Archive for September, 2012

Why Strategy Is Important For Las Vegas Homebuyers

Friday, September 28th, 2012

Getting excited about buying a house in Las Vegas is normal, but it’s important to always come prepared while searching. Although countless homebuyers are looking to take advantage of the discounted prices and the all-time lowest mortgage rates seen in forty years, many of these residence hunters are beaten out of the game by those capable and willing to deal in cash.
Despite being fully qualified and pre-approved by financial institutions, these buyers suffer from several disadvantages compared to those with cold-hard money on hand. From the seller’s perspective, transactions dealt with the latter are always easier and safer.

“In general, the buyer wants to put themselves in the seller’s shoes and think about what that seller must be going through in an effort to appeal to that seller,” says Robyn Yates, owner and broker of Windermere Premier Realty, Henderson. “For example, a short seller’s thoughts: I get nothing. I just want to get out of my situation.”

With that in mind, Yates recommends that folks with cash should acquire a cash-out refinance after the close of escrow. For buyers who don’t have the monetary funding in their pockets, the real estate agent recommends getting fully-approved before writing any offers.

Moreover, it’s possible to get a loan for a three percent down (instead of the usual ten to twenty percent) and still acquire conventional financing, which is more attractive to home sellers.
Both types of homebuyers can implement other strategies to gain tactical advantages over their counterparts. “Write a heartfelt letter to the seller about how much you love their home and how you see yourself living in the home,” suggested Yates. “Every seller loves it when someone else appreciates their taste and hard work.”

When it comes to short sales, wherein banks are asked to receive less than the principal mortgage balance, enlisting the help of a real estate agent who specializes in handling such matters is advised. This professional, along with the help of the listing agent, can help to make the transaction flow smoother.

Since short-sale sellers get no financial gain out of the deal, offering to take care of homeowners association dues (including unpaid) would definitely help.

Las Vegas Sands Advised To Breakup In Order To Boost Share Value

Thursday, September 27th, 2012

It’d seem that a billionaire like Sheldon Gary Adelson wouldn’t need any business advice from outsiders to grow his wealth any further. With businesses running successfully across the globe, the casino magnate has rightfully earned his spot at 8th position in the Forbes’ Top 400 list of wealthiest Americans.

However, shares of Las Vegas Sands (LVS), a casino operator controlled by Adelson, have dropped by 6.8 percent over the past year. While the drop isn’t anywhere as bad as the 22 percent decline experienced by Wynn Resorts LTD, or the 24 percent waning of Caesars Entertainment Corp., shareholders of LVS believe that plenty can be done to boost the value of their shares.
While Las Vegas Sands shares closed at $44.92 as of Sept. 21, Jonathan Litt says that it can be spiked up to $85 a pop if the integrated resort company were to split into three separate companies.
Litt, founder and chief executive of Connecticut-based investment firm Landandbuildings, recommends LVS spins-out its hotel properties and shopping-mall as two separate real estate investment trusts (REITs), while the rest of the company remains as a pure casino owner.

“LVS is a growth company at a value price at half the multiple of REITs despite twice the growth,” wrote Litt in a report. “LVS is a property company and when valued as such it can be a double to current pricing.”

The move would also serve to benefit Litt as well, since his company LandandBuildings (also known as Land & Buildings Investment Management LLC) currently holds 79,600 shares of Las Vegas Sands as of June 30. Moreover, it’d most especially benefit entrepreneurial tycoon Adelson as the biggest shareholder of LVS, who currently owns 424 million shares, which is close to 52 percent of the entire company.

Experts believe that if Las Vegas Sands were to broken up and form three new companies as Litt suggests it should, the new mall and lodging REITs wouldn’t have any debt. Moreover, the new entities “would have exceptional external growth opportunities through development and acquisition in Asia and around the world.”

Lake Las Vegas Resort Rising From Its Grave

Wednesday, September 26th, 2012

The economy meltdown that struck back in 2008 had some devastating effects on real estate markets across the globe. Some developments, such as the Lake Las Vegas Resort, were unfortunately rocked harder than most, and were ultimately forced to close-down due to a lack of funding.

Located twenty miles southeast of Las Vegas, business for this multi-use project was going fine during its opening, as features such as a 320-acre man-made lake, an artificial waterfall, casino, hotel, and residences for sale attracted thousands of investors and homebuyers.

However, home values began to plunge, sales quickly stalled, and foreclosures soon began to rise. This in turn had a domino effect on the other businesses within the development as well – a Ritz-Carlton hotel, and even the development’s only casino, were closed in 2010. Moreover, the company which owned most of the undeveloped land was left with no choice but to file for bankruptcy.
Nevertheless, all of this happened several years ago, and today things seem to be getting a lot brighter for Lake Las Vegas. Foreclosure rates have greatly decreased, existing houses are being sold at lower prices, new residences for sale are being constructed, and the development’s casino plus hotel have new operators.

In addition to this, hedge-fund manager John Paulson of the Paulson’s Real Estate Private Equity Group acquired 540 acres of developable land just recently, of which he paid $17 million for. Andrew Stegen, current general manager for Ravella, the hotel which replaced the Ritz-Carlton hotel back in 2011, believes that the development went from repulsive to attractive in a short span of time.
“Two years ago, no one would have touched anything to do with Lake Las Vegas,” said Stegen. He also adds that the Paulson firm’s purchase of land “is a huge boost of confidence” that’ll attract more investors and consumers to the project.

Although the development is indeed showing signs of improvement, experts are refraining from using terms such as “booming” to describe its potential and current situation as it’s simply too early to tell for sure.

Foreclosed Homes Expected To Flood Las Vegas Residential Market

Tuesday, September 25th, 2012

Those looking to acquire a home in one of America’s best cities to live, Las Vegas, may soon be able to turn that dream into a reality. Experts say that thousands of foreclosed houses are about to hit the local housing market, and thereby significantly increase local inventory.

Both banking and real estate professionals see the Las Vegas market taking another big hit some time in the future, which in turn could substantially postpone its recovery for several years. Previously viewed as a market where sellers reign supreme for the past several months, the new wave of dwellings is going to create a substantial drop in prices, therefore turning the market into a more favorable environment for buyers.

The new law which makes it more difficult for banks to foreclose is a big contributing factor for foreclosed abodes coming to the market. Last September 2011, studies show that banks were foreclosing 3,000 to 4,000 properties in Clark County every month. But when Assembly Bill 284 took effect, these figures dropped down to 800 a month.

With that said, real estate experts who’ve closely followed this situation foresee roughly 70,000 foreclosed properties hitting the market. And with the law prohibiting banks from taking immediate action, Las Vegas’ residential market will finally get the boost it has badly needed.

“It almost feels like it did in the boom years of 2004, 2005 and 2006. People were receiving multiple offers and people were bidding over list price,” says Applied Analysis’ Brian Gordon. “The reality is that a lot of that’s been a function of limited supply on the markets.”

On the other hand, Bill Uffleman, president of the Nevada Bankers Association, says that banks have found various legal methods to speed-up their foreclosure process again. “Foreclosures will ramp up shortly. I would argue, probably in September,” said Uffleman. “If you took 3,000 a month is the norm, I think we will get back to 3,000 a month maybe 4,000 thousand.”
Nevertheless, notable realtors such as Jared Jones still believe that the Las Vegas housing market will see the inventory surge by February or March next year.