The sky is falling in the USA!! Don't buy anything, stay far away from the U.S! Sound familiar? You have to love the media, always ready to scare the shit out of you for ratings. Fear sells news papers, remember that people. I learned long ago there are 2 sides to the story, his story, your story and the real story. The local news is no different.
I'm taking about the housing bubble in the U.S.A. I bought my first condo in Las Vegas in 2009, and have since picked up 7 MORE condos. WTF? Am I crazy??? Before you think I'm retarded you need to read and learn, something most people don't seem to do. People listen to the news and gobble up all the BS they serve on a silver platter. Lucky for me I listen, then I start digging for information on my own. I don't really ever believe what people say until I can confirm it's 100% true.
Back to Vegas….
Now you're probably thinking Las Vegas is finished! Maybe even the whole US is going to be a 3rd world country. Are you insane, seriously? Get your head out of your butt. First off yes Las Vegas was the foreclosure capital of the whole U.S.A. There are many reasons it happened, but it boils down to greed, from mortgage brokers giving 100% financing to people who never should have gotten loans. When their mortgages were ready for renewal their interest rates jumped, then they couldn't pay for the mortgages any longer. That screwed allot of people and then made house prices drop up to 75% in many cases. This housing drop screwed the 2nd waveof home owners. People who now owe more than there house is actually worth. Many condos I purchased where bought for up to $225,000 in 2006 and now they are worth $50,000!!! These people don't want to pay a mortgage for $225,000 or whatever there amount is owning if their condo is only worth $50,000. Would you?? So they walk away and put there house in a short sale.
Here is the thing most people I talk to don't get. All these people who end up selling their homes or getting foreclosed on end up renting!! Yes, you got it right. Las Vegas is full of people renting homes in the neighborhoods they once owned homes in. So investors like me come and buy condos and houses for 75% discounted rates and rent them to previous home owners. ALL my places are rented and they cash flow very, very well. So I have cash flow coming on properties I purchased in many cases for $50,000 – $60,000 and then rent them for between $725 to $845. Are you starting to understand how this is a great opportunity, if you have the cash and balls?
Did You know?
- Las Vegas was the fastest growing city in the whole U.S.A for the last 10 years!!! And 1000s of people are still moving there every year. It's still a growing city, so that means there is a need for housing. Yes unemployment is high, but it's coming down, this a good indicator things are shifting in the right direction.
- Vegas is still full of tourists, I know because I go to the strip and I can see first hand what's happening. Casino revenues are up about 5% from last year. This is another good indicator that things are going in the right direction. As the revenues continue to climb casinos will start hiring people to fill more positions because of consumer demand. Then the big casino building projects will be underway, which leads to more construction jobs, hospitality jobs etc. It's all going to happen, the indicators are there.
- There are 1000s of investors buying in Las Vegas, some many in fact that there are multiple offers on houses and condos. I was outbid on 3-4 places in the last 2 months because of multiple offers happening.
- The top out of country buyers are guess who? Canadians! With a strong dollar and strong economy, tons of Canadians are doing the same thing I am!
- Once the Canadian dollar looses more of its value compared to the USD, when I exchange my rent money from U.S to Canadian I will be make more because of the conversion rate. I already am but the U.S.dollar will get stronger, maybe not today or next week but it's going to happen.
- The prices are now so low that they can't even build for the price that the houses and condos are selling for!
I have talked to lots of people about this because it comes up in conversations. If you buy 6 condos at $50,000 and rent them for $750= $4500 before expenses. After expenses if you bought the properties outright, then you are pocketing $500 a month per property roughly. 6×500=$3000 USD per month!!! Now once you exchange that US money into Canadian it gets even better! Right now if you have 4,500.00 USD =4,588.72 CAD. You make extra $88, it's not much but wait till the Canadian dollar drops even more….CHA CHING!
Compare To Vancouver
A condo can easily cost you $300,000 in Vancouver. I can get 6 condos in Las Vegas for the price I would get for one here in Vancouver. It makes a little more sense to buy in Vegas as opposed to here.
Right now is the perfect storm for Canadians to invest in the USA. Once these deals are gone, you will never see them again in our lifetime. This is basically a once in a lifetime opportunity. It's here now! But for how long can you buy 1200 sq ft 2 bedroom condos built 2003 and newer with attached garages for $50,000? You have the chance to make a difference in your life, something that you can look back on and say "That was the smartest investment I ever made!". But will you do it? I did it and I get paid every month… Fear is your enemy, that little voice in your head isn't helping you it is HOLDING YOU BACK!
