently living in the best real estate buying climate since the Great Depression...perhaps better.

So, it is with great pride, that I re-post excerpts from the CNNMoney.com article:

NEW YORK (CNNMoney.com) -- These are the glory days of the residential real estate investor. Low prices, rock-bottom interest rates and stable rental markets have created huge buying opportunities.

Although conditions are very favorable, investors have to be adaptable because the market is evolving rapidly... Foreclosure auctions are no longer a fertile hunting ground... Tanya Marchiol of Team Investments, which has operations in about 10 states but focuses mostly on the Phoenix market, says, “"Amateurs have come in and run up the prices. In 2009 I bought 76 properties at foreclosure auctions, at an average of about 60 cents on the market dollar. This year, I've bought four."

Glenn Plantone faces a similar situation in Las Vegas. A veteran real estate broker and investor, he has switched from buying mostly foreclosures and repossessions to short sales almost exclusively. That's because the inventory of distressed properties available in Vegas is way down, to about a two-week supply.

"The banks make better profits with short sales, so they're not foreclosing," Plantone said. "They've switched staff to processing short sales and they've gotten faster at processing them."
He tries to purchase properties for at least 10% less than what he considers to be true market value, then he does some light rehabilitation and sells them to some of the 3,000 buyers he works with.

Since prices have fallen about 70% in some Vegas communities and rents have only declined by about 20%, it's possible for his investors, who are cash buyers, to make money from the first month the homes are rented.

"We're getting cash flow (net return on investment) of 12% to 14%," he said.
He doesn't completely ignore potential profits from home price appreciation because he believes the town is bouncing around the bottom. (Homes already sell for below what it would cost to build new homes.) He does not, however, emphasize that aspect of the investment.
It's the income from rentals that's paramount right now.

The beauty of cash flow, of course, is that even if the prices decline another 10% or 20%, the investors should be able to live with that.

"I tell them to plan on holding for five years," he said. "With cash flow, there's no need to worry about price drops."

To receive more information please contact me.

Glenn Plantone
gsplantone@gmail.com
(702) 769-9872

What is Transactional Funding and Why Do We Need It In Order to Flip Properties in Las Vegas?

I have written several articles lately announcing the return of profitable flipping conditions in Las Vegas, NV. Las Vegas has led the nation in foreclosures since the real estate bubble burst approximately three years ago, and we have seen our home prices plummet to $0.30 on the dollar or less. Simultaneously, this wave of foreclosures has created a large demand for rental properties as former home owners become home renters. This has resulted in rents that have remained relatively stable as the prices of homes have steadily dropped. This unique set of circumstances has generated positive cash flow scenarios for investor buyers that haven’t existed in Las Vegas in decades. It has also created a niche for those looking to flip properties once again.

Most of the foreclosures that are being sold at auction, through bank owned REO listings, and short sales need only minor, cosmetic repairs to bring them up to rental standards. Investors willing to purchase these properties, can put $5K-$10K into them and then turn around and sell them to investors for a reasonable profit. These investors are still able to purchase the property at a price that makes it possible for the property to generate strong positive cash flow at prevailing market rents.

The catch in this process is that, in order to acquire a property at the Trustees’ Auction or through short sales, the prospective buyer has to come with cash. Many flippers (such as myself) have the resources and ability to flip multiple properties simultaneously, but lack the personal cash reserves to tie up more than one or two properties at a time. This is where transactional funders enter the picture. My transactional funders loan money to me on a very short term basis in order to purchase properties at the auction, through the banks, or with short sales that have been approved and are under market value. These funds are always protected by a first position lien on the property. Once the properties have been successfully rehabbed and held for the minimum time period specified by the bank (usually 30 days), they are resold to my investor clients and my transactional funders are repaid in full. The transactional funders usually see their money tied up for no more than 35 days and they are paid 3% on their investment. This equates to 36%-156% annualized returns on the average transaction. Some sell in as little as a week others in a little over a month. Returns can be adjusted if properties take longer than 35 days to close to ensure that the funder is making a minimum 24% return on his money (annualized and guaranteed).

If you are interested in providing transactional funding for upcoming projects, or to receive more information on the over one dozen flips that I have successfully completed within the last few months, please contact me:

Glenn Plantone
gsplantone@gmail.com
(702) 769-9872

Flipping Short Sales In Las Vegas Provides a Win-Win-Win Situation in 2010

I have come across a very exciting niche in the Las Vegas Real estate market that is creating a win-win-win scenario for me, my short term funding investors, and the “end-user” investor buying our properties. Over the last several months, we have completed 10 deals and have had terrific (and fully documented) results on all of them.

So what am I doing?

