Market conditions are changing slightly as we speak. As of today, September 2nd, 2010 we have 13,764 units for sale in the Las Vegas, North Las Vegas and Henderson areas. This is up quite a bit from late spring when we were down around 9000 units. 2788 of these available listings are bank owned (20%). We have 10,914 units contingent (under contract and either contingent on short sale approval (primarily), financing, inspections, bank signatures, and rarely selling a home to buy) this number is down from a high of 13000 units which means we're either selling these units or buyers are backing out, hard to say. In the past 30 days there were 3554 units sold in our market, which is 100 more than we sold in July but down 668 from what we sold in June of this year. There are currently 2407 units pending which just means that the deal is a little more solid, contingencies have been worked out and it's almost a certain close occurring.
I'm seeing fewer offers especially on property above $150,000. I think we'll have a nice uptick in activity now that families are back to school and settled. I think investors will be happy with the deals they're getting this quarter and next. I'm surprised at the percentage of bank owned being so low, but across the board we're hearing that short sales are quicker and easier than last year (still not a pleasant experience but worth the effort).
Thursday, September 2, 2010
Wednesday, August 18, 2010
Private money source for Las Vegas loans
I just wanted to remind you of an alternative loan for buyers if they cannot qualify for a Conventional, FHA or VA loan. I have a private money source here in Las Vegas that's been in existence for over 29 years. They will require a minimum of 35% down, interest rates are between 12% and 14%, generally takes approximately 2 weeks to close, no minimum FICO score, recent bankruptcies and foreclosures on credit are generally accepted. They can use alternative sources for income to qualify but borrower must prove ability to repay loan. Please call me with questions, this division has been extremely busy year to date and there is a demand for this product so please keep this in mind.
Monday, August 16, 2010
Making Tough Decisions Today
I want to take a few minutes to reach out to any families that might need help but don't know how to ask for it. I find that as I make my phone calls and talk to people when I'm out in the neighborhoods, there's almost a paralysis when it comes to decision making. Many homeowners in our city are upside down (owe more than the house is worth) and they're confused. For some the "decision" is simple. I've sat across the table from couples who have no income, no job prospects, no savings. The decision is simple, put food on the table, cut all expenses, take care of your kids, get a job immediately.
Many people that I speak to now have fallen out of love with their home. The home was supposed to increase in value every year and create a dream future and it hasn't and probably won't so they are really disappointed, extremely frustrated, angry, and in disbelief. So let's go back to square one. A home is shelter, a place to raise your family, hopefully it's in a good school district. A home is not an investment. If you didn't buy a home, you're renting and paying some money to a landlord. It seems the only difference today between a renter and an owner is the owner still gets tax deductions. Both parties are spending money every month on shelter and none of that money is going towards an "investment." So again, square one, can you afford what you're paying every month? If you can, stay there. If you can't, move. There is no longer a stigma to being a tenant. Please get over it. Decisions need to be made, feelings might get hurt, choices are hard.
The 2nd option is to just sit there and let things happen to you. You ignore the phone calls, you don't open the mail, you don't answer the door, you get evicted, you can't find a place to live because you waited too long and you didn't save any money. Somebody will make those decisions for you but I guarantee you won't like the results.
I've sat across the table from families and the man is weeping because he feels like an utter failure. This was the dream home that was going to create the dream life and it's become a nightmare. Okay, guys, snap out of it, seriously. That's a lot of pressure on yourself. It's a house. Let me ask you this, what other "investments" have you bought recently that totally flopped? How's those 1st trust deeds? (bankrupt) How about that CD? How's your stock portfolio? Did someone tip you off that the housing market was going to crash this bad? I don't think so. Now would be a good time to stop feeling sorry for yourself and this nightmare that you think you created and start changing the course of events so this drama doesn't drag on for the next 3 years. Look around, grab a piece of paper and pen and start writing down all the things you're grateful for. Think long and hard and do this now. I'm grateful for... my wife, my kids, my two cars, my sight, fresh air, options, health. Trust me, there's a million people in worse shape than you and over 8 million unemployed and however number of millions in Pakistan alone without a home because it washed away. Seriously, it's a house. If this was going to be your path to millions, it didn't work out, find something else and do that!
