[fishordie]

Actually Jeff,

Almost no HOA's are chasing those back dues in any state as the cost is just too much to collect a minimum amount. Most states have it drop away but you are correct about Nevada. However almost no HOA is chasing those dues as legal fees are too much for the amount collected. That said, I have heard of a few going to small claims court in those states which do allow the collection after the fact but most board members of the HOA do not want to put that kind of time and effort into the deal.

FOD

Originally Posted by WestieJeff

Even though this was ancillary to your post, I wanted to clarify that it is completely incorrect. 9 months worth of HOA dues + unlimited amount of collection fees (that point is up for dispute) are considered super priority just like property taxes and are not cancelled out during foreclosure.

So until you're AT LEAST 9 months behind in HOA dues, the HOA doesn't stand to lose anything except cash flow. Realistically the HOAs are dinging banks and foreclosure investors for far more with exorbitant late fees.

Investors irked by steep HOA fees tied to foreclosure homes - Las Vegas Sun

Capping collection fees for Vegas foreclosed homes HOA fees | Las Vegas Homes, Condos, Land and Commercial Real Estate Blog

[Swigchow]

Originally Posted by fishordie

Even folks who bough only 2 years ago or less may again be under water in purchasing at places like the Platinum or Signature and we may once again see another round of foreclosures driving up HOA fees and assessments as the value of the property continues to decline.

On the other hand Vegas needs a ton more folks who think like you do to purchase the properties we would not touch with a ten foot pole. OOOps,
forget what I just wrote above and come purchase that smoking deal at the Platinum for the monies you noted.

FOD

It will be interesting to see the next round of Signature foreclosures since most have purchased without financing.

btw, I have looked and liked Platinum and know two have purchased there and are happy.

I agree that Las Vegas needs "a ton more folks" like Jonathon and others. Outside money is the only way LV will survive.

[Robustus]

Originally Posted by Swigchow

It will be interesting to see the next round of Signature foreclosures since most have purchased without financing.

btw, I have looked and liked Platinum and know two have purchased there and are happy.

I agree that Las Vegas needs "a ton more folks" like Jonathon and others. Outside money is the only way LV will survive.

Swig, you have a place in Signature, right? How's it going? If I recall correctly, you were slightly cash-flow positive a couple months ago with occupancy around 21-22 days/mo. That still the case?

[Swigchow]

Originally Posted by Robustus

Swig, you have a place in Signature, right? How's it going? If I recall correctly, you were slightly cash-flow positive a couple months ago with occupancy around 21-22 days/mo. That still the case?

Yes. Occupancy for Jan was 26 days.

[eventusstultorummagister]

Median price of homes sold in January dropped 7.4%, "cash-is-king" continues to drive the market (downward). Mortgages rates climbing/lending standards tightening. If Fannie/Freddie go away it will further reduce the number of potential buyers as substantially larger down payment requirements take effect. My target now is a median sales price of $100,000 which I predict will arrive before years end. That's my plan and I'm sticking to it!

[007 license to sell]

If your thinking about purchasing a property in Vegas you need to know that the investors are purchasing 50% of the properties and they are paying cash. The reason you need to know this as a buyer if you are looking at properties from $250,000 or less you could see multiple offers depending on the area's.

Investors playing bigger role in Las Vegas housing market

Source Las Vegas Review Journal:

[MadManofBethesda]

Originally Posted by fishordie

Even folks who bough only 2 years ago or less may again be under water in purchasing at places like the Platinum or Signature and we may once again see another round of foreclosures driving up HOA fees and assessments as the value of the property continues to decline.

How would that even be possible? I thought that banks stopped all financing of condotels about two years ago. If so, anyone who has purchased a unit since then has done so with cash.

[olecapt]

Originally Posted by MadManofBethesda

How would that even be possible? I thought that banks stopped all financing of condotels about two years ago. If so, anyone who has purchased a unit since then has done so with cash.

You are of course correct. Not underwater...but losing asset value. And that of course is only of academic interest unless you wish to sell...

I have posted a blog with the latest prices on the sold and for sale high rises.

