3 Steps of Certainty in an Uncertain Real Estate Market

The age old saying is that the only two things you can be sure of in life are death and taxes.  Perhaps in Las Vegas we could add, “the house always wins.”  Well if death, taxes, and the casino edge are 10s on the list of Las Vegas certainties, the real estate market right now is somewhere between a one and a two.  AB284 has slowed foreclosure inventory to a trickle, new construction is hot but running out of available inventory, and the economic recovery remains tenuous at best.  These factors make it extremely difficult to predict whether the market will go up or down in the short to mid-term.  So what is the savvy real estate investor to do?

I recommend three solid steps for success in these uncertain times:

1. Refinance

Mortgage interest rates are at all time historic lows.  Remember two years ago when everyone said that interest rates couldn’t possibly get any lower?  They did. With home prices up 30% in only one year in the Las Vegas valley, now is the perfect time to refinance your investment properties (or your residence for that matter) and free up cash for more investment acquisitions.  Interest rates are unlikely to get any better (really) and it is very uncertain whether home prices will continue to rise.  There really is no downside to refinancing.  If home prices fall or interest rates rise, you will be thankful that you locked in your refinance now.  On the other hand, if rates fall further or prices skyrocket over the next two years, you can always refinance again.

2. List Your Short Sale

The mortgage debt forgiveness act has been extended for one more year (through the end of 2013) and most experts agree that it is very unlikely that it will be extended again.  This act forgives homeowners of the tax obligations associated with debt forgiven through the short sale of their primary residence.  Without the provisions of this act, homeowners who sell their property through a short sale and receive a waiver of deficiency are obligated to pay Federal income tax on the amount of that waiver as if it were regular income.  This tax requirement makes it very difficult for the average homeowner, upside down on their property, to be able to afford a short sale.  If you are considering short selling your home, or if you are still upside down on your property but hoping that gains in the market will erase that deficiency, you should strongly consider short selling your home now rather than waiting.

3. Consider Cash Flow

When market conditions are uncertain, as they are presently, investors should rely heavily on cash flow data when making decisions to purchase an investment property. If you purchase a property with strong cash flow, you can withstand market fluctuations.  We specialize in locating and helping our clients find investment properties with strong cash flow and appreciation potential, even in strong sellers’ markets like we are currently experiencing in Las Vegas.  If you are interested in learning more about investing in Las Vegas real estate or if you would like a referral for your refinance to a company we have used with great success, please contact me directly.

Prices Continue to Rise in Las Vegas as Foreclosure Freeze Drags On

For several years, Las Vegas made headlines nationwide as the foreclosure capital of the United States.  Now the big news coming out of Las Vegas is the complete lack of foreclosures.  In September of 2012 less than 300 homes were foreclosed upon in the Las Vegas valley.  There are only 375 foreclosures listed for sale on the MLS as of November 15, 2012.  There are 876 short sales listed.  A year ago today, there were approximately 12,000 short sales listed on the MLS!  Great news for homeowners right?  Not really.

At the moment, real estate in Las Vegas is very clearly divided into two groups.  In group #1 are the few foreclosures that are available, short sales, new construction, and certain other properties that can be priced, for one reason or another, at current market value.  These properties are selling...and selling quickly.  United Press recently quoted real estate agent Keith Lynam who said that the problem in Las Vegas is, "There is just zero inventory."  But why?

The answer to this question lies in group #2.  Group #2 is composed of all the homes in Las Vegas that are still “under water.”  With all of the talk of a recovery in the Las Vegas real estate market, it is interesting to note that according to the Las Vegas Sun, 70% of Las Vegas homeowners are still underwater.  In fact, 36% owe more than double what their homes are worth.  These are homes that cannot be sold.  But, because the median sale price of homes in the Las Vegas area has risen almost 20% in the last year, many of these homeowners are holding on...hoping that this small recovery will blossom into a return to the prices of 2007.  Unfortunately, this is extremely unlikely.