I'm as sympathetic as the next guy, but I'm also solution oriented. I've been making decisions for myself for a long, long time (thank you Mom and Dad) and I've screwed up big time. It's the only way to REALLY LEARN. As long as nobody got injured, you ask yourself, "okay what did I do wrong, okay, how can I not do that again, what's the next step." Here's the reality. The housing market won't be turning around super quick and going up 20% or 30% a year anytime soon. If it turns around it'll probably be in about 3-5 years and it'll probably appreciate at the rate of inflation which historically has been about 3% a year. So if you don't want to make a decision and do something to change things, this problem will be around for a long time and won't get easier. My suggestion is to sit down with your significant other, possibly an attorney, your CPA and then me and have one of those discussions that is a little uncomfortable but critical to get your life rolling again. I'm here to help people so when you're ready for help please contact me.
Many people that I speak to now have fallen out of love with their home. The home was supposed to increase in value every year and create a dream future and it hasn't and probably won't so they are really disappointed, extremely frustrated, angry, and in disbelief. So let's go back to square one. A home is shelter, a place to raise your family, hopefully it's in a good school district. A home is not an investment. If you didn't buy a home, you're renting and paying some money to a landlord. It seems the only difference today between a renter and an owner is the owner still gets tax deductions. Both parties are spending money every month on shelter and none of that money is going towards an "investment." So again, square one, can you afford what you're paying every month? If you can, stay there. If you can't, move. There is no longer a stigma to being a tenant. Please get over it. Decisions need to be made, feelings might get hurt, choices are hard.
The 2nd option is to just sit there and let things happen to you. You ignore the phone calls, you don't open the mail, you don't answer the door, you get evicted, you can't find a place to live because you waited too long and you didn't save any money. Somebody will make those decisions for you but I guarantee you won't like the results.
I've sat across the table from families and the man is weeping because he feels like an utter failure. This was the dream home that was going to create the dream life and it's become a nightmare. Okay, guys, snap out of it, seriously. That's a lot of pressure on yourself. It's a house. Let me ask you this, what other "investments" have you bought recently that totally flopped? How's those 1st trust deeds? (bankrupt) How about that CD? How's your stock portfolio? Did someone tip you off that the housing market was going to crash this bad? I don't think so. Now would be a good time to stop feeling sorry for yourself and this nightmare that you think you created and start changing the course of events so this drama doesn't drag on for the next 3 years. Look around, grab a piece of paper and pen and start writing down all the things you're grateful for. Think long and hard and do this now. I'm grateful for... my wife, my kids, my two cars, my sight, fresh air, options, health. Trust me, there's a million people in worse shape than you and over 8 million unemployed and however number of millions in Pakistan alone without a home because it washed away. Seriously, it's a house. If this was going to be your path to millions, it didn't work out, find something else and do that!
I'm as sympathetic as the next guy, but I'm also solution oriented. I've been making decisions for myself for a long, long time (thank you Mom and Dad) and I've screwed up big time. It's the only way to REALLY LEARN. As long as nobody got injured, you ask yourself, "okay what did I do wrong, okay, how can I not do that again, what's the next step." Here's the reality. The housing market won't be turning around super quick and going up 20% or 30% a year anytime soon. If it turns around it'll probably be in about 3-5 years and it'll probably appreciate at the rate of inflation which historically has been about 3% a year. So if you don't want to make a decision and do something to change things, this problem will be around for a long time and won't get easier. My suggestion is to sit down with your significant other, possibly an attorney, your CPA and then me and have one of those discussions that is a little uncomfortable but critical to get your life rolling again. I'm here to help people so when you're ready for help please contact me.
Thursday, August 5, 2010
Supply and demand starting to change
We're now entering the tail end of summer. Traditionally this is our busiest time of year. Most families make a purchase decision based on getting their kids into school before the school year begins in September. Mixed in with families are investors and second homebuyers as well. We saw a massive demand in the 1st and most of 2nd quarter of this year as buyers scrambled to get escrows opened to qualify for the first time and 2nd homebuyer rebates. We are now seeing inventory creep up steadily. Right now we have 12,587 available condos, townhouses and single family homes in the Las Vegas, North Las Vegas and Henderson market, up from 9000 +/- a few months back. In the last 30 days we've closed 3,509 units, the month before that we closed 3886 units and the month before that it was 3827 so it's too early to call a trend but 377 fewer units is 10% less units closed in the last 30 days.
