Tuesday, October 30, 2012

Buying Investment Property In Las Vegas is Worth it.

Yes Buying investment property in Las Vegas is still well worth the effort.  It amazes me just how low prices have come down on investment and income real estate in Las Vegas.  It also amazes me that rents have not dropped much at all over the past several years.  Your cash flow opportunities are very good now and if you have cash you can find plenty of bargains.  Buying now in Las Vegas will be a good bet because it is unlikely we will see anothe meltdown of prices, at least not for a few years.  I am worried that Las Vegas may turn into a boom and bust cycle like we have seen at times in California and in Houston Texas.  However, it would be ideal if home prices would settle into a normal appreciation rate and be more reflective of the typical wage in the city.  However, with the influx of investors snapping up property we are probably seeing the making of another short term bubble.  Hopefully the pricing will be more stable in the near future but you can be assured that if we see any major appreciation most sellers will not think twice about dumping their property.  Too many investors were burned by the 60% drop in housing values in Las Vegas and many people will not make that same mistake again. 

This should not discourage anyone from getting into the real estate game.  Now is one of the best times to start looking to buy.  If you want to buy and flip or buy and hold you are in the right market.  I continually see the experts and gurus advertising to sell there books and products on how to profit from real estate.  I have read most of their work and advice.  You can learn from just about all of them yet I still see people complaining online about being ripped off or forced into investing their life savings into real estate buy some guru.  I don't think you need to go down that road or be silly enough to think it is easy to make a living investing in real estate.  I can tell you that living as a real estate investor can be fun and exciting but it is a tremendous amount of work.  It also takes a tremendous amount of work and study to be successful.  The other important ingredient is that you have to love real estate, houses and property and make it your passion.  If you do not love real estate on some level it will be very hard for you to stay focused long enough to learn all you need to learn to become wealthy.  It is not an easy road but it is possible and with hard work and dedication you can build an amazing portfolio in the next five to ten years. 

It also can be done by starting with little or no cash of your own but it is much easier to start if you have a way to get a down payment for at least one property.  I highly recommend keeping your day job while starting as an investor.  If you keep your job and save your money you will be ahead of the game.  As you grow your cash flow and your assets you will eventually be able to leave your day job if you wish.  However, it is very important to have a W-2 if you want to qualify for loans and if you want to use leverage to the best of your ability.  It is not impossible if you do not have a steady income but this just makes it much easier to get funding needed for your investments.  at

Find out more on investing in Las Vegas Real Estate Here at www.consideritsoldlasvegas.com

 

Monday, October 22, 2012

Income property and commercial financing

If you are considering an investment in income property or a larger multi-unit property you need to have a sold business plan and strategy.  You can qualify for traditional financing if you are purchasing a 4 unit or smaller. It is even easier to qualify if you are planning on living in one of the units.  You will then qualify for owner occupant financing.  The advantages with this type of financing could be beneficial.  The terms may be more favorable:  less down payment may be required, even lower interest rates may be possible and longer loan terms.  If you want to live in a unit in  4 plex for a year or more, you will have an advantage when it comes to financing and this could start your investing career out on the fast track. 

However, if you are looking to buy for investment purposes only, financing of 4 units or less is still much easier and is consider residential.  Most loan brokers can readily qualify you for cash flowing property of this size.  Once you get to five units or more the entire picture changes and the qualifications as well down payment requirements change.  The rates are typically higher and unless you have a tract record of managing and owing smaller rental units it is very difficult to get approved. If you are starting out investing it is a great idea to start with property consisting of 4 units or less and get as much good experience managing cash flowing units as possible.  You will likely still need to have some capital to invest but probably not as much as with a commercial loan.  The rates will be better on your borrowed fund and you will be starting at a level that is manageable.  The 4 unit property is a perfect way to learn the business of property management.  It will give you a chance to learn the laws and the art of dealing with both good and problem tenants. 

If you are considering buying or selling a home or income property in Las Vegas check out http://www.consideritsoldlasvegas.com and call Chris LaHaie, Realtor at 702-338-8526 to get your property for business plan to purchase evaluated for free.  Chris has over 19 years experience in the real estate business.  He can guide you to a highly successful transaction or help you build an extensive portfolio of investments. 

