[TheGreatCurve]

Originally Posted by ScoopLV

Good luck finding one that is willing to do anything other than deposit rent checks and take their cut. I'm quite convinced that the only way to be a successful landlord is to DIY. Those who are unwilling or unable to DIY should invest their money elsewhere.

But if they don't find the tenants first, there would be no rent checks to deposit, right? And if there are no rent checks from which they take their cut, they wouldn't be in the property management business very long, right?

[ScoopLV]

Originally Posted by TheGreatCurve

But if they don't find the tenants first, there would be no rent checks to deposit, right? And if there are no rent checks from which they take their cut, they wouldn't be in the property management business very long, right?

You must assume they have a pool of only a few rental houses. Many of these property managers have enough properties in their stable that it's no skin off their butt if a few languish.

It's like having a lot of listings under contract -- Realtors look at it as a numbers game. (Sell the ones that are easy to sell. Use the rest for Open Houses to snag more clients. Have a junior agent babysit the listing, just in case. All a big game.)

[eventusstultorummagister]

That guaranteed 15% ROI must have sounded real sexy to the investor. I wonder if he ever paused to consider that 60% of the workforce in Vegas wears a nametag and works for minimum wage. I don't enjoy watching people making a bigger mess out of this debacle but yes, the demand for rentals has been met and as for finding a good renter in Vegas, you must be smoking the high grade cheeba. There simple are not enough renters and for every dumb-dumb who moves to Vegas hoping to hit paydirt at least three pass him heading in the opposite direction. Oh, and I won't even mention the tidal wave (shadow inventory) that's coming and the Government program to convert foreclosures to rentals. Yep, the savvy investors thought they were getting it for free but all they ended up with was a dry hump. That's the way the bubble bounces.

[TheGreatCurve]

Originally Posted by ScoopLV

You must assume they have a pool of only a few rental houses. Many of these property managers have enough properties in their stable that it's no skin off their butt if a few languish.

It's like having a lot of listings under contract -- Realtors look at it as a numbers game. (Sell the ones that are easy to sell. Use the rest for Open Houses to snag more clients. Have a junior agent babysit the listing, just in case. All a big game.)

So what you're saying is that most of these property managers managed to find tenants for the majority of the properties under their management. So if that's the case, they did more than just sit back and deposit rent checks, right? And wouldn't the OP's property in Summerlin be considered one that's "easy to rent" as compared to a rental property in some undesirable part of town? If managers are having trouble renting out houses in Summerlin, imagine how difficult it must be trying to rent houses in the bad neighborhoods.

[airics]

Originally Posted by TheGreatCurve

So what you're saying is that most of these property managers managed to find tenants for the majority of the properties under their management. So if that's the case, they did more than just sit back and deposit rent checks, right? And wouldn't the OP's property in Summerlin be considered one that's "easy to rent" as compared to a rental property in some undesirable part of town? If managers are having trouble renting out houses in Summerlin, imagine how difficult it must be trying to rent houses in the bad neighborhoods.

here's the thing.. i'm thinking the op's house is not in summerlin.. it is in the summerlin area.. desert shores, etc...... if i can rent out my home in NLV in 2wks and he can't rent one out in Summerlin for $800, there's definitely more to this than the op is saying

[TheGreatCurve]

Originally Posted by eventusstultorummagister

That guaranteed 15% ROI must have sounded real sexy to the investor. I wonder if he ever paused to consider that 60% of the workforce in Vegas wears a nametag and works for minimum wage. I don't enjoy watching people making a bigger mess out of this debacle but yes, the demand for rentals has been met and as for finding a good renter in Vegas, you must be smoking the high grade cheeba. There simple are not enough renters and for every dumb-dumb who moves to Vegas hoping to hit paydirt at least three pass him heading in the opposite direction. Oh, and I won't even mention the tidal wave (shadow inventory) that's coming and the Government program to convert foreclosures to rentals. Yep, the savvy investors thought they were getting it for free but all they ended up with was a dry hump. That's the way the bubble bounces.

That's the REALLY scary part. The government is planning to sell millions of foreclosures in bulk to investment companies and hedge funds which will in turn rent them out. These investment funds are raising billions of dollars as we speak in order to buy foreclosures in bulk - hundreds or thousands of them at a time. They will then flood the rental market with thousands of rental properties at a clip. The competition for tenants will drive down rental rates and I suspect many of these houses will sit vacant for a long time. And if rental rates collapse and vacancies skyrocket, small investors will run for the hills and stop buying properties and dump the properties they already own. Housing prices will drop as there will be less demand from small investors (who have accounted for a large percentage of the buyers in recent years). All of this combined with the government selling foreclosures in bulk for pennies on the dollar to the big investors will cause housing prices to spiral downward.

