Are Banks Now Scamming the MLS?

Speaking from a real estate agent's point of view, it's becoming more and more increasing clear that banks are manipulating the multiple listing service (MLS) into their own personal auction service. It's about time that some kind of control needs to be placed on MLS price points as a result. Here's what's happening in the Las Vegas real estate market right now:

You take a high end property in foreclosure with nice amenities (on the golf course for instance) with tons of upgrades which the bank offers for "only $50,000" on the MLS. A luxury home for a bargain, right? Ladies and gentlemen, start your offers! What a deal!

Buyers go to Realtor.com and see these low prices and think they're getting a deal. Then, when they place an offer, they immediately get a fax from the seller (bank) saying the property is in a multiple offer situation (and why not - everyone's seeing these amazing low prices), and they (the bank) now want a new offer which is the client's (buyer) "highest and best offer".

And guess what happens to the "great deal"? Can you spell SCAM? The effect is that banks are allowed to auction off their properties without actually admitting what's really going on! Now the buyers are all turned off by the rules of this new game and walk away with a bad taste in their mouth, with further distaste for the real estate agent and the bank.

Whether it's Las Vegas high rise condos or regular residential real estate, don't us real esate agents actually have to PAY for the MLS? Shouldn't we be offering real deals to clients without the pie in the sky hopes of a bank accepting some ridiculous short sale outcome that probably will never close in the first place? Should clients have to put up money that has to sit for months before banks decide to accept or reject the deal as their "best offer"?

What on Earth is happening here?

Will You Heed the Advice of Foreign Investors Regarding Las Vegas High Rise Condos?

Yes, El-Ad's project on the former Frontier property has been put on hold. But their partner Nochi Dankner doesn't seem too concerned. Danker's just recently refinanced and upped their stake in the Queensridge high rise condo project in Summerlin and also have their eyes on the Tivoli Village project next door to the tune of $850 million.

Then there's the Africa Israel group, who acquired the former "W Hotel" (and Las Ramblas for that matter) site and are in the process of moving that project forward with a whole new design at a considerable cost.

And we all know how active Dubai has become in this Las Vegas high rise condo market.

Truth is, there's a lot of foreign investment happening in Las Vegas RIGHT NOW, mostly by groups out of Israel, where top level real estate analysts say they are "unmoved" by the doom and gloom media reports we hear each day. Word on the street says planning for the Plaza project will be ready in less than a year, so bet on that project happening as hopefully the economic conditions will be a bit more positive.

Heed the words of Segi Eitan, the CEO of "Property and Building", a major holding of Nochi Dankner's IDB group:

"If you want to make money in life, you have to take risks. There's no such thing as reward without risk. Looking backward is no great trick. I remain optimistic about the success of this project... These are some of the best luxury high rise condos constructed in the city. When the storm passes, these condos will go at the speed of a missile launch."

Translation: Queensridge is a winner! Luckily for you and me, we don't have to be on the other side of the world to see what's happening right here in the Las Vegas real estate marketplace - we can get involved with just a click of the mouse!

"M" Stands for "Movement" with Las Vegas High Rise Condo Hotels

Boyd gaming may have pulled the plug on their Echelon project until the economy improves, but not all high rise projects in Las Vegas are taking that same approach. Case in point: Anthony Marnell III's $700 million "M" project is fully funded and heading on schedule towards an early 2009 opening.

The 11-story M Resort, located on the South Strip at St. Rose parkway and Las Vegas boulevard, will consist of 390 rooms and suites; 90,000 square feet of gaming; 40,000 square feet of meeting and convention facilities; a wine cellar and tasting room; a top floor lounge; 9 restuarants; and a 20,000 square foot spa along with a 2.3 acre pool and event area.

The key word in the above paragraph is "will". This project is happening despite the econmonic conditions we all read about every day.

Add to all that plans for 6,000 hotel, condo, and condotel units and more than 1 million square feet of retail and you finally have some positive news on the Las Vegas high rise marketplace for a change. At last week's "topping out" ceremony for the project, Marnell explained his project's success as follows:

“Some projects now in turmoil were started with corporate revolvers; it was assumed that financing would be available at a later date and then the market fell apart and the revolvers ran out or were running out,[forcing the projects were canceled or put on hold]. We weren’t in that position; we’re not a big corporation, we didn’t have a revolver so we needed everything in place to get started.”

Rational Vs. Irrational: What a Difference That Makes

"Irrational Exuberance" led us into the credit crunch and mortgage crisis as thousands upon thousands of irrational buyers set themselves up for foreclosure failure. Now for the good news: it will be the "Rational Exuberance" that will very slowly pull us out of this turbulent period of ‘the real estate cycle downturn.”

