The Las Vegas Real Estate Insider Club was pleased to host Richard Lee at our last meeting June 12th. Formally, Lee is Vice President, Public Relations Director, and a real estate consultant for First American Title Company of Nevada. But since 1989, Lee has also been the “go-to guy” for the Las Vegas community when it comes to development and growth. Developers, business owners, real estate investors and gaming companies rely on his insight for investment, lending and acquisitions. Simply put, Richard reduces a tidal wave of information into entrepreneurial opportunities.
At the meeting Richard spoke to the club on a wide variety of topics relating to real estate, the Las Vegas market in particular and the economy as a whole. He presented background information about what created this current economic crisis including insight into the sub-prime market, how notes are bought, debt is defused and property redistributed. And, although we may definitely be nearing the “bottom” of the real estate slide in Las Vegas, Richard explained how a factor called “Appraisal Drift” or “BPO Drift” may cause a continued downward slide in pricing of 1-2% over the next 12 months.
Richard offered his opinion, however, that Las Vegas is still a great place to purchase investment properties. He believes that jobs drive everything in local real estate economies by creating stability and growth. With sun, entertainment, great food and (now) housing prices below the curve, the outlook for the Las Vegas economy is strengthening. He also mentioned the fact that California may eventually approach a 60% total tax rate and, as a result, Las Vegas will continue to see population growth from those moving in from the west coast as well as baby boomers leaving other parts of the country.
Richard Lee also discussed an interesting phenomenon that is currently developing in Las Vegas real estate. As investors recognize the great buying opportunities that exist and rush to purchase properties at new, low prices…a certain “auction mentality” has begun to develop. Potential purchasers are finding themselves in multiple offer situations with properties selling above asking price. Those feeling that they have to get in now to avoid missing the boat are creating a dangerous over-bidding situation that could result in a second real estate bubble of sorts for the Las Vegas Valley.