Las Vegas Market

[Jaime Botello]

is the Las Vegas real estate market still good for investors? I'm not seeing the great deals I saw a year ago. 

[Robert Adams]

@Troy Fisher  and @Jaime Botello  home prices are still going up in most areas here in Las Vegas and Henderson but just not as fast as they were over the past several years. 2012 and 2013 we saw 30% annual appreciation. The last figures I heard for 2014 was an 11% annual appreciation. Inventory is still rising gradually but consistently week after week as it has been for months now. This time last year we saw a big increase in inventory and then it leveled off after Dec 2013 (unexpectedly). It will be interesting to see if the holiday season levels off again like last year or if it will increase.

If you are a buy and hold investor you can still find good cap rates of 6-7% if you are looking hard. An average cap rate will be closer to 4% after expenses, repairs, ad vacancies.

If you are looking to flip you will need to think outside the box and find properties off the MLS. As most of the properties on the MLS are still selling close enough to appraisal value that there is not enough meat left on the bone to cover all closing costs, ownership costs, rehab costs, and still be able to turn a profit. (I am not saying it is impossible but it is hard to find on MLS.) I have written up over 30 offers on properties on the MLS in the past 2 months to find something to flip for my personal portfolio and have yet to get one accepted. If you plan to buy and hold and then flip you will have better luck with MLS properties.

In regard to the HOA liens the Supreme Court just ruled in favor of the HOA lien wiping out the 1st. I think there are still several obstacles for these investors to realize their huge profits with without risk but from what I can tell HOA liens have now gone from about 20-30 cents on the dollar to closer to 90 cents on the dollar so honestly the time to buy those HOA liens were prior to the courts decision but that is when it was much more risky. More Risk = More Reward.....imagine if you bought those HOA lien properties the decision went the other way.

@Lee P. and I were actually discussing this about 8 months ago when he had come across and investor trying to sell off a chunk of his portfolio for 50 cents on the dollar. At that time we had decided that was too high for the risk involved and passed on the opportunity. Now that it is a 90 cents on the dollar it sounds like a bargain but if the decision went the other way we would have lost $$$.

Please feel free to contact me directly to discuss the market or your investment strategy. I would be glad to help if I possible.

Take care.