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Las Vegas - What is all the fuss about? Advertorial By Richard Diaz

Editor’s note: Members often ask us about Las Vegas.. A reminder: the following is a paid advertisement. However, we thought you might enjoy insights from a real estate agent who works there every day.

By now I am sure that you have heard about the “Manhattan-ization of Las Vegas”, and have been wondering what is going on? Every time you turn on the television or pick up a newspaper or magazine, there seems to be some new development regarding Las Vegas. Although Las Vegas has always been an exciting place, in recent years it has made the covers of some unlikely magazines. The city has received acclaim from publications like, TIME, Entrepreneur magazine, and Inc. magazine. These publications have all relayed a similar message, Las Vegas is BOOMING! Las Vegas is redefining itself as an upscale, entertainment-oriented destination.

“It’s the story of a city that has broken all records led by creative entrepreneurial thinkers that have stepped out of the box and gotten rid of old ideas. $12 billion dollars has been invested creating these Mega-Resorts; adding 56,000 new hotel rooms These “Entertainment Super Stores” are the largest, most unique and exciting destination resort hotels ever built.
What has happened in Las Vegas over the last ten years has not been duplicated by any other city in recorded history. This ten-year phenomenon has launched Las Vegas into the 21st century like a rocket.”
…Richard Lee

“Las Vegas once again seems to be defying the fundamental economics law of supply and demand. A casual observer assumes that added supply will create an imbalance with demand and cause operators to drop prices. The desert casino kingdom, however, once again has demonstrated that exciting new products draw more visitors.” … John Edwards; Casino Journal

So, Las Vegas is growing and redefining, and it has caught the attention of a few national publications. What does it really mean to me as a potential investor? Let’s start with examining a few of the recent statistics on Real Estate:

1. 54% price jump in 2003.
2. Every 24 hours, 365 days a year another two acres of Las Vegas is being developed for commercial or residential use.
3. Since 1993, between 4,000 and 8,000 people each month move to Southern Nevada to enjoy a vibrant and growing economy.
4. In June, 2005, 803,000 people were working in the non-farm Las Vegas community, up 77% from 10 years ago.
5. Global Insight projects a 4% gain in the next year, nearly four times the national average

It is pretty clear to see that Las Vegas has a ton to offer for innovative investors. Currently there are ten high rise projects that are approved and being built. There are another 152 that are either in the planning or idea stage. What better time than now to take advantage of this incredible growth? Las Vegas is moving up, literally. The Las Vegas Valley now boasts a record number of urban choices: apartments converted to condominiums, lofts, mid-rises and luxury high-rises. Las Vegas is approaching this next phase of vertical building the way it does everything else – Full Throttle! The high-rise industry with a proposed 21,000 residential units has absorption of about 1,000 units a month in terms of sales. In addition there are about 30 mixed-use urban living projects such as the recently completed "The District at Green Valley". The surprise, however, was that there are so many buyers in the world willing to pay that kind of money! The demand for product exceeding $1 million for 1,000 square feet is amazing.

Developers of master-planned communities that dot the city’s landscape are running out of new street names. The valley has about 76,000 acres available to builders according to local real estate guru, Richard Lee…

“With the current land absorption rate of about 5,500 acres per year, the valley has about 13.8 years of land left. We're surrounded by land that is either owned by the government or BLM (Bureau of Land Management) land," said Lee "Affordable land is disappearing."

How does it all work?

With so many different possibilities, where does someone get started in deciding on the right investment? Richard Diaz and Denienne Leed from The Diaz & Leed Team of real estate consultants in Las Vegas have come up with a solution.

