Archive for March, 2010

       No Demand For Land       

With the current glut of vacant and for lease properties in Las Vegas, the demand for land to build is almost non existant.  This is a far cry from the land grab era just a few yearrs ago when a wealthy New York-based company controlled by Israeli billionaire Yitzhak Tshuva paid $1.24 billion, roughly $36 million an acre, for the New Frontier in 2007.  That land today is worth a fraction of that if you were able to find a buyer at all.

Smaller parcels that were purchased by private groups for development or investment purposes before the "Great Recession" have gone back to the bank. About half of commercial mortgage defaults in Las Vegas last year were for vacant land.

It is reported by Allkied Analysis that prices for raw, undeveloped, land in Las Vegas have fallen 74 percent from their peak of $939,357 an acre in fourth quarter 2007, That means that excluding the resort corridor, the average price dropped to $243,368 an acre, or $5.58 a square foot.  Sales, if there are any, are mostly distressed or trustee deed transfers with lenders.

With nearly 28 million square feet of vacant commercial space and still a very large excess inventory of foreclosed homes in Las Vegas, I would guess any investor looking to acquire land on speculation would have to account for at least a three to five year hold. 

Making Money Buying Fixer Uppers.

When I first got interested in real estate in the 70's, (yes, I am THAT old !)  I started by buying inexpensive homes, fixing them up and reselling them.  Here it is 2010 and it seems there is an opportunity to do this again.  Prices have dropped more than 50% in the last 36 months.  The price of the average home is under $100 per square foot.  Some people have abandoned their homes and left them in great disrepair.  The banks own these homes and for the most part, can not repair them.  So they sell them at a discount.  If you are a wise shopper, you can find a great house in a good neighborhood that may need $5,000 to $10,000 to fix the home up enough to make it presentable and salesable at a tidy profit. 

If you are interested in investing in these types of properties as an investor, give me a call or email me and I will send you more information. 

The time to make money is when there is blood in the streets!