Real Estate Investing in Las Vegas: What You Need to Know

Viva Las Vegas! The City That Never Sleeps, Sin City, Lost Wages. It is too bad that Las Vegas only seems to be known by most people as a place to party and try and parlay – and loose – your fortune. Vegas, as it is called by nearly everybody living there, is a thriving, fast growing metropolitan all grown up town that is becoming a haven for people moving away from bad weather, income tax, and nothing to do. Even though a lot of boomers are heading there, it is a young crowd due to the work force.  The city has worked hard on redevelopment and cleaned up a lot. I happen to like to party there, as there is lots to do, and thankfully due to my successful lead gen digital real estate, I can.

Let’s roll some dice and bet on how you can score in Las Vegas real estate investing.

The City That Never Sleeps is a Kind of Newbie

The fastest growing city in the U.S. the last several years in a row, Las Vegas is a relative newcomer on the town of any size scene. Five hours out of Los Angeles and over the San Bernardino Mountains, the City of Neon is way out in the desert and pretty much in the middle of nowhere.  It was a wide spot in the road after crossing the Mojave on Hwy. 66 for decades.  Legalized gambling, wedding chapels, and brothels changed that, but Las Vegas still did not really start to grow up until the last 20 years. Over 320 days of sunshine annually, along with no state income tax and a strong job scene after the Great Recession set up Las Vegas as a good place to get a start, raise a family, and invest – especially in real estate.

Glitter Gulch lost its sparkle during the Great Recession

Nevada real estate took a real beating during the Recession, and Vegas was one of the hardest of all hit with foreclosures and failed valuation on property. Home valuations fell an average of 56%. Parts of Las Vegas looked like one of the many ghost towns dotting rural Nevada, reminiscent of another rush for wealth 150 years ago. But, in Las Vegas, one thing is certain – everything is a gamble. You either make it or break it in Vegas, and many a fortune has been won or lost – mostly lost – on the Strip and elsewhere in Glitter Gulch.

Las Vegas is an interesting creature by location. What really put the area on the map was the building of Boulder Dam, what we now know as Hoover Dam, and Lake Mead as a water reservoir to back up the mighty Colorado River. The desert is not forgiving when it comes to the need for water. An interesting note, Las Vegas was originally a thriving agricultural area due to close, high quality surface water in the late 1800’s. Seismic activity, mining pollution, along with tapping into the natural reserve for too long, drawing too much out of the Colorado, damming upstream, all took their toll and Las Vegas found itself without sufficient potable water. Water is still a very important and trying issue in this dry, arid region, especially now with the greater Las Vegas area population approaching 2 million, an increase of over a million in less than 20 years.

Las Vegas has a very low toleration for crime… sort of

Las Vegas has had challenges keeping up with growth and infrastructure during that time. One of the big issues was police and fire protection. Law enforcement was especially challenged in the late 90’s when gangs began to migrate from L.A. to easier pickings in Las Vegas. The city has responded, however, and has a very low toleration for anyone choosing to break the law. Clark County, where Vegas is metro proper, is not known for a sense of humor with illegal activities, that is, unless you outrank them by owning or controlling a casino. Even then the Nevada Gaming Commission has a heavy hand in local affairs.

It’s all wide-open spaces ripe for development, right?  Wrong.

Real estate in Las Vegas might seem to go on forever with miles to grow into. Nothing could be further from the truth. Actually Las Vegas is running out of space to build, as it is nearly surrounded by federal lands, with a few state properties sprinkled in. In fact, right at 85% of Nevada is owned by the feds. Clark County and the State of Nevada have requested permitting to develop 27,000 additional acres from Bureau of Land Management properties around the greater Las Vegas area, but the request has gone no where.

The biggest challenge with all the federal land is it is not just federal, it is military. High security military, including nuclear testing, bombing range, arsenals, armament storage, you name it, some of the most targetable stuff we have is located near Las Vegas. Yucca Mountain, where the feds keep trying to pawn off nuclear waste, is a stone’s throw outside of town.  It is understandable why the feds do not want to give up anything, including information about where the old location of Area 51 was, reputed to be close by.

