Home Buying in Las Vegas>Question Details

Jun, Home Buyer in 08857

Best place to invest in Las Vegas

Asked by Jun, 08857 Wed Mar 20, 2013

I'm an out of town investor looking to buy an investment property in Las Vegas for cash flow and long term price appreciation potential. Just wondering if it is a good time to do this? BTW, I plan to invest around 250K cash.

Help the community by answering this question:


Hi Jun,

Actually there are between 75,000 and 100,000 homes that the mortgage has not been paid for between 90 days to over 6 years including over 45,000 vacant homes in the Vegas Valley (No utilities are on). These will be put on the market over the next few years through foreclosures and short sales. This is the dreaded shadow inventory in Vegas. Vegas is still over built from the first bubble so there are more homes than needed at this time. Our emplyment picture is still bad with over 11% unemployment and over 20% underemployment. Vegas is getting better but there is a long way to go.

The price increases we are experiencing are due to a law (AB 284) that stopped banks from foreclosing in Oct 2011. Prior to this law Vegas was getting better as the foreclosures are needed to clear out bad loans and get to a real market. Before AB284 there were over 3500 notices of default (NODs) issued per month. Immediately after AB284 the NODs fell to a couple of hundred. We are now seeing about 1500 per month.

We have a severe backlog of pending foreclosures and are experiencing an artificial shortage of supply due to the restriction in foreclosures. At this time, the Nevada legislature is modifying AB 284 to be more realistic and banks will begin foreclosures in earnest later this year. The supply will begin to be seen by 2014 and we will see the impact on prices by mid-2014 and later.

There are still a few deal out there, but the market is highly competitive. Prices will be better in 2014. Buying in today's market is risky due to the downward pressure we will experience on prices next year. I study the economy and understand the issues driving the market. If you want more info, search for Steve Hawks on youtube. Steve and I work together and work to educate other on the reality of our real estate market.

Save up your money and get ready for the last half of 2014 and 2015. I am!

Brett Gordon, Broker-Salesman
(702) 283-1960
2 votes Thank Flag Link Thu Mar 21, 2013
Las Vegas has VERY low inventory and VERY high demand right now. In this HOT seller's market you need to come in with clean, strong offers. If you can find pocket listings (listings that agents have that have not yet been listed on the ML) then you can get offers in before the bidding wars, often times equaling a better purchase price for you the buyer. Inventory is remaining very low (below the 5,000 mark). Deals are getting harder and harder to lock down. You can read a thread about the competitiveness of the current market here: http://goo.gl/csgZg

If you want to hear about the possible softening of the market then read this link: http://goo.gl/RJvvl

With that being said, if you find a property that you want to purchase, it is important that you write up a clean, strong offer. Here are some tips to getting you offer(s) Accepted: http://goo.gl/1605G

If you would like my team and I to represent you in purchasing your next home please send us what type of home you are looking for by filling out our Buyer's Form. If you need Sell your home please fill out our Seller's Form.

We hope this is informative and we thank you for your business!

Best Regards,
Robert Adams
0 votes Thank Flag Link Thu Mar 28, 2013
Shadow Inventory is a non event. Banks are NOT stupid. They destroy the market by releasing inventory too quickly, and the value of their REO assets plunge, making regulators nervous. The Bubble and Government regulators aall want a health residential real estate market. All the short sales people and foreclosure homeowners can get a new HUD mortgage after 2 years out. The pent up demand in Las Vegas is huge.

Check out the blog on Wall Street equity Firms buying everything in site with a hold and rent strategy. There is no down side when wall street discovers the value of holding real estate

David cooper 702.499.7037
0 votes Thank Flag Link Tue Mar 26, 2013
"Banks are not stupid?" I disagree. They did flood the market and prices did plunge.
Flag Fri Mar 29, 2013

Forget Residential. Too many investors bidding against you; too many HUD rules to follow to even break even on the investment; and too much property management over the long term.

Try a CRE property -- such as: a +/-3,500 SF office with a tenant on its initial five year lease. AND, there is room to go rent wise.

At the current lease payment you are looking at a 7 to 7.5% Cap Rate.

So, give me a call 702-501-9388
David Howes
0 votes Thank Flag Link Tue Mar 26, 2013
I am looking right now at an available $99,000 house that will NET $800 a month with professional management included. That's over 10%+ ROI. If I am listening to the Fed Chair when he says he is keeping interest rates at near zero thru 2014, I have a pretty good feeling that you will make money in Las Vegas Real estate now.
The shadow inventory could be a factor, but the banks aren't stupid. They could disrupt a market and decrease the value of their inventory, which would not look good on their books.
I expect an orderly market flow, and with better employment and net increase in population plus pent up demand,/
Just listen to what the Wall Street Equity firms are doing. Billions of dollars invested SFR rentals in Las Vegas and other markets.