During the real estate boom in Las Vegas in the early 2000’s, prices soared to highs well above the steady 3-4% annual growth that real estate typically generates.  As far as prices have fallen since then, surveys show that they’ve really only just about returned to the trend line.  Prices aren’t supposed to be any higher than they are right now.  This point is illustrated by the return of new construction to the Las Vegas housing market.  For several years, new housing starts were virtually non-existent in Las Vegas because foreclosures were selling for less than their replacement value...that is, less than what it would cost to build the same house from scratch.  As prices have risen, new home starts have rebounded because it is now possible for home builders to compete with foreclosures.

The combination of these factors have created a very odd dichotomy in the Las Vegas real estate market.  We have homeowners that are months (or even years) behind in payments but are not being foreclosed upon because of the halt in foreclosures brought on by AB 284 and other factors.  We have homeowners who are buried in debt holding out a desperate hope that the market will once again soar and their homes will no longer be upside down.  We have new homes being built and sold to fill the vacuum of demand created by the fact that 70% of potential Las Vegas real estate is essentially frozen.   It is an interesting paralysis.  

In the midst of this mess, Las Vegas remains very attractive as an investment destination.  For those investors who can secure affordable properties in Las Vegas, these properties are generating great returns and very strong cash flow.  If you are interested in purchasing Las Vegas investment real estate, contact me.  There are ways to beat the crowd using non-traditional buying methods and we specialize in those methods.

Las Vegas Real Estate - Four Years Later

On the eve of this election day 2012, I thought it fitting to look back on the last four years of activity in the Las Vegas Real Estate market.  Romney fears that we are in worse shape and heading down the wrong path.  In the interest of full disclosure, I should note that I agree with him.  Obama says that his incentives are working.  I would argue that the rise in prices we have observed in the Las Vegas real estate market are a “false recovery” that has more to do with artificially low inventory brought on by a decrease in foreclosures than a strengthening of the local or national economy.

2008 marked the first year where it was safe to start dipping a toe back into the Las Vegas real estate market.  Prices careened downward for 18 straight months from Jan 2007 through late 2008 sending the average home price in Las Vegas plummeting from over $300K to around $120K.  As the free fall began to slow, I started advising my investor clients that Las Vegas was becoming the perfect location for property investors.  Over the next four years, Las Vegas consistently led the nation in foreclosures with over 100,000 foreclosures being completed in those 48 months.

What is interesting to note is what has happened in Las Vegas in the last year.  Although over 150,000 homeowners are still upside down on their mortgagees, foreclosure proceedings have ground to almost a halt.  In 2008, foreclosures accounted for 75% of all sales.  This year (2012) they account for only 15%.  Part of this is due to the difficulty banks are facing carrying out the foreclosure process in the wake of AB284, but some of it is also due to an increased willingness on the part of the banks to negotiate short sales or loan modifications rather than foreclosing.  Unfortunately, this slow down in foreclosures has caused home prices to artificially inflate in the Las Vegas valley with median prices up almost 20% just this year.

Another interesting statistic shows that even as foreclosures ease, the majority of homes are still being purchased by investors.  80% of all closings in Las Vegas this year were sales to investors and 60% were cash deals.  This graphically illustrates how difficult it is currently for homeowners to obtain financing to purchase a home.  I have personally observed this trend within my own business model.  Over the last four years, I have sold over 450 homes, more than 300 were foreclosures, over 100 were short sales, and 150 were flips.  I have also brokered two bulk deals; one a 9 home package at near $1M and the other a 15 home package at around $5M.  Of these, only about 10% were sold to owner occupied buyers.  The rest were sold to investors, and approximately 85% were cash deals.

As this election plays out, it will be interesting to see how things change in Las Vegas over the next four years.  One thing, however, is certain: the opportunities right now, at election day 2012, are tremendous for real estate investors in Las Vegas and even better for those owner occupants that can buy in this market.  Things are a little rockier for the 150,000 homeowners who are still hoping for relief from their upside down mortgages.  Only time will tell if the next president can help these folks and whether or not a full recovery is in Las Vegas’ immediate future.