First a little background: Over the last several years, Las Vegas has received a lot of press as the “Foreclosure Capital of the Nation.” This is true…foreclosures in the Las Vegas valley in 2008 and 2009 reached record-breaking highs, and led the nation. However, what most people don’t realize is that the inventory of bank owned REO properties in Las Vegas has PLUMMETED over the last six months. Last year, 75% of all home sales in Las Vegas were foreclosures. Now, the current bank owned inventory of available homes (not pending or contingent) represents only about 10% of the total homes for sale through the MLS in Las Vegas. Additionally, over the last year, the number of homes sold in Las Vegas has drastically outweighed the number of homes returning to the banks via foreclosures. This shortage of inventory of “bargain” priced REOs has created a huge demand for the REOs that do enter the market. Many investors, including all-cash buyers, are finding themselves shut out or locked in bidding wars when trying to purchase an investment property.

The solution: I have found a solution to this predicament that provides my investor clients with a turn-key, extremely profitable property and generates a large, safe return for my transactional funding investors as well.

Here’s how it works: I continually search for and tie up short sales that have substantial equity. This process takes anywhere from two to eight months to secure bank approval. Once the short sale is approved, I use short-term transactional funding to purchase the property from the bank. My funding investors are guaranteed either a 24% annualized return on their money (if they invest for a single deal…in and out in less than 30 days typically) or 18% annualized return for long term investors who want to park their money to be used for multiple deals over a several month or year period.

After the property has been purchased, I bring in a team to quickly rehab the home and get it into turn-key condition. We then place one of our pre-screened lease-option tenants in the property. This lease-option tenant buyer puts down a nice size, non-refundable deposit on the home and then pays higher than market rent. This saves our investor property management as well as maintenance fees and provides a built-in buyer for the property down the road.

Here is an example from one of the properties that we recently flipped: It took me ten months to negotiate this particular short sale with the bank. Ultimately the home was purchased by my transactional funder and I for $109,000 (it sold new for $254,000 three years ago.) It is a 2100 square foot, four bedroom home in a newer area of Las Vegas. We were able to put a lease option tenant in place immediately who pays $1495 rent per month and put $4500 down (non refundable lease option payment.) As soon as we closed on the purchase of the home at the $109K price, we re-sold it to an investor buyer looking for a great hands off investment with a great return. The sales price to the investor was $129,000. The "cap rate" return of cash flow for the new owner is 13%. If he sells it to the lease option tenant after the 2 year option period, he will net a 27% return on his investment.

As for my transactional funder, because we had the home sold and closed within 7 days, the funder earned $2400 on his investment (he put in $80,000 and I put in the rest of the $109,000 purchase price). This $2400 in one week equated to a 156% annualized return on his money. As soon as we got out of this deal he was able to move immediately into another very similar transaction that ended up cashing out with nearly identical numbers.

In all cases, the transactional funding money is fully protected by a deed on the property that is being purchased.

If you are interested in getting these kinds of safe, guaranteed returns for transactional funding or are interested purchasing these kind of turn-key investment properties (with cap rates of 10%+ in many cases), or if you know an investor looking for these kinds of returns, please contact me for more information. I do pay referrals for those bringing investors.

Glenn Plantone
gsplantone@gmail.com
Office: 702.656.3264
Cell: 702.769.9872

Transactional Funding Proves Profitable for Investors

The recent credit crunch and rapid decline in home prices in Las Vegas has created an environment that is once again ripe for successfully flipping properties. I have been acquiring properties at the Trustee Sale in Las Vegas, performing very light rehab, and then immediately flipping them for a modest profit. In many cases, the people buying the houses are investors looking for a turn key property that they can begin renting right away for strong positive cash flow.

I have now completed this process with almost a dozen properties and it has been a win-win-win situation for all parties involved...the third party being the transactional funder. My transactional investors are receiving returns of over 100% annualized on their money!

Here is a recent example:

We purchased a townhome at 9122 Dancing Snow for $62,500. After closing costs, repairs, and costs to sell, we were into the property for $68,651. I was able to sell the property to a happy investor for $74,995. This resulted in a profit from the flip of $6,344. The funder, who had invested $65,000, was repaid in full plus their funding costs of $1,900 in 10 days! This resulted in an annualized return of 108% on the investor’s money!

If you would like to review all the details of this transaction
CLICK HERE.

Here is another example:

We acquired a 3 bedroom/2 bath townhome at 6868 Skypointe for $66,500. The property sold in 7 days for $79,995. This resulted in a profit on the ip of $9,156. The investor put $68,000 into the property and was paid $1,360 for their funding. This represented an annualized return of 104%.

In case you are wondering what kind of investment this made for the investor who purchased the property...once purchased for $79,995, the unit was rented for $975!

If you would like to review all the details of this transaction
CLICK HERE.


If you are interested in transactional funding, please contact Glenn for
more information.

(702) 769-9872
gsplantone@gmail.com