Buy low and Sell low should be your motto. For example: if you are holding on to a Las Vegas high-rise condo unit that you purchased in 2004 and closed in 2007 at $400 a foot, be prepared to hold on to your unit for three or four years to break even on the price point.

Did you want to hear that? Well, that's my opinion, I'm not stating any facts here. But it looks like we are in for some heavy turbulence with California throwing up thousands of more foreclosures in our laps. Add up your mortgage, insurance, HOA, and other fees and if it doesn’t pencil for you, then dump it. Don’t stress yourself out over a burden you can't afford as Suzy Orman would say.

The rational people waited for the downturn and are now picking up some crazy deals. In fact, I heard one Strip view/high-rise fully furnished over 1,700sf at Panorama went in the $500’s. If you are stressed and a buyer comes in offering you cash (plus paying everything at closing including HOA and Utilities) so that you never have to put out another dime and save your credit, my advice is well… live and learn. Perhaps look into safer investments in the future.

Learn from the rational buyers who purchase only on the downturn. Find a real estate agent who is savy and tough (and well respected). Here are guidelines that the Rational Exuberant follow:

When you request information from a knowlegable real estate agent, and the agent responds with that requested info, acknowledge the hard work - whether you are interested or not. REAL ESTATE AGENTS - THE GOOD ONES - WORK THEIR BUTTS OFF AND DESERVE RESPECT. Yes, I said "respect". Because I guarantee that during the rebound period, if you don’t treat your good, hard working Realtor with respect, you will most definitely miss the good deals. (Surprisingly, the good agents seem to know how to find them while the rest aimlessly search the MLS).

Remember, its NOT all about the deal and patients - relationship with a great agent is key. Do not get overly emotional or irrational. Follow the rules: get pre-approved, stay within your budget, and of course - be rational...

Does this statement best describe the High Rise Condo Resort Market on the Las Vegas Strip? Wait, there's Hope!

"We have decided to delay construction of our project on the Las Vegas Strip due to the difficult environment surrounding today's capital markets and the challenging economic conditions that currently exist. We expect to resume construction when credit market conditions and the overall outlook for the economy improve."

This statement, heard today from Boyd Gaming regarding their much anticipated $4.8 billion dollar Echelon project, seems to be the mantra of the times regarding high end high rise condo/resort properties on the Strip. Take just about any development right now and it seems they've all released a statement similar to the above. (except of course, Project CityCenter which is amazing). The key part of that sentence, however, is "when credit market conditions and the economy improve" - and when will that be? No one knows.

But one thing's for sure, it'll NEVER happen in Vegas again, right? That's what all the mainstream media is telling you - the Las Vegas real estate market is done, over, finished, kaput, history, old-news, 86ed... Well this is Las Vegas: Wanna bet?

Now I don't have a crystal ball, and I can't tell you with any certainty when this whole mess will "officially" turnaround, but I do know this is a problem not just centered on the Las Vegas market. Things WILL get better. I really believe Vegas will be one of the first cities to recover - I just don't know when. But sit tight folks: it's going to happen (maybe even sooner than we think)

And believe it or not, despite the down market and our current recessionary times, there are certain investment vehicles you can put your money in right now that'll provide you with low risk double digit returns which make perfect alternatives to Las Vegas high rise condo investments or investing in the real estate - safer than banks, safer than bonds, and safer than ANY government-backed instrument! (thank goodness!).

Would you like to know what they are? (name and phone number please). Perhaps an excellent investment vehicle for you to ride out the next 18 months of recovery? And I promise you this isn't a scam, get rich quick, multi-level, or any other investment scheme nonsense...

The Foreclosure Flu Epidemic is Merciless to Celebrities and Regular Folk Alike

Thanks to the uncertain nature of the real estate market, your everyday, average person seems to be having a lot more in common with celebrities than you'd imagine - and you can sum it up in one word: Foreclosure.

Celebrities after celebrities are making the news lately in a way you might not expect. Andre Agassi, Stephy Graff, Ed McMahan, Deepok Chopra, Pacman Jones … and the list goes on. Guess what folks? We're all in this mess together. It doesn’t matter if you’re a Wimbledon Champion or have a direct link to Gods ear - the Foreclosure Flu epidemic is merciless.

Respected and loved Las Vegas tennis gurus Andre Agassi and Graff's Idaho resort project, for instance, just "double faulted" as construction on his Tamarack project has basically stopped while the developers have filed for bankruptcy protection.