Sell your las Vegas home here

Thursday, October 18, 2012

Wednesday, October 17, 2012

Buying income property? A few things to make life easier

If you are buying income property in Las Vegas or anywhere for that matter, and it is your first investment property, consider buying a 1 story building or complex.  It may seem like a silly point but the difference in maintenance costs between a one story and a two story property can be a lot.  Also it is much easier to do minor repairs on the roof of a one story than it is on a two or three story rental.  I know that most don't want to do the repairs on their property and will hire out but just in  case cash is tight and you need to do a few things yourself, a one story is easier to manage. 

If you are in the east or Midwest it is likely harder to find a one story property without a basement.  If you can find a one story with a basement and it has a decent foundation with what is considered a full basement and not a crawl space your are in luck.  Having a basement on your duplex or single family makes all the repairs so much less costly and less time consuming.  Remember the idea is to buy income property not to buy a money pit.

If you have a basement you can access most of the plumbing and electrical without having to tear into the floor.  It can save you thousands of dollars and many ruined floors.  If you are in are in the southwest you will find it harder to find units with basements.  Often the ground is so hard that it is not cost effective to build homes with basements.  These homes are typically built on a slab or a concrete base that sits on the ground.  The ground is excavating no more than a foot or two for leveling and then the concrete is poured.  It works great and most newer units have started running plumbing through the attic areas of the one stories.  However, some older buildings still have the copper plumbing pipes running underneath the concrete slab.  Often in locales where the water is very hard and full of minerals it will eat away at the copper.  Over the years tiny pin hole leaks can occur and cause major issues with your water bill. 

These pin hole leaks are often very difficult to detect and can go on for months if not years before the loss of water becomes enough to be noticed on your water bill.  The water can be coming out of the pin hole in the copper under the slap and just wash away in the dirt.  It will usually not build up enough or to cause an issue if you are in a warm climate. The water just seeps into the dirt and evaporates without leaving any trace about ground. 

The water bill will start to show eventually if you track it regularly but one other way to notice is if your hot water starts to seem like it is not getting as hot enough.  What happens is that if the hot water pipe is leaking under the slab, it will cause the water heater tank to be continually drained.  It will keep having to turn on to try and produce hot water but the water will be leaving the tank to quickly and will not be warm enough.  This is of course if you have the standard water heater with a tank.  If you have a tank less water heater you may never know you have a leak until you see the evidence in your electric or gas bill. 

How do you find such leaks and how to do your prevent them?  
One way to find them is through the use of sophisticated and expensive listening device.  You set part of the device on the ground and it picks up sounds under the slab and transfers them into your head set.  It can pick up faint sounds and can make a tiny pin hole leak sound like a water fall.  However, they are very hard to use and they do take some practice to know how to distinguish between a water leak and other sounds.  But if you plan on owning enough rental property you can save a lot of money in the long run if you have older units.  You can expect to pay $1500 to $2000 or more for a high quality sound detection device. 

If you have a basement you are much better off if you have a leak. 

If you can get a single story with a basement you can usually save money on maintenance.  As long as you have a solid foundation a basement will make life a bit easier when buying income property. 

Income Property Las Vegas: Why wait to buy Income Property?

Income Property Las Vegas: Why wait to buy Income Property?: There is no reason to wait if you are interested in getting into real estate income property and real estate investing.  We have seen the ...



There are plenty of reasons to buy income property in Las Vegas today and little reason to wait.  This article explains a few of the reasons why and how while explaining the odds of another real estate meltdown are very low. 
There is no guarantee that we have seen the bottom in real estate prices but there is not much room for prices to go down further.  Another 50%  drop is only a remote possibility and if that happens we would all be wiped out anyway.  It would mean devastation to the economy and to jobs.  Right now property has value in that it is priced low enough to produce nice cash on cash returns immediately if you make reasonable down payment. 

Why wait to buy Income Property?

There is no reason to wait if you are interested in getting into real estate income property and real estate investing.  We have seen the worst real estate meltdown in Unites States since the great depression.  The odds of property dropping this way again in the next 50 years are low and it is likely property will return to its general trend of increasing in value.  We had seen a great run in property values for the past 60 to 70 years and we could see another reasonable appreciation cycle over the next 10-15 years.  The appreciation may not be astronomical as we have seen in the 1990's and 2000's but we will once again start to see real estate on the rise. 