An Open Letter to Appraisers In the Las Vegas Real Estate Market

For the last three years, my team and I have purchased, renovated and resold over 100 properties in the Northwest Las Vegas area. Currently, our greatest challenge lies not in construction headaches, buying competition or even the scarcity of financing but in obtaining fair appraisals for our renovated homes that are re-entering the market.

Our business model consists of purchasing homes at a discount (REOs, trustees’ sales, and short sales), fixing them up, and selling them at today's retail value. Our properties sell at the top of the market because of the quality that we put into them. Most of our homes are literally better than new construction. We only rehab houses that are 10 years old or newer, and then we put in lots of upgrades that builders do not: landscaping, ceiling fans, blinds, upgraded flooring and fixtures, complete appliance packages (often including washer and dryer.) Of course, we also include new carpet, new (non-white) paint, and the like.

Even though our properties are generally better than any other homes available in the neighborhood, we still generally price them below the highest recent comp for the area. This is because we know that because our property is a flip (being resold within 90 days of our purchase) it is going to be more closely scrutinized by the lending bank and will often require two appraisals.

Our request to you, the appraiser, is simply that you compare apples to apples when drawing up your appraisal. As you know, most distressed properties (REOs and short sales) are in very poor condition. Our homes are not distressed and as such they sell for a price higher than trustees’ sale purchases, REOs, and short sales. When you are looking at comparable sales in the area, we would ask that you compare non-distressed sales and not use REOs and short sales in your comps, just as you would not use trustees’ sale data. We understand that non-distressed homes are the minority at the moment and that REOs and short sales make up as much as 75% of the resale market at this time. However, there are sufficient examples of non-distressed sales in the area to paint an accurate picture of comparable value.

According to Larry Murphy (of Las Vegas Crystal Ball and SalesTraq) certain types of homes are currently selling for certain dollar amounts per square foot in the Las Vegas marketplace. As of June 2011, Murphy released figures based on his exhaustive database of recent sales that shows that trustees’ sale homes are currently selling for around $65 per square foot, bank owned foreclosures (REO’s) for about $71 per square foot, short sales for around $80 per square foot, non-distressed properties at $88 per square foot, and new construction at $100 per square foot.

We appreciate your efforts to use the right types of homes in your market research during this challenging period in the real estate market.
Glenn Plantone
Wynn Realty
(702) 656-3264
gsplantone@gmail.com

www.glennplantone.com

If you’d like to see more of Glenn’s articles, follow his blog at:
www.vegasforeclosures.blogspot.com

Las Vegas Real Estate: A Matter of Perspective

Like anything in life, it’s all about perspective and how we choose to look at a situation.
We all have the same data about the housing market available to us. For some, the data reads bleak... this is the worst real estate market ever (at least since the Great Depression). For others, it is the opportunity of a lifetime (also like the Depression if you were around to accumulate real estate at that time).

I ask this question: If the market is so terrible, why are cash investors flocking to Las Vegas, scooping up homes at record levels, and paying cash for them? My perspective, along with most of the other happy, cash investors, is that this is truly the opportunity of a lifetime and we are taking advantage of it now while the iron is still smoking hot. Over 5500 homes were sold in Las Vegas in June of this year (2011). This is the most since August of 2005, the heyday of Las Vegas real estate. But this time around, statistics show that nearly 55% of purchasers are cash buyers and nearly 80% are investors buying up what they can as fast as they can. In 2005 the percentage of cash buyers was very low and the percentage of owner occupied properties was much higher. With prices dropping nearly 70% over the last 4 years, investors are getting rates of return between 8-12% on cash investments and 15-25% on financed investments. The only downside seems to be that with all of this demand, actually acquiring one of these great Las Vegas investment properties is not as easy as you might think.