“We look at each client individually. Through a series of questions, we are able to define the goals, dreams and aspirations of our clients. Armed with this information, we develop a tailored Action Plan. Once the Action Plan is discussed and agreed upon, we then Partner with our clients in order to have their dreams come to fruition.”…Rich Diaz

The diversity of developments in Las Vegas consist of low rises, mid rises, high rises, urban-suburban projects, downtown revitalization, luxury high rises, condo-tels, apartment conversions and single family homes. Every builder and developer has different criteria in purchasing their product. Here is an example:

A two bedroom, two bath high-rise condominium: it will be located on the Las Vegas strip. The requirements are 20% down with an anticipated close fall of 2007.

1. First you need to reserve a spot in the “Interest List”. In order to reserve a spot you make a $25,000 deposit into a particular Escrow or Title company. This deposit is fully refundable but it does not guarantee a specific unit. The deposit simply allows you to be considered as a purchaser once the actual sales begin.
2. The next step happens approximately two to three months after the reservation period. At this point you will be called to put down 10% of the total sales price, minus the $25,000 deposit you previously made. This solidifies the true buyers from the speculators.
3. About a month or two after receiving your 10%, you will be notified to go to contract. Once contracted all monies become “hard”, which means that they are not refundable.
4. Approximately three to four months later the developer will begin breaking ground on the project. At the time of “groundbreaking “occurs you will be notified to come in with your final 10% of the purchase price.
5. Delivery will constitute you supplying the additional 80% of the purchase price either through financing or cash.

As an individual investor it isn’t surprising to become completely overwhelmed with the information and the process. Once you have decided what projects seem to be the most attractive or best suited for your needs, you then realize you are in competition with the thousands of others who are looking for “the best deal”. The Diaz & Leed Team has eliminated all of these headaches for their family of clients. What they have created are relationships and systems by which they offer Exclusive opportunities to their clients. Through this system their clients are able to receive VIP status by reserving units with the builder months before the general public is even aware of the project. Depending on the amount of reservations, they often times are able to receive incentives, discounts or otherwise priorities which are passed on to their clients.

In an analysis for USA TODAY, economic consulting firm Global Insight projected metropolitan areas with the strongest growth. Global Insight projects Las Vegas' economy will grow at the quickest pace in the next year of any city in the USA.

"Vegas is just impossible to stop," Global Insight says.

The Nevada city has been one of the USA's fastest growing for years. Residential building permits for the last two years have surpassed 10,000 in Clark County, where Las Vegas is located. In 1999, permits totaled about 7,000.

People are not moving to Las Vegas just to soak in the sun and play slots, although those two factors have helped attract a growing retiree population, economists say. Jobs are being created at a fast clip in a wide range of sectors, including retail, services, construction and manufacturing.

In June, 803,000 people were working in the non-farm Las Vegas community, up 77% from 10 years ago. Global Insight projects a 4% gain in the next year, nearly four times the national average. One contributor to the job scene is the addition of a mega casino/hotel by tycoon Steve Wynn on the main strip. Construction has been completed for the exciting 2,700-room "Wynn ~ Las Vegas", which the company says will employ about 8,000 people.

What do I have to lose?
With all investments there is a margin of risk. In the Las Vegas Real Estate market there are concerns that you may have.
Is this the right time to get in to the Las Vegas market? When will be the right time to get out of the Las Vegas Real Estate market? Should I consider long-term or short-term investing? What if… What if… What if…?

Frankly, there are no guarantees. The simple premise of investing is evaluating risk; to look at a situation, analyze the possibility of profit and loss, weigh out the differences and decide what is right for you. The one guarantee that I can give is, that if you do nothing then you will receive nothing!

The greatest way to measure whether taking advantage of the booming Las Vegas market is right for you is to align yourself with knowledgeable and experienced professionals. You will begin to see, that working with consultants, like The Diaz & Leed Team will increase your understanding and minimize the risk factors.

If you are interested being on the inside track of Las Vegas investing, then take advantage of the services offered by The Diaz & Leed Team. Contact the Dade Real Estate Investors Association office at 305-948-3378 or info@dreia.org for appointment information. We’ll visit Miami soon and update you on the Las Vegas market!

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