Yes! Loan modifications and short sales are two sides of the same coin. The coin is the “loan workout” with the loan mod and short sale as simply two types of loan workouts. Here is the most important thing to know: you cannot do both simultaneously. The banks will kill a short sale in favor of a loan mod every time. The reason being they keep you on the hook and continue to get more money from you. In a short sale they are liquidating the property and unless they have recourse to pursue you after the short sale is closed their relationship with you will be terminated upon the short sale closing.

As a reader of this article, please understand that the correct context here is for states with severely falling prices. If you live in a state that has not experienced severe deflation, then a loan modification may be a great option. Here in Nevada, Arizona, and many times California, the loan modification should be renamed: Operation: Investigate-the-Borrower. Most borrowers have no hope of ever getting a permanent loan modification that makes sense. They are so far upside down or already in default that the banks aren’t going to refinance them. They banks are just using the carrot to extract as much financial information that may be used against the borrower in the future, along with more cash.

I am often times robbed of legitimate short sale techniques because the seller (borrower) has already told the bank too much and we have a harder time proving a hardship. Short sales can be very difficult. The quicker you can get a buyer and get the processing going with the bank, the better chance you have to close in a falling market.

My advice is simple. Be honest with yourself! If you have a true hardship (death, divorce, job loss, income loss, job transfer) and you can’t afford your home, look to sell it in this market. Playing around with loan modifications can cost you valuable time you could have spent doing a short sale. The loan modification numbers in our states are abysmal. The banks think nothing of taking months and months processing your request for a loan modification only to tell you– sorry. Remember, FORECLOSURE ACTIVITY IS NOT SUSPENDED WHILE YOU ARE DOING A LOAN MODIFICATION! They continue the march toward foreclosure and since you cannot do a short sale at the same time, you may be left with no time to every attempt one.

Paul Rowe is the managing agent for the short sale division with the Sena Team at North American Realty of Nevada. You can contact Paul or Tony Sena at 702-376-0088.

A non-recourse loan is a loan where the bank can only seize the collateral used in the loan (your home) and you have no personal liability beyond that. With a recourse loan, you continue to have liability even after the home is seized after default or sold as a short sale.

Your loan will be labeled according to the terms in the note along with the laws of your state as Recourse vs. Non-Recourse. Primary loans used as purchase money only in some states such as California and Arizona mean that at foreclosure or on a short sale, the bank holding the note has no opportunity to pursue you. Whatever money they received at the closing is it, no lawsuits and deficiency judgments to hound you in the coming years.

If you live in Nevada, where I live, the banks have full recourse ability, so unless they waive their rights, they can come after you. I am not an attorney and this information should not be viewed as legal advice. I have been told by attorneys here that banks have the following recourse options to them.

Foreclosure: For purchase money (money used to buy or improve a home and not money pulled out as cash or home equity lines of credit, banks have six months to  file legal action against you once the home is sold at auction on a short sale.

Short Sale:  Unless the bank waives its deficiency rights they have up to 6 years. This doesn’t mean that they will, just that they reserve the right. In fact, the bank may just take the loss and write it off. In that case you will be receiving a 1099C (cancellation of debt). You’ll have to consult a tax professional but this essentially means the bank is showing their loss as your gain and will be treated as taxable income. What, if any tax liability depends on your individual tax situation.

If you are considering a short sale, you’ll need to consult an experienced short sale agent, attorney and tax professional versed in short sales.

Paul Rowe manages the short sale division for the Sena Team at North American Realty of Nevada.

by Marc Rasmussen – Sarasota FL Real Estate

Are you trying to sell your home or thinking about selling your home in the near future? One thing you need to remember is that buyers generally do not want to purchase a “to do” list. When home buyers go shopping they generally are not envisioning hard work, painting, scrubbing, cleaning and repairing. They are most likely thinking about all of the good times they intend on having in the home. A buyer that is willing to take on a project will want a significant discount on the price. It is best to eliminate the “to do” list that your home has in order for you to put the most money in your pocket. Here are 5 tips to give your home a better first impression:

1) Clean, Clean Clean

No one wants to buy a pigsty unless of course they are getting a great deal. Clean your home extensively. Bring in cleaners if you don’t have the time or energy. The money you spend on the cleaning will probably come back to you ina  higher sales price.