Just how cheaply you can acquire investment property in Las Vegas in 2011 depends on what type of property you are purchasing. Each form of purchase has its own distinct advantages and disadvantages. Foreclosure properties that are liquidated at the Trustees’ Sale usually fetch around $55/sq. ft. The Las Vegas Trustees’ Sale represents the least expensive and simultaneously the most difficult way to acquire property. You must come to the sale daily in order to bid on properties that can be seemingly endlessly postponed, you must bring all cash to purchase the property, and even then, you are often competing with several other cash buyers on a property that is sold “as is” with no disclosures and limited opportunity to view the property beforehand. I do not recommend the Trustees’ Sale as a means of acquiring property for any but the most experienced professional.

Bank owned foreclosures (or REOs) are currently selling for around $64 per square foot in the Las Vegas market. These properties provide greater visibility for the purchaser and allow for financing options, but the rather substantial downside to this is that the REO market in Las Vegas has become extremely competitive. It is very rare, at the moment, to encounter an REO listing that does not turn into a multiple offer situation, with bidding wars often raising selling prices to well over $75/sq. ft.

Short sales are the next cheapest way to acquire Las Vegas investment property...usually being approved at around $70/sq. ft. This is still a bargain compared to the average closing price of $78/sq. ft. for non-distressed sales and $98/sq. ft. for new construction. Like auction properties and REOs, however, short sales are very rarely in move-in ready condition and usually require some level of renovation before they are ready to rent out. While less competitive than REOs, short sales require lots of time and patience and result in lots of “misses” for every “hit.”

I have become the third busiest buyers’ agent in all of Las Vegas by dealing exclusively with investors that are looking to take advantage of this phenomenal buying opportunity in Las Vegas but want to avoid the stress of hunting for properties on the open market. My team specializes in sniffing out all the best bargains in Las Vegas. We purchase properties from the Trustees’ Sale, from banks, as short sales, and occasionally from private owners and builders. We then rehab these properties to better-than-new condition, find and place a quality long term renter or lease option tenant in the property, and then sell them to our investor cilents for prices that are still below $70/sq. ft. and allow for CAP rates of 10% and higher. Wynn Realty offers in-house property management and renter placement, which works extremely well considering the majority of our clients are from out of state or out of the country.

If you have been sitting on the sidelines, waiting for a good time to act on the greatest real estate buying opportunity of our lifetime...maybe today is a good day to call. I’d love to speak with you.

Glenn Plantone
Wynn Realty
(702) 656-3264
gsplantone@gmail.com

www.glennplantone.com

If you’d like to see more of Glenn’s articles, follow his blog at:
www.vegasforeclosures.blogspot.com

Observations: The Las Vegas Foreclosure Market for Summer 2011

As many of you know, my core business involves purchasing foreclosure properties at the Las Vegas Trustee’s Auction, renovating them to better-than-new condition, placing long term renters or lease option tenants in the properties, and then selling them to my investor clients as turn-key, cash flowing investments. Last year I was able to successfully turn over 25 such foreclosure properties. Half way through 2011, I am on pace to more than triple that number.

But, lately, there has been a hitch...a speed bump so to speak. The foreclosure auction just doesn’t have very many foreclosures. My team has found that where we were able to easily identify and purchase multiple foreclosures weekly only a couple of months ago, now we are struggling to find good deals on Northwest Las Vegas properties. Our personal experience is being backed up by the latest statistics.

Realty Trac recently released data showing that notices of default in the Las Vegas Valley fell to 2,701 in April down from 4,600 in March. That is a huge decline.

So does this data point towards an over-all economic recovery? Not necessarily. RealtyTrac Chief Executive Officer James Saccacio believes that the slow down is a result of delays from lending institutions in processing foreclosures. However, a recent report from CoreLogic shows that the 90-day delinquency rate for Las Vegas has steadily decreased over several months.