David Cooper ifindproperties
http://www.lasvegaswinner.org 702.499.7037
0 votes Thank Flag Link Thu Mar 21, 2013
Hi Jun,

If you are good with realistic 6-7% ROI on your property investment now and you will be in it for long term appreciation and you will be able to "weather" future possible drop in home prices,then I have a pocket listing that may suit you.

Call me or email me and we can go more in details and how I can help you with your investment property.

Rado Cvijin
Platinum Real Estate Professionals
0 votes Thank Flag Link Thu Mar 21, 2013
Jun: The pent up demand for Las Vegas housing will keep prices moving uo all of this year, 10% was the recent projection by local economist. The population is increasing and the employment picture is getting stronger.
A new investment group from Thailand just announced building a New 2 Billion Dollar hotel. Good paying construction jobs means good things for the Las Vegas housing market.
If you are ready to trust a 35 year seasoned vetersan of Las Vegas investing, contact

David Cooper ifindproperties Marketing Manager
http://www.lasvegaswinner.org 702.499.7037
0 votes Thank Flag Link Thu Mar 21, 2013
Hi Jun,

As I mentioned previously, Vegas is experiencing a bubble in real estate prices. When the bubble bursts, beware of prices falling possibly 10%-30%. There are properties in some areas that may achieve a 10%-20% ROI, but they are likely to be in the areas that may experience the greatest drop in prices. Unless you HAVE to buy now, I would recommend waiting 12-18 months and buying when the prices come down. I work with many investors and they are dumping their properties because they can get prices they thought would be achievable 5 or more years from now. They are preparing to hold onto their funds until next year when they will invest again.

If you have any questions, feel free to contact me at anytime.

Brett Gordon, Broker-Salesman
(702) 283-1960
0 votes Thank Flag Link Thu Mar 21, 2013
Hello Sir,
My name is James Diona. I am a Portfolio Manager here in Las vegas. I represent multiple Real Estate Investors from all around the world. Technically most will tell you that it is a bad time to invest, it is a Seller's Market. They are right in some aspects, however I have several resources which allow me to buy income producing Assets. Our Investors are gaining 10-20% ROI on Single Family Homes and 4-Plexes. I would love the opportunity to earn your business. Please contact me directly to discuss your options. 702-427-8675.
0 votes Thank Flag Link Thu Mar 21, 2013
Homes are so scarce right now that you just take any place where you can find a home.
0 votes Thank Flag Link Thu Mar 21, 2013
Las Vegas home prices are now in "artificial bubble" caused by lack of available homes for sale and with present prices you would not be able to get 10-15 % ROI, more realistic is 6-7% .
If you want ROI 10-15 % then you should wait 12-18 months.
It also depends what are your goals and objectives with your investment property.

Rado Cvijin
Platinum Real Estate Professionals
(702) 419-7922
0 votes Thank Flag Link Thu Mar 21, 2013
Money magazine picks Las Vegas as the Best Investment opportunity city in the US. I am finding cash flow on $100,000 homes getting 10% to 15% ROI. The spring buying season is off to a very strong start, lots of demand and limited supply. The perfect economic signal for an increase in prices. Check on our foreclosure list of deep-discounted homes and let's get you useful investment strategy from 25 years experience.

David Cooper ifindproperperties Marketing Msanager
http://www.lasvegaswinner.org 702.499.7037
0 votes Thank Flag Link Wed Mar 20, 2013
WAIT!!!! Coming to you straight, if you want to have long term price appreciation, wait another year to buy. I am a real estate agent and I am telling most everyone to wait 12-18 months before buying. We are in a bubble that will burst when the foreclosure funnel fills and the shorts sales grow. Keep this in mind and call me in a year. I think you will be much happier.

Brett Gordon, Broker-Salesman
(702) 283-1960
0 votes Thank Flag Link Wed Mar 20, 2013
I like the Northwest, Summerlin, Green Valley and there are many nice communities in Las Vegas that are good investment areas. I would love to set up a personal search page fof you. Then you can get a feel for what is available. My partner can video most properties. This is a great way to do a video walk through long distance. Lets talk when you have a chance. I am here to help in anyway I can.
Thank You
Suzie Marquardt
0 votes Thank Flag Link Wed Mar 20, 2013
Please call me for this information. My wife and I currently manage close to 400 properties for our investors and we've been in Las Vegas since 1976. We specialize in the investment real estate market and we would like to share information with you privately which I hope you can understand. Our formula is based on many years in this market and having closed many different type of deals. Please call any time after 8am till 10pm PST. Thank you, Matthew and Kim D'Ercole. Prominent Realty Group LLC, 702.501.0973
0 votes Thank Flag Link Wed Mar 20, 2013
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