2) Paint

Paint anything necessary to give it that fresh look. Painting the outside or inside of your home may not be cheap but it certainly will make your home look much better and cleaner. Painting is one of those fixes that should come back to you in a higher sales price. If you install a $50,000 kitchen chances are good that the price of your home will not go up $50,000. However, a $2,000-$3,000 paint job is a good investment.

3) Trim and Tidy Up the Yard

There are probably some trees or bushes that need trimming. Invest a couple of hours on the weekend or hire a crew to come in and give your outside yard and garden a good cleaning. Trim the neglected trees and bushes. Pull those weeds that have been lingering around. Again, the buyer needs envision good times in the house, not a bunch of hard work.

4) How’s your mailbox?

It might seem silly but something as small as the condition of the mailbox could set the tone for the buyer when they visit your house. Buyers will probably notice that you have given attention to even the smallest details. Replace the numbers on your house or mail box with new and attractive ones. If your mailbox needs it give it a fresh coat of pain as well.  

5) Does your house stink?

Do you smoke or have pets? That can be a huge turn off to a buyer. I recently showed a smokers house and the smoke odor punched you in the face when you walked into the house. The buyers were very turned off. Make sure you get rid of any odors. Spray Febreze, bake some cookies, have the air ducts cleaned or vacuum or mop extensively. Remove any odors from the house.

Remember, that most buyers just want to walk into a perfect house with nothing to do. The more chores you give them the less interested they become. To put more money in your pocket at closing do your best to eliminate the problems.

Why Fixer-Uppers Are So Popular

Although not all investors are attracted to these kinds of Las Vegas Properties, some real estate investors look for nothing else but properties in need of repair. This can be understandable, when on the surface it may appear that a motivated seller may be willing to part with his run-down parcel of land for as much as 20% to 40% under potential market value.

Of course, the inexperienced Las Vegas Investor may look only on the bright side of the picture, such as creating equity with minimum up-front cash, using government money and low interest loans to rehab eligible properties into saleable or rentable condition, or flipping a “ fixer-upper” for big profits, with a minimum outlay of funds.

All of the above speculations are not only possible, but are frequently accomplished. However, the experienced investor doesn’t only see the bright side, but will carefully evaluate possible pitfalls and cash outlay estimates after purchase before making a commitment.

As with any property purchase, and particularly with a handy-man special, a thorough building inspection by a licensed contractor is a must. Any problematical finds, such as structural damage and the extent of that damage, must be carefully evaluated before deciding to buy or walk away.

Another important consideration when dealing with this kind of investment is the outlay of funds required to repair and refurbish the property. If you are a do-it-yourself craftsman, you will probably be able to handle cosmetic repairs such as painting, cleaning, minor plumbing and electrical repairs such as leaking faucets, or replacing a light switch, etc., but, more extensive repairs would probably involve the cost of hiring a licensed contractor, especially if the building needs to be brought up to code.

All of these factors, other than just the purchase price must be carefully evaluated before making any commitments. Future use of the property, and a realistic exit strategy are other important considerations.

At this point in time, when selling prices are down and inventories are high, many investors in rehab homes would prefer to fix up and rent, rather than compete in a “buyers market.” Favorable cash flow from monthly rentals will allow the investor to bide his/her time waiting for an up cycle in the marketplace, as inventories gradually diminish and selling prices begin to rise.

Lastly, although CPA’s and real estate attorneys are valuable members of any investors team, a good Las Vegas Real Estate Agent is the key person on your team that can help you build wealth.

A good real estate agent, one that has experience in finding the kinds of properties you are looking for, and is in tune with your goals and business practices, are your eyes and ears in the marketplace.

Above all, the smart investor knows that connecting with a reliable agent will not cost you money, but actually help you to make money.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-0088.

There is no doubt that the overall quality of a school district has a definitive impact on home values. In fact, the one of the most prominent reasons for families with school-age children to choose or reject a particular Las Vegas Home is based less upon the likes and dislikes of the home, and more upon the known quality or lack thereof of the school the property is zoned.

It’s an absolute fact that the market value of residential homes located within the jurisdiction of a quality school remain consistently higher than the value of similar homes in a less desirable school zone.

Often, buyers will be willing to pay premium prices for a home within a high ranked school zone, which is a primary reason for such a home to command top dollar.

Even in a market of declining home values, such as we are experiencing today, homes within the better school zones are holding their value far better than most.

A home within a school zone recognized for its consistency in quality education is often considered more desirable than a home that is perhaps located more conveniently to shopping, entertainment and business districts, for example.

