Invest in Las Vegas Real Estate -...

Invest in Las Vegas Real Estate

Presentation Charts Compiled By The Las Vegas Board Of Realtors.

Updates Are Available Upon Request.

IT IS BACK!

Affordable  Housing  Built  Las  Vegas    

For  20  Years  (1983–2003)    

Distressed Properties Are Driving Investments

0  1  2  3  4  5  6  7  8  9  

2005   2008   2009  

Millions   Distressed  

Proper6es  Home  Sales  

Sources:  New  Home  Sales    –  US  Census  Bureau  2008,  Exis<ng  Home  Sales  –  NAR  2008                      Distressed  Property  Projec<ons  –  RealtyTrac  2009  

Slow Steady Growth Projected Affordability Driving Steady Growth

0  1  2  3  4  5  6  7  8  

2010   2011   2012   2013   2014  

Millions   New  Home  

Sales  ExisGng  Home  Sales  

Sources:  Based  on  300,000  growth  projec<ons  per  year  

Existing Home Sales After Recession Affordability Fuels Growth - Mirroring The 80s & 90s

1975-­‐1976  +23.75  

1982-­‐1983  +35.53%  

1990-­‐1991  +9.09%  

2001-­‐2002  +5.53%  

0  

1  

2  

3  

4  

5  

6  

7  

8  

1974  

1976  

1978  

1980  

1982  

1984  

1986  

1988  

1990  

1992  

1994  

1996  

1998  

2000  

2002  

2004  

2006  

2008  

Millions  

Source:  Na<onal  Associa<on  of  Realtors  2008  

Pro-Business & A World-Class City

þ  No State Tax – No Corporate Income Tax þ  Low Employment Payroll Tax & Workers Comp þ  Getaway Global Destination Brand For 30 Million People Each Year þ  Great High Desert Weather – 300+ Days of Sunshine þ  1980s Pricing For Labor & Materials For New Homes

þ  A World Class City – Las Vegas Economy Is Driven By The Confluence Of Tourism,

Gaming & Conventions, Which In Turn Feed The Retail & Dining Industries

þ  Las Vegas Serves As World Headquarters For The World's Two Largest Fortune 500

Gaming Companies: Harrah’s Entertainment & MGM Mirage

þ  Foreclosed Homeowners Will Be Renters For 5 Years – This Will Drive Rental Demand UP

þ  New Homes Cannot Be Built For Existing Sales Price Points

þ  Investors Are Buying Homes For Better Return On Investment þ  Billions of Dollars Coming In Casino/Hotel Development In 5-10 Years

þ  Projected Employment Requirements = Over 100,000 New Jobs Next 5 to 7 Years

þ  Long Term Potential Is Good – Displaced Homeowners Will Buy Again In 2 To 5 Years – Housing Will Still be Affordable

Las Vegas Real Estate Snapshot 2010

Market Growth Snapshot 2010

þ  Las Vegas Is A New Fresh Exciting City – 3000 to 5000 People Relocate To Las Vegas Every Month, Year After Year

þ  Statisticians Say This Growth Will Continue Until 2028 When Las Vegas Will Run Out Of Land To Build Homes

þ  Over The Next 5 Years, Home Prices Will Increase Steadily þ  Demand Will Increase Steadily, Driven by Normal Growth

þ  Job Growth Positively Impacts Home Buyers & Renters

þ  Short Sales & Foreclosures Are Driving Las Vegas Market & Generating Inventory

þ  Real Estate Sales Up 57.3% & Setting Records For Volume

þ  2010 Median Price $126,000 – Decline of 50.5%

þ  Median Price Decline: Increases Investors Return On Investment

þ  Bank-Owned Homes Will Trickle Out To Avoid Devaluing Their Assets þ  Nevada Is Projected To Grow Approximately 49% By The Year 2028

þ  Expanding By Another 1.3M, Next 25 Years’ Growth Is Well Ahead Of What The US Will Experience As A Whole, With A Growth Rate Nationally Of Only 22%

þ  Las Vegas & Surrounding Areas Are Projected To Grow From A Base Population

Of 1.9M To 3.0M By The Year 2028.

þ  Job Growth will Correlate with Population Growth. Las Vegas Has A Labor Pool For New Businesses Relocating To Las Vegas.

BUT...

Nevada                  Is  In  A  

Recessionary  Cycle.    