Just how  is  the Las Vegas housing market now?

Since the Recession, Las Vegas has experienced unprecedented growth and recovery of valuation on homes. Just last year, even as the national economy was slowing, Vegas experienced an 11.6% average increase in valuations. With a lower cost of living than many places in the U.S. and lower home prices than most of the west coast major cities, Las Vegas is being seen as both a good place to move and invest in real estate.

Sources differ considerably about what the average price for a home is in Las Vegas, ranging from $198,000 to near $275,000.  Zillow reports that the median host price is currently $273,500, Trulia $275,000, realtor sites $226-$246K.  What we do know is real estate in Las Vegas does not stay on the market long, an average of 44 days, with 2 offers by then. Las Vegas was the top real estate market in the nation the last two years in a row.

The jobs market is improving in Las Vegas but unemployment is still above national average. Businesses are relocating to Nevada due to no corporate taxes and no state income tax, and many cities, Las Vegas included, have major incentive packages for corporate relocation that includes jobs packages. A word of caution, though – Nevada is a strong right to work state. This has kept wages for anyone but top earners well below average per hour rates of nearly anywhere else in the west.

The rental market is strong and tight in Vegas

With the influx of retirees and those relocating (they think) to brighter pastures, rentals are in very short supply in the area. Rent has had the highest year over year increase of any major city in the U.S. for a number of years running. Las Vegas is one of those places it is actually cheaper, often much cheaper, to pay a mortgage, as median rent hovers currently around $1,500 a month for a two bedroom apartment or house. Eviction rates are fairly low, as evictions are quick in Nevada and laws are tough, so most people try to keep their nose clean.

Banking, and getting a mortgage, can be a challenge where cash is king

It is harder, however, to do banking in Nevada. Writing a mortgage, even opening a checking account, can be a challenge, with more proof of everything than you might imagine. Those challenges extend to things like licensing, car registrations, just about anything to prove you are there and why you are there and why you have money there. It goes back to the transient nature of Nevada due to the gaming industry, and the high number of people that have financial issues in the state due to their gambling habits. Writing a mortgage is a reach and requires a lot more proof of income and stability than nearly any other place in the U.S. That goes for investment property and second homes used for rentals, also. Cash purchases for homes, once the standard for the region, are no longer, and banks intend to not be taken by surprise due to the number of borrowers increasingly under water due to inflating prices.

I have an advantage in that I actually can pay cash and have strong financials if I go to purchase real estate, thanks to my digital real estate. That was not always the case, though. I changed it with my lead gen business. Here is the link to learn how I did it https://www.bestrealestatedirectory.com/lead-gen/

All that glitters is not gold, or accurate, in real estate investment information for Las Vegas

There are a few things the investment blogs and prognosticators are not telling you about the Las Vegas real estate market. The valuation increase for homes is that high because the increase has been driven the past several years by high-end luxury homes – those over half a million. Lower priced single-family homes in Las Vegas simply have not gone up nearly as quickly.

While there is a decent market for home buyers getting into their first place due to the prices being lower than they might see in San Francisco or Seattle, the income growth and regular home valuation increases are simply not there. Cash purchases for homes in the Las Vegas area are at an all time low, meaning people can not afford to pay cash – which was the gold standard for decades in the region when buying a house – and have to mortgage. That said, delinquency and foreclosures are on an uptick again in the Las Vegas area.  In 2017 the Las Vegas area was nearly double of any major place in the U.S.  In 2018 it settled some, but is still high, as more and more homeowners find themselves upside down and under water.

Does this mean that in the near future there will be a glut of foreclosures and short sales to feast upon in the lit up desert?

Probably not.

What is going on with real estate investment opportunities in Vegas?

