Even ‘The Donald’ is making adjustments in Las Vegas

High end Las Vegas rentals just became more available, but that is not a concern for the typical investor.

The Donald may be starting a new trend
Trump Tower Las Vegas

 I remember when I was still buying in Las Vegas before I stopped and then started again. (Did you follow that?) In other words, a couple of years ago.

When the Trump Tower Condo-tel project was announced, my partners and I looked into buying some of the units pre-construction. The initial thought was to buy 5 @ a price tag of roughly $600,000 each at pre-construction pricing. We would ‘flip’ 3 of them after completion and keep the other 2 luxury vacation rentals. Well, we did the math and it did not appear to be very lucrative, so we never went any further with it. (I still get emails once in awhile from the sales associate.) I remember that the first tower had nearly sold out and they began preparing to pre-sell the second tower.

Fast-forward to the present day.  Almost 400 of the 1,282 units have closed.  That’s it.  All of the other buyers have walked away and Trump has this enormous alligator on his hands, eating away at his cash.   The hotel rooms have been so underused, that when a friend of mine stayed in one of the condo-tel units this week, he simply asked if he could get a nicer room and they gave it to him.  Much nicer.  He paid less than a suite at Encore or Bellagio, and had a spectacular view of the ‘Strip’.

So, Trump is now listing all of his units for lease, including studios, one bedrooms, two bedrooms and even the penthouses.

The lowest price is $1,600 a month for a one-year lease on a studio. One bedrooms are as low as $2,600 and a three-bedroom penthouse is $6,500 for a one-year lease.  Those same units are $7,500 a month for those who only want it for three months and $7,200 a month for a six-month lease. Of course those are furnished nicely.

In the past few months, some staff members were let go and that reduced services. By bringing in more people as tenants, they should be able to increase jobs again.  So has ‘The Donald’ started another trend? Are the unsold units of the condo-tels around the country going to be leased as year-round rentals?  I’m certain that they will, and until the economy turns around, if you are in the market for a pretty high-end rental anyway, my guess is you’ll be able to get a significant upgrade in the short term.

The good news for me, is that these units are certainly not competing for any of the lower end rentals.  That market is still strong, as long as you know what neighborhoods to buy in.  If you have money and / or good credit and are ready to take advantage of the deeply discounted Las Vegas real estate market, please contact me.  I have deals coming out of my ears and all of the resources in place to help you get them repaired, rented and managed. In a few years, I’ll be happy to help you sell them for a very nice profit.

Las Vegas real estate is ON SALE.
Get yours now!

To contact me so I can help you make great decisions on Las Vegas Real Estate, visit www.MyFastEasySale.com, click the “Wholesale Buyers” link, and fill out the form so I can start helping you today!

The truth is, I love to ‘toot my own horn’.

Now is the time to invest in Las Vegas real estate.

Alright, I’ll admit I have let this blog get ‘stale’, but no more. I have a new motivation! I love being right! Since August, I have been blasting my email list telling them that they should come and invest with me in Las Vegas real estate. Why? Well a number of reasons come to mind. First of all, Las Vegas had the 2nd highest foreclosure rate in the country, it’s true. And most people will run away from that.  DON’T.

  • For more than 15 years, between 5,000 and 8,000 people have moved to Las Vegas – and the trend shows no signs of slowing.
  • The median home price in Las Vegas as reported by the Las Vegas Review Journal on 9-10-08 is only $210,000.
  • Wal-Mart is building a distribution Center just outside of Las Vegas and they require that EVERY vendor have a warehouse within 50 miles.
  • McCarran Airport can no longer handle the volume of traffic, so the city is going to build a second airport.
  • Single family homes can produce positive cashflow as a rental for the first time since 1991 – if you can buy an investment property that will cash flow, then it truly doesn’t matter how long it takes to appreciate, as long as it does (and boy, will it ever!)

Despite the fact that Las Vegas real estate has dropped an additional 28% in the past year, sales are up 15% year over year! This is the part where I tell you how I was right. Forbes Magazine and Forbes.com just released a list of the top 10 cities that you should be buying real estate in. #1? You guessed it! Las Vegas! For the other 9 cities, go to Forbes.com and search for the writer Matt Woolsey. I’m not hear to talk about #2. After all, second place is just the first loser, right?

So, what qualifies me to help you navigate Las Vegas real estate for the best deals?

  • I have purchased over 30 investment properties – I have made money on most yet lost money on others – I have skinned my knees and learned a lot of valuable lessons.
  • I lived in Las Vegas from 1993 to 2003 and am very familiar with the city. In fact I still own and help run a successful Las Vegas business. I have just returned for the sole purpose of investing in real estate.
  • I know the hot areas, I know the war zones.
  • I have solid connections with REO Brokers, contractors, Title companies and more.
  • I have access to a woman whose sole job is to find FREE money for down payments for First Time Homebuyers through local and state programs (if you are looking to live here or flip property she is invaluable).
  • I own the phone number 702-SELL-NOW and run ads to buy houses year ’round in Las Vegas.
  • I also know a secret about WHY Las Vegas will be so profitable over the next 5 years, but I will only share that with serious investors.