Sixth largest in the United States, the Clark County School District has a number of schools that have rated among the nation’s best. Green Valley High School has, in fact, been proudly ranked among the top ten high schools in the country.

Detailed information about schools in the Clark County School District, as well as charter schools, can be viewed by parents and guardians through required annual reports. These reports are also used by Las Vegas school teachers and administrators to help develop academic achievement programs designed to increase the learning skills of all students.

Additionally, a Magnet School Program developed by the Clark County School District provides students with the opportunity to attend schools offering unique educational programs.

Under these programs, parents and their children have the opportunity to choose which of the Magnet School’s specific offerings would best suit the child’s particular interests.

Important consideration should be given to the fact that there is always a possibility that school boundary changes could occur if, for instance, a particular school is growing rapidly and is near or over capacity.

A new subdivision located near an established neighborhood could possibly stress the capacity of the adjacent schools and cause a school boundary shift, and although homes in a good school zone can often command selling prices of twenty to thirty percent higher than similar homes in a lesser school zone, a school boundary shift which would put the home in a less desirable school zone would most certainly negatively affect market values.

What can you do? Evaluate all of the factors involved, and just try to make the most intelligent choice possible. Remember, in the real estate marketplace, as in life, nothing is guaranteed, and change is inevitable..

If you are looking to purchase a Las Vegas Home within a particular school zone and have any questions, feel free to give us a call at 702.376.0088.

As soon as a Las Vegas Real Estate Property is listed in public records as being in default, the vultures begin to circle the dying carcass. Vultures, meaning the not so legitimate companies that prey upon these unfortunate people in difficult circumstances, and are opportunists of the worst kind.

Unlike the honorable investor in Las Vegas distressed properties, who truly attempts to put together a win-win situation for everyone, the scam artists, posing as lawful business people, use scare tactics and confusing language to pressure the panicked  homeowner into making hurried and thoughtless decisions, decisions that will result in the immediate loss of their home, and the scam artists acquiring the property at a below bargain-basement price.

Many homeowners facing the loss of their property are vulnerable to any suggestions that might help their situation, and are too distressed and anxious to check out the credentials of these crooks, whose tactics are designed to keep the homeowner confused, worried, and pressured to sell quickly.

The scam artist depends upon the harried homeowner’s state of mind preventing logical thought. He/she knows that if a homeowner was able to think rationally, he/she would be checking with the state government attorney’s office and the Better Business Bureau, for any complaints lodged against these firms, before concluding any business with them.

There are countless scams out there, with one purpose in mind, to steal the home out from under the home owner and resell for a fat profit. It is not within the scope of this article to detail all the many ways these thieves operate, but just as an alert to the Las Vegas Homeowner who is suffering financial difficulties and a possible loss of their home and is looking for a solution.

Above all don’t panic. Logical thought will enable you to find the answers. Definitely avoid all the come-on ads in the newspapers and online that offer themselves as mortgage consultants, “save your home specialists,” or using the words “debt elimination,” and the like.

Contact your lender as soon as you see a problem in meeting your mortgage obligations, and see if you can work with them to resolve the dilemma you are in. Remember, lenders don’t really want to be in the real estate business. Foreclosing and selling properties in default are practically always a losing proposition for them. Foreclosures are “loans gone bad,” as far as the lender is concerned.

In fact, many lenders complain that homeowners often call too late to be helped, and that there are cases in which a person suffered a home loss that might have been avoided had they contacted the lender sooner.

If it is feasible to do so, hire an attorney who specializes in real estate laws and regulations, and can evaluate your situation, and perhaps find some logical solutions to your problem.

If you decide you want to sell your Las Vegas Home and you owe more than the home is worth, feel free to give us a call to discuss doing a short sale.  We can be reached at 702.376.0088.

Which Would Be The Best Choice

If you are planning to buy a Las Vegas Home, and are not sure of whether you are interested in a new home, a somewhat older resale, or a truly “older” home, it would be best to avoid confusion by researching what the differences are in older and newer homes, and how these differences would or would not be to you and your family’s liking and adaptability.

Be sure to have a family consultation after you have carefully examined these differences, in order to reach a consensus as to what kind of home would best suit everyone’s lifestyle.

Above all, try to reach some conclusions before you bring your appointed Las Vegas Real Estate Agent into the picture. Once you are focused on the kind of homes you have decided you are interested in, and in what price range, your agent can go to work and locate properties of interest.

