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Category Archive : Investing

586 Lairmont Place, Henderson NV 89012: Luxury Cabinetry Tips and Pitfalls

Whether in new construction or a major renovation project of a luxury home, one of the largest line items you will encounter is the cabinetry. It is easy to underestimate how important a role your cabinet provider plays.

In most large estate properties you have to install custom cabinetry. The scale of the rooms, the incorporation of appliances and other fixtures cannot be solved with the traditional stock cabinets. Filling a room is simply not a matter of a 42 inch cabinet here, two 24 inch drawers there until the lego set is competed. Also, high-end finishes of the cabinets themselves just aren’t readily available until you progress into the custom level.

We are currently redeveloping this residence at 586 Lairmont Place, Henderson, NV just outside of Las Vegas, Nevada, and are installing all new cabinetry and mill-work throughout the entire house. We selected a local specialty cabinet company who will design and coordinate with us and our other contractors to ensure not only the look we want, but that the cabinets and other mill-work fits precisely into the existing architecture.

Floating Vanity Cabinet

One major recommendation I can make is to stay involved in the design process, learn their language, learn how to read the drawings, and constantly think of how a drawing on paper or computer will translate to functionality. If you simply assume they have it covered and check in at the end you could make costly mistakes that could mean more money and lost time. Custom cabinets can easily take 9 – 12 weeks, waiting for replacement pieces or redesigns can dramatically affect your project schedule.

Tips:

    1. Get your cabinet designer and other sub contractors such as the electrician and plumber to coordinate closely between you and the cabinet maker. Nothing is worse than seeing finished cabinets that don’t line up with your plumbing lines for example.

 

    1. Allow enough time to complete the cabinet production phase so it doesn’t disrupt your project timeline. Take into consideration if your cabinets are being produced outside the U.S. the shipping time and potential delays.

 

  1. If you are putting in both flooring and cabinets, decide early which is best for you. There are pros and cons as to whether flooring or the cabinets should be installed before one another.

Choosing a Low Voltage Package – 586 Lairmont Place Henderson NV 89012

During the construction phase of our luxury investment home, 586 Lairmont Place, my business partner and I needed to make a decision regarding low voltage features.  With large luxury homes a certain standard is expected.  If we want to make an energy efficient smart home, now is the time to make these decisions while we have our walls and ceilings exposed with no drywall.  Below are the options we went with.

Green Control Panel

Lighting: Traditional lighting seen in most homes involves an in-line switch that operates a light or a circuit of lights.   Lighting is the core of home automation, and if you choose to make your home a “smart home”, a lighting control system is a must.

A lighting control system is defined as an intelligent network based solution that incorporates communication between various system inputs and outputs related to lighting control with the use of one or more control devices.  Basically, any light in the home can be controlled from a single device, in our case an Ipad on a docking station.  This is important with large luxury homes for 2 reasons.  The user can turn off a light that is left on in a room that may be a far distance from the front door, when leaving or the master bedroom when going to sleep.  Secondly, both energy savings and the life of each lamp will be greatly increased.

The brand of system we choose is Vantage.  Vantage is among the highest ranked home lighting automation systems, and will allow us to achieve more functionality with dimmers and more circuits per panel.

Typically, a lighting control system would be installed right after the framing phase of construction, and before drywall is in place.  There are systems however that can be installed without removing drywall.

Audio:  Most productions home buyers will consider surround sound in one or more rooms to fall into “home audio” category.  For higher end luxury homes, a full home audio system with amplifiers controlled by a single device is more ideal.  This includes in wall/ceiling speakers throughout the home operated with either wall mounted controls, Ipad docking stations or an iphone/android.  These speakers can also act as your intercom system and doorbell.

Network/WiFi: A typical wireless router will not be sufficient for larger homes.  What we will need is a high power gigabit wireless router with 2 high power wireless WiFi access points.  Our router is dual band gigabit, the latest advancement in WiFi technology delivering speeds up to 1750mbps.  Our 2 access points will harness data transmission so that more data reaches each targeted device instead of radiating in all directions equally.

Heating/Cooling Controls: There are 9 separate hvac controllers in our home.  They will be controlled in 3 different ways.

  • Wall mounted thermostats.
  • Ipad docking stations.
  • Iphone/android application from any location outside or inside the home.

Energy savings will greatly increase by allowing the user to remotely control the temperature.

These low voltage options will greatly increase the value of our home.  With the latest technology, we have turned the home into a “smart home” allowing the end user to save money on energy bills, and gain the convenience of controlling the entire home lighting, hvac and audio from a single device.

If you need a real estate brokerage that offers services to landlords or property owners. If you have rehabbed your property and want to hire a company that will do its best to preserve your property while leased or it’s time to sell, please call Shelter Realty at 702-376-7379.

Rehabbing Grunt Work at 586 Lairmont Place, Henderson, NV 89012

I had to post this video of the tough work one of our sub-contractors had to go through on this project. The more we looked at the exterior of this home, we hated it. MacDonald Highlands located in Henderson Nevada, just outside of Las Vegas likes to encourage the use of stone on home exteriors but this one looked as if someone just threw some tile on the sides of the house just to make the HOA happy, but the tile choice and placement was terrible and actually detracted from the appearance of the home. We bit the bullet and ordered the tile removed so we could stucco and repaint the entire exterior.

Trade persons work very hard but this work went above and beyond. Imagine running a 15 Lb power chisel above your shoulders on a vertical wall for 6 hours a day over two weeks. I know this home will look so much better once the exterior is changed but wow, what a job. Cutting the checks to pay for it is no fun either, and we sure would have preferred not to do it, but tough choices are the norm on a rehab.