Regardless of the impact that declining foreclosures will have on the overall economy, one thing is certain: We will continue to hunt down the best Las Vegas real estate deals for our customers, as we have for the last three years. In the past, when foreclosures have not made financial sense, we have turned to short sales and REOs. We have already begun to shift our acquisition strategy yet again. As I mentioned in a series of artciles in 2009...being a successful real estate investor means being a chameleon...constantly able to adapt and change to fit current market conditions. As we change our strategy, we will keep you abreast of current developments in the Las Vegas foreclosure market.

If you are interested in learning more about investing in the Las Vegas real estate market please contact me for more information.

Glenn Plantone
Wynn Realty
(702) 656-3264
gsplantone@gmail.com

www.glennplantone.com

If you’d like to see more of Glenn’s articles, follow his blog at:
www.vegasforeclosures.blogspot.com

What is a Good CAP Rate? What Makes a Good Return on Investment?

In my last article, I discussed how to calculate the three most common ratios used to determine the rate of return on real estate investments: Capitalization (CAP) Rate, Return on Investment (ROI), and Equity Return Rate. Of these, the most commonly used is CAP rate. However, it is actually the ROI that provides you with the most accurate picture of whether or not a particular income property will make a good investment.

Because it is so popular, we will discuss CAP rate first. A 10% CAP rate is often referenced as a goal to shoot for. In general, most areas of the country will have CAP rates that max out at 8-12%. Because Las Vegas has led the nation in foreclosures for the past three years and counting, home prices have plummeted to as low as 30% of their former highs. Rents, however, have only declined moderately. As a result, Las Vegas is currently offering the highest CAP rates available in the United States. For the last three years, I have specialized in purchasing Las Vegas income properties dirt cheap at the foreclosure auctions, renovating them to move-in condition, placing renters or lease option tenants in them and selling them to my investor clients as turn-key investment opportunities with CAP rates that average 10-20%. If you are interested in this type of investment opportunity, please contact me for more information.

Moving on, the better way to evaluate potential investment properties is by calculating Return on Investment or ROI. (If you aren’t sure what this is or how to calculate it, see my previous article on the topic.) ROI portrays what your return is on the money that you have actually put into the project. This provides us with an interesting comparison. If you purchase a property for cash and that property provides you with a 15% CAP rate, then your ROI will also be 15%. However, if you purchase that same property using some form of financing, then your ROI will be much, much higher. As long as you are purchasing properties that have positive cash flow, after all mortgage notes and other expenses are paid, it is always better to purchase using financing in order to maximize your rate of return. We are currently offering our investor clients Las Vegas rental properties that are providing annual ROIs with 25% down of between 20-40%.

The important thing to remember when shopping for investment properties in Las Vegas, or anywhere, is that good deals will always stand up to scrutiny. You should always ask for a detailed proforma or create your own for any investment property that you are considering purchasing. This will insure that you find the best investment properties for your investment dollars.

If you are interested in learning more about investing in the Las Vegas real estate market please contact me for more information.

Glenn Plantone
Wynn Realty
(702) 656-3264
gsplantone@gmail.com

www.glennplantone.com

If you’d like to see more of Glenn’s articles, follow his blog at:
www.vegasforeclosures.blogspot.com

What is a Participating Mortgage?

You may have heard the term “Participating Mortgage” lately in conferences on real estate investment opportunities...but what, exactly, is a participating mortgage? And, more importantly, is it a good investment?

Participating mortgages have become more popular lately as investors who are frustrated by historically low returns in savings accounts and money markets, but who are unwilling to risk their funds in a very volatile stock market, look for secure investment opportunities that pay more than 1-2% annually.

