Diann's Blog

Las Vegas Home Inspector Saves a Transaction

Diann Tonnesen (Prudential Americana Group Realtors) — Fri, 20 Nov 2009 02:37:10 -0600

A few days ago I posted a letter on this blog from one our Las Vegas real estate inspectors, Spectrum Inspections. The letter addressed the responsibility of the listing agents to disclose known defects on Las Vegas foreclosures they were handling, despite the fact that the properties were being sold "as is, where is." In this particular case, the inspector was aware that the listing agent had ordered mold remediation done on the property prior to placing it on the market, though there was no disclosure about the remediation to the subsequent buyers. The inspector's quandary was whether or not to let the listing agent know about their potential liability to the buyer, since Las Vegas real estate agents are required to disclose all known material defects about a property, even though the property is being sold "as is, where is."

Below are excerpts from the inspector's follow up letter detailing the resolution that resulted from alerting the listing agent to the issues.

Dear Diann,

I would like to thank the many people who responded to my request for guidance and provided me with input. Most of the guidance and direction recommendations that I received were very similar. However there were a wide array of suggestions that ranged from, "Do nothing; you're just the home inspector," to "you must take this issue to the state legislature to ensure this type of thing never happens again." Some people thought we were over stepping our boundaries as home inspectors, while others complimented our involvement. During my twenty-one years in the military one lesson I learned was that the proper initial course of action is always to try and resolve problems at the lowest level. This is what I did.

When I called the Listing Agent and spoke about the potential liability he may be incurring by not disclosing material information that he should disclose in accordance with the "Duties Owed" he was very grateful and receptive. He went on at great length about how he is buried with REO listings and appreciated me bringing this issue to his attention. He is a good guy, trying to do the right thing, and did not need to be either reprimanded or incarcerated.

He sent an addendum to the Selling agent disclosing that the home was plumbed with Kitec. He also sent the Selling Agent copies of all the repair orders, documentation of the repairs that were accomplished, and even forwarded the results of the post mold remediation testing that was performed. It appears that his actions to address the damage and the mold were done by the book. The buyers were very grateful that nothing seemed to be glossed over and now feel that they received the level of disclosure they were entitled to receive.

We also suggested the Listing Agent contact the Asset Manager, request that the Kitec replumb be accomplished prior to title transfer at the bank / current homeowners expense, and to have the prospective buyer sign an agreement that assigns any remuneration from the class action lawsuit to the bank that paid to have the replumb accomplished. Everyone involved thought it was a good path of resolution that created a win/win situation. The buyers are willing to move forward with the transaction once the replumb is accomplished, and will have a better than expected 25 year warranty on the plumbing system. All the repairs the Listing Agent had performed were professionally accomplished and this was confirmed during the course of our inspection. The buyers are now looking forward to spending the Christmas holidays in their new Las Vegas home.

A great home inspection will not only uncover all the significant problems with the home, but will provide you with a course of action or path of resolution for addressing the issues. Both agents in the transaction were delighted at the level of involvement we provided. Don't you love a happy ending?

Paul J. Donohue, RHI, RREI, CREI
President, Spectrum Inspection Group Inc.
8345 Coyado StreetLas Vegas, NV 89123
Phone: (702) 269-6716

Have a question about homes for sale in Las Vegas? Contact us at 702-985-7654!

Can Las Vegas Foreclosure Listing Agents Avoid Disclosure

Diann Tonnesen (Prudential Americana Group Realtors) — Tue, 17 Nov 2009 16:04:14 -0600

Here is a letter recently sent to us by Paul Donohue of Spectrum Inspections, one of the leading home inspection companies in the Las Vegas Valley. As usual, Paul keeps us informed of ongoing inspection issues that we, as Las Vegas real estate agents, need to be aware of. Paul sent us the information below just this past week which raises an interesting question: What responsibility do REO listing agents have to disclose defects that they are aware of?

Recently REO agents have been hiding behind the "as is, where is" clauses inserted by sellers (banks) into their contracts. But this does NOT relieve them of responsibility to disclose anything they know about a Las Vegas home for sale that they have listed.

Excerpt from Paul's letter:

No Disclosure

We were recently involved in an inspection on a Las Vegas home in foreclosure where the Selling Agent and buyers were very worried about mold. They had somehow gained entry into the home before it was "officially" on the market and observed an extensive amount of water damage and mold. But the Listing Agent, through the Asset Manager, had the damage repaired and mold remediation performed before the home was placed on the market. When the Selling Agent inquired about the damage the Listing Agent informed her that the home was being sold "AS-IS" and that there was no SRPD being provided. No disclosures about the property condition were going to be provided. They had an accepted offer to purchase contract in place.

The SRPD is the Sellers Real Property Disclosure Statement. True enough, especially with a fully signed NRS 113 waiver in place, the bank who owns the home is not required to make any disclosures about the material condition of the home.

But in this case it was the Listing Agent who arranged and coordinated the repairs that were accomplished. Forget about the SRPD, think about the "Duties Owed" The DUTIES OWED BY A NEVADA REAL ESTATE LICENSEE specifically states: Licensee's Duties Owed to All Parties:A Nevada real estate licensee shall:1. Not deal with any party to a real estate transaction in a manner which is deceitful, fraudulent or dishonest.2. Exercise reasonable skill and care with respect to all parties to the real estate transaction.3. Disclose to each party to the real estate transaction as soon as practicable:a. Any material and relevant facts, data or information which licensee knows, or with reasonable care and diligence the licensee should know, about the property.b. Each source from which licensee will receive compensation.4. Abide by all other duties, responsibilities and obligations required of the licensee in law or regulations.

Our inspection revealed that the home was plumbed with Kitec® plumbing and that a plumbing system leak was the cause for all the previous water damage the home had sustained. The leak and the damage had been repaired but the issue that caused the damage (Kitec® plumbing) still existed in the home.

This particular home was a Woodside Home. Woodside is currently in bankruptcy and no Kitec® replacement actions are going to happen on any Woodside homes until the bankruptcy is completed. If or when the buyers move into this home and then happen to develop mold related health issues do you think that the Listing Agent is going to be immune from litigation?

I am not an attorney and as such I do not provide legal advice. But as is the case with most home inspectors I always am cognizant of the potential liability that may exist in any inspection situation. There is no doubt in my mind that unless the Kitec® in this home is replaced, and replaced soon, there will be other water intrusion issues occurring and further water damage is imminent. And when the homeowner is unable to obtain relief from the Kitec® class action lawsuit they will be looking for other ways to obtain remuneration for the repair and replacement expenses they will have incurred. The