Are you a serious investor? Do you want to buy in the real estate market that is poised for maximum long term profit? Whether you are a cash buyer or ready to finance, contact me, and we’ll discuss how I can help you find great investment property in Las Vegas. 

To contact me so I can help you make great decisions on Las Vegas Real Estate, visit www.MyFastEasySale.com, click the “Wholesale Buyers” link, and fill out the form so I can start helping you today!

Investor or Gambler?

I got a phone call from an investor a few days ago, who wanted to know if I was interested in partnering on a deal with her…

I got a phone call from an investor a few days ago, who wanted to know if I was interested in partnering on a deal with her. I asked her to explain the deal to me. She said it was a duplex in Plymouth and that she was paying $257,000 for it. The sellers had it rented to handicapped people that were going to be leaving when it was sold. The owners were taking their tenants to a new building. I asked her what the rents were, and she said that the owners would not disclose because of the type of tenants. I asked her what the property was worth and she said that the comparable sales showed it was worth about $257,000. I asked her if it was going to have a positive cash flow according to projected rents. The numbers that she shared with

me told that with NO vacancies ever, NO property management costs, NO maintenance issues, an interest rate that she HOPED she would get and 20% down, it would have a small positive cash flow.  Then she spoke of what a good location it was and other positive factors, attempting to convince me (and herself) that in a declining real estate market, this was a good investment.  The first thing I want you to know is that this investor could have been ME. Everyone runs into a deal now & then that for any variety of reasons they feel the need to make it work.

 

I nicely (I hope) reminded her that there are 3 reasons to buy real estate;

 

1. Positive cash flowYou MUST take into account;

  • a minimum of 10% vacancy rate (higher if the area calls for it),
  • at least 10% of collected rents for maintenance,
  • 10% for property management (even if you manage it yourself)
  • interest rate 1% higher than you expect to get for your mortgage
  • lower rent than you expect – unless the tenants already exists
  • taxes
  • insurance

 

2. Significant discount – Minimum 20% if you are not going to have a

positive cash flow

 

3. Higher and better use – This one is only for experienced investors

 

If you are not getting at least one of the above 3  – – – – –

Then ask yourself one more question; 

‘Do I want to be an investor or a gambler?’

 

If the answer is gambler, then go ahead, it may possibly pay off for you,

but stop attending Investment meetings and go to G.A.
(Gamblers Anonymous)

 

If the answer is investor, then

W A L K  

A W A Y

 

Fortunately, she did! (walk away that is)

Understanding the new homebuyer tax credit for first-time buyers

If you have recently purchased your first home, or are considering doing so in the next year, here is good news for you . . .

If you have recently purchased your first home, or are considering doing so in the next year, here is good news for you!

One of the programs included in the new housing bill signed by President Bush recenlty is a $7,500 homebuyer tax credit.  While this tax credit has benefits, it is important to understand that this “tax credit” is actually an interest-free loan which will be repaid over a period of 15 years. 

Below is a Q&A that summarizes the program’s features that was put together by the National Association of REALTORS®.

Q: What is the Amount of Credit?
A: 10 percent of the cost of home, not to exceed $7,500

Q: What properties are eligible?
A: Any single-family residence (including condos, co-ops) that will be used as a principal residence.

Q: Is the tax credit refundable?
A: Yes.  It reduces income tax liability for the year of purchase.  Claimed on tax return for that tax year.

Q: Is there an income limit?
A: Yes.  The full amount of credit is available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).  The benefit of the credit phases out above those caps ($95,000 and $170,000, respectively).

Q: Is this program for first-time homebuyers only?
A: Yes.  A portion (6.67 % of credit) has to be repaid each year for 15 years.  If the home sold before 15 years, then the remainder of credit recaptured on sale.

Q: What is the effective date of the program?
A: The credit is good on home purchases on or after April 9, 2008

Q: When does the program conclude?
A: July 1, 2009

Q: What is the tax credit’s interaction with Alternative Minimum Tax?
A: The credit can be used against AMT, so credit will not throw individual into AMT.

Shut up and listen!

Visit http://www.BluefishCoveHouse.com to see how to live on the ocean cheap and easy in Marshfield Massachusetts

OK, now that I have your attention, check this out. I have been investing in real estate for awhile now, and I have to tell you, last summer, I found the greatest little beach house in the Brant Rock area of Marshfield, Massachusetts! Most beach front property in the Marshfiled/Duxbury area will cost you more than $500 per square foot of living space. Why? Simple! When you buy a home on the beach, you pay more for the land than the house. If you have a lot of land and a little house, you’re going to pay plenty. If you have less land, and more house then you get more for your money. Who wants a big yard to care for when you live on the ocean anyway?  Why spend more time doing yard work and less time on the beach? This house has a small lot, and therefore costs less!

So, why am I telling you this? Because this great Marshfield beach house has been renovated, and it’s now for sale. The best part?  You don’t need good credit to qualify to purchase it. You could live in the great little community of Brant Rock (right next to Duxbury). Not looking to move? This is a great investment property which gets up to $2,600 per week as a summer vacation rental. For more information visit http://www.BluefishCoveHouse.com