LFC Group of Companies, the industry trailblazer in online real estate auctions, is spearheading a 30-day end of year closeout sale of homes in the Las Vegas area on its residential real estate auction website FRE.com(R)

In the midst of a sluggish market, LFC is changing the way real estate is bought and sold with its innovative, convenient, and transparent online auction format. LFC offers sellers an accelerated sales program and, rather than wasting homebuyers’ time, crowding them into a cramped convention room for a traditional outcry auction–the trend in Las Vegas auctions so far–the online auction format provides an easily accessible means of buying that also responds to homebuyers’ desires to set their own prices. In a city overwhelmed by foreclosures, this event stands apart from the rest by offering deals on distinctive new homes.

With the click of a mouse, first-time buyers, as well as those looking to upgrade to something newer, can bid on a new home that fits their needs. The homes–located among six communities–give buyers access to the best in suburban Las Vegas living.

The well-planned communities, countless practical amenities, and vast natural landscape, leave no wonder why Las Vegas has been one of the fastest growing metro areas in America since 1990.

Minimum bids start at $99,000, giving buyers the chance to invest in Las Vegas real estate for well under suggested market values.

The gated neighborhood of Highgate, in the master-planned community of Providence, is marked by lush landscapes and beautiful architectural finishes. The spacious homes feature stately interiors and luxurious amenities.

Madera, part of the gated Vista Verde community, affords residents single- and double-story homes that are both stylish and earth friendly. Residents of Highgate and Madera can explore Floyd Lamb State Park or unwind with a game of golf at the nearby Silverstone Golf Club.

San Rafael, located near the builder’s Eldorado master-planned community, features charming two-story homes and a neighborhood park.

Fiesta del Norte features unique and comfortable single-story homes.

With opportunities for outdoor fun in nearby Lee Canyon or Mount Charleston and a variety of entertainment and shopping locations just off the US 95, there are plenty of ways to stay busy.

Residents can take day trips to Lake Mead, Hoover Dam, or the Colorado River. Or, for a more ambitious excursion, camping trips and hikes through the Grand Canyon, Death Valley, and the Valley of Fire make for an exciting taste of the natural southwest.

This is no typical auction. “Las Vegas has seen more than its share of unsuccessful outcry auctions this year but nothing like our online auction,” notes William W. Lange, president of the LFC Group of Companies. “We don’t waste buyers’ time with all day auctions. Instead, our auction is convenient, transparent and empowers the buyers to set the pace and price.”

Prospective buyers should register today for more information. To place a bid online, by the bid deadline of November 6, 2008.

Freedom Realty Exchange — part of the LFC Group of Companies

For more than 30 years, the LFC Group of Companies has served numerous Fortune 500 companies, real estate developers, investors, financial institutions and government agencies by auction-marketing thousands of commercial, industrial, land and residential properties with an aggregate value well in excess of $5 billion.

Credits:Market Watch

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Nevada’s unenviable streak of having the nation’s highest foreclosure rate has extended to its 20th month.

Irvine, Calif.,-based RealtyTrac reported this morning that one in every 91 households received a foreclosure filing last month in Nevada. That’s up from one in every 106 households in July, and it’s an 89 percent increase over August 2007.

California’s foreclosure rate was next in line (one in 130 properties), followed by Arizona (one in 182 properties). RealtyTrac, which monitors default notices, auction sale notices and bank repossessions, said 11,706 properties in Nevada fell into foreclosure last month.

Las Vegas came in seventh on the list of metro areas with the highest foreclosure rates, with one in every 75 homes receiving a foreclosure filing last month. Foreclosure activity was up 14 percent from July and 83 percent from August 2007, according to RealtyTrac.

Only two of the 10 cities with the highest foreclosure rates weren’t in California: Las Vegas and Cape Coral-Fort Myers, Fla., which came in just before Las Vegas at No. 6. Rounding out the Top 10, in order, were the following California cities: Stockton had the nation’s highest rate (one in every 50 households), followed by Merced, Modesto, Vallejo-Fairfield, Riverside-San Bernardino, Bakersfield, Salinas-Monterey and Sacramento.

