Las Vegas family man, getting into real estate

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Las Vegas family man, getting into real estate

Isaac Chun
North Las Vegas, NV · Member since 2018 · 68 posts · 7 votes

Greetings to all my fellow Real estate investors and the like. My name is Isaac and I call Las Vegas,NV my home. I am currently studying to get my real estate license to become a realtor full time and have a strong desire to start investing in real estate to build a long term investment strategy. I’m originally from Hawaii, but have lived in Las Vegas for he last 16+years. Another thing that I’m proud to have done is serve in the United States Army for nearly 20 years. I have strong family values, which go hand in hand with my amazing wife and 9 kids(Yes, you heard it right lol)

Looking forward to meeting many like minded people and fostering long term friendships and business relationships. Feel free to say hi and ask any questions you might have. 

P.s. My main investment focus would be buy and hold to create rental properties. 

2Reply
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Louis Davis
Flipper/Rehabber · El Paso, TX · Member since 2015 · 379 posts · 201 votes
8y

@Isaac Chun Welcome to the world of investing. My first bit of advice would be to start off either the retail side or investment side. Trying to learn both at once will drive you crazy and you will have limited success on either the retail side or investment side. I will send you a private message to let you know how to take action TODAY in this market. 

Thanks, 

Louis

3Reply
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  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    8y

    Welcome to BP @Isaac Chun.  You came to the right place.

    1Reply
  • Isaac Chun
    OP
    North Las Vegas, NV · Member since 2018 · 68 posts · 7 votes
    8y

    Thanks Phillip, excited to be here

    0Reply
  • Brandon Carriere
    Realtor · Las Vegas, NV · Member since 2018 · 218 posts · 147 votes
    8y

    Welcome!  

    First of all, thanks for your service..  

    Congrats on getting the ball rolling for the real estate investing and license..  I'd be happy to grab lunch with you sometime and chat everything real estate!

    -Brandon

    1Reply
  • Carl Hawke
    Grandview, MO · Member since 2018 · 22 posts · 7 votes
    8y

    Welcome to the club. 

    1Reply
  • Alexander FelicePro Member
    Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    8y

    Hey Isaac Welcome!

    Bunch of veterans in town as investors as well so you'll meet some other Joes

    Lots of meets in this town as well so should have no problem making friends or finding groups to join.

    [email protected]Podcast Guest on Show #301
    2Reply
  • Isaac Chun
    OP
    North Las Vegas, NV · Member since 2018 · 68 posts · 7 votes
    8y

    Thx Carl for the welcome. 

    Alexander, I appreciate the welcome as well and look forward to locating and attending some meet ups in the near future. 

    0Reply
  • Louis Davis
    Flipper/Rehabber · El Paso, TX · Member since 2015 · 379 posts · 201 votes
    8y

    @Isaac Chun Welcome to the world of investing. My first bit of advice would be to start off either the retail side or investment side. Trying to learn both at once will drive you crazy and you will have limited success on either the retail side or investment side. I will send you a private message to let you know how to take action TODAY in this market. 

    Thanks, 

    Louis

    3Reply
  • Isaac Chun
    OP
    North Las Vegas, NV · Member since 2018 · 68 posts · 7 votes
    8y

    Louis,

    Thanks for the warm welcome and I’m sure I’ll see ya around Vegas at some point👍🏽

    0Reply
  • Robert AdamsBusiness Member
    Real Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes
    8y

    Welcome to BP. Vegas RE is booming. Ask a lot of questions here on BP , there are a lot of people willing to to help. Let me know if i can help with anything.

    [email protected]702-349-9175
    The Adams Team at Rothwell Gornt Companies4.970 Reviews
    WebsiteView Page
    0Reply
  • Jon Lee
    Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes
    8y

    Hi @Isaac Chun....welcome to BP and the investing game.  I'm from Vegas and also a former warrant officer....and would be glad to connect with you and answer any questions and/or point you in the right direction.  Just text me at my number below and we can set up time.  Looking forward to meeting you! 