[WestieJeff]

So let's figure this out, last week the scare was that there won't be any foreclosures because of MERS and the bank paperwork issues. This week there is going to be so many foreclosures turning into rentals that it's going to kill the market.

Investors and hedge funds are there to make a profit, obviously that is much easier when you buy at a discount, but you think they're going to just flood the market with rentals? Even the banks have learned to gradually release their foreclosures to keep market pricing from tanking.

The RE threads are always filled with either total doomsdayers (who I assume mostly don't own property and want to, so they want prices to drop) or total optimists, which probably own property and/or rentals. Rarely is there any balance.

Personally I know many people with rentals. All of them are occupied. Nobody has complained of months long vacancies. I do see that the market could be reaching saturation, but that's just speculation at this point. When my co-worker's rental (in summerlin) goes up for rent, he gets 2-3 calls a day at least. I know because I go to lunch with him and those are the calls he gets at lunch.

Originally Posted by TheGreatCurve

That's the REALLY scary part. The government is planning to sell millions of foreclosures in bulk to investment companies and hedge funds which will in turn rent them out. These investment funds are raising billions of dollars as we speak in order to buy foreclosures in bulk - hundreds or thousands of them at a time. They will then flood the rental market with thousands of rental properties at a clip. The competition for tenants will drive down rental rates and I suspect many of these houses will sit vacant for a long time. And if rental rates collapse and vacancies skyrocket, small investors will run for the hills and stop buying properties and dump the properties they already own. Housing prices will drop as there will be less demand from small investors (who have accounted for a large percentage of the buyers in recent years). All of this combined with the government selling foreclosures in bulk for pennies on the dollar to the big investors will cause housing prices to spiral downward.

[ScoopLV]

Originally Posted by TheGreatCurve

So what you're saying is that most of these property managers managed to find tenants for the majority of the properties under their management. So if that's the case, they did more than just sit back and deposit rent checks, right? And wouldn't the OP's property in Summerlin be considered one that's "easy to rent" as compared to a rental property in some undesirable part of town? If managers are having trouble renting out houses in Summerlin, imagine how difficult it must be trying to rent houses in the bad neighborhoods.

1) Wasn't aware Summerlin had a lot of Section 8 housing available. So, no, it's not easy to rent.

2) The property managers are likely sitting at their office, playing Bejeweled, waiting for the phone to ring. That's their marketing strategy.

3) It's easy to rent houses in bad neighborhoods -- because it's cheap. People are looking for cheap. The people who post here are looking for "nice, safe neighborhoods." But they don't represent the bulk of the rental market. Most of the market has been here for a long time. They know all the various communities, and they're just looking to spend $XXX on monthly rent.

Originally Posted by TheGreatCurve

The government is planning to sell millions of foreclosures in bulk to investment companies and hedge funds which will in turn rent them out. These investment funds are raising billions of dollars as we speak in order to buy foreclosures in bulk - hundreds or thousands of them at a time. They will then flood the rental market with thousands of rental properties at a clip. The competition for tenants will drive down rental rates and I suspect many of these houses will sit vacant for a long time.

1) This news is filtering through "The Street." You know, the people who told investors to BUY BUY BUY Bear Stearns. A Huge Housing Bargain -- but Not for You - TheStreet

2) Minus the rental part, this isn't any different than what the banks are doing now.

3) (Assuming this actually gets railroaded through): Now we have new owners, who have incentive to water the grass, pull the weeds, clean up the mess, and not let the place look like a scene from Fallout: New Vegas.

But I don't think Hedge Fund managers are going to want to become bulk landlords any more than banks do. Too much work for too little return. If they're buying for "pennies on the dollar," they'll likely just flood the market with super-cheap houses, turn their little profit, and walk away. They don't want to be on the hook for property taxes on "hundreds of thousands of houses."

[scintillate]

Rentals in Las Vegas are stable. In fact leases have exceeded listinmgs for the last two years. Lease price has also been stable for qabout two years. The OPs numberws are quite incorrect.

Summerlin

[jim rose]

i have 7 houses rented in l.v...and never a problem renting them...it may take 3 weeks to find the gold standard renter but w/ a fair price i always do and i have them sign a 2 year lease so i dont have to deal with it as often...what ive noticed in the past year and what is totally under reported is that 10k baby boomers are retiring every day..they dont want to go where there parents did ie,phoenix and florida as much..they are coming to vegas at a very high rate..i buy 3 bdrm homes in a safe areas summerlin and the lakes with hoa at aprox 50 a month...this new breed of retired dont seem to want to live in a retirement community these days...i have no empirical evidence to support my anecdotal findings..its just what ive experienced...i never buy 2 story homes (old people dont like them)...i run retire in vegas rental listings on craigs in california and utah