After Nevada, California and Arizona, the rest of the Top 10 states, in order, were Florida, Michigan, Georgia, Ohio, Colorado, Illinois and Indiana. Michigan, Georgia, Ohio and Colorado all reported annual decreases in foreclosure activity.

Nationwide, foreclosure filings in August increased 27 percent compared to the same month a year ago, which was a slower pace than in previous months. June and July each had year-over year increases of 50 percent or more.

RealtyTrac reported that 303,800 homes nationwide received at least one foreclosure-related notice in August, up 12 percent from July. One in every 416 U.S. households received a foreclosure filing last month.

Credits: Las Vegas Sun

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One of Henderson’s largest private employers has sold land adjacent to one of its big properties — the Fiesta Henderson — to a developer who wants to build apartments for casino employees who would then be able to walk to work.

But there’s a hitch: The builder wants permission to build 50 percent more units per acre than is allowed by zoning, in exchange for allowing the casino workers first dibs in signing up for apartments. Such a trade-off has no precedent in Henderson.

The developer, Trammell Crow, has made no offer to rent the apartments at less than market prices in exchange for the increased density.

On the other hand, the apartments would reduce traffic congestion and save the casino workers the expense of commuting to work, proponents say.

The Henderson Planning Commission rejected the proposal, which will go to the City Council for consideration.

The apartments would be built on a 10.5-acre parcel at Fiesta Henderson Drive and Lake Mead Parkway.

Station Casinos, which owns the Fiesta Henderson, is selling the land, which is across the street from the casino, to Trammell Crow.

The city Planning Commission has approved 24 units per acre on the site, rejecting the developer’s request that it be allowed to build 38 units per acre.

Planning commissioners said there was no proof Fiesta Henderson employees will have first rights to the apartments, as well as other incentives to live across the street from work.

Those incentives, the commission implied, would qualify the project as “workforce housing” and allow for increased density.

The item has not been placed on a City Council agenda.

The city has never entered an agreement that binds a housing proposal to a specific business, said Skeet Fitzgerald, the city’s neighborhood services director. Proving that the apartment complex — to be known as the Alexan Fiesta — caters to one company may be difficult.

Jeff Allen, managing director of Trammell Crow Residential Southwest, said such “workforce housing” would be especially desirable to people working in the area.

The Alexan apartments would also be within walking distance of Lake Mead Crossing, a new shopping center across Lake Mead Parkway from the casino in a city redevelopment area.

Allen said the purpose of workforce housing is not to offer subsidized or rent-controlled housing, but to provide housing near work for people who can’t afford to buy homes.

Rental rates for the apartments have not been set. Allen said it would be at least a year before the units were ready for living, after approval.

He estimated 1,000-square-foot apartments would rent for $1,200 a month.

At 38 units per acre there would be about 380 units at the complex in 14 buildings.

Lori Nelson, a spokeswoman for Station Casinos, said the company is not trying to get employees discounted rent, only first crack at the apartments.

“We’re just looking for an alternative for our employees,” Nelson said.

Fiesta Henderson has more than 800 employees.

Allen said the plan could be a model for future development. He said increased gas prices and an emphasis on green living could make apartments near workplaces more desirable.

“There was less of a demand as long there was land at a fair price where people could still commute,” he said. “Now with gas at $4 a gallon, to have that proximity to employment really does provide employees a way to save more of their take-home pay.”

More than 40 Fiesta employees appeared at the Planning Commission meeting in support of the proposal.

Credits: Las Vegas Sun

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Very early on in my investing career I received a great lesson in rental property ownership.  In the early 1990s I saw the potential for the Las Vegas market and decided that it would be a good idea to have long-term investments in the area.  At the time there were about 5,000 people moving there each month and builders were adding new housing at a furious pace.  There was a good supply of resale homes and the rental market was strong.  I was looking for future appreciation as opposed to immediate cash flow.

