Commercial Real Estate Is Moving In A Positive Direction In Las Vegas

Look around the Las Vegas Valley, strip malls have more retail spaces filled (just a few years ago they were vacant).  The Boulevard Mall has converted space for offices that were once retail stores. The conversion of retail spaces in the mall to call centers has been very successful largely due to amenities in the mall and readily available parking.  In Downtown Summerlin the second office tower (Two Summerlin) is well on the way to be completed with lots of interest in available spaces.

Daniel Palmeri, senior director at Cushman and Wakefield stated “We’re kind of seeing a westward movement of companies looking to be in Summerlin or the west side of town.” Brian Gordon, principal at Applied Analysis, stated “The general feel is that the economy is remaining relatively healthy, and we’ve moved beyond the effects of the past downturn and looked more toward growth in the future.”

We are seeing a lot of new segments being added to the Las Vegas economy – Major League sports, the tech industry and an increase in tourism. The Golden Knights have already made an impact on the economy and the commercial real estate market.  There are more retail stores thriving around the T-Mobile Arena and adding employment opportunities.  The Raiders will be in Las Vegas by 2020 and more retail and office space will be filled by their employees.

The tech market has seen an increased local presence of national companies, as well as the acquisitions of local startup companies. This has made Las Vegas a credible hub for technology companies with more opportunity for upward movement for local tech talent and a good reason for more tech talent to move here.

Current Las Vegas market trends data indicates an increase of +2.8% in the median asking price per sq ft for office properties compared to the prior 3 months, the current median price of $176 per square foot in Las Vegas.  In the industrial market the median price is now $118 per square foot and retail space prices are still rising at a slower pace.

Do you need commercial space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day…..Jeff

New Rules for Short Term Rentals in Las Vegas

Any landlords that wish to offer short term rentals through services such as VRBO, AirBnB & Homeaway are required to comply with Las Vegas Municipal Code Section 6.75.

To read the entire statute, click this link; https://goo.gl/bAwu5x

Here are what I feel are the highlights;
On June 21, 2017, the Las Vegas City Council passed Bill No. 2017-16 by a vote of four to three, requiring that all short term rentals be required to obtain a special use permit prior to commencing operations.
First, the owner must apply to the City Planning Department for that permit for each separate unit. Then, have the property inspected to verify the number of bedrooms and compliance with safety and other minimum housing requirements. Once the Conditional Use Verification is approved, the applicant is also required to submit a business license application and affidavit to Business Licensing by the next business day.

In order to secure the permit, owners are required to produce proof of liability insurance for $500,000.00 and install letter-size placards outside the properties with contact information and maximum allowed occupancy. Any until with more than five bedrooms is now required to maintain a resident manager on site during the term of the rental.

Other provisions of Municipal Code Section 6.75 state that the owner must collect and remit Room Tax and it appears you cannot require a minimum number of nights – even over big events like New Years Eve.

If you have a short term rental and don’t want to deal with the new rules, we will sell it for you quickly! Just call us at 702 SELL NOW (702-735-5669)

3 ways to make your home more appealing for under $50

I know it’s cliche, but you really never get a 2nd chance to make a 1st impression, so take a few minutes and a few bucks and make a great 1st impression!

I know it’s cliche, but you really never get a 2nd chance to make a 1st impression, so take a few minutes and a few bucks and make a great 1st impression!

Boost #1: Front door
Clean all of the cobwebs out and givie it a fresh coat of paint. Maybe even brighten it up by painting it a brighter-than-usual color, like red or blue. Pick a color that will stand out but also complement your home’s exterior. Be sure to ask permission from your HOA, if you have one.Keep in mind people stand at your front door while waiting to come in and they look around the whole time they are waiting.

Boost #2: Highlight your front porch
Many homeowners use their backyards for outdoor living and forget about their front porches. Even if you personally never sit on your front porch, adding a little furniture can help future homeowners envision themselves in your home before they ever step foot inside. Some inexpensive, secondhand wicker furniture and bright pillows will make even a small front porch look enticing. Maybe even add a small table.

Boost #3: Lighten up
Potted flowers brighten up the space and are very welcoming. Get a few from your local nursery, and of course, don’t forget to water them.

Muti family investing in Las Vegas?

I love 2-4 unit properties as an investment. If you buy a 4-plex, and you have one vacancy, you still have 3 tenants paying you. And did you know that loans for 1-4 unit residential properties have exactly the same requirements? Do any of these investment properties catch your eye?

http://goo.gl/mt04la

To short sale, or not to short sale? That is the question.

First – What is a short sale? Many people know, but not everyone.

When a person owes more on a property than it is worth, and they ask the bank to accept less than is owed on the property so that they can sell it, this is known as a short sale. Like when you owed your friend $50, but you only had $30 of it and you said, “sorry Mike, I’m a little short” and Mike said, “don’t worry about it”.

Why not buy short sales?

There are a variety of reasons why short sales do not go through. Here are 4;

1. The process of dealing with the banks on a short sale requires skill, effort and knowledge on the part of the listing agent (the person the seller hired to sell the house). Many do not possess this trifecta of assets.

