We’d like to run through some numbers that speak directly to Las Vegas Foreclosure real estate investors. Here are “Big Picture Numbers” with analysis below. Caveat, numbers are approximate, as we are quoting third parties and rely to a certain extent on their fact checking.
- We have 23K Las Vegas Real Estate Listings with an average sales price of $244K
- Approximately 30% of these Las Vegas homes are under replacement costs!
- This represents about $5B in Las Vegas real estate in total
- An estimate 16K of these homeowners will need to rent a home in the near term
- 95% of our Rentals are rented
This is a once in a lifetime opportunity for investors that won’t come around any time in this century. It’s a perfect storm to a certain extent; the US economy tanked on parallel with the housing market, mortgage companies, lenders and bankers did deals they should never have done (millions of deals) and Federal Government regulators were not actively monitoring the whole mess.
Say what you will about the past 6-12 months but we don’t think we are going to see these horrible fundamentals ever. As the e government and private sector have put in too many checks and balances to prevent it and millions of consumers will be much more market savvy when they purchase their next Las Vegas home.
Messy Las Vegas Real Estate Market Means Opportunity
So, we have a mess right? A famous investment expert once told me that down markets create many more millionaires (billionaires in some cases) than healthy markets. You just have to know when you are in a down market and what to do.
We believe the time is now (!!!!) for investing in Las Vegas Foreclosures or Las Vegas Real Estate in general. We ae telling our investment groups to buy today, generate a 6-8% return per annum return coupled with good cash flow via renter payments.
Wait for 1-3 years and then look at loan programs banks will be forced to offer after they have their assets returned (sales of Foreclosed and REO homes) which will be at good rates. Don’t forget some percentage of the people who have lost their homes to Foreclosure will also be ready to buy a home within 1-3 years and banks will want to loan to them, albeit with much more scrutiny.
And, don’t forget about our long term growth projections – we’ve been a top ten destination city the last ten years and this is not going to change and we have some huge multi-billion dollar developments coming online in the next 1-3 years requiring tens of thousands of new workers.
Executive Summary
Perfect storm market forces massive Las Vegas Foreclosures and related drastic price reductions, prices drop below replacement costs, banks are squeezed and must sell foreclosed homes at a discount, market hits bottom, smart investors get in at bottom of market and make 20-50% return on investment within three years. Beats the Dow too – call us today if you need more insight/analysis/assistance. We have prognosticators standing by for your calls about Las Vegas Foreclosures…………..