I lived in New York at the time and I would be investing long-distance.  I did have connections in the area and I received recommendations for real estate agents and a property manager.  I knew that investing outside of my local area would have some challenges and I was prepared to accept that.  Further complicating matters was the fact that I was taking on investment partners.  I did have partnership papers drawn up and everything was clearly spelled out.

One of the major advantages of investing in the area was that there were an abundance of newer homes with FHA mortgages, at the time these mortgages were fully assumable.  With partners putting in cash, I was able to acquire properties fairly easily.  My plan was to acquire two properties and see how things worked out.  If it went well I would look to acquire additional properties.

The Good House

After several trips to the area and looking at dozens of houses, I located a property that met my criteria.  It was a 3 bedroom, 2 bath house in an excellent neighborhood.  The only work it needed was to have the carpets cleaned.  The purchase was smooth as could be due to the assumable mortgage and there were absolutely no complications with the closing.  My property manager began looking for tenants right away and had located and qualified a young family that would be ready to move in almost immediately after we closed escrow.

I had purchased the house for just over $100,000, including all closing costs.  The rent was enough to cover the mortgage, taxes, insurance, management fee and an allowance for repairs and maintenance.  After everything I was left with about $150 per month which was added to the maintenance fund as well.  The tenants were absolutely perfect.  There was never a problem, they paid the rent on time, and the house was always immaculate.  They stayed there for five years until a job transfer caused them to move.

The House of Horrors

We all know of parents who have a child that is so good that they can’t wait to have another, then Damian arrives with his Omen.  House number two was like that for me, if it had been house number one there would not have been a number two.  The second house was located in a different part of Las Vegas, but still in a good area.  The owners were desperate to sell and I was able to make a fantastic deal.  I was expecting to get even better cash flow than house number one.  It was also going to be a mortgage assumption so I expected a quick close.  My property manager began looking for tenants and had a family ready to go fairly quickly.

Then the fun began.  There were problems with the assumption because of missing paperwork and there were some title issues as well.  It took several weeks longer to close escrow than anticipated.  The tenants that were going to move in couldn’t wait and rented a different house.  We had to return their deposit because we couldn’t deliver the house when promised.  My property manager started looking for new tenants but was having a hard time finding anyone who qualified.  We eventually settled on someone who was looking for a six-month lease.  Big mistake.

The rent was constantly late and we had to file a notice to evict more than once, but they always paid before we could throw them out.  They left at the end of the six month term but left the house a shambles.  The carpets were ruined, holes in the walls, banister torn off the stairs and numerous other problems.  We kept the security deposit but that wasn’t enough.  They also moved without any forwarding address and we decided it wasn’t worth it to track them down.

After making several thousand dollars in repairs we rented the house again.  The next set of tenants were a problem as well.  They were constantly calling with one problem or another, rent was always late and rent checks bounced.  They left at the end of the lease and we rented again.  Problems again even though all of these tenants went through a screening process.  Because of extended vacancies, excessive repairs, eviction costs and other expenses this house was always losing money.

Lessons Learned

My partners were so fed up with that second house that they insisted on selling.  I can’t say I blamed them, but my preference was to hold on.  We did wind up selling house number two at a minimal profit after five years.  After taking into account all of our costs over the years, we made a profit of about $5,000, that amounted for about a 1% annual return.  Certainly not worth all of the headaches.

We also sold house number one at this point, a better result but not a home run by any means.  That first house netted a profit of just over $30,000 plus five years of positive cash flow.  When we calculated everything it amounted to about a 6% annualized rate of return.

The end result was that I learned an incredible amount about owning rental properties and about long-distance investing.  It was also a lesson in working with partners.  I have invested with partners since then, but I am never eager to do so.  The rental property business is not an easy one but I have applied what I learned and my expectations are much more realistic now and the results have been much better.  These were not lessons that I could have learned any other way.  No book, course, guru or mentor could teach me as much as owning these rentals did.

Credits: Bigger Pockets

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