One of the reasons that you see only, and I mean only, blogs and articles from the real estate investments groups and associations is that long term investors, many from the Eurozone, have been and are buying up nearly everything that has, was, and is, coming available as a “bargain” in Las Vegas. That is true for single-family homes, condos, multi-plex, and commercial real estate. They are banking that the Millennials who are trying, hoping to some day own their own place will eventually buy the luxury homes the investment groups are all sitting on, and having to rent at high rates meanwhile.  They are in it for the long haul to capitalize, and they are hoping to suck you into an investment group to use your money, not theirs, to sit on for perhaps a decade or more.

Another use for those houses they sucked up is short-term rentals.

What about investing in a short-term rental property?

Las Vegas had nearly 43 million – yes, 43 million – tourists in 2017. Year-to-year increase runs around 16-17%. They gotta’ put them somewhere.  While you can stay cheap Monday-Thursday in Las Vegas, weekend prices on accommodations anywhere in the city are no longer anywhere close to a bargain. It is no longer cheap to eat out in Las Vegas, and show prices sure have caught up. Las Vegas no long just makes a buck off you in the casino. They get you before, during, and after the roulette table. One of the largest number of units in the nation for online rental is greater Las Vegas now.

So all this is great, you are thinking, and it really isn’t a crapshoot if I can find a decent place to buy, even if it is not cheap. Well, let’s talk about the property that ended up dumping during the Recession.

Caveat emptor on Las Vegas “cheap” property

Las Vegas, Nevada in general until the last 10 years, has been a place of rich and poor for the most part. Wages were horrid compared to hours, and most working conditions were not good. Nevada did not even have a mandatory lunch break law for decades. That said, when the Recession hit and people did not have money to gamble, Las Vegas took a terrible hit. Homes that had not had a lot of TLC for years got none. Many of the homes that were abandoned had very little maintenance for long periods of time.

If you can even find a lower priced property that is not already ready for rent, you have to be careful about the roof, water heater, heating and air conditioning units, plumbing, really, everything. The weather might be nice in southern Nevada but it is hard on materials. You also need to check on property taxes, potential liens that have not turned up, and neighborhood regulations in Clark County. Nevada was one of the last states admitted to the Union, and it also lagged behind in regulations and still does. Due diligence is critical.

Don’t try to bluff in Las Vegas or you will get flushed

Another thing in Las Vegas, they do not call it Lost Wages for nothing, and they don’t just mean at the craps table. People in the area are used to negotiations, slick talkers, and bluff. They are hard to read and harder to get a deal out of. You have to keep your emotions in check at all times when trying to bargain on anything in Las Vegas.

Tourism, and world economy, wags the tail of the Las Vegas dog

Due to a local economy run on tourism, and a lot of it international and from the East, political instability, tariff wars, and tensions politically all affect the economy of Las Vegas. People come to spend money and leave, and those who serve them live there and are stuck. When less come, less wages are paid. Simple math. Makes no difference cost of living is less than elsewhere when you do not have it to spend.

Some Las Vegas real estate investment firms will try and tell you property increased 46% last year – a figure I could not substantiate anywhere.  However, all the responsible economists, due to the economy slowing nationally and real estate leveling out in most places out west (or heading down) – all of them are stating the property values will go into deceleration in Las Vegas after third quarter 2021.

Will the Las Vegas area’s real estate crash again? You tell me.

The real estate trend predictors are pushing that it will be great until that third quarter. Their accuracy rate for predictions in the Las Vegas area is 71%.  The Nevada Gaming Commission sets the mandatory minimum pay back amount at Clark County casino slot machines…96%.

I don’t know too many people who have made a good investment yanking on a one armed bandit at 96% return. That makes me super leery of 71% odds.

It is really hard to tell what is really going on in the Las Vegas real estate market

One thing that really bothered me when I started to look into investing in real estate in Las Vegas was the lack of independent information. All, and I mean ALL, the information is from investment firms. Not even the realtors have hardly anything up. No one is talking, except those who are trying to dig into your pocket. I guess what happens in Las Vegas, stays in Las Vegas.

