All Forum Posts by: Robert Adams

I would agree that Vegas tends to be more volatile than most markets especially those in the midwest. We tend to ride the same cycles as the rest of the country but when its good nationally it's usually exceptionally good here. And the opposite is also true when is bad nationally it is usually especially bad here.

With that being said one of the reason we get hit hard in downturns (mainly long runs of a down market) is because when the rest of the country is not doing well we are not doing well also. But in addition to that, people from other parts of the country are not vacationing here and spending all that hard earned $$ here on hotels, gaming, shows, conventions, etc. When that happens our entertainment industry stops slapping up Billion Dollar resorts and it trickles down to less jobs and less economic growth.

But again the opposite is also true, when the country is doing well they love to come spend that $$ here and we love to capture as many of those dollars as possible and jobs and economic growth are created.

Our no state income tax structure here also brings alot of money  
from people trying to escape the high tax states like CA, NY etc. When people are making less money they are also paying less taxes so this factor is not as motivating to them.

These are  few factors that came to mind. Hope this helps.

 Yea that makes sense also. SF values are insane compared to Vegas. Hope all is well!

 With high home values and high interest rates pushing the limits on affordability that makes sense that people would share living spaces to cut costs.

If values come down and we can get inflation under control, then lower rates again I could see that helping affordability and reversing that trend.

There were a lot of people that decided to rent their proeprties rather than lower the price and sell with the new market conditions. This contributed to the increase in rental inventory. As that wave is absorbed I think we will see rental inventory decrease again. 

I agree from what we are seeing that rental rates will continue to increase in the near future. 

Also, with a lot of buyers choosing not to buy and continue to rent due to higher rates and decreasing home values, rental demand should remain strong.

Investment Info:

Condo fix & flip investment in Henderson.

Purchase price: $165,000
Cash invested: $24,500
Sale price: $233,000

This property is done with the remodel and new HVAC and we are in escrow. Should be closing in about a week.

Before, during and after videos available on our youtube channel look for REAL ESTATE INVESTMENTS Playlist: https://www.youtube.com/channel/UCz0kdYJNv1l_8dw42YErEpw?view_as=subscriber

What made you interested in investing in this type of deal?

Below market purchase with an ARV that was favorable to surrounding inventory.

How did you find this deal and how did you negotiate it?

It was a no show due to an uncooperative tenant. Negotiated long escrow with contingencies not to start until tenant was out. Property appreciated while in escrow.

How did you finance this deal?

IRA cash

How did you add value to the deal?

Complete remodel and new Hvac

What was the outcome?

Sold for profit

Historically speaking, rates are increased to fight inflations, higher rates slow economic growth, slower economic growth leads to higher unemployment, higher unemployment leads to more loan defaults on autos/housing/credits cards etc.

With that being said it should be interesting to see what happens to unemployment given the current employment climate where businesses are having a hard time finding workers that want to work ex: the great resignation. 

I assume there will be some sort of absorption in that phase but who knows. Let’s see how it starts to play out and plan accordingly.

In regard to foreclosures we are starting to see some people upside down in their homes for the first time in a long time. Most people that bought anything in the last 12 years have a ton of equity unless they did a cash out refi etc. Those that grossly overpaid within the last 12 months and are in markets that have since started to decline are making up the majority of those that are upside down.
 

Yesterday the Feds raised rates by .75 but mortgage rates actually decreased slightly.

Investment Info:

Condo buy & hold investment.

Purchase price: $235,000

Tenant currently in place until Sept 5th 2022. May renew and keep as buy and hold, may sell to another buy and hold investor, may have tenant vacate in Sept and remodel and flip. Video on youtube channel coming soon!

What made you interested in investing in this type of deal?

I have already bought and sold a few units int he complex. great location. Got it from mls the selelr was panicking.

How did you find this deal and how did you negotiate it?

MLS paid above list but stil a good deal. Seller just wanted out thought market was going to crash.

How did you finance this deal?

cash

How did you add value to the deal?

havent done anything to it yet. Tenant was already in place. keeping as buy and hold for now.

What was the outcome?

holding for cashflow currently

Investment Info:

Condo fix & flip investment in Henderson.

Purchase price: $165,000
Cash invested: $24,500

This property is done with the remodel and new HVAc and we are in escrow. Should be closing in about a week.

Before, during and after videos available on our youtube channel look for REAL ESTATE INVESTMENTS Playlist: https://www.youtube.com/channel/UCz0kdYJNv1l_8dw42YErEpw?view_as=subscriber

What made you interested in investing in this type of deal?

i knew the condos in the area were hyper appreciating and once remodeled would sell for much higher.

How did you find this deal and how did you negotiate it?

it sat on the market for a while with no interior photos and a tenant in place that was not cooperative. No one could get in to see it. We negotiated a long escrow, the sellers to get the tenant out and all of our contingencies to begin once vacant. They never raise the price while the market went up and it sat there, then it went up further while we were in escrow and the tenant was moving out. We then closed remodeld and now are selling.

How did you finance this deal?

self directed ira cash funds

How did you add value to the deal?

full remodel and new hvac unit

What was the outcome?

should be closing next week or two for a profit

Lessons learned? Challenges?

long escrows in an appreciating market can be a good way to gain equity. long DOM can also elp in this regard if no price adjustments were made.