It's also rumored that Deepok Chopra lost his Maui shack in foreclosure. 50 Cents ‘lost’ his house to a ‘fire-sale’ type of foreclosure and national icon Ed McMahon's foreclosure problems keep mounting and mounting.

How about Latrell Sprewell, who once complained that his multi-million dollar salary wasn't enough to put food on the table for his family? He recently had his Milwaukee area home foreclosed after owing $320,284 - the home will be sold by the Sheriff's Department at auction next week. Not to mention his yacht has already been repossessed and he owes more than $70,000 to the IRS in back taxes.

Jose Canseco also had his multimillion dollar home foreclosed upon when he walked away from his $2.5 million, 7,300-square-foot home in suburban Encino because "it didn't make sense to continue making payments". Wow - something doesn't make sense to Jose Canseco!

Also, let's not forget how foreclosure is tackling Adam "Pacman" Jones, as he's defaulted on his mortgage with U.S. Bank where his home and 30 acres, located in a Nashville suburb will be sold June 27 on the steps of the County Courthouse. (let's hope he stays as far from the Las Vegas high rise condo market as possible).

Actor Michael Madsen needs $9.95 million fast to keep his luxury Malibu property, He's looking for an "expedient sale necessary" to most likely avoid losing the home to the bank.

And can we even begin to understand the mess Evander Holyfield has gotten himself into? His Atlanta estate is under foreclosure, he's defaulting on a number of loans already including a $10 million dollar bank loan as well as a $550,000 landscape loan, AND he's behind in child support payments.

Our Las Vegas foreclosures, both high rise condo and others, are about to grow as the thousands of short sales become foreclosures soon. But it's all not bad news.

I spent the day with Shari Sanderson, a Realtor® with Award Realty and was in shock (in a good way) with what I witnessed. While the majority of Realtors® are starving, she is actually "playing in the market".

The day I was with her, she opened two more escrows and wrote three offers - and the offers where so low-balled I thought…no way. Her client base is huge and her cell phone is literally off the hook as her assistants follow her around in an environment of ‘Show Me the Money’ high-energy excitement. One high-rise foreclosure that originally sold for around $700k she lowballed under $300k and it was accepted! I interviewed her throughout the day and asked her opinion about a few concerns:

• What do you think of the foreclosure issue with Tamarack and Agassi?
  First of all, ski resorts only come around, what…once every twenty years?! Last one I remember (and was involved with) was Telluride. It’s a luxury purchase - not a flip! I am a huge Agassi Family fan and was at the F/F opening. They are all heart and I am sure they are just as heartbroken over this as anyone who is experiencing the current economic shift. (She taps one of her assistants and says, “Get me a list of any distress sales in Tamarack.”)
  
  
• What do you think of all of the celebrities hit by foreclosures?
  No one is immune from what I am calling "the Foreclosure Flu". Most people will surely recover. We all need to help take care of one another and be supportive. A lot of people are angry and blame the media for the gloom and doom. I get extrememly irritated when I see reporters pull factoids from 2004 and throw it into the mix to sensationalize. BUT, the media has a responsibility to report the truth and we are in a gloom and doom position. Whether I walk into a 6,000 sf home selling for under $500k and the house is trashed or a small condo some baby boomer mortgaged their home for and lost both, I can feel the anger and frustration.
  
  At the same time, I love finding deals. I am a personal shopper of Vegas real estate and this is LAST CALL VEGAS - and I am pulling aside all of the good deals for my clients. I get a kick out of finding my friends a property at $80 a foot. Friends and clients started calling me in February 2008 asking my opinion and I suggested them waiting until the end of summer. However, I started cherry-picking some great price points for them the past month because I just don’t want anyone to miss out.
  
  
• What is your take on the economy rebounding?
  Everything in life is cyclical - love, relationships, real estate. We all know what goes up, must come down. If you have patience and wait long enough, the cycle starts all over again. Most people choose to ignore the real estate cycle and the fact we are in an election year... partied hard with irrational exuberance… shopped till we dropped… etc. - now we have to suffer the consequences. This is the time to buy - anything! I just bought a new car and so did my daughter, from Bill Collins at Desert BMW. Luxury items are less expensive.
  
  
• Where do you get all of these clients, your phone rings constantly?
  It’s all referrals. (she smiles).
  
  
  
  
  

Happy News for Las Vegas High Rise Condos and Las Vegas Real Estate

Has hell frozen over? ... Do pigs fly? ... Is today that day?

