Las Vegas residential properties including homes, condos and even high rise condominiums are at historical lows when compared to the real values and just like 2003 a blindfolded person can shoot and hit a bargain but that is not the real estate sniper’s way, I don’t work that way.
The difference between an owner occupied home or condo buyer with a Las Vegas real estate investor is that a house is a home to an owner occupier and a house or condo to a real estate investor. The buyer of an owner occupied home or condo in Las Vegas has to take into account what he/she likes in a home, what kind of setting the home should be in. California buyers like mature and green areas like Summerlin, Green Valley or Lake Las Vegas. I like to live next to a mountain and another buyer may want a home on a golf course. For the home buyers, the school ranking for the kids may be a strong factor in picking a home or condo.
All a real estate investor cares about is cash flow, future appreciation and that the tenant doesn’t shoot him/her for attempting to collect late rent.
1: Find a Las Vegas Realtor
2: Identify your desired location and floor model
3: Have your Realtor find the cheapest price per square foot for that model, make an offer and buy. You just got yourself a bargain and a good deal.
The most important business advice that I try to live by, was from a fast taking Omaha used car lot owner whom I used to travel with to auctions. He kept telling me; Masoud,
You make your money when you buy, not when you sell.
You have to know exactly what to do with a car or property before you buy it. I knew exactly how much my clients would pay me for each car and how soon they would pay me. I knew the outcome before I bid on a car.
Same is true with real estate. An investor has to know his/her outcome and this complicates things as we are not in a normal real estate market.
I have x amount of dollars Masoud, find me the best home or condo for my money.
There are about 12,000 single family homes, 2800 condominiums and 1050 townhomes listed for sale in the Las Vegas MLS as resales all over the Las Vegas Valley. For a price range of say $180,000-$200,000, there are 972 homes, condos and townhomes in Las Vegas that match this price range. Which one is the right one to invest in? I will take this a step further. Is a home or condominium that is priced $180,000-$200,000 the best price range to buy one home or condo as an investment? Which one of these properties will give the investor the best appreciation n a few years? Which will provide the best cash flow? What if these are exclusively mutual, that is the home or condo with the best chance at future appreciation doesn’t provide the best cash on cash return for the investor, then what?
Haven’t had enough fun yet? OK. What if the investor has a lot of money and can buy at any price range and anywhere in Las Vegas, Henderson or North Las Vegas? What is the best solution for this problem, what is the best price range and location to buy homes and condos to try to maximize the investor’s profits? How to buy these homes and condos? What condition should these homes or condos be in? Keep in mind that good homes or condominiums in good locations bring top money in the retail market and the banks have no reason to dispose of them in a real estate auction. What is the business plan, after these homes and condos are purchased?
These are only a small sample of issues that have to be thought about and resolved before a single property is purchased. I love solving problems like this, it gets my adrenalin going.