As with traditional mortgages, an investor in participating mortgages lends money for the purchase of a home and receives, in exchange, a security interest (mortgage lien registered on title) for a specific real estate property, along with regular monthly payments at a given interest rate. The original investment is returned to the investor at the end of the loan term or upon the sale of the property. A participating mortgage, however, provides a greater benefit to the investor because it recognizes that the value of the real estate securing the mortgage loan may have increased over time. With a participating mortgage, when a property is sold, not only is the original capital paid back to the investor, but a portion of the profits realized from the increased value of the real estate as well. This profit sharing aspect, allows investors to capitalize on the appreciation of real estate without the responsibilities of finding a property, managing tenants, paying bills and maintaining the property.

Whether or not these investments are profitable depends almost entirely on whether or not the property securing the participating mortgage is acquired responsibly and at a reasonable price. Real estate investments in general have received a lot of bad press in the wake of the housing market decline, but the truth is that real estate remains one of the safest, most consistently returning long term investments available.

The key elements of participating mortgages are safety of capital, fixed monthly income, and profit sharing. If you think that participating mortgages might be a good fit for your investment portfolio, or are just interested in learning more about how they work, please feel free to contact me directly. I specialize in Las Vegas real estate investments and utilize participating mortgages for some of my investor clients.

Glenn Plantone
Wynn Realty
(702) 656-3264
gsplantone@gmail.com

www.glennplantone.com or www.vegasforeclosures.blogspot.com

"Flip This House" Las Vegas Style

I have been an avid fan of “Flip This House” since it debuted several years ago on A&E. I have watched as Than Merrill, Rudy Martinez, and the rest of the gang flipped foreclosures for profit in cities across the U.S. And sometimes, I’ve wondered to myself, where do they find these guys? Some of the decisions that I watch being made on the show are questionable at best, and the outcomes often seem a little...hmm, shall we say, overly optimistic? Many times, when they tally the expenses at the end of the show, there seem to be quite a few fees that are left out of the equation in order to make it look like the flips turned a profit, or perhaps a larger profit than they actually did.

As the marketing director for Team Plantone of Wynn Realty, I work for a house flipper here in Las Vegas that I would bet puts up numbers that can rival any of the stars on “Flip This House.” I have worked with Glenn Plantone for the last four years, and have watched him grow his team and refine his methods to best serve his investor clients. Last year, Glenn successfully flipped 31 properties in Las Vegas, mostly foreclosures and short sales, and this year he is on track to double or triple that figure.

Glenn actually has a very unique method for acquiring, flipping and reselling properties. Glenn starts by acquiring the properties either through short sales, at the foreclosure auction, or post-foreclosure through bank-owned REOs. Once the properties have been purchased, like the flipper on “Flip This House”, Glenn rehabs the properties to better than new condition. At this point, the similarities end. Most flippers, including those on the show “Flip This House”, liquidate their renovated properties to traditional owner-occupant buyers. Glenn takes the system a step further; by first, placing long term renters or lease option tenants in the rehabbed property; and second, selling the property as a turn-key investment property to his investor clients.

Since Las Vegas has led the nation in foreclosures for the last several years, there are many displaced families looking for rental housing. Glenn’s method provides these families with quality, affordable housing. Simultaneously, Las Vegas continues to be a hot spot for investors looking to capitalize on historically low home prices and high rates of cash flow return. Glenn’s method provides them with turn-key investment properties that couldn’t be easier to own...they are already renovated, professionally managed, and have a cash-flowing tenant in place by the time Glenn offers them for sale to his investors.

I have really enjoyed working with Team Plantone over the last several years and watching a true flipping professional in action. Maybe the “Flip This House” producers will take notice some day. After all, Glenn is posting numbers that should make him the number one buying agent in all of Las Vegas this quarter. Until then, we’ll continue to do our thing...flipping houses, Las Vegas style.

If you are interested in purchasing one of Glenn’s turn-key flips or, if you are interested in investing with Glenn, please contact him for more information.

Glenn Plantone
Wynn Realty
(702) 656-3264
gsplantone@gmail.com

www.glennplantone.com or www.vegasforeclosures.blogspot.com

New Loan Program Makes It Possible for Non-U.S. Citizens to Borrow for Second Homes in the U.S.

