All Forum Posts by: 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

@Doug Davis my opinion would be to remove it. If you rent the home with the water softener at move-in a Tenant will expect it to work.

Removing and looping an older water softener inside a garage costs under $100 so well worth the minimal expense. I've never removed a water softener from outside though and it seems a mower could easily clip a loop if the weeds/grass get too high (based on your pic).

In Las Vegas I've also experienced membranes of older water softeners breaking which pushed tiny yellow resin beads through the plumbing causing interior plumbing issues. The resin beads clogged shower heads, faucets, etc...a hot mess. 

No - I've stopped buying in Las Vegas and Henderson. Prices are just too crazy and too many people are bidding up the ask price to unreasonable levels.

@Wendy Jiang I don't see any post mentioning brand. You'll find a lot of great deals on new Samsung and LG appliances but talk to any appliance repair tech and they will recommend staying away from these two brands. Just google "class action lawsuit Samsung/LG" and you'll find many articles to read. 

We've had the best luck with the Whirlpool brands including Maytag and Amana. We only manage A/B detached single family homes so we don't use Hotpoint.

@Marilynne Poumele-Flores When I first started out I didn't own a home. The condo was my first purchase and I lived in it for a few months and then turned it into a rental because I moved from AZ to CA. Heidi

@Marilynne Poumele-Flores I started out investing 20 years ago with no money. My first condo purchase was almost 100% financed with an FHA loan. Fast forward 20 years and I now have multiple investment properties paid off from my hard work and ability to save. Having reserves is key. Watch all your expenses and save every penny. Even if something only costs $5 if you don't spend it you'll have it to invest.

@Ginger Carr I cam across some information about Lake Las Vegas that I thought was interesting: "The lake was built in the channel of the Las Vegas Wash — the valley's only storm runoff outlet. A bypass was built for the wash beneath the reservoir and dam allowing it to remain connected to Lake Mead via two 96-inch diameter pipes. The bypass is a flood control measure, allowing flood waters to be diverted under the lake into Lake Mead with the rest absorbed by Lake Las Vegas, itself. After falling into substantial disrepair, the pipes — which are owned by the city of Henderson, but maintained by the resort — were repaired in 2009 at a cost of $3 million." 

I found the info on Wikepedia this morning because I was still curious about your question 6 months later! 

Whenever you make it to Vegas next I recommend heading over to The Clark County Wetlands Park. The park is on the east side of the Las Vegas valley and runs from the various water treatment plants near the natural beginning of the Las Vegas Wash to where the wash flows under Lake Las Vegas and later into Lake Mead. The visitor center has displays on how the washes have been built over the years to avoid damage from flash floods.

Even those these washes have been built some streets and intersections still flood with water during monsoons. If you've never experienced a flash flood in Vegas they are intense. This local news video will give you a glimpse of the flash flood exhibit at the Springs Preserve along with showing you some images of flash floods in the suburbs of Vegas and near the strip. I was caught driving during a flash flood back in 2010 and then again in 2021 and they are no joke.

@Pal Sa it's important for investors to realize most must adhere with the fair housing act when it comes to processing rental applications and approving/denying applicants. If your unfamiliar with fair housing it's worth your time to learn about it. Here’s a good article from Forbes for a quick read: https://www.forbes.com/advisor/mortgages/fair-housing-act/ 

  “any single-family housing that’s sold or rented without the use of a broker is exempt from the FHA, as long as the owner is a private individual who doesn’t own more than three such homes at one time.” 

If you're an investor with 3 or more properties, or hold your investment properties in an LLC, it's wise to familiarize yourself with everything fair housing.

One of the requirements is to send an adverse action letter if you deny an applicant or approve an applicant with different terms such as double security deposit. Here is an example of an adverse action letter and the Summary of your rights under the fair credit report act that should be provided with the adverse action letter. 

@Alicia Marks Super simple. It's fun and engaging and there is always something to learn. Personally I like knowing we are offering a safe and habitable place to live for those who are less fortunate in Las Vegas and cannot afford to buy and/or are in a temporary position and prefer to rent. Sometimes the public and/or politicians look at investors as the "bad guy" but most landlords are providing an awesome service to the public. When done right being a residential rental investor is very rewarding from a financial, social and emotional perspective. Cheers to all us investors who work hard and make this happen! It takes hard work, effort, determination, sacrifice and a strong work ethic to become a residential investor. There is no easy path but it's a fun path regardless.

@Natalie Onacki just ask around and many people you know probably know a lot of about Texas. I know a few investors who have been successful investing around the new Hello Bello plant: 2101 Texas Central Pkwy, Waco, TX 76712. Take a look at SFRs or townhomes in the area. Just an idea. - Heidi