Glenn Plantone of Nevada New Builds LLC in Las Vegas recently completed a bulk sale of 15 new construction homes to a private, out of state investor. The transaction, which closed on November 1st, 2001, represents one of the largest single transactions of single family homes in the Las Vegas valley this year. The transaction was an all cash deal that closed in 7 days.
The bulk package consisted exclusively of new construction foreclosures located in the Providence neighborhood of northwest Las Vegas. Most homes were 4 bedroom and averaged around 2300 square feet. The entire purchase closed for under $2M. The buyer plans on holding the homes long term and generating cash flow through renting, lease optioning and (possibly) offering owner carry programs.
This most recent deal is typical of the types of packages that Plantone and his team construct for their clients. Team Plantone specializes in acquiring distressed properties through short sales, builder closeouts, REO packages, and Trustees’ sales. The team then renovates the properties, clears any liens on the property, and adds great extras like ceiling fans, landscaping, upgraded fixtures and appliances. Plantone and his team then place long term tenants in the properties to create a turn-key investment. Because the properties have been acquired so far below market value, they can be resold to Plantone’s investor clients with CAP rates of 10% or more after all expenses.
Plantone and his team of seven professionals tailor their services to investors looking to purchase income property in Las Vegas. Team Plantone represents buyers that purchase more homes in Las Vegas than any other group. This includes teams that employ as many as 30 people or more. “We focus on our clients needs first,” Glenn said, “I have been a real estate investor for over 10 years, so I understand what investors are looking for...strong cash flow, good appreciation potential and security. We’ve been seeing a lot of money lately moving from the stock market into real estate. Buyers realize that we are seeing historically low prices and interest rates and that now is the time to buy.”
Many of Team Plantone’s clients are from Canada and China as the rest of the world rushes to capitalize on this buying opportunity. Like many other analysts, Glenn agrees that it may take Las Vegas another 5-7 years to recover from the current housing crisis and that investors will probably not realize significant appreciation until that happens. He still feels, however, that now is an excellent time to buy. “Cash flow is the key factor to examine when determining whether or not an investment is solid. We are currently seeing cash flow rates that haven’t existed in Las Vegas in five decades.”
If you would like more information on the Las Vegas real estate market or bulk investment packages, please contact Glenn directly.
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