Tip:
Highlight text to annotate it
X
>>DALE: Good afternoon. This is Dale Snyder with The Snyder Group of Remax Central here
in Las Vegas Nevada.
First, I'd like to thank you for the time listening to this video. I think the topic
today is the hot button or topic of the city - investing in Las Vegas real estate.
"Why invest in Las Vegas?" would be my first question and if I wasn't here and in the industry.
I'd like to start with cashflow, you're getting cashflow. If you put 20% down and buy - let
me back up and here. When I'm talking investing in Las Vegas real estate I'm mostly talking
in the $250,000 and under price range, depending on the areas of the city the prices will fluctuate,
obviously.
But if you're within that price category you're going to cashflow on average about $100-$300
bucks a month, 20% down. If you're going to put 25% down, a lender told me this morning
that he could get a third of a point break on the interest. So you're cashflow is going
to go up even more.
If you're paying cash which about 50%-55% of the investors are in our marketplace, it's
the cash-on-cash return. So what are you going to get for your money, yearly? And what you're
seeing right now conservatively is going to be at least 5%. That's saying you're paying
top dollar to get like the best builder, best floor plan, best area, figure in some vacancy
rates you're still going to get a return of at least 5.
What are people getting in the bank right now? Zero? Almost zero. They're getting something
but they're not getting much. You know, you can get 10%-15% that's very reasonable and
realistic. So that's a very exciting thing.
A lot of the investors I'm working with, they're making 5 to 10 times the amount of money off
of their money buying homes here. Plus you get them way below replacement cost, which
obviously homes are going to go back to at least replacement cost, relatively soon.
Let me get back on track here, what's the other thing that makes Las Vegas investing
real estate appeal? We have low vacancy rates now. We have so many people going through
short sales and foreclosures and then the people that are moving here on average want
to rent for a year to get a feel or a pulse of the city to see if they want to stay here
or what area they want to live in. And we're getting two-year tenants. Sometimes
3 or 4, because if you've gone through foreclosure and bankruptcy, it's going to take sometime
to buy.
The average days on market we're looking at is about 5 to 90 days. Let me be a little
more specific, if you're buying a single-family home or a town-home in one of the more desired
areas you're looking at 5 to 30 days. That's it.
If you're financing, you don't even make a mortgage payment before you get a tenant paying
you rent. If you're looking in the condo market I would expect to be more on the 60-90 day
range and that's kind of another beast. You can buy stuff at thirty, forty, fifty, sixty
grand, you know, the HOAs can be high. There can be some serious issues with the HOA. The
vacancy rates are going to be longer and the turnovers higher so it may or may not be a
sound investment, but please give me a call or consult a real estate professional to get
more specifics on the area you're looking at.
One of the things I'm always getting asked is, you know, what about the market? The market's
still coming down, right? Well, that depends on where you're at in the price range, and
the location, and the city. Luxury market, absolutely.
Two-fifty and under, it may come down a little bit. A hundred grand and under, I don't know
I see it kind of creeping up. It may kind of bounce on the bottom for a little bit due
to seasonal trends. But my point is if it drops 5%, does it really matter? If you're
cashflowing monthly, you've got a good tenant in place and you're cash-on-cash return is
just light years better than what you're getting in the bank? It really doesn't matter.
I mean if it drops 10% and you've got a strong tenant, you've got cashflow, cash-on-cash
return so you can hold for the long haul. You know, the problem before in Las Vegas
is it was speculation, it wasn't investing. People we're negative monthly they were doing
those ARM [Adjustable Rate Mortgage] loans with the low interest rate and then they got
stuck.
So worst case scenario, prices don't go up for 3-5 years it doesn't matter because you're
making a sound investment for the long term. If you're considering buying a primary home
or maybe a second home, I mean everybody's kind of looking at those as an investment
now as well.
You know you're getting it below replacement cost. So I think you're making a sound investment
depending on the price range. If you're maybe going to be selling in 2-3 years you may want
to consider still renting, but once again that's going to depend on the area and the
price point you're in. I would strongly suggest you reach out to a real estate professional.
You know we have a great team. We focus on all areas of the city. We'd be more than happy
to give you some advice on that. Feel free give me a call.
I think that summarizes it for the day on investing investing in Las Vegas real estate
and why it makes sense.
You can also go to my website at dalesnyder.net for more information on Las Vegas and my team.
Thank you.
Have a great day.