    0Reply
  • Isaac Chun
    OP
    North Las Vegas, NV · Member since 2018 · 68 posts · 7 votes
    8y

    Can someone advise me if Ican add a picture to my profile, if I only have a basic free membership? If so, how do I do that?

    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    8y

    Yeah Vegas is one of the few areas that's still cheaper than it was 10 years ago. Figure another 15% year this year that will put us close to 2008 prices. Probably another 10-15% next year.

    PS.  Calida paid $235k per unit 8 months ago. Logan Capital paid $64 million for 255 units last month, an average of $251,000 per unit. So obviously you didn't mean $230k per unit was double the previous prices paid, you meant 5-10%. less than others paid. (I'm assuming you got it wrong, and not the "expert" at Forbes.) 

    We also know he compared Vegas where the average house is almost 4.5x the average income ($63.8k and $280k (as of May, up 18% from May 2017))and said "YUP, it's more overvalued than Seattle where it's 9x ($80k and $732k) or San Francisco county at at 12x average income ($87,701 and $1,087,599)."

    Don't worry, I'm sure the author will accept full responsibility and write you a check when it turns out he was wrong.

    0Reply
  • Diana Smith
    San Francisco, CA · Member since 2018 · 31 posts · 14 votes
    8y
    I have a wonderful property in Hercules, California that I can give you the information on if you’re serious cash buyer!
    0Reply
  • Aaron Hunt
    All Over, USA · Member since 2017 · 689 posts · 756 votes
    8y
    Originally posted by @Account Closed:

    May 14 issue of Forbes ranks Vegas as most overvalued housing market in America.  Cant argue with them if you have followed Vegas pre recession till present.

    Recently some clown company paid $230,000 per unit for a large apt complex,  double of previous going rates.  As a rental investment it just doesnt make sense.  Cant be a value add play as the photos showed complex is already in excellent condition. 

    Its a good thing Mr Lao didnt get his offer accepted on his lovable section 8 quad-plex.

    Agreed. Vegas is definitely not "booming". The growth rate is slowing down. I live here and have tracked the top zip codes on a daily, if not on an hourly basis for the past 24 months now. 

    The numbers show that it is plateau'ing/stagnating. Doesn't necessarily mean it will fall, or correct, it just means the growth isn't as crazy as before.

    You see some knuckleheads occasionally come in with cash from Cali but from what I have seen they are the only big spenders here. They are the ones who also rent these same places out for way below what market rate should be, not caring about their returns because it was cash. As a result the rental market has been suppressed.

    Perfect example - that complex everyone is talking about, was bought by a firm from California who is probably striking out in Cali and decided to invest here instead. You're right that there is no value-add on that one. They will have to jack rents up and compete with local retail investors just to get their money back now.

    Laughing at your final comment because as we all know there are a few things in life that are very certain

    "Death, Taxes, and Mr. Lao hyping up Class D multi-families in Las Vegas!"

    0Reply
  • Stefan Tsvetkov
    Investor · New York, NY · Member since 2017 · 263 posts · 118 votes
    6y
    Originally posted by @Bill B.:

    We also know he compared Vegas where the average house is almost 4.5x the average income ($63.8k and $280k (as of May, up 18% from May 2017))and said "YUP, it's more overvalued than Seattle where it's 9x ($80k and $732k) or San Francisco county at at 12x average income ($87,701 and $1,087,599)."

    House affordability (i.e. house price-to-income ratios), varies widely across different U.S. states and counties. Affordability alone is not a measure as to whether a specific market is overvalued. Deviation from historical affordability on the other hand, at peak 2007 was highly correlated with subsequent market drops (in fact 83% correlated at the state level in a study I did)

    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    6y

    @Stefan Tsvetkov

    But luckily with hindsight (this post is 2 years old) we find out they were wrong again.  Vegas housing is up significantly since it “plateaued” or was “overpriced”. 

