Las Vegas Investment Steps
Here are some Investment Steps you should follow when investing in
Las Vegas properties:
- Get your financials lined up. Decide if you are going to pay cash or get a loan before flying to Vegas. You will make more money if you leverage your money, however, lending standards have tightened up. Simply contact your preferred lender or the bank you use and ask them if you can get a loan. If you don’t have any in mind, call us at (702) 570.8289 for a referral to great lending professionals to take the next steps with in Las Vegas.
- Contact me! The majority of agents in Las Vegas think in terms of “primary buyers” and lack experience in getting properties repaired or finding tenants. Agents in property management companies often lack experience in purchasing properties in foreclosure. Contact our office and we will be happy to work with you! Working with a trusted agent gives you the ability to make offers on properties before you get here or through the use of video conference, virtual tours, or several other means. Giving you an edge on other investors that may only purchase when they are in town.
- Define your strategy. Flipping is better suited for local investors who have the time and resources to get a property repaired. If you have a Project Manager in place, this may be a great option if you do not reside locally. Purchasing a property that is in good condition and has enough equity to flip is a needle in a haystack. Investors who fly in looking for this needle walk away empty handed more times than not. The best strategy at the moment for out of town investors is to take the following steps – purchase properties in average neighborhoods and make them available for rent or lease/option them.
- Come to Vegas! Let me know when you are going to be in town! I want to make sure that I give you the time and attention you need to look at properties and write any offers for your choices. Let me know as soon as possible.
- Start early and take notes. Temperatures get to 115 degrees in the middle of the summer. Many investors have nearly passed out walking in a urine soaked vacant property in the middle of the summer. Start early, end early and don’t party too hard. Take notes while looking at properties. There is a good chance that by the time you get a property accepted, you will have forgotten all about what it looks like. Taking quick pictures of the address and property inside will jog your memory later.
- Make at least 8 offers. Making one offer on your favorite property is a waste of your time. Myths about Las Vegas foreclosures are rampant. It will take you at least 8 offers to get one accepted weeks after you have traveled to Las Vegas. The average acceptance takes about a week and some offers won’t respond to you within a month. Many investors will walk away empty handed because they rejected their 4th offer and lost their last offer.
- Stand by for a fire drill. Generally, you will only have 24 hours to respond to a bank’s counter offer. If you go MIA after submitting your offers, you will have to start all over. Going on vacation after submitting offers is a very bad idea. When you accept a bank’s counter offer, you will need to wire funds and fax back dozens of disclaimers and addendums. If you don’t have an industrial fax or scanner, you will have the worst time of your life. Pay attention to every phone call and email from your agent as your due diligence timeline is short and you will get hammered if you miss your deadlines.
- Get your property repaired quickly with no bells and whistles. Lining up vendors prior to closing will save you lots of money. You have picked an experienced agent; I can provide you with a list of preferred vendors or take care of this for you. Keep your rehab simple and quick.
- Start marketing your property once it goes into escrow. You should be able to get a tenant right after you close escrow if you purchased a property in good condition. Again, you have an agent that works with other professionals that have property management experience, this will be taken care of. If you take pro-active steps in getting a property management solution lined up before you select a property, you will make more money.
- Establish a money collection method. Direct deposits into a national bank are the best way to make sure you get paid on time. This enables you to monitor your deposits online and stay on top of your tenants. Bank of America, Wells Fargo, and Chase banks are located all over Las Vegas and easy to find for any tenant. Many “full service” management companies, I work with have this method available for you.