As for me, my greenbacks are going to stay in my pocket, to invest in my own digital real estate.

Gamble on yourself

If I am going to gamble, I am going to gamble on myself and a sure thing – my lead gen business. I am sure not going to go out and put my hard earned money down some rabbit hole of an investment group based out of country who wants to tie up my money long term for a not so bright outlook return.  Here is how I learned to do what I do to make the money I do https://www.bestrealestatedirectory.com/lead-gen/

I started looking into Las Vegas for property investment as I really do like the town. I just turned 30, I’m single, and I like to party some. I also am sitting pretty well financially now thanks to my  businesses I own controlling digital real estate. It was not always like that though.

Work for yourself, not the house

When I graduated from college I landed a corporate job that sounded good, and I was anxious to tackle the world. I soon learned that it was really hard to survive on $35K a year, paying my own bills. Starting my own business sounded like a good way to put some money back and be more comfortable, so I looked around and ran into many MLMs. I tried a few, got little of the money I invested back, and irritated a lot of family and friends in the process.

A couple of years at not winning sent me hunting again. I started drop shipping and made a little money, but still not enough to really invest in anything. I was also working stupid hours, had no life, and my apartment was stacked full of boxes and packing materials and stuff. I had no life. That was not what I wanted for myself, either, so back to the hunt I went.

One night while reading business blogs I ran into an article about a guy out west who was deep into marketing for businesses via the Internet. That got my attention. I knew enough to know the web was the future, and the future was here and now. I also knew very few business owners knew what to do with the Internet to build their business.

The guy the article talked about, Dan, had built his business writing lead generation websites for businesses from scratch. He worked his business every day and was making serious money. He also had a training program available for people like me who were willing to work to make a good living for themselves in their own business in control of their own life. By now I was completely sick of the corporate job and my apartment full of freight, so I thought what the heck, nothing to loose, and I clicked on the link to set up a time to talk. This was the link https://www.bestrealestatedirectory.com/lead-gen/

Dan shot straight from the hip and pulled no punches. He explained his training program and how it worked to legitimately help businesses succeed. The training program was reasonable and I could work at my own pace while I kept my job. It was way less than I had invested already in other things that sure did not get me where I wanted to be, and after thinking about it, I signed up, paid my tuition, and dove in.

The first thing I did was build a website, the one below. It took me like six hours start to finish. I still own it today.

 

I was able to rent the leads to a business owner right away, and five years later the same business owner still pays me $750/mo, direct deposit. My expenses are really low (I regularly make 80-90% profit on all my rented sites) and in five years I have cleared over $37,600 in profit on this six hours of work. I hardly ever have to touch it, and honestly, hardly ever have to deal with the customer, either. He is happy, and I am sure happy.

I was pretty impressed. I kept studying, working, and building sites. Yeah, it was work at first, I had to hustle as I still had the 9-5. But in five months I got to walk out of the 9-5 – permanently.

Now, 5 years later, I just turned 30. I am well over 7 figures a year, 80-90% profit margins on all of it. And my business – and investments – just keep growing.

Could you use an extra $37,600 in your pocket?

The best part about my real estate – digital real estate – I do not have to pay property tax. I do not have to hit the alarm in the morning. I can fly anywhere in the world I want and my office is in my laptop. I work when I want, how hard I want, party when I want. And the businesses I work with are thrilled to get the help.

Is whoever you are working for thrilled you are helping them make money? I kind of doubt it.

If you are ready and willing to do some work for yourself and not the other guy, click this link https://www.bestrealestatedirectory.com/lead-gen/

There is no obligation, I won’t call you back, I will not sell your name and number. I just think that a few more people like me would like a chance to change their life for the good in some monumental ways.

Don’t waste your time gambling on anything but a sure bet. You have everything to gain, and nothing to loose, unlike Las Vegas.