Differences in newer and older homes are many.  For example, older homes –in particular, homes  built in the 1950s thru the  1970s -  may offer less interior living space then a newer home ( a typical two or three bedroom home in those days might be about 900 to 1600 square feet, with one or one-and-one half bathrooms)  but may have been built on a larger lot since land was not quite at such a premium then.

Rooms and windows are generally smaller in these older homes, and each of the rooms are pretty much closed off from one another. The open floor plan of modern construction allows for lighter, airier surroundings, and larger windows will let in more daylight.

Rewiring might be a distinct necessity for some older homes, which may not be able to accommodate all of the high end kitchen appliances and electronic equipment that are in every day use today.

Additionally, the cost of a code upgrade or remodeling of an older home should be taken into consideration as well. On the other hand, an older homes mature landscaping, with towering trees and abundant shrubbery, are a definite plus factor, since landscaping today can be an expensive proposition, and trees and shrubs can take years to reach full size and maturity.

Due to lesser square footage, the older home lacks the equivalent storage space available in newer construction.

However, the quality construction found in many older homes is often better than on many comparable newer Las Vegas Homes. These homes were built to last, with sturdy 2×6 redwood framing and solid plaster walls in place of sheetrock.

Many vintage homes, such as those built in the 1920s and 30s, have architectural features that give these homes a “character” that is appealing to many people. Many of these vintage homes are located closer to downtown areas, which can make them quite expensive to own.

So, the conclusion seems to be that whether to buy a new or older home is pretty much a judgment call, and your decision should be based on many factors, and especially how well a particular home, old or new, fits in with your expectations of what an ideal place to call home should be.

If you are interested in purchasing a “resale”  or new home in Las Vegas and have any questions about the Las Vegas Market or would like to set up a time to view properties, feel free to give us a call at 702.376.0088 or fill out the form below or to the right.

By: Marc Rasmussen – Sarasota real estate

Not every Realtor will admit this but there is a lot of fluff when it comes to marketing a home. Call a few Realtors or explore a few websites and will see a laundry list of things that agents do to sell a home. I saw one recently that said, “76 Steps to Marketing Your Home”. Do you really need to do 76 things to get a home sold? Hopefully not.

I am trying to make fun of anyone. I am sure that 76 step plan is a great marketing tool. I think Realtors just come up with more stuff to out do each other. If you have 50 things to market a home then I will come up with 60 things to market a home.

I am not trying to downplay the whole home selling process. Aside from a few exceptions there is a lot of work that goes into selling a home. From the outside many homeowners think, “those Realtors are so overpaid.” However, for every easy transaction a Realtor has 9 pains in the butt or properties that do not sell.

Here are 4 essentials to selling a home:

1) The right price – You could have the best brochure in the world, the cleanest house, 100 e-blasts to Realtors, full page print ads in the Sunday newspaper and displayed nicely on 1,000 websites but if you have the wrong price your home will still not sell. Home buyers look at more than just one home when they buy. All of that marketing might get a buyer in the door but they will end up buying a different house that is a better deal.

Let’s say your home is a 3 bedroom, 2 bathroom, 3,100 square foot home in Bent Tree in average condition and you are asking $459,000. Now assume a home down the street in better condition with 4 bedrooms, 2.5 bathrooms, 3, 150 square feet is asking $399,000. Regardless of how each home is marketed which home has a better chance of selling first?

2) Good Realtor – Having good representation can make a difference in whether your home sells or not. I am not suggesting that you have to list with a “super star” Realtor but make sure your agent has some experience. If they don’t make sure their manager will help out. A good agent will pay off when there is a problem.

3) Good Marketing – Even if you have a good Realtor and the right price you need to market the home. A good marketing plan usually includes quality photos, a virtual tour, internet exposure, brochures and entering it on the multiple listing service (MLS). The MLS system is the most important piece of the marketing puzzle. When a Realtor does this they are basically hiring every agent in the community to help sell the house. Your home still might sell with no marketing but it may not sell for top dollar

4) Access to the property – I have seen properties languish on the market for a long time that had a good price, good marketing plan and a good Realtor. However, the missing piece of the puzzle was that you could not access to the house. A buyer usually needs to be able to see the home in order to buy it.