Right now our market is still 90% distressed properties with 70% of that being short sales and the remainder are REO (bank owned, real estate owned). The other 10% is traditional (seller with equity) and flipped properties (investor bought at auction (Nevada Legal News- everyday at 10am- you can subscribe for $150/month- must provide exact funds in cashiers checks), did rehab and sold through the MLS.
Bank owned inventory is picking up, yet of the 12,587 listings, only 2533 are bank owned. The demand for bank owned (if in good condition) is extremely strong and multiple offers almost always occur. We coach our buyer clients to be prepared for multiple offers so make your final, highest and best on the first try. Be prepared for 5-7 attempts before getting one accepted. That being said, the bank owned properties (if in good condition) still represent the best deal to investors and regular buyers alike.
Right now our market is still 90% distressed properties with 70% of that being short sales and the remainder are REO (bank owned, real estate owned). The other 10% is traditional (seller with equity) and flipped properties (investor bought at auction (Nevada Legal News- everyday at 10am- you can subscribe for $150/month- must provide exact funds in cashiers checks), did rehab and sold through the MLS.
Bank owned inventory is picking up, yet of the 12,587 listings, only 2533 are bank owned. The demand for bank owned (if in good condition) is extremely strong and multiple offers almost always occur. We coach our buyer clients to be prepared for multiple offers so make your final, highest and best on the first try. Be prepared for 5-7 attempts before getting one accepted. That being said, the bank owned properties (if in good condition) still represent the best deal to investors and regular buyers alike.
20 answers to everyday questions...
Got this from Mike Shannon, who's an REO (real estate owned) broker in the Detroit area and thought it was worth posting since I get these kinds of questions all the time on my listings. Questions from the buyer's agent, response from the listing agent.
1) Should I go show the house? (I don't know, do you want to sell it?)
2) I'm not sure if my buyer will like it, what do you think? (I don't know what your buyer likes, do you? - The general response to my question is "I'm not really sure")
3) How much will it cost to rehab the property? (I don't know, it depends on the quality of materials and the contractors your buyer would use)
4) Can I just send my buyer over to look at it, or do I have to go as well? (REALLY?)
5) (This is the reverse of question #4) I'm standing on the front porch and the lock box code my agent gave me isn't working. Can you tell me the correct code? (What's your agents name so I can file the complaint correctly)
6) Now when the selling commission says 3% or $1250, which one do I use? (What's the sale price, and which ever is higher)
7) Can you kill the current offer so I can get mine accepted? (Not unless the buyer breaches the existing offer constraints and the bank agrees)
8) It's not fair that you have multiple offers. (Why can't you just take mine? (If it was your house, is that what you would want to do?)
9) If I bring you a cash offer, can we close today? (hahahahahahahahahahahahahaa. No)
10) What does the status "Offer Panding" mean? (Really? It means that the seller has accepted another buyer's offer.)
11) So does that mean I can't write an offer? (Please do and we will hold it as a back up offer, should the current offer fail)
12) What do you think the utility bills will be in the future? (I have no idea. It depends on the size of the house, the furnace efficiency, how often the new buyer leaves the doors and windows open, do they have lots of electrical devices, etc)
13) I can't find a lockbox on the front door. Should I use the one on the side door? (Really? Yes, give a try)
14) How old is the roof, furnace, etc. (hahahahahahahahahaaha. I don't know, I didn't live there)
15) How do you get the lock box to open? (Where do I start with this one?)
16) If my buyer doesn't like the results of the private inspection, can we back out? (It depends on wording of your offer to purchase, or the banks addenda)
17) Why is the bank selling as-is? What's wrong with the house? (Please go show it, and you can decide)
18) If my buyer gives you $1,000, wwill you make sure their offer gets accepted? (Just write the offer and we will present it to the seller)
19) If I let you write the offer for my buyer and keep the all the commission, can you get it accepted? (Please, just write the offer and we will present it to the seller)
20) My buyer's going out of town for a month, will the seller delay the closing for free? (No)
If a buyer hires you to work for them, please do your job representing them. Don't cut corners. Don't take someone elses word as far as condition goes, go to the property yourself and check it out. Do the work!
1) Should I go show the house? (I don't know, do you want to sell it?)
