All Forum Posts by: Terry Lao

Las Vegas SFR median Jul'20 is $330k, up $5k from Jun'20, and up 8.9% vs Jul'19. Real estate is red hot due to low interest rates, under 3% for 30 year fix, low inventory. Throw in coronavirus for pent up demand, and you've created a seller's market.

@Account Closed

Timing is everything, in real estate and in life. If you bought in Las Vegas in 2012 to 2016, then pretty much made money. Below is chart of real estate cycle, if you never seen a similar chart, then you are not informed with the basics. Do you know the 1% rule? 50% rule?

Most people ask, what should they do? Most common response is it depends. It depends on your goal. Some are buy and hold. Some are buy, hold, and sell. Some are buy and sell (flip). 

My experience tells me the most important part of any real estate deal is the financing. Doesn't matter if you find the best deal ever, but do not have the money or financing, then it will not happen. Ever hear the term " cash is king "? There is a pecking order for buyers accepting which offer when multiple bids come in (assume all bids have same offer), and it depends on the down payment or all cash. 

Most sellers will take offer in below order.

1. all cash

2. 20% down or greater

3. FHA/VA

@Account Closed

There's a saying, luck is when preparation meets opportunity. Since, you found Bigger Pockets, then all the knowledge is here. The baby steps are putting yourself in the best possible position. Your fico score needs to be 740 minimum to get the best interest rates. You mentioned your credit is not the greatest. Thus, pay down credit card debt on a timely basis, no more lates. In fact, go online and pay weekly, as not to wait for month end due date. If you have collections, contact them and arrange payment only if they remove collection or negative information on credit. Save money and cut expenses. Learn to be cheap. Work on finding employment. Stable employment with good fico will enable you to obtain loan for your first real estate purchase. I would purchase place to live first before investing in rental property. 

The financial part is the most important aspect of the real estate transaction. A two bedroom townhouse is about 120k. If financed through FHA, only 3.5% down, which is only $4200 down, with maybe another 5k in closing costs.

Don't look for a flip when you have limited funds and experience. Play the safe route and stay local.

Update. 

Jun'20 median SFR is $325k, another all time high. My boots on the ground (realtor/broker) says Las Vegas market is red hot. Low inventory and low interest rates are driving the current market. Potential sellers did not list their homes in spring/summer, and thus did not add to the inventory. Buyers were always out there, now have even lower inventory to choose from.

Go figure.

@Alexa Hopkins

The mult's where I would invest now, see below map.

@Alexa Hopkins

I'm in Southern California, out of town investor, who invested in multi's (4plexs) since 2014. When I looked at SFR vs multi's, the obvious choice was multi's due to the better cashflow aspect. However, the appreciation of 4plexes, was greater than cashflow. To be fair, if you invested in SFR during 2014, you would also have appreciated.

Now, Jul'20, the market has changed. Location is even more important. If you worked at Sunrise Mountain High School, you know the area. I would stay closer to Summerlin, Southwest Summerline, and Henderson for SFR. For multi's, there are only a handful of areas, east of 95 freeway, near Summerlin, Spring Valley near chinatown, and behind MGM Casino, near strip, cross Tropicana and Maryland.

All this goes back to your goal.

@Rashad Shaw

I sent you a private message with contact for 4plex inspections. I used on (3) separate 4plex inspections and he did a very good job.

There are only about 40 available 4plexs on the MLS in Las Vegas. When compared to 4k SFR, it is a pretty unbelievable statistic.

@Alexa Hopkins

Here is one stat you will not find anywhere, but here, and will blow your mind. There are about 4k SFR available listings on the MLS in Las Vegas (for comparison). There are about 40 4plexs (not duplex, not triplex) available listings on the MLS.

What does Econ 101 tell you?

@Alexa Hopkins

Data, news, and information you find on online is a given. Boots on the ground is even better. If online information matches boots on the ground, then you got something. SFR median price for Jun'20 was $325k, which is all high since previous high Jun'06 $315k. Boots and podcast is saying Las Vegas market on fire, due to all time low interest rates and low inventory.

Do you homework.

Depends what your goal is. Below are links to stats for SFR. Eric Fernwood seems to have the stats for A/B SFR, in Southwest Summerlin area. My niche is more towards multi's and 4plexs.

https://www.biggerpockets.com/member-blogs/6562/88935-las-vegas-2020-investor-outlook



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