Choosing a Las Vegas Investment Property

There are many factors involved – from  a Las Vegas Real Estate Investor’s prospective – in choosing which single-family home properties would be the most suitable for purchase. Among the most important considerations are what type of purchase arrangement can be negotiated, and who the seller may be, private owner, or bank, urgency to sell, etc.

Among the criteria to be considered in evaluating the property’s cost of purchase and after-purchase expenditures versus ultimate profit potential are the following: Read More

Homeowners Association Board of Directors Elections

This is the time of year when plans must be made for the election of the new Homeowners Association Board of Directors. Property managers are required to supervise the election process from start to finish. They begin by mailing a flyer and Nomination Form to each homeowner informing them that an Annual Election Meeting is currently being scheduled. Those individuals interested in being  candidates are asked to provide relevant information regarding his or her qualifications to serve on the Board and the reasons why they wish to do so.

Terms for Executive Board Members are now allowed to be increased from two to three years. There is no Legislative limitation on number of terms a member may serve. Each HOA must have a minimum of three Board Members with an odd number preferred for tie breaking of votes.

Sometimes there are not enough candidates interested in serving on the Board of Directors and sometimes there is a battle for control of the positions between two differing factions.

The updated procedures for elections now state that if the number of candidates running for the Board is the same – or less than – the number of vacancies, a notice must be sent out to all homeowners by the Executive Board that all those nominated are considered to be elected – unless an owner submits a nomination form within the nomination period – which is thirty days after receiving the notice from the Board.

If another owner indicates interest by submission of an application, a regular election is then held with the usual balloting procedure. If there are no other candidates, it will not be necessary for ballots to be mailed to the community and the previously named candidates will be considered as newly elected Board members thirty days after the closing date of the period of nomination.

When there are sufficient candidates for a ballot, each one may request that the HOA send out to each owner at the association’s expense a candidate informational page listing his or her areas of expertise and experience that will benefit the community.  Often, each HOA will host a Meet the Candidates night supervised by the property manager so that unit owners have the chance to ask each candidate how he or she feels about specific community issues to help them determine for whom to vote.

All ballots that were mailed in to the management company are brought to the meeting by the property manager. These votes, along with ballots that are hand delivered at the Annual Election Meeting, are opened and tallied by an Election Committee in full view of the unit owners. The duly elected Board Members then meet privately, elect officers and preside at the Annual Meeting.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

If you are in need of funding to take advantage of the Las Vegas Real Estate Investment opportunities you are focusing on, and prefer not to go through the time-consuming and rigorous procedures required by traditional institutional lenders, then your only alternatives are either to use your own funds, if sufficient, or to seek out a Las Vegas Private Lender or real estate investment group, and convince them of the feasibility and profitability of financially backing your projects.

First of all, you must gain the confidence of your investors by presenting them with a list of credentials that will convince them of your ethical and financial, credibility, expertise in the art of creative real estate investing, and previous successes.

Secondly, your investor, or investors, will need to evaluate the property or properties you have in mind to purchase. Then, you should certainly have a proposal prepared that will convince these lenders that the investment will be a sound and profitable one.

Once an agreed upon purchase price has been reached with the seller, and accepted by the lender, then an agreement between the investor and the lender as to the rate of interest the repayment will be subject to, and the length of time required to pay back the loan amount, plus interest is set and finalized.

To further boost your investor’s confidence and assurance that they will be as fully protected from loss as possible, the loan amount should not exceed seventy percent of the after repair value of the Las Vegas Property, for example, in the case of a rehab purchase, thus insuring the investors that the project will retain sufficient equity to satisfy the lenders in the event of default.

Additionally, as an example, for a Las Vegas Residential Property purchase, the lender will undoubtedly require a home owner’s insurance policy, a title policy, a first mortgage position, a property appraisal and may additionally require a personally signed and notarized promissory note.

You may be fortunate enough to find investors willing to partner with you in your Las Vegas Real Estate Investment endeavors among your family or friends, your attorney, CPA, or even your doctor or dentist.

Check on line for venture capitalists, private investment groups, talk to real estate entrepreneurs, landlords, etc. But before proposing any real estate investment deal to unknowns, you should investigate them as thoroughly as they will most certainly investigate you.

In order for any real estate investment proposal to be undertaken, absolute trust, credibility, and faith in the ultimate profitability of the venture must be established on all sides.

