All Forum Posts by: Kevin Geary

Hey BP family. I just wanted to give my two cents on the knock on effects of this very unique public health crisis on my local economy. 

I am a residential realtor here in Las Vegas & I have had multiple cancellations in the past few weeks. Cancellations across the valley have skyrocketed recently mostly due to the mass layoffs on the strip. MGM is our largest employer. The Las Vegas strip is home to 7 of the 10 largest employers in Nevada.

Economic Policy Institute projects Las Vegas will be the #1 hardest hit by this crisis. Although a large amount of these layoffs should be temporary this doesn't matter to a loan underwriter. I have buyers with amazing credit, great DTI, & cash in the bank...all of that doesn't matter to a lender if the buyer has no job.

What does this mean for the short-mid term prospects of the las vegas housing market? Inventories will rise for 2 reasons. 1. the cancellations means a bunch of homes will be back on the market, expect these cancellations to continue for a few months. 2. Even if the supply wasn't rising we should see less buyers in the market, which will increase the monthly inventory supply as time goes on.

Supply up and demand down implies that the median home price will drop and should continue to drop for a good amount of time.

I absolutely do not recommend panic selling, especially if the subject property is your primary residence. I will, however, say it might be a good idea to risk assess. Just like people are reallocating other financial assets such as stocks, you might consider limiting your exposure by selling your investment property sooner than later. 

What are your experiences recently? Thoughts?

@Brandon Vannier at 19 you have a wealth of time to accomplish those goals. As @Terry Lao mentioned, Las Vegas always seems to be a logical choice for a SoCal investor who needs the numbers to work. As I have with many other BP members, I just want to make it known that whatever help and assistance I can provide to the BP forum and the members I am absolutely happy to help, even if its something as simple as pulling active properties in the city for you just so you can compare your options. Cheers & good luck!

Las Vegas real estate agent here. I have a former client who has financial trouble. Received NOD and is curious what her options are. I spoke to my LO and they said if there is enough equity to cover the cost of selling as well as the amount still unpaid to the mortgage servicer then we can list traditionally and all would be okay.

I'm posting here before speaking to a lawyer to ask more about what legal recourse does the owner have. I know Nevada law will differ from other states but, in general, what are the steps the bank/loan servicer need to take on their part to be compliant with the law. Verbal notice first? Certified letter making client aware of the default? Certain amount of time needed before actually foreclosing on the property? etc...

@Terry Lao I operate mostly in Northwest & North Summerlin. I'm talking SFR. Since spring hit it seems that the amount of buyers around that median price and below jumped while inventories remained about the same. Standard supply and demand I guess. In the winter there might have been 2 or 3 offers on a property in that price range, now you're seeing 10+ offers, often. Sellers market right now, for sure.

Originally posted by @Terry Lao:

@Rob Tossberg

"Huge price jump since January . I think attributed to low inventory, Las Vegas raiders, and spring selling season."

Terry Lao

You aren't kidding...The winter was easy, ever since spring break started the sub 300k market went crazy. No inventory, multiple offers, sellers not even thinking of contributing to closing costs, every other appraisal coming in under. It isn't easy for my buyers right now!

Aaron Dunbar Just for clarification, I see you have the one rental property. Do you also own the property you live in & if so do you have equity in that property as well?

Ever changing regulations. Hotel industry & MGM resorts have the largest lobbing pull in the city. Uncertainty seems to be like the largest hurdle to overcome. AirBnB occupancy rates seem to be on the higher end tho. Browse the app!

I hear mixed reviewers here. Las Vegas definitely has tourism year around so the demand is definitely there but the supply is also here. More hotel rooms than any other major metropolitan area. Gotta compete with those room rates but during busy season you can make a nice spread.

Awesome story. I hope your success continues! Hopefully one day I will bring a buyer for one of your flips. Cheers @Christopher Dunson

@Dave Foster Thanks for that insight. I didn't even think the refinancing idea was an option. I'm not sure why I didn't. Just assumed that was a restriction. I will let them know that a way to successfully execute their goal would be to refinance after purchasing the new home with their gross proceeds. I understand that there are escrow 1031 QI reps, in this situation I wonder if there are also LO/lenders who have specific 1031 designations. I obviously want the process to go as smooth as possible for my investor.