//www.city-data.com/blogs/blog2...uary-2011.html

[eventusstultorummagister]

Originally Posted by 007 license to sell

If your thinking about purchasing a property in Vegas you need to know that the investors are purchasing 50% of the properties and they are paying cash. The reason you need to know this as a buyer if you are looking at properties from $250,000 or less you could see multiple offers depending on the area's.

Investors playing bigger role in Las Vegas housing market

Source Las Vegas Review Journal:

"The vast majority of the cash buyers are investors who are renting out the homes"

The "American Dream" is now a "For Profit" Machine.

Welcome to modern day serfdom!

[fishordie]

Originally Posted by MadManofBethesda

How would that even be possible? I thought that banks stopped all financing of condotels about two years ago. If so, anyone who has purchased a unit since then has done so with cash.

MMOB,

You are correct about how tough it is or nearly impossible to get financing on hotel/condo's however what I was referring to is not those paying cash but those who still own with mortgages in the condo projects in question. Of course not all places which have been discussed are condo/hotel projects (Mixed Use) rather most are Condo only projects. None the less projects like the Platinum may and probably will be with more foreclosures on those who have tried to stick out this economic mess. As this happens we may still see folks getting out of their all cash purchases as they watch, as OC is stating, the value of their asset continue to decline. Many, at some point, will just sell for whatever the market will bear, take their losses on cash and find somewhere else to invest. I am assuming many will not continue to invest in Las Vegas real estate once they have seen an erosion in their cash position especially when many folks felt they got steals at the supposed bottom of the market yet are watching as their one or two year old purchase, such as the Platinum, continue to erode in value.

As values continue to decrease in Vegas, as we are seeing in just about every real estate statistic out there, more and more folks who still have mortgages are and will be considering walking away from their investment. This includes the Platinum project. Until every unit is replaced with all cash buyers or those who just decide they are going to stay in their units until heck freezes over, we are going to continue to see an erosion of price for these types of places. Even with all cash buyers there is no guarantee, as noted in the above paragraph, there will not be a continuing erosion of pricing.

To compound matters, we will continue to see other folks with mortgages walk away and have their properties foreclosed on in other comparable projects. This will have the domino effect of lowering prices all over the place until we hit some sort of value driven bottom to the falling prices.
Real estate appraisers are particularly wary of almost anything in Vegas and thus many places fail to appraise for the prices negotiated. Many times the seller and the buyer come to some type of terms where the sales price may be lowered and or the buyer puts more monies down. In the end, generally, we are seeing and will continue to see lower and lower prices on these units.

With investors lined up to buy steals for cash in just about any Vegas property that makes sense those who normally would pay more, such as actual folks who intend to live in the property, are pushed out of market.
In truth, many folks who have lost out on numerous offers to all cash deals, have just given up. This again compounds the issue as these are the folks who tend to stabablize the market by again paying more to actually live in their properties and do not use a rate of return to establish value. By eliminating even a few of these non cash, owner occupied folks,
the market continues to errode on these properties.

It is hard to remember but traditionally Condos or similar type projects are the first to go down in price and the last to go up. HOA fees, which are non tax deductible monthly expenses for home owners, add to the costs of owning a Condo over a non HOA type property. Interestingly enough, HOA fees are a deductible expense to investors who rent out these units making them more attractive to investors but less attractive to owner occupiers. Again, it is the owner occupiers who tend to buoy the market and not the investors.

Worse yet, as more and more properties become rentals, purchased by investors, folks who want their properties for owner occupied situations will and are becoming more and more dissatisfied with being surrounded by tenants. Every owner has to make decisions, almost on a daily basis, when they should get out and when they should stay. Right now we are seeing a mass exodus from multi year existing owners in Vegas on most properties.

As I continue to note, at some point the value of each property will reach a value position where owner occupieds will begin to filter in and banks will take the higher offers generally offered by owner occupieds. However, there will need to be a stratigic series of events coordinated by the State of Nevada to bring more owner occupied buyers to the Vegas area. In the mean time Cash is still King and the Investors are having a field day. In my opionion we have not seen the bottom for Platinum or other similar properties.

But hey, I would love everyone else to disagree, put their money where their mouth is by purchasing at todays prices, and drive Vegas real estate prices back up. However, In my opinion, you would be better off betting on green at the Roulette tables.

FOD