2) I'm not sure if my buyer will like it, what do you think? (I don't know what your buyer likes, do you? - The general response to my question is "I'm not really sure")
3) How much will it cost to rehab the property? (I don't know, it depends on the quality of materials and the contractors your buyer would use)
4) Can I just send my buyer over to look at it, or do I have to go as well? (REALLY?)
5) (This is the reverse of question #4) I'm standing on the front porch and the lock box code my agent gave me isn't working. Can you tell me the correct code? (What's your agents name so I can file the complaint correctly)
6) Now when the selling commission says 3% or $1250, which one do I use? (What's the sale price, and which ever is higher)
7) Can you kill the current offer so I can get mine accepted? (Not unless the buyer breaches the existing offer constraints and the bank agrees)
8) It's not fair that you have multiple offers. (Why can't you just take mine? (If it was your house, is that what you would want to do?)
9) If I bring you a cash offer, can we close today? (hahahahahahahahahahahahahaa. No)
10) What does the status "Offer Panding" mean? (Really? It means that the seller has accepted another buyer's offer.)
11) So does that mean I can't write an offer? (Please do and we will hold it as a back up offer, should the current offer fail)
12) What do you think the utility bills will be in the future? (I have no idea. It depends on the size of the house, the furnace efficiency, how often the new buyer leaves the doors and windows open, do they have lots of electrical devices, etc)
13) I can't find a lockbox on the front door. Should I use the one on the side door? (Really? Yes, give a try)
14) How old is the roof, furnace, etc. (hahahahahahahahahaaha. I don't know, I didn't live there)
15) How do you get the lock box to open? (Where do I start with this one?)
16) If my buyer doesn't like the results of the private inspection, can we back out? (It depends on wording of your offer to purchase, or the banks addenda)
17) Why is the bank selling as-is? What's wrong with the house? (Please go show it, and you can decide)
18) If my buyer gives you $1,000, wwill you make sure their offer gets accepted? (Just write the offer and we will present it to the seller)
19) If I let you write the offer for my buyer and keep the all the commission, can you get it accepted? (Please, just write the offer and we will present it to the seller)
20) My buyer's going out of town for a month, will the seller delay the closing for free? (No)
If a buyer hires you to work for them, please do your job representing them. Don't cut corners. Don't take someone elses word as far as condition goes, go to the property yourself and check it out. Do the work!
Wednesday, July 28, 2010
Hi friends, family, clients;
The KW Cares Concert coming to Vegas October 3rd has turned into a massive KW Cares Weekend and we would LOVE for all of you to be involved!
Here is a quick overview:
Saturday, October 2nd a golf tournament at BADLANDS! (foursomes have a big early bird discount till the end of next week-go to the website) I just bought a foursome. It's $500 and it includes lunch. Mulligans can be purchased if you play like I do : ) A portion is tax deductible. Do you or someone you know like to golf? This is one of the best courses in Las Vegas.
Saturday night is a poker tournament at 8 pm at the Hard Rock, sponsored by our MC and all proceeds will be donated. We'll have celebrity poker players. It's $100 buy in with 2 rebuys of $50 each possible.
Sunday, October 3rd is an over the top decadent chocolate and wine event with over 100 silent and live auction items, followed by the concert Gary Keller has so generously donated. Is there something you're willing to offer for the auction (services, spa, etc)? Will you come to the Death by Chocolate event? It's free! The concert information is on the website, the show does cost something but it's again tax deductible.
We have a limited number of rooms available at Red Rock Station! We've managed to get a HUGE discount plus the hotel is also donating 25% from any spa purchases to KW Cares. It’s a beautiful spa-ask my wife! We anticipate the $95 room rate to be gone by sometime next week so I encourage you to register now (Click on http://www.kwcaresweekend.com/ to get the rate or for more info)
If you would like to help us we would LOVE it! We are looking for Silent or Live Auction items. If you have something email donate@KWCaresWeekend.com and let us know!
Right now it would help us most if we could get golf foursomes booked and also hotel room confirmed. Go to http://www.kwcaresweekend.com/ to register for either.
It feels great to give back! I guarantee this will be a ton of fun for a great cause!
Please take at least 2 minutes and click on the link http://www.kwcaresweekend.com/ !
It is amazing how people have stepped forward to join us and give to this amazing cause!
Watch the website but please book your golf now and hotel if needed.
