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