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Invest in Residential Foreclosures
February 12th, 2010 | 
Author: 2010 is definitely still going to be a buyer’s market. The demand for these homes is strong with sometimes multiple offers and bids on bank owned homes and short sales. However, with continued low interest rates and still a steady stream of homes coming on the market. If a large or small investor is looking to improve their portfolio with quality real estate, Las Vegas is the place to invest! Is this a horrible real estate market?
Depends if you are a buyer or a seller. For some reason we usually define a “good real estate market” as one in which there is low inventory and prices are rapidly increasing. This kind of a “good” market is difficult for buyers and investors. Buyers and investors like prices to be low, interest rates low and lots of inventory to choose from!
This is the perfect storm for investors and buyers alike. The price of homes in Las Vegas has dropped for over 30 months. The median price of homes is now about 60% less than the peak price of $312,000 in the latter part of 2006. Prices have in effect, been rolled back to 1999 median home sale price of $130,000 in 2009 compared to $129,000 in 1999.
Summary: One person’s mis-fortune is another’s fortune. None of us have a Crystal ball or Ouija board to reliably predict the future. Most people were not prepared to financially weather “The Great Recession”. None of us have seen this kind of a downturn in our lifetimes.
Is this the new paradigm? Perhaps. One thing is for sure. As things change you must learn to change with it or you are left behind. Instead of sitting there wringing your hands about how “Bad” the market is, spend your time figuring out how you can shift your position to take advantage of today’s market. There is lots of opportunity in this market, you just need to understand how you can profit from it.
Terry Barone and Michael Bash of Prime Source Commercial are currently working with several investors to take advantage of this “buyers market”. If you are interested, feel free to call or email us for more information.
Posted in Distressed Real Estate | 
Tags: 2010 real estate market, bank owned, buyers of real estate, commecial investing, Distressed Real Estate, foreclosure, investing in Las Vegas, investing in real estate, las vegas foreclosures, real estate prices in Las Vegas, residential foreclosures, short sale
Your points are well taken. I believe there is a new paradigm shift taking place in real estate. We are in a "new" economy where we are finding out that we can do just fine with less.
The problem, as I see it, is what I call the "herd mentality". Warren Buffett said it best when he said "I like to buy when others are selling and sell when others are buying." With over 30 years in real estate, I am always amazed at how people get caught up in the frenzy that everyone else is caught up in and follow the herd… buying because everyone else is. When the real estate buying frenzy was going on here in Vegas, I had clients that said " just give them $60,000 more. Offer them more, when the deal barely penciled at the price we initially offered.
I have worked hard to educate my clients but some people just want to believe what they want to believe. Everyone is blaming the banks for them being underwater on their mortgages. While there may be some blame here, no one made you get the loan that would cost you $3,000 in monthly house payments or buy a commercial building that was only generating enough cash flow to make the loan payment based on your downpayment.
Everyone is saying what a terrible real estate market Las Vegas is right now. That depends on whether you are a buyer or a seller. If you are a buyer, you can find property that with a reasonable downpayment, you can actually have a positive monthly cash flow. Now you have real "income producing property!"