The KW Cares Concert coming to Vegas October 3rd has turned into a massive KW Cares Weekend and we would LOVE for all of you to be involved!
Here is a quick overview:
Saturday, October 2nd a golf tournament at BADLANDS! (foursomes have a big early bird discount till the end of next week-go to the website) I just bought a foursome. It's $500 and it includes lunch. Mulligans can be purchased if you play like I do : ) A portion is tax deductible. Do you or someone you know like to golf? This is one of the best courses in Las Vegas.
Saturday night is a poker tournament at 8 pm at the Hard Rock, sponsored by our MC and all proceeds will be donated. We'll have celebrity poker players. It's $100 buy in with 2 rebuys of $50 each possible.
Sunday, October 3rd is an over the top decadent chocolate and wine event with over 100 silent and live auction items, followed by the concert Gary Keller has so generously donated. Is there something you're willing to offer for the auction (services, spa, etc)? Will you come to the Death by Chocolate event? It's free! The concert information is on the website, the show does cost something but it's again tax deductible.
We have a limited number of rooms available at Red Rock Station! We've managed to get a HUGE discount plus the hotel is also donating 25% from any spa purchases to KW Cares. It’s a beautiful spa-ask my wife! We anticipate the $95 room rate to be gone by sometime next week so I encourage you to register now (Click on http://www.kwcaresweekend.com/ to get the rate or for more info)
If you would like to help us we would LOVE it! We are looking for Silent or Live Auction items. If you have something email donate@KWCaresWeekend.com and let us know!
Right now it would help us most if we could get golf foursomes booked and also hotel room confirmed. Go to http://www.kwcaresweekend.com/ to register for either.
It feels great to give back! I guarantee this will be a ton of fun for a great cause!
Please take at least 2 minutes and click on the link http://www.kwcaresweekend.com/ !
It is amazing how people have stepped forward to join us and give to this amazing cause!
Watch the website but please book your golf now and hotel if needed.
Tuesday, July 20, 2010
My thoughts as I go about my day in this crazy real estate business.
On a regular basis I'm showing property to investors, handling evictions and cash for keys on foreclosed properties and putting bank owned properties on the market. The 4 main areas I've been doing most of my business this year is the Northwest, West, Summerlin and Southwest (zip codes 89131, 89129, 89117, 89135, 89141). About 50% of the homes I see with my investor buyers are trashed, the other 50% have new carpet, paint and some work done. The trashed homes are really bad but the prices are closer to the $50/sq.ft. mark. The homes that can be rented right away are closer to $70/sq.ft. and higher in Summerlin ($90-$100/sq.ft) and Southern Highlands ($75-$85/sq.ft).
Most of the homes that I go to when I represent the bank are occupied. The tenants that live there have no idea I'm coming, but they're almost glad I'm there. They know they'll make some money by agreeing to cash for keys and they're ready to move on to a new place with possibly some more stability (no concern that a guy like me will knock on their door). About 80% of the time there's more than one family living in the house. Usually it's a family and a room mate or something similar. In some instances I've spoken to the sole bread winner and he/she has 2 or 3 other couples living with them and they've either lost their job recently or they just starting missing payments. I can totally imagine a time in the near future when I knock on a door to say you've got two weeks to vacate because the bank owns this home and I'll be evicting 2 or 3 families. Right now they all seem to have places to go (move back with family or friends). My hope is the employment situation improves dramatically and quickly so the day doesn't come when I have people with no place to go. These are just my thoughts as I go about my day in this crazy real estate business.
Most of the homes that I go to when I represent the bank are occupied. The tenants that live there have no idea I'm coming, but they're almost glad I'm there. They know they'll make some money by agreeing to cash for keys and they're ready to move on to a new place with possibly some more stability (no concern that a guy like me will knock on their door). About 80% of the time there's more than one family living in the house. Usually it's a family and a room mate or something similar. In some instances I've spoken to the sole bread winner and he/she has 2 or 3 other couples living with them and they've either lost their job recently or they just starting missing payments. I can totally imagine a time in the near future when I knock on a door to say you've got two weeks to vacate because the bank owns this home and I'll be evicting 2 or 3 families. Right now they all seem to have places to go (move back with family or friends). My hope is the employment situation improves dramatically and quickly so the day doesn't come when I have people with no place to go. These are just my thoughts as I go about my day in this crazy real estate business.
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