Ultimately, however, when you find a lender to finance your Las Vegas Real Estate Investment projects, you must have the know-how to get lender financing at reasonable rates in order to fully maximize your project profitability.

Some of the most disappointed people I know are those who, without the knowledge, skills and experience required  to reach their investment goals, have banked upon unproven and unwise “get rich quick” schemes in order to “cash in” on the current glut in Las Vegas distressed properties.

Many of these people are would-be real estate investors who have bought into all the “hype” about how easy it is for ANYONE to get rich quick by buying, and “flipping” distressed Las Vegas Real Estate properties; single-family homes being the ideal.

Unfortunately, many of these people have little or no knowledge of what it really takes to be a successful buyer/seller of real estate, and are often only vaguely familiar with the various terms used to describe properties in distress, or how it is necessary to know the full meaning of these terms in order to devise the proper strategies necessary to profitably acquire these residential or commercial holdings.

For example:

• Las Vegas REOs: REOs or Real Estate Owned Properties can be, and most often are, bank owned (repossessed) properties that had been offered for sale through an auction or trustee sale, did not sell, and reverted back to the first mortgage holder – most often an institutional lender (the bank.) These properties are in actuality lender investments gone bad.

REOs are properties that have been accepted by a lender in lieu of foreclosure. In short, REOs can also refer to ownership of a property held by an individual or corporate entity.

• Las Vegas Short Sales:  In essence, a short sale occurs when a mortgaged property is sold for less than the balance due on the loan, a common occurrence these days.

A short sale is a real estate transaction that can be advantageous to the astute real estate investor, but is a transaction neither the lender or homeowner wants, since they both lose. The lender’s loan has gone bad and the homeowner is a homeowner no longer, has damaged credit, and has lost his investment as well.

Purchasing a foreclosed property requires more than just having purchase money. Not every foreclosure is a good deal. Depending upon a host of circumstances, some properties may be bad investments; extensive damage to the home caused by the former owners, severe flood or structural damage due to natural causes, property location in a blighted area, etc.

Additionally, one must understand the laws unique to the state in which the foreclosed property is located, in order to understand and negotiate the sale in accordance with those laws. Failing to follow the legal guidelines, and not properly preparing the necessary paperwork, could result in fines, lawsuits and possible revocation of the sale.

Finally, it’s important to also understand that there are various reasons, and different strategies required to become a successful investor in Las Vegas Real Estate. Establish your goals; fast turnover, long term investment, rental property, etc. Do your homework, seek advice from credible, knowledgeable sources, and go from there.

Investing in Las Vegas Single Family Homes

If your real estate investment focus is primarily on the Las Vegas single-family home market, there are a number of options to consider, any of which could prove quite profitable, provided your investment strategies are on target.

• Purchase/rent or resell
• Purchase/repair (fixer-upper)-rent or resell
• Purchase fixer-upper/ sell to renovator as-is
• Lease/option rental
• Purchase/sell to investors

As in any money-making endeavor, the old saying “buy low/sell high” is the ideal scenario for any profitable venture; however, there are few simple money-making scenarios in the Las Vegas real estate investment game, particularly considering current market conditions.

In order to find the most profitable deals, you need to locate motivated sellers, including lenders with an inventory glut of deals gone bad, and adapt your methods to concur with the marketplace.

Since finding the properties that can make you money is the key to your real estate investment success, you have to know where to find the deals most suited to your investment goals, for example: Las Vegas Short sales, foreclosures, “underwater” homeowners, homes for sale due to divorce, death, relocation, etc.; these offer many opportunities for the astute investor to capitalize on.

Don’t forget the MLS. That may seem obvious, but the MLS allows you to quickly evaluate a property to see if it fits your profile of targeted properties. The MLS can be a shortcut to finding the particular kinds of housing that suit your investment strategies best. Check with the county recorder’s office as well to keep up to date on realty transactions.

Network with your business associates, attorneys, Realtors, accountant, etc., even your mailman. Let everyone know that you are in the market to purchase Las Vegas single-family homes. You may be surprised to find that some of your best deals can originate from many an unlikely source.

Another form of generating new business can be from Yellow page ads and flyers targeted at specific neighborhoods which work well in some cases, and not in others. However, you won’t know if they work for you unless you try them.

Once you have found a property or properties of interest, don’t make a move until you have determined the property’s current market value. Seems like a no brainer, but this is where your Realtor comes in. He/she will have access to the up-to-date information you need in order to determine how much you are prepared to pay for the property, as opposed to the asking price.