I only ask this because there's a website out there that's actually reporting good news about the real estate market! The central message of Happy Real Estate News is that there are a number of very positive real estate markets throughout the United States right now, and by focusing on some good news every once in a while, we may help speed up market recovery in other sections of the country.

Despite the constant doom and gloom stories I read every day from local and national news sources, I'm starting to see some significant movement in both the stabilization of prices and the level of investor interest, (and, are you sitting down?) even here in Las Vegas. That's right - Las Vegas real estate is really starting to move again.

And I realize you're reading this and saying to yourself, "great, another real estate agent telling me to buy real estate" ... and that's understandable. But when you read from the Las Vegas Review Journal, a source of CONSTANT real estate naysaying of all sources, that "new home sales appear to have reached the bottom of the current down cycle", perhaps it's time to finally start taking a serious look at some pretty sweet investment opportunities right here in this world-renowned town.

The nature of Las Vegas is this: during bad times, Vegas will always make the first recovery compared to the rest of the country. Could that cold day in hell be today?

Verge Las Vegas Mid-rise Condo Project Redesign Includes 52 More Units

The $135 million dollar Verge mid-rise condo project in downtown Las Vegas just announced their plans to redesign the development, adding 52 more units to it's 318 unit repetoire. If it ever happens...

You never know what's happening with Verge. Rumors continue to fly that the project's dead, then it's back to life, then it's experiencing delays, then it's moving forward strong, then there's setbacks in the development process. You almost get the sense the project should get a seat at the World Series of Poker with the way they guard their cards.

I'll take them at their word that they wouldn't be spending the extra $2 million dollars it'll cost to redesign the project if they had no intention of following through to a completed project. And if they're really taking out more of the higher-end units for more affordable inventory, then it makes this project even more of a downtown Las Vegas bargain. We'll just have to wait another 3 months or so to find out.

And, the Las Vegas High Rise Condo Answer Is:

As usual, many of you replied back and tried to guess the view regarding our latest contest.

What's amazing is the number of correct responses! It seems everyone knew the view in question was taken from atop the Streamline Tower in downtown Las Vegas, a project that's actually in the process of closing units. Seeing how this project is generating a lot of buzz recently, I thought I'd make you aware of some RSD's available right now in this building for anyone looking for high rise bargains in downtown Las Vegas.

Two listings that look extremely attractive to me are on a 1 bedroom and a 2 bedroom high rise condo unit. The prices on these units are actually about $60K LESS than the developer is offering new - so talk about a bargain. The 1 bedroom unit is on the 16th floor for $420K and the 2 bedroom is on the 11th for $600K. And if that's not enough, let me leave you with another view from atop the rooftop terrace at Streamline:


All I can say is look... breathe... imagine! Now contact me for more info on the deal.

Vegas Hot Sheet - Bank Owned Las Vegas High Rise Condo Units, Distressed Sales, and Deals

Here's the latest "Real Steal Deals" (RSD) that we've found for those of you looking for that perfect Las Vegas high rise condo bargain: (use the navigation arrows at the bottom left portion of the screen to cycle through information for each property)

Metropolis high rise condo RSDs:

- 17th floor, 1783 square foot, 2 bedroom 2 bath for $585K
- 5th floor, 2377 square foot, 3 bedroom 2 bath for $585K
- 4th floor, 2252 square foot, 2 bedroom, 2 bath for $569K
- 5th floor, 877 square foot, 1 bedroom, 1 bath for $399K

Sky Las Vegas high rise condo RSD: 13th floor, 985 square foot, 1 bedroom, 1 bath for $399K

Manhattan Midrise condo RSDs:

- 1184 square foot, 2 bedroom, 2 bath units ranging from $206K to $239K
- 1086 square foot, 2 bedroom, 2 bath units ranging from $209K to $219K
- 1134 square foot, 2 bedroom, 2 bath units ranging from $224K to $244K

Park Avenue Las Vegas condo RSDs: Way too many to mention individually, but I'm sure you'll find something you like among the 19 choices we've selected for you.

Panorama high rise condo RSDs: 1 and 2 bedroom condo units ranging from 733 to 1212 square feet and starting from a ridiculous $319K with NOTHING priced higher than $450K.

Interested in getting more Vegas Hot Sheet high rise condo information? You can subscribe to our property alert service for free and automatically be informed when we find great deals on Las Vegas high rise condo resales, distressed sales, and REO bank owned property bargains. Please contact us if you're interested in any of the properties listed above and we'll get you started.