Wednesday, January 18, 2012

Just how busy was the real estate market last year in Las Vegas? Record sales, that's how busy. Although 2011 was the 3rd busiest year on record overall for Las Vegas Real Estate sales, it turned out to be the busiest year ever for resales. 2004 and 2005 saw tremendous amounts of new construction homes being bought and sold in a hot Las Vegas market, but the last three years (2009-2011) have seen record amounts of foreclosures and short sales. In 2011 there were 48,186 resales of homes in Las Vegas. This number bested the previous high of 46,879 set in 2009. Bank owned foreclosures (REO's) and short sales are considered resales as they are being sold by the lender and the former owner respectively. Rough estimates pin the number of foreclosure sales at about 50% of all sales in 2011, while short sales represent about 25%. The remaining balance of sales are divided between regular resales, bulk sales, flips, and new construction homes.

Although most analysts agree that we are in for another 3-5 years of "more of the same" in the Las Vegas real estate market, it will be interesting to see how the percentages of sales types will shape up as we move into a new year in 2012. For example, in 2009, 75% of all sales were bank owned foreclosures while only 7% of total sales were short sales. In 2011, the number of foreclosures decreased dramatically as short sales picked up. Banks began to restrict the flow of REO's and allocate more resources toward getting short sales approved and pushed through.

Glenn Plantone of Vegas International Properties (VIP Realty Group) has become the number one buyers' agent in all of Las Vegas by dealing with investor buyers almost exclusively. A large majority of his clients are international investors with the highest concentration coming from Canada and China. In the last quarter of 2011 Plantone and his team brokered a bulk deal of 15 homes in northwest Las Vegas to a single investor buyer. The homes were a package of bank owned new construction sitting with Wells Fargo Bank. Plantone is now working with two clients looking to take down 50-100 homes this year in Las Vegas. Plantone claims, "The word is out and the savvy investors know that now is the time to buy while we are at the bottom of the market." With more that 50% of all sales still being cash deals, investors are securing CAP rates of 9 to 13% on single family home rentals.

Team Plantone has been able to purchase properties at wholesale prices, well below builders replacement costs in the $45-$65 per square foot range. (New construction costs start at about $80 per square foot.) Utilizing their full service property management division Team Plantone handles the rehab of the homes purchased, along with the leasing, and managing of the properties. Glenn works with a variety of clients from individual investors to hedge fund investment managers looking for greater returns for their investors.

Glenn utilizes all available purchasing avenues to insure that his clients get the best possible deal on investment properties at wholesale prices. Team Plantone finds and buys homes that are distressed, bank owned REOs, short sales, bulk packages, auctions, and properties at the Trustees' sale. Glenn is currently working with the FDIC to help secure larger projects for his clients with significant investment capital.

If you have interest in having Team Plantone help you to acquire larger groups of properties, please contact Glenn directly.

Glenn Plantone

Director

Team Plantone - Vegas International Realty

Las Vegas, NV

(702) 656-3264 xt: 203