Las Vegas???

[Jamal Harb]

From a real estate fundamental perspective! Real estate in Vegas falls short on a few elements. However, I HAVE BEEN HEARING that there are great cash flow deals right now. Has anyone invested recently in Vegas and what are your thoughts? Thanks,

[Tiger M.]

Richard Chang there also several things are going to cause the Vegas market to continue to increase and appreciate. Harry Reid appears to be involving himself in the discussion for AB 284 that would continue keeping the banks from foreclosing on properties. As a result of his involvement we anticipate a continued shortage of inventory. There are literally billions of dollars worth of construction projects that are funded and breaking ground which are going to cause a huge influx of workforce tenants. This will keep both grants robust and sales prices increasing. Another factor is the new home construction. The finished lots that were foreclosed on or bankrupt have all been absorbed and constructed by the new homebuilders. They now are being required to buy land at a price of about $200,000 an acre and then spend an additional $35-$45,000 in site development. Based on densities of eight units breakers this will increase the cost of each single-family home by a minimum of $50,000 per unit. Resale homes always always always follow the prices of new construction.

That being said we still have headwinds that I think we're to face in the form of potentially rising interest rates, and overall instability in the stock and bond markets.