Like  The  Rest  Of  USA  –

Single Family Residential Listings As July 2010

þ  High Speed Train Being Built To Run Between California & Las Vegas

þ  Mass Transit System That Will Travel To LV Suburbs

þ  80 Acre Production Facility: Zoning Approved: Facility To Be Built By Oakley Glass Company. New “Red Camera” Movie Studio That Will Create Digital Videos

Future Job-Producing & Tourist-Attracting Ventures

þ  City Center: New Technologically-Advanced Slots Are Computer Monitors That Connect To A Main Frame Computer & Can Talk To The Player.

þ  Nevada Test Sight: Employing Thousands Now & In The Future

þ  Global Hub Will Continue To Attract Tourist Around The World – Las Vegas Is A Meeting-Space City! – City Has a Newly-Built 5,000,000 Square-Foot World Market Center That Will Add 12,000,000 More Square Feet Before It’s Finished.

Generate  Annual  Net  Return  of  8%  to  8.8%  Equal  To  Approximately  $11,100  Of  Net  Income  

Add  $7,500  For  Fees  Including  AcquisiGon,  

Closing  Costs,  CosmeGc  Repairs,  etc.  

Invest  $135,000  To  $150,000  Per  Single  

Family  Home  

Investor Scenario:

SELL  HOME  IN  5  YEARS  At  3.25%  AppreciaGon  Per  Year  &  Receive  $179,244,  Which  Includes  Your  Original  $135,000  =  32.77%  Profit  

Leased Homes January Through June 2010

PRICE  CLASS   <  2  BEDS   3  BEDS   >  4  BEDS   TOTAL  UNITS  

$500  or  Less   104   3   1   108  

$501  -­‐  $800   2056   220   18   2294  

$801  -­‐  $1,000   1050   1612   158   2820  

$1,001  -­‐  $1,300   589   3018   933   4540  

$1,301  -­‐  $1,500   187   623   663   1473  

$1,501  -­‐  $1,700   82   268   380   730  

$1,701  -­‐  $2,000   96   174   386   656  

$2,001  -­‐  $3,500   88   135   386   609  

$3,501  -­‐  $5,000   10   7   45   62  

$5,001  -­‐  $8,000   1   5   17   23  

$8,001  -­‐  $10,000   0   0   2   2  

$10,001  or  More   0   6   5   11  

TOTALS   4263   6071   2994   13238  

Median  Price   800   1125   1450   1100  

Average  Price   933   1480   1795   1376  

RESIDENTIAL RENTAL UNITS LEASED

*  PURCHASE  PRICE  

$140,000  TO  $150,00  

5

2-Story Home Priced At $127,900 With 1715 Square Feet Plus 2 Car Garage Built in 2004

1

2-Story Home Priced At $149,000 With 1840 Square Feet Plus 2 Car Garage Built in 2002

2

2-Story Home Priced At $140,000 With 2005 Square Feet Plus 2 Car Garage Built in 2003

3

2-Story Home Priced At $154,900 With 2038 Square Feet Plus 2 Car Garage Built in 2003

4

2-Story Home Priced At $139,900 With 1896 Square Feet Plus 2 Car Garage Built in 2004

2-Story Home Priced At $144,900 With 1896 Square Feet Plus 2 Car Garage Built in 2004

6

2-Story Home Priced At $145,900 With 1757 Square Feet Plus 2 Car Garage Built in 2004

7

Single-Family Residential Listings As July 2010

The Next 3 Slides Show A $150,000 Home – In A Good Location Close To Schools & Shopping – That Rents For $1250 A Month

þ The Appreciation Rate Is Calculated At 3% For Years 2, 3, & 4 And 4% For Year 5

þ The Taxes Are 1% of Sales Price Per Year

þ The Insurance is Approximately $25 Per Month þ The Home Owners Association Dues Are Approximately

$50 Per Month

Facts About Investment Expenses

Protect Your Investment

Property Management Is The Keystone To Property Value! You’ll Need: þ  Strong Relationships With Vendors Who Are Trusted Bonded Partners In

Landscaping, Electrical, Plumbing & Related Services þ  Sophisticated Market Analysis Services to Establish Optimal Rental Pricing þ  Thorough Tenant Screening & Coordinate Move In Process

þ  Prompt Rental Collections & Owner Disbursement Thru ACH

þ  An Accounting DepartmentThat Pays All Re-occurring Expenses & Provides Monthly Income & Expenses Statements & Year End Reporting Including 1099’s

þ  Ability To Coordinate Property Reconditioning & Pool, Gardening Services

þ  A Group That Also Provides Commercial Property Management Services (Preferable)

Let Me Assist You! I’m just a click away. Whatever your goals – as a qualified professional – I can help you achieve them.

Don’t miss out on the incredible opportunities that exist in this unprecedented market – they won’t last forever.