Institutional Investors still in Vegas? Slowing but still here.

[Account Closed]

About 18 months ago I started noticing institutional investors heavily infiltrate our local market. They had always been here but the stepped up their game Fall/Winter of 2020 and jacked rent rates in previously less desirable zip codes like North Las Vegas. 

It's been fascinating to watch as they target certain neighborhoods. I had a listing in El Capitan Ranch late last year (zip code 89128) and the Seller was trying to push market comps with his list price. Guess who was offering above comps? An all cash institutional investor. The funny thing is we wound up withdrawing the listing from the market for Seller tax reasons. After the home was pulled from the market the institutional investor reached out again and offered another $15k premium over their last offer (which was already over comps). 

If your trying to invest in Vegas and have similar criteria to the list below you may find yourself competing with an institutional inventor. They have slowed somewhat but have increased their purchase price up to $475k (previously capped closer to $400k)

* SFR Only (no attached)

* Max price $475k
* 3+ Bed, 2+ Baths, 2-car Garage
* Built 1980+
* No Pool/Spa/Septic/Solar

Typical offer:

* Waived appraisal
* No financing or other contingencies
* No concessions requested or home warranty
* Quick close of escrow

The close on about 95% of their offers.

On a side note our market seems to be tipping. Our available inventory is slowly creeping up by about 100 homes a week. We just started noticing this the past few weeks so TBD if it holds. But if it does this could crossover to other markets as well.

-Heidi