How To Get Rich in Las Vegas Real Estate
Find foreclosure properties!
If you have enough money, you can buy homes at a foreclosure auction. Most areas require you to pay cash the day of the auction. The problem is that you may run into title problems and many times you cannot see the inside of the home prior to the auction. Try finding people already in foreclosure and work a deal with them prior to the auction. This does not require you to pay cash and many times you can buy the home with seller financing. This can be worthwhile to both parties. You are helping someone keep a foreclosure off their record and also buying a home at a reduced price .
Pay retail and hold on to the property.
Paying retail for real estate has worked well lately. The Las Vegas, Nevada real estate market, like many areas of the country, has been booming. You could have purchased pretty much anything within the last few years and made money. There has been alot of talk lately about a real estate bubble. It will be interesting to see if recent home buyers will keep their price gains. You have to focus on the time value of money when looking at the long term benefits of real estate. Let's say you buy a $200,000 house today and the home appreciates at a modest 5% a year. After 20 years that home will be worth more than $530,000! At a 10% appreciation rate for 20 years the home will be worth over $1,345,000! Let's be negative and say that real estate will only appreciate at 3% a year for the next 20 years. At this slow appreciation rate the home you paid $200,000 for would still be worth $361,222 at the end of 20 years. Keep in mind that at the same time you or your tenants are also paying down the mortgage. Can you imagine if you had 10-20 good long term rentals.
Buy in depressed areas.
Find areas that are depressed but have some redeeming qualities such as proximity to a thriving downtown or some other desireable place. Many depressed neighborhoods need someone to come into the neighborhood, pay retail, either tear down and build or rehab the old homes. This kind of activity will eventually attract other investors or home owners with money. Once the money starts rolling into the neighborhood, it changes and starts to become a more desirable place, which ultimately attracts more money. I purchased a home in a depressed neighborhood here in Las Vegas. A developer is buying my property and other depressed homes in the neighborhood to build high rise condos. The redeeming quality of the house I purchased is that it had a gorgeous view and was convenient to a changing downtown.
Fix up houses.
As a Realtor I have worked with hundreds of buyers over the years. Some people just will not buy a fixer upper. They either don't have the time, patience, knowledge or desire to buy an outdated home and fix it up. This is where a handyman or contractor can make some good money. Make sure you buy the house at a good price or have a way of adding some value to it. Normally, investors who are willing to get their hands dirty make money. There are many wanna-be investors who purchase homes at retail or slightly below, contract out all the fix up work and then try to sell above what the market will bear. These are the investors who tend to make little or no money. Would you want to pay $30,000 for a down payment and $40,000 in fix up costs only to make $10,000.
The author, Roy White, and his wife, Shirley, have been
helping people buy and sell Las Vegas real estate for over 28 years. They
are also investors themselves. If you have any questions of comments,
please feel free to call them toll free 1-866-374-3444 or e-mail them at
CENTURY21WHITE@aol.com
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The Roy and Shirley White Team
CENTURY 21 Aadvantage Gold
5041 N Rainbow Blvd
Las Vegas, NV 89130
Direct Line 702-610-4270
Toll Free 1-866-374-3444
Fax Line 702-309-4483
Each office is independently owned and operated