    On the other hand. It does appear San Francisco, a location they said wasn’t overpriced, at least compared to Vegas. But that my back of the napkin, nothing but common sense approach said was overpriced. May have also been wrong on their part. Sometimes the “experts” put out the results of a study that proves what “everyone already knew”. And sometimes they put out a study that everyone knows is wrong. This was a wrong study/evaluation/guess. 

    0Reply
  • Stefan Tsvetkov
    Investor · New York, NY · Member since 2017 · 263 posts · 118 votes
    6y

    @Bill B. You are right that Las Vegas was overvalued 2 years ago, in fact I see nearly the same valuation as today. You are also right that prices continued to rally after. And they may continue for further years from now, if the current recession proves not to be 'peak of cycle'.

    Momentum, i.e. the market continuing to rally even if overvalued, is not inconsistent with valuations. Valuations predictive power is at peak of cycle alone (showed 83% correlation at the state level vs. the actual subsequent price drops in 2007).

    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    6y

    So valuations are only worthwhile once every 15-25 years at peaks? And at their peak they’re only 83% correlated? How bad are they the other 80-90% of the time we aren’t at “peak”? Are they still 60-70%? Or only 20-30% (basically none.) 

    I hate people saying “there should be a rule or a regulation about that...” but if I saw that comment Written in a financial magazine or on a real estate investment website I would sure get the impression that the “experts” were telling me I should sell if I own any and I definitely shouldn’t be buying. 

    Imagine if someone wrote the same article about Apple or Tesla stock. I ASSUME 80%+ of the readers would get the impression that the author thought a price drop was imminent and undeniable. And as mentioned in our other conversation, I’m pretty sure they would take credit for predicting the drop. But that’s unfair and disingenuous if they aren’t going to say they were “wrong” when it goes up instead. If they included a note saying “I’m not saying it will go down and it may very well go up.” AND, don’t take a victory lap if it goes down, I’d be convinced of their concept of overvalued. 

    0Reply
  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    6y

    @Stefan Tsvetkov I've noticed you commenting on every metro with the same theme.  What's your game?

    0Reply
  • Stefan Tsvetkov
    Investor · New York, NY · Member since 2017 · 263 posts · 118 votes
    6y

    @Phillip Dwyer I did a technical study on RE valuations, which is highly predictive at peak of cycle. It is based on deviation from historical price-income ratios (though indirectly reflects housing shortage, population/housing supply shifts as well)

    The vast majority of markets are not currently overvalued. I am sharing certain results with the BP community, especially for areas (not necessarily cities), which are overvalued (such as Las Vegas currently). 

    I have done a few Podcasts/lecture events on the topic as well. Can PM me if any questions.

    0Reply
  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    6y

    So you're picking the RE markets with the headlines of mostly likely in trouble to get exposure for your product?  There's nothing wrong with developing a solution for real estate and sharing that on the forums, so long as it's transparent.  Price to income ratios are not new to be used in market analysis.  Chris Thornberg's firm has been talking about this since the last crash.  What's different about your approach?

    0Reply
  • Stefan Tsvetkov
    Investor · New York, NY · Member since 2017 · 263 posts · 118 votes
    6y

    Yes, price-income ratios are a standard approach. Though exact time-period calibration, proof of correlation is not. It is deviation vs a well-selected historical level that drives drops post peak. 

    Further, price-income ratios vary with time as housing availability may drive those upward/downward. So an enhanced metric is further fit. It is a detailed technical study with strong numerically-proven value-add.

    There is no 'product', rather knowledge sharing, in an area that carries some level of confusion.

    0Reply
  • Account Closed
    Real Estate Agent · Las Vegas, NV · Member since 2020 · 41 posts · 41 votes
    6y

    Hello @Isaac Chun,

    I too am an Army veteran and I extend you my gratitude for your service. Getting your real estate license is a great way for investors to get educated and understand Nevada's real estate laws, not to mention you will save money by being your own agent.

    I too am a REALTOR® and I hold a Property Manager permit.  I would be happy to meet with you and discuss any questions or concerns you may have with the property management of your buy and hold investments. Give me a shout and lets grab a bite and talk.

    - Tony

    0Reply
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