2. There must be a hardship. Many sellers just want to sell short because their neighbor did, but their neighbor lost their job, or was never earning enough money to afford the home in the first place. Just because you want to, doesn’t mean you can.

3. If they buyer does have a legitimate hardship, then, that buyer, who is already (typically) despondent over their current financial situation, is required by the bank to go through their finances with a fine tooth comb to prove that hardship. Many people just don’t have the stomach for it.

4. Patience (or lack thereof). Short sales often take a very long time to get accepted. I’ve seen them take more than 4 months just to get approved. Many buyers just aren’t that patient.

In the month of April, 2009 in Las Vegas, 36% of the properties listed for sale were short sales. Only 6% of the closings were. This shows that short sales can work, but often (1 in 6 times that month) they don’t.

The prices on Las Vegas bank owned homes are mind-boggling.  Don’t wait for the bottom.  You can’t predict it.  You won’t know where the bottom was until it’s gone.  Really.  What are you waiting for?  If you would like information about buying a home to live in or an investment property in Las Vegas, with no cost or obligation, please contact me.

702-369-6000
or toll free @
1-877-7RE-JEFF
(1-877-773-5333)

Bookmark and Share

The Oxymoron in Las Vegas

I have heard that opposites attract, but how do you have multiple offers being presented on multiple properties in a buyer’s market?  Does that make it a seller’s market?  Or is it a seller’s-buyer’s market (like the color violet-blue, it’s kind of violet, but definitely blue)?  Or is it just that the prices have gotten so low, that none of the conventional reasoning applies?

I saw a house yesterday, in move-in condition listed for $26 per square foot!  Granted it was an older home that needed updating, and it was in a so-so neighborhood, but $26 per square foot?  By the way, it was listed for $26 per square foot, and the offers were multiple.  It sold for more.

I showed a home to a woman yesterday that was built in 2000 and was listed for $84 per square foot.  It was overall in good shape, but needed paint, carpet and some other minor cosmetics.  She really liked it.  This morning I learned that it already had 9 offers on it.  When I did a price comparison, I saw why.  It was priced too low, even for this market.  The banks are starting to intentionally under price properties so that they sell more quickly.

I had another client look at a home on Saturday that the bank had made real nice.  New carpet, fresh paint, a new sealed-burner gas stove and a matching dishwasher.  They had pulled it off the market while cleaning it up and then RAISED the price.  We joked that they should have put a refrigerator in if they really wanted to sell it.  Pricing is down to 1997 levels, and interest is high, especially in the under $300,000 range.

I’m not suggesting that the problems are solved. I was also on a street Saturday with about 15 houses and 5 were vacant, but the market is shifting again here. The question is, where is it going next? We still have a lot of inventory, so it’s not necessarily going up, but the dynamic is definitely changing.  Some banks are holding their ground a little more.  Sometimes they are squeezing the buyer, and that is not how a buyer’s market usually works.  The big key, is that while interest rates are low, you can buy a nice property for significantly less that you could buy the materials to build it and some of the banks are getting more and more competitive, creating all kinds of mixed market signals.  You could buy a lot of Las Vegas homes right now for about $500 per month.  Most renting Las Vegans are paying more than that.

The prices on Las Vegas real estate are just outstanding. Don’t wait for the bottom.  You can’t predict it.  You won’t know where the bottom was until it’s gone.  Really.  What are you waiting for?  If you would like information about buying a home to live in or an investment property in Las Vegas, with no cost or obligation, please contact me.

702-369-6000
or toll free @
1-877-7RE-JEFF
(1-877-773-5333)

Bookmark and Share

Did Archimedes understand real estate?

“Give me a lever long enough and a fulcrum strong enough I can move the earth.”  Archimedes said this hundreds of years ago, yet some people are afraid of using ANY leverage in this real estate market.  I have investors contacting me with $100,000 in cash and they want to buy $100,000 worth of real estate in Las Vegas because they don’t want to end up over leveraged.  I understand.  A large part of the reason we are in this mess is that we got overleveraged.  But some leverage is always good.

Let’s first look at values.  There are plenty of homes in great neighborhoods listed for $70 per square foot.  There are certainly a few listed lower like the one that came on the market today built in 2005 and in move in condition for $50/ sf (call me if you want to buy it).  So you buy a 3 bedroom / 2 bathroom rental for $100,000.  You have the money to pay cash and you don’t want to over leverage yourself. You collect about $900 per month in rent. OK, great!

BUT what if you decided to put down 50%, and buy 2 of them?  First of all, you should have no trouble getting the loans.  Second off, your monthly mortgage payment on EACH property is only about $315 per month (with moderate credit)!

Now are you SURE you don’t want to use at least a little leverage? C’mon! I’m not suggesting that you abandon your beliefs altogether or become irresponsible with your money, but that is reasonably safe, wouldn’t you say?

The prices on Las Vegas real estate are ridiculously low.  Don’t wait for the bottom to start investing here.  You won’t know where the bottom was until it’s gone.  Really.  What are you waiting for?  If you would like information, with no cost or obligation, please contact me.
702-369-6000
or toll free @
1-877-7RE-JEFF
(1-877-773-5333)

Bookmark and Share