After I purchase my property, how can I get a tenant?
We offer 3 solutions for property management. The investors that make the most money are the ones who offer leases with the option to purchase.
Are gated communities safer?
No. Half the time you just coast in behind someone else. Gated communities keep out friends, people you are trying to rent to and folks trying to deliver pizza. Guard gated communities are slightly better but anyone acting like they know what they are doing will get in.
Are people still moving to Las Vegas?
Yes. Rents as of 3/15/16 are getting a slight increase after about a year of decline.
Are the rumors true that there is another tidal wave of foreclosures?
No. This old rumor persists despite no evidence to support it. Asset managers are an illusive bunch and they would probably lose their job if they told the truth. It is probable that banks will slowly "drip" these foreclosures into the system to keep it from sinking. There is a large number of commercial foreclosures available and that is a whole different story...
Does it get really hot in the summer?
Yes. Late August gets close to a nuclear melt down. Vegas didn't spring up until after air conditioning was invented. There are weeks of sweltering days hovering around 110+ degrees. That's why it is recommended that you get up early and keep a low profile at 4pm. It's a dry heat though :)
How does "Days On Market" affect my bid price?
It doesn't. What makes all the difference in the world is how long a property has been on the market at the current list price. For example, if the price dropped $20k yesterday, the property won't last until the end of the week and it is recommended that you bid above list. If the property is in poor condition and been on the market for months at the current price, it would be safe to bid below list. Unless you have a history on a specific property, days on market is worthless information.
How easy is it to rent a condo?
Depends on price. There is no relationship between the type of home and speed of renting. The speed at which a property moves is a function of price.
How easy is it to rent a house in a neighborhood that is not desirable?
Depends on price. There is no relationship between desirability and turnaround time. The speed at which a property moves is a function of price. Here is an extreme example: A bling bling house in Summerlin won't rent at $3k/month - EVER. A dive home in the worst part of Vegas will rent within one week if it is advertised at $400 per month.
Is it easy to evict a tenant?
Yes. Nevada laws are extremely landlord friendly. Unlike most states, a bad tenant will be out on the street within 30 days in most cases. 80% of the tenants come to Jesus on a 5-day notice. The eviction process is easy and most property management companies do this for free. There is no correlation between eviction frequency and neighborhood desirability. Just as many folks in upscale neighborhoods get thrown out as poor families living in the "hood."
Is Las Vegas safe to live in?
Relative to where? Relative to Oakland or Detroit, this place is "Mr Roger's Neighborhood." Ever been to El Salvador? You haven't seen dangerous until you've been in a war torn country. Las Vegas does have more crime than the national average. And another thing: "CSI - Las Vegas" is shot in Los Angeles - not in Las Vegas or North Las Vegas.
What is the correlation between desirability and crime?
Crime is equally distributed among all neighborhoods. There are more murders in the exclusive community of Summerlin than on the Strip. Plug in an address in Clark County's crime statistic website and do some homework. You will discover this yourself. One reason could be that exclusive neighborhoods are more likely to report crime. Perhaps crooks prefer to rip off rich people.
What is the job market like?
Better than last year. Las Vegas got clocked like everyone else. Las Vegas is about 7% and has been relatively flat for the last six months.
What should I be concerned about when looking at condos?
You want to make sure the community isn't under litigation. If a condo community is under litigation, you will not be able to get a loan to purchase the property. It also means that if you paid cash, you could be stuck with the property until litigation is resolved - if ever. Many of the "Condo Conversions" are in litigation so be very careful. Many newbie investors step on this land mine.
When will real estate prices hit the bottom?
Las Vegas is way past the bottom except in the area of commercial office space. That product has not hit bottom yet.
Where are the good neighborhoods?
What is good? Good cash flow? Good equity? Good schools? Pride of ownership? All white? No foreclosures around? There is no answer to this because your idea of a good investment is different from others. Making investments based on race or ethnic makeup of a neighborhood is just plain foolish.
Why does it take a week to a month for a bank to respond to an offer?
Banks just wait for offers to pile up and then make a decision. The listing agent puts all the offers in a basket. At the end of the week, the agent tosses out all the incomplete offers (missing proof of funds etc). They then take the remaining 20 offers and sort them according to bid price. The top 3 bids get a courtesy email that says, "The bank is considering your offer. Here is a 20 page addendum that your buyer must sign." If a buyer doesn't respond within 24 hours, they move to the next buyer. The other 17 offers at the bottom of the pile get thrown away. Occasionally, the selling agent sends a courtesy email "thanks for playing."
Why does the media keep preaching the end of the world is near?
People love to buy fear. The media doesn't make money by telling you the world is peachy and that there is no news. They drum up drama so you have a reason to consume it. The Review Journal is the last place to know what is happening on the street. By the time the statistics show list prices are rising, its too late to jump on the train.
Will Las Vegas run out of water?
Maybe. Water is still ridiculously cheap in Las Vegas. Crazy people are still planting grass in their yards. There are also plans to build more pipes. Once you add conservation with increased production, you get plenty of water. As time goes by, the price of water will probably jump significantly.