Las Vegas Smart Foreclosure investing is being driven by investors who are pouring into the Las Vegas market, with many coming from Southern California. We are also starting to experience an influx of investors from outside the US – some are purchasing homes “sight unseen” driven in part by the excellent bargains we have available.
The number of investors buying new and existing homes in June rose by more than a third, contrasted with June 2008 market analysis, according to results released by DataQuick, based in San Diego, CA. Investors made up 38% of the buyers of both new and existing homes sales in June, as reported by DataQuick, contrasted with 25% in September of 2008. These numbers are dramatic and underscore how hot our market is for investors.
Las Vegas Smart Foreclosure Investing
How is Las Vegas Smart Foreclosure Investing being done? By investors not interested in buying and “flipping” – this new breed of real estate investor is buying and looking to hold for the long term, while they make money from the rental income.
This new breed of investors are “long haul” investors focused on rental returns to gauge the quality of an investment. A 12% return before taxes and other expenses can be generated by purchasing a home for $100,000. in cash and renting it for just $1K per month – this is considered a great deal by these “long haul” investors.
In many cases investors are beating out first time home buyers because they are making all cash offers and also are paying more than list price. A few months ago, prospective homeowners were offering less than list on many foreclosed homes here in Las Vegas. But, times have changed and this is difficult to do in the red hot $130K price range being driven by long haul investors. If you are a first time home buyer we will work closely with you to make sure your offer is competitive.
Existing Homes versus New Homes
You can still purchase an existing home in most cases for below what a builder’s construction costs are. As long as this scenario holds up then our market will continue to be driven by Las Vegas Smart Foreclosure Investing!