Why Las Vegas Over Phoenix?
The majority of Western Canadians are buying in Phoenix. I had a choice and I picked Vegas, but what is the difference and where is better to invest? There is way to more Vegas than the strip, stop being so narrow minded. Do you think everyone in Vegas lives on the strip, lol? Think again. Vegas is a city of 2,000,000 people, the population of Vancouver!
- Both cities have similar weather, with Vegas being about 3 celcius cooler.
- Both cities have over 300 days of sunshine every year.
- Both cities have tons of golf courses.
- Vegas has outdoors just like Phoenix if not better. Vegas has Red Rock Canyon, that is only 15 minutes away from the strip. Truly amazing views there, it looks sort of like a mini Grand Canyon.
- Mount Charleston is located about 40 minutes away and it has skiing, horseback riding etc. It looks like Whistler!
- Ever hear of Lake Las Vegas? Another amazing place to visit 20 minutes from the strip.
- And then you have the actual Vegas Strip pretty cool in itself. More nightlife, restaurants and everything else.
- Flights are cheaper than Phoenix. I have gotten flights that are $100 round trip with taxes included, from Bellingham with Allegiant Airlines!
- Nevada has no personal income tax, I don't know if Arizona has that?
- You can drive to Los Angeles in 3 hours.
- I can drive to Vegas in 2 days, driving 10 hours per day. Phoenix takes 27 hours to drive to.
I'm not knocking Phoenix at all, I just never understood why all the Canadians went there. I guess they just followed the herd. Obviously Phoenix is a beautiful place, but I never understood the reasoning behind Phoenix over Las Vegas. Where I live the Canadians have bought as well, and are still doing so. And……. No, I don't live on the strip. I live 20 minutes away from the strip in the North West part of the city. You probably thought I lived on the strip, silly you! Like I said there is WAY MORE to Vegas than the damn strip!! It's just a bonus that it's there.
Don't even think about trying to get a mortgage in Vegas. The last thing they want to do is give out mortgage loans to anyone, especially people out of the country. You will either need to pay in cash or get a home equity loan and borrow against your house in Canada. You may be able to get a mortgage in Vegas, but Canadians who I have spoken to have tried with no luck. I never really researched getting loan because I never needed one.
The Process Of Buying Real Estate in Vegas
- Contact a realtor and start getting listings emailed to you daily. You can then become familiar with prices, the different areas and what to expect in general. Prices will be a shock as first trust me. It takes getting used to see new condos going for $50,000 to $60,000!
- Have a somewhat general idea of the type of property you want. Don't look at million dollar mansions if you only have a $75,000 home equity loan.
- Get your financing in place before you go down. There is no point flying down to look at places if you don't have your financing worked, it's a complete waste of time for you and the realtor.
- Transfer your Canadian money into US funds when the Canadian dollar is the strongest. This way you will get the absolute most for your Canadian money.
- Bring a proof of funds. You will need a print out of your bank account showing you have the money to have the ability to buy the property your putting an offer on.
- Plan a flight and see the places in person.
- Start writing offers. You need to write many offers just to get 1 property. It's a pain in the ass to actually close deals because of many factors. Many times I will write offers and never here anything back ever from the other realtor. It's nuts. But, when you close on a condo for $50,000 it feels damn good! Even if you submit 10 offers and 3 are approved you can back out of the deals, so don't think you are obligated to close on 3 accepted offers. If you get 3 approved and only want one, then you can pick and choose which one you want the most. If you don't put offers on them someone else will and you may loose that place you want the most. It's not like Canada..
- Look outside of the strip for condos. Look in the suburbs, it's much more peaceful, cheaper and never more than 20 minutes away from the action.
If you're interested in Vegas then shoot me an email. I bought in October 2009 so it's been 2 years of going there, so I can answer many questions from taxes, where to buy etc… Yes, I am still actively buying. It's hard not to buy when you buy a condo and it get rented in under 30 days. I makes me continue to keep on buying.
Do your own homework, don't take what I say at face value. Learn for yourself and see what makes sense to you. I've done all the home work for myself, because I don't like to rely on other people for information. It's better to learn as much as you can before you jump in. Once you have bought a $20,000 house in a shitty part of town, then you're stuck. Do all your research before you pull the trigger, or you will be very sorry. I never made that mistake in Vegas, I did in Winnipeg years back. I learned my lesson the hard way, now I am overly cautious about where and what I buy.