If you need a real estate brokerage that offers services to landlords or property owners. If you have rehabbed your property and want to hire a company that will do its best to preserve your property while leased or it’s time to sell, please call Shelter Realty at 702-376-7379

Why You Should Consider 1031 Exchanges for Your Las Vegas Business Use or Investment Properties

National home values have risen and your investment properties probably gained values too. The Internal Revenue Code Section 1031 gives investors the ability to defer capital gain tax when you exchange business-use or investment property for another business-use or investment property.

There are many ways of exchange. For example, sell a vacation rental home in Hawaii and buy three investment properties in Las Vegas to generate more stable and higher income, sell an old apartment building which always needs repairs and buy a Triple Net Leased commercial property, sell a farm land in California and buy a hotel-condo in Florida. It can be exchanged for personal properties too.

Flipped properties don’t qualify, but if a property listed for rent for a few months without finding a tenant then changed it for sale, can qualify, as well as vacant land which didn’t generate any income. (Per Certified Exchange Specialist, Carmine at First American Exchange)

There are two deadlines for successful 1031 Exchange;

  1. Replacement properties must be identified within 45 day.
  2. The exchange must be completed by the earlier of 180 days from the date of the first relinquished property closing.

For fully deferred exchange, replacement properties must be greater or equal value of the relinquished properties, and all proceeds from the sale of the relinquished properties must be reinvested.

It’s important to select a Qualified Intermediary with financial backing of $1,000,000 Fidelity Bond and $250,000 Errors & Omissions Bond. Nevada is one of nine states which enacted the QI law.

Las Vegas Real Estate Investing – High Rise Condos

The Las Vegas Condo-hotel Concept Pt. II

As with any potential real estate investment, a buyer should cautiously examine contractual details, make observations, and examine facts before deciding on whether or not a Las Vegas Condo-Hotel is in line with your goals and lifestyle.

  • The location of your prospective purchase should be in a desirable area. Although the condo home itself may be a well designed and luxurious unit, location is an important factor in desirability and will most certainly reflect upon the ultimate appreciation of the property.
  • Is the unit located in a structure built specifically as a luxury hi-rise, or has the building been converted from a standard hotel or apartment complex into condo units?
  • When was the structure built? Some older condo conversion buildings may have smaller floor plans, less desirable locations and fewer amenities, but are usually much less expensive.
  • Good management and a developer of excellent reputation is a most important factor in value appreciation of the investment.
  • The units themselves increase in desirability if they have spacious, well-designed floor plans, high ceilings, sizeable balconies, impressive views, top quality appliances, granite counter tops, and marble vanities.
  • What amenities are available? Among the most desirable features are: a state-of-the-art security system, secured parking, 24-hour front desk, concierge services, work-out room, swimming pool (or pools,) lighted tennis court, on premises maintenance crew, card room, library, clubhouse or meeting room. Nicely landscaped grounds add to eye appeal.

Owner/management agreements generally include the following specifications:

  • Amount of net (after deductions) rental revenue shared by condo owner and the management
  • Condo-hotel owner responsibilities for insurance, real estate taxes, capital improvements, debt service, etc.
  • Management responsibilities, including maintenance, housekeeping, administrative, front office, marketing, other operational expenses, etc.
  • Rental program agreement specifying number of days annually that the unit will be available for rental purposes and notice requirements, and contingency procedures

Although it is, of course, not a requirement of purchase to rent a condo-hotel a number of times per year, or rent it at all.  Renting the unit, however, not only defrays owner costs but is profitable as well. In fact, that convenience is the primary reason, of course, that these kinds of units are purchased in the first place.

However, some come-and-go condo hotel owners may eventually decide to stay permanently. In that case, the rental agreement with management would be canceled.

In fact, a condo hotel purchase should be considered similar to investing in a second or vacation home, but with an added part-time rental feature, and hassle-free, with no maintenance or grounds keeping chores to come home to.

Feel free to give us a call at 702.376.0088 with any questions about the Las Vegas High Rise Condo market.

Las Vegas Real Estate Market is an Investor’s Dream

Anyone that is following the Las Vegas Real Estate Market is aware that home prices are at historic lows. Due to the fact that Las Vegas has been leading the nation in foreclosures, Banks and Lenders have been placing homes on the market far below market value which is driving down home prices. Even though many Las Vegas Homes are selling above list price, the fact they are priced so low is still causing home values to fall.  This trend could continue as foreclosures are still prevalent in the Las Vegas Valley.

With such great deals to be had, Investors are flocking to Las Vegas just like they did in 2004 and 2005 but the big difference is the price of the homes.  If an Investor purchased a home in 2005 and rented it, chances are their mortgage payment was higher than the amount of rent they collected.  In today’s real estate market, you can find great deals on homes that will net you positive cash flow.  We currently have several Property Management accounts where our Landlords are cash flowing over $400 a month.  That just wasn’t possible in 2005 unless you had put down a size-able down payment which really defeats the purpose of investing.

Even with the amount of rental homes hitting the Las Vegas Real Estate Market, rental rates have not fallen as demand is so high.  So many Las Vegas Homeowners have lost their homes and have no choice but to rent.  It will take years before they can buy a home again due to changes in lending guidelines and many won’t buy a home again due to the traumatic experience of losing their previous home.

If you are thinking about buying a Las Vegas Investment Property and want to know rental rates for a particular area, feel free to give us a call at 702.376.0088.