We recently received a notice from our lending partner that they have expanded their Foreign National Loan Program to include non-resident and non-U.S. citizens borrowing for second homes in the United States. This is great news for our Canadian clients (and other Foreign Nationals) who are looking to purchase a vacation home or first investment home here in Las Vegas.

We have sold a lot of properties lately to Canadian clients who are taking advantage, not only of the historically low prices and available foreclosures in Las Vegas, but also of the unprecedented strength of the Canadian dollar at the current time. This “perfect storm” of buying opportunity will not last forever. If you are a Canadian looking to purchase a great second home for yourself, for income, or both, now is the time to buy. We specialize in helping out of town investors understand all their options in the Las Vegas real estate market and we offer the best buying opportunities possible by taking advantage of Las Vegas foreclosures, REOs and traditionally listed properties.

Michael Lembo, loan officer at iMortgage, has outlined the following major qualifications for the Foreign National Loan:
Maximum Loan Amount of $417,000
30-year Fixed Rate Mortgage
30% Down Payment Required from Borrower’s Own Funds and 6 Month’s Reserve in a US Bank Before Closing
700 Minimum Credit Score with at Least 4 Trade Lines
36/45 DTI
Single Family Homes or Condos Allowed
Must Not Own Any Additional U.S. Property

If you would like more information on this loan product, or to discuss the current purchasing opportunities in the Las Vegas real estate market, please contact Glenn Plantone of Wynn Realty.

Glenn Plantone
Wynn Realty
(702) 656-3264
gsplantone@gmail.com

www.glennplantone.com or www.vegasforeclosures.blogspot.com

Free Night at MGM Signature for Real Estate Investors

There has not been a better time to purchase investment real estate in Las Vegas in the last quarter of a century. Over the last few years, home prices plummeted to those seen 20 years ago in 1991. But prices have now stabilized, and investors are finding that rents did not fall nearly as much as purchase prices. This means that investors are now able to purchase Las Vegas investment properties with extremely strong cash flow.

As the fourth busiest buyers’ agent in Las Vegas this year (and on my way to being the busiest agent in all of Las Vegas this year), I have purchased two suites at the MGM Signature Hotel Condos to accommodate my clients when they come to town to look at real estate. If you are a serious investor looking to explore the possibilities of the Las Vegas market, I would love to have you as my guest for a complimentary night’s stay at the MGM Signature Hotel Condo. We will spend the day touring properties in the valley that meet your investment criteria and you can spend the night enjoying all the amenities that the MGM Signature has to offer.

I have created a niche by catering to investors looking to purchase turn-key investment real estate in Las Vegas. I do this by acquiring properties at wholesale prices (purchasing them as REOs, short sales, or at the foreclosure auction), I then completely rehab the properties to like new condition and then place a long term lease option tenant in the property. This means that my investor buyers are able to purchase a property that has been completely rehabbed, already has a tenant in place with strong, positive cash flow, and is professionally managed and ready to go. This strategy makes it possible for out of town, out of state, and even international buyers to easily and profitably purchase Las Vegas real estate.

If you are interested in learning more about Las Vegas investment real estate and staying as my guest at the MGM Signature Hotel Condo, please contact me for more details. Of course, certain restrictions and conditions apply to the MGM free night offer. Call for more details.

Glenn Plantone
Wynn Realty
(702) 656-3264
gsplantone@gmail.com

www.glennplantone.com or www.vegasforeclosures.blogspot.com

MGM Signature Hotel Condos 4th Quarter 2010 Update

Fourth quarter sales for 2010 at the MGM Signature Hotel were a bit of an anomaly. Sales of any real estate product are always lower in the first and last quarters of the year than the second and third, however I did expect increasing foreclosure rates to drive sales numbers higher than usual in the last part of 2010. What happened instead, was yet another foreclosure stall in the wake of the Bank of America robo-signing fiasco. With foreclosures slowing to a trickle, the inventory of bargain priced units in the MGM Signature complex dwindled considerably. This created an interesting paradigm in which sales volume and average sales price dipped in the final quarter, but lack of new foreclosure inventory created a new framework for sales expectations moving forward into 2011.