Once you have concluded a deal, it is imperative that you have given equal thought to formulating effective strategies to attract buyers or renters, in order to generate profits as soon as possible after purchase.

Always keep in mind that reliable information and advice is the foundation upon which every successful real estate venture is based.

Condominiums

Investing in Las Vegas condominiums is no different than any other real estate property investment. Knowledge of current market conditions, working with an experienced, knowledgeable Realtor, and having a real estate attorney and CPA on your team will certainly help to ensure that intelligent investment decisions will be made.

In the recent past, certain cities, such as Miami and Las Vegas, for example, experienced explosive growth in condominium construction, and condo homes were being sold as fast as they were being built, with even pre-construction units being quickly snapped up.

Current market conditions, particularly in these two cities, reflect an entirely different scenario. Despite a glut of willing buyers, and an equal glut of distressed condo units on the market, many selling at “bargain” prices, sales are not overwhelming, and the inventory of unsold units remains high.

Does that mean that investing in Las Vegas condo units as rental investment properties should be avoided, particularly during these difficult economic times? Certainly not! Many of these kinds of investments can still become profitable, if careful planning and forethought are the guidelines used before making a purchase commitment.

Forecasting the future of any investment is never a sure thing, particularly in a downside marketplace, with no firm indications as to when and to what degree an upturn will occur. However, investment knowledge and skills, backed by reliable advisers will certainly maximize the chances of an investor making the right choices.

Condos are still popular with young professionals and retirees, and offer many amenities not available to the average apartment dweller or single-family homeowner, such as workout rooms, spas, swimming pools (sometimes more than one), tennis courts, concierge services, secured parking, building and condo unit security systems, libraries, card rooms, a clubhouse, and, balconies, city,  or mountain views, and more.

Another big plus for many condo dwellers, is they do not have to deal with the many maintenance issues involved in single-family home ownership. Some condos are part of a mixed-use development complex, with retail shops and restaurants on the premises.

Investing in condo conversions, however, are unlikely to offer the same profit potential as complexes designed and built as condominiums. Condo conversions are simply apartment buildings, with units originally rented on a lease basis, and are now tenant owned.

Cosmetic changes, simply painting the premises and possibly landscaping the property may be the only upgrades from apartment complex to a condo conversion the owners are willing to make.

Chances are, the building is an older structure and may have expensive plumbing, electrical, heating, cooling and structural problems in the near future –or sooner.

Overall, although a condo investment may not realize the future value appreciation of a single-family home, they are normally less expensive an investment, and with careful investigation and planning, a good way to leverage your real estate investment dollars.

Fixer-Uppers

There are countless innovative and creative ways to invest successfully in Las Vegas real estate, but the following is an overview of one of the possible ways to buy, manage, and sell real estate profitably:

Fixer-uppers:  Single family homes in need of repair, (some minor, some major) can often be purchased at a significantly below market price, and basically, repaired and sold for a satisfactory profit.

Not so simple! As in any financial transaction, you better know what you are getting into before attempting this, or any other method of making real estate based profits. Read More

Move In – Move Out Inspections

Prior to occupancy, the property manager and new tenant should mutually inspect the premises, checking for wear and tear and any defects, damages or malfunctioning utilities, plumbing or electrical problems, etc., that may have been overlooked by the landlord or property manager during the move out inspection of the property after the previous tenant had vacated.

The inspection results will be documented in detail by the property manager, with copies submitted to landlord and tenant. This report can either be hand written or electronically documented. This inspection report will assure the tenant will not be held responsible for any damages to the premises that occurred prior to his/her move in. Read More

A property owner appoints a professional Las Vegas Property Management Company to protect and enhance his investment. As the owner’s representative, the property manager’s priorities are to maximize occupancy levels, thereby increasing property values, assure timely collection of revenues, maintain and enhance the property, have a good rapport with the tenants, quickly and efficiently handle problems and promptly respond to emergencies.

Timely collection of rents is obviously most important to the landlord, and the transferring of these rent receipts to the landlord from the management company in a timely manner is just as important.

A frequent complaint from Las Vegas Property Owners in relation to their management company’s performance is a delay in transferring funds from manager to landlord within a reasonable time period. Frequent delays in transferring revenue can result in serious friction between the property owner and the management company.

Obviously, since the collection of rents is the primary source of a landlord’s revenue, the property owner must be assured that prospective tenants are thoroughly screened for past payment history, current credit worthiness, and sufficient income necessary to meet the property’s rental requirements.