Right now you can see very nice positive cash flows on property that until recently was running at a loss each month.  The key right now is cash flow.  Actually this has always been the key in real estate investing.  You may have gotten away with some investment for appreciation in the past but you are much more likely to get burned this way.  If you have 20 years until retirement you need to buy cash flowing real estate today and set up your retirement accounts.  The cash flow from real estate will be your nest egg and any appreciation will be gravy for you.  

If you can get over the fear of managing property, you will be able to find many great deals in income property today.  Especially on income property in Las Vegas.  If you are interested in learning how to invest in cash flowing income property send me an email.  I can get you started on the right path. I have been investing in real estate and managing property for over 15 years and have seen just about everything when it comes to dealing with tenants, code enforcement and insurance adjusters.  It is not all fun and games and it is not a way to get rich quick but it is a way to get rich.  It one of the few ways left for the little guy and where the small investor can get started with little or no cash.  

It is reasonable to assume that at anyone time there are always landlords that are sick of dealing with tenants and tired of real estate.  It is also reasonable to assume that there are always income property owners that would like to sell because they are nearing retirement, would like to move, or want to cash out their profits.  You never know why people want to sell but if you look around you should be able to find something that is a good deal from a reasonably motivated seller. 

Call me today if you are interested in finding a cash flowing income property or if you have one that you would like to sell.  I can help you through the entire process and help you grow your portfolio.  

Chris LaHaie
Realtor
chrislahaierealestate@gmail.com
702-338-8526

Monday, October 15, 2012

Consider It Sold Las Vegas: Financial Reality Revisited: Investment Property I...

Consider It Sold Las Vegas: Financial Reality Revisited: Investment Property I...: Financial Reality Revisited: Investment Property Insurance and what to cover. : I have been managing real estate investment property for man...

Chris LaHaie Realtor
List with Chris
Prudential Americana Group,
Las Vegas, NV
chrislahaierealestate@gmail.com

Monday, October 8, 2012

Real Estate and Investment Property still best investment

If you are tired of living paycheck to paycheck then it is time to start looking into investing in income property in Las Vegas or anywhere in the USA.  There are thousands of books written on how to get wealthy in real estate.  Many of the books are great sources of information they will give the knowledge you need to become a wise real estate investor.  Of course there are many books that are also equally as bad on the market and are selling you a pipe dream but from my experience I have found plenty of useful information just by reading anything I could find about real estate and investing. 

The first thing you need to do is make it a goal to get at least one investment property or income property that will generate positive cash flow.  This can be a single family home or a multi-unit property.  My preference has been with duplex, triplex and four plexes.  Start putting aside funds that will cover a down payment and start analyzing property.

At first the most difficult part is finding the right property for you but eventually it will be the easiest.  If you learn to evaluate property by adding all of your expenses including debt service and compare it to what you will make in rent each month you can determine if a property is worth a second look.  It is usually never a good idea to buy a property that will not make money each month.  If you do you always run the risk of getting caught in a down market and not be able to sell as well as having to use money from some where else to cover the difference between your rental income and expenses. 

It is a great time to start in the income property business because of the drastic drop in real estate values.  The positive for income property investors is that rents have not come down nearly as much as real estate.  In Las Vegas property values dropped up to 60% in some areas where rents have gone down an estimated 10% or less.  For example, a 4 plex that was selling for $330,000 in 2004 with monthly rent of $2600 can now be purchased for under $200,000 and the rents are still nearly as high.  It is an amazing statistic because you can increase you cash flow tremendously if you bought now as opposed to paying $330,000 back in 2004. 

I think Las Vegas has been drastically over priced in regards to real estate for years but now the after the recession the prices are more palatable but I still could make the case that real estate is over valued.  For some reason buyers in Las Vegas are willing to pay a premium on marginal property.  Maybe in part because people always thing Vegas will bounce back or avoid the worst of the recessions but this recession negated that theory as home values disintegrated.  

Currently single family home values in Las Vegas are starting to rebound in price do to the lower inventory values, short sale process and the changes in law that have made banks much less aggressive in taking back real estate.  However, the income property is not seeing quite as strong of demand. 
 
There are plenty of of good reasons to start buying investment and income property in Las Vegas as it probably a good time to start buying  in most cities in the USA.