More specifically: The 4th quarter of 2010 saw the fewest number of one-bedroom sales in well over a year at only 15 units. The average price for a one-bedroom MGM Signature unit (847-874 sq. ft.) in the 4th quarter was $218,000...well down from the 3rd quarter average of $227,000. The average price for a studio unit (520 sq. ft.) was $151,000 down from the third quarter average of $155,000. Sales on studios (also referred to as junior suites) was down to 48 units from the third quarter volume of 53 units.

What is extremely interesting however, is that although sales volume was down in the 4th quarter...new listings were down even more. At the close of the third quarter, there were 73 units listed for sale at the MGM Signature Hotel Condo. By the close of the fourth quarter, there were only 55 units listed for sale. This is a drop of 25%. Also interesting to note is that the percentage of listings that are conventional (as opposed to short sales or foreclosures) is climbing as well (usually a sign that precedes price recovery). At the end of the third quarter, 40% of the units listed for sale in the MGM Signature complex were short sales or REO properties. At the close of the fourth quarter, that number dropped to 22%.

It’s tough to say exactly where things will go from here at the MGM Signature. If inventory remains as light as it is now, I believe that we will see prices begin to steadily climb. However, if foreclosures accelerate in 2011, we may continue to see some deals holding prices steady. I continue to believe that we have bottomed out on prices at the MGM and that we will hold reasonably steady or begin to climb. It is a great time to purchase an investment or second home property at the MGM Signature...both interest rates and prices really have no where to go but up.

I was the second biggest mover of MGM units in 2010 and the fourth busiest buyers’ agent in all of Las Vegas. If you are interested in purchasing a unit (or a fractional share of a unit) at the MGM, please contact me for more information on the property and all your available options.

Glenn Plantone
Wynn Realty
(702) 656-3264
gsplantone@gmail.com

www.glennplantone.com or www.vegasforeclosures.blogspot.com

Looking For Turn Key Investment Properties In Las Vegas? Looking to Invest IRA or 401K Dollars In Cash Flowing Real Estate?

I am Glenn Plantone. I am the fourth busiest buyers’ agent in Las Vegas and I work exclusively with investors who are looking to purchase investment real estate here in Las Vegas. Many investors have been frustrated in their search for quality Las Vegas investment property. They have often found themselves in multiple bid situations trying to snatch up discount priced REOs, foreclosures, or waiting on short sale offers that never come through. Other investors are interested in moving their IRA or 401K dollars from under performing markets into real estate, but they may not now how to get started.

I work exclusively with investors, just like those described above, and I specialize in making it easy and profitable for my clients to acquire investment property in Las Vegas. Here’s how it works: I purchase distressed properties below market value via the Las Vegas trustees’ foreclosure auction, short sales and REOs. My team rehabs these properties to move-in ready condition and then we find a long term lease option tenant for the property. We package these properties, with tenant and property management already in place, as strong cash-flowing, turn-key investments for our clients. We are currently getting CAP rates of between 15%-35% for our financed investors and 10%-20% for our all cash buyers. These are phenomenal returns for very low risk, hands off investments.

You do not need to live in Las Vegas in order to buy in the best real estate investment area in the world. We have clients from all over the country as well as Canada and China. Our track record is stunning. Last year, we successfully completed 31 (pre- and post- foreclosure) rehab and sell transactions and we have satisfied customers for each of those transactions.

If you are interested in learning more about how you can invest in Las Vegas...the best area to buy investment real estate in the world right now...please contact me any time. If you would like to see some of the properties that we currently have available CLICK HERE.

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

www.viewpointequity.com