Particularly due to the current economic situation, the property owner and his appointed agent should be in agreement as to what, if any, allowances are to be made in regard to a tenant who has recently fallen on hard times, but has maintained an excellent record for on-time payments in the past.

Once a new applicant has been approved for tenancy, it is important for the property manager to ensure that there is a full and complete understanding of the date and time when rents are due, and address any questions the new tenant may have about the leasing agreement, building amenities, maintenance procedures, etc.

Another property management essential is to complete daily, weekly and monthly documentation relative to reports of new tenants, evictions, pending legal matters, revenues, expenditures, and any and all matters pertaining to the owner’s property. This documentation is to be submitted to the landlord within a previously agreed upon time frame, as requested by the property owner.

In order to avoid misunderstandings and client dissatisfaction, it is of utmost importance that the property management company has reached a full and complete understanding of a client’s requirements, and that the client is in full understanding and in agreement with the property management company’s  fees, policies and procedures as well.

Successful property management requires, among other things, continuous education – keeping abreast of current and changing regulatory policies and procedures – access to the most up-to-date local market information available, excellent people handling/negotiating skills, and honoring commitments to landlord and tenant in a timely manner.

Establishing a good working relationship with the client unquestionably leads to client satisfaction and client referrals, the ultimate key to the successful operation and profitability of any business.

Being a landlord can be very rewarding but there is also a downside of being a landlord, Liability!  Every city, county and state has different laws and ordinances that you need to know and follow.  Staying current on these changes can be a burden but by not being informed it can cost you where it hurts the most, in your wallet!  NRS 118A.260 is one of the most common landlord obligations not followed based on conversations I have had with Landlords who have decided to hire a Las Vegas Property Manager. Read More

Las Vegas – Paul Murad, a Las Vegas community leader with international-business experience, officially declared his candidacy in the Democratic primary for the office of Lieutenant Governor on March 9th, 2010 at 10:00 a.m. at the Secretary of State’s Office.

Murad, a small business owner, brings with his candidacy in the Democratic primary race experience in business development for multinational corporations as well as leadership in local civic organizations. His background provides him with exceptional perspective to create economic opportunity in the state.

“The job of the Lieutenant Governor is to be the ambassador for Nevada,” says Murad, who speaks three languages. “I will aggressively promote Nevada throughout the U.S. and internationally, bringing new businesses and jobs to our state, and attracting capital and investments to diversify our state’s economic base.”

To set the stage for Nevada’s recovery, Murad is focused on economic development, expanding tourism and green jobs. His strategy begins with his 50-50 Plan, in which he will reach out to both the 50 largest domestic and the 50 largest global companies to draw them into Nevada. Murad states, “I will begin talking with companies that are routinely looking for locations to house their corporate headquarters, create manufacturing plants, or expand their distribution and warehouse space.”

Murad grew up in the Soviet Union, living in a one-room apartment with his mother after his father died when he was five years old. Due to the oppressive political regime and lack of opportunities, Murad dreamed of coming to America. As a teenager he came to the United States alone with nothing more than a few hundred dollars in his pocket. Since then Murad has run his own company, taken on leadership positions with local civic organizations and is truly living the American Dream. His mother, now also an American citizen, will accompany him to the Secretary of State’s office in Las Vegas to watch him file his declaration of candidacy.

Paul Murad was endorsed late last week by the group Hispanics in Politics, an endorsement that was posted in the Spanish-speaking newspaper El Mundo.

Nevada’s U.S. Attorney Daniel Bogden announced today the federal grand jury in Las Vegas indicted five people on mortgage fraud charges.  All five individuals were charged with conspiracy to commit bank fraud, mail fraud, wire fraud, (6) counts of bank fraud and criminal forfeiture.  Suzanne McAllister, an assistant escrow officer and notary at Lawyers Title, was one of the five indicted.

According to the Las Vegas Sun, The indictment lists 28 real property sales transactions involving 21 homes sold in Las Vegas between Aug. 25, 2005, and April 18, 2007. Seven of the homes were “flipped” or sold twice within short periods of time. A majority of the homes sold for more than $700,000, and the total value of the mortgages for the 28 transactions was $18.9 million.

If convicted, the defendants could face up to 30 years in prison and a $1 million fine on each count, and may be required to forfeit up to about $4.2 million.

The Southern Nevada Mortgage Fraud Task Force and U.S. Postal Investigation Service is handling the investigation.