Three of the above are relatively easy to achieve. There are plenty of good Realtors out there. Most or all of them have great marketing plans and providing access to your home is doable. The tough one is pricing your home right. Most home owners think their home is worth more than its true value.

Although there are many reasons why some Las Vegas Homes are harder to sell than others, some obvious and some not so obvious, basically, most any home should be saleable. Even if the home is in bad shape, there are always buyers out there looking for fixer-uppers. What then could be the problems that are keeping a particular home sitting unwanted in the For Sale columns for many long months?

Let’s look at the obvious:

• The asking price is too high. If the house is overpriced, then the primary reason the house has not been sold is either the fault of a homeowner who insists on a set selling price and won’t budge, or the Las Vegas Listing Agent, who is either not familiar enough with the neighborhood, and has not bothered to do a comprehensive neighborhood market study, or is hampered by inexperience and is not capable of convincing his/her client that they are being unrealistic.
• The house lacks “curb appeal.” The homeowner has neglected to spruce up the yards, front and back and the exterior may have that uncared for look; peeling or dull looking paint, a shoddy front door, screens that need repairing, cars and trash cans in plain view in the driveway, etc.
• The interior of the home has not been “staged.” That is to say, a fresh coat of paint in a neutral color, carpets vacuumed, home thoroughly cleaned top to bottom, appliances shined, furniture attractively arranged and clutter removed. Rooms should look bright and cheery, and most personal items removed to make it easier for a prospective buyer to imagine him or herself occupying the premises. A messy home is understandably a big turnoff to buyers.
• The Las Vegas Property has not been professionally marketed. If the homeowner is trying to sell on his/her own, they will not be able to access the resources or depend on the marketing skills of a real estate agent, and as a result will not get the badly needed exposure the home needs in order to attract a buyer in this very competitive “buyer’s market.” Furthermore, many buyers are uncomfortable dealing with an owner directly, and would rather negotiate through their real estate agent.

What can be done to make the house saleable, besides all of the above corrective actions? Adjust the asking price to coincide with current prevailing market conditions in the area, and for the listing agent to ensure that the property gets maximum marketplace exposure.

Additionally, the listing agent’s negotiating skills, or lack thereof, as well as a buyer’s and/or seller’s unwillingness to compromise, are often key reasons as to why a home can be difficult to sell.

If you are interested in selling your Las Vegas Home and have any questions about the process or the need to do a short sale, feel free to give us a call at 702.376.0088 or fill out the form below or to the right.

The knowledgeable Las Vegas Real Estate Investor can be differentiated from the less astute investor by the fact that the overeager investor often looks to purchase any property or properties he or she can find based almost entirely on price: if the price is right, the property is purchased!

However, the really successful investor will only purchase properties that fit within particular financial parameters as well as pre-established goals and guidelines that are not strictly based on price. These are the investors whose real estate deals are consistently profitable.

Certainly, an investor whose buying strategy is based strictly on buying low, may not always be able to sell high. The reason for this is that little or no attention has been given to so many other factors that could, and probably will often negatively impact the resale value of these properties.

Differentiating between a desirable and a not so desirable property takes experience, and a backup team of realty, legal and taxation professionals.

The successful investor will make no offer to purchase any property unless the residence meets the investor’s established guidelines and the long or short term profitability of the purchase is confirmed, and only after consultation with the investor’s team of experts.

Part of the evaluation process –aside from price – that is used by the successful investor to determine the worthiness of a property include the following:

• The neighborhood:  Property located in a stable, established, well-kept neighborhood may pose a better opportunity for a profitable resale than a newer neighborhood which may or may not develop into as desirable a location. Certainly, property in newer developments have often appreciated nicely, but an established neighborhood with a history of consistent value appreciation is the safer goal.
• The Location: Houses located on Cul- de- Sacs or corner lots may be more desirable and appreciate a bit more than the surrounding properties. The property’s current and future value is additionally dependent upon a neighborhood location that would be most desirable to families.
• The physical condition of the property is another important consideration. If the home is in less than perfect condition, are the defects merely cosmetic, or would it take an expensive rehab job to get the property into saleable condition?
• Will this home be suitable for purchase as a rental property in order to generate long-term cash flow, or purchased for a quick resale?

Of course, we’re just scratching the surface here, within the limited scope of this article but the bottom line is that the key to real estate investing success is to understand the market and which way it is headed. No easy task, unless you have the experience and the back up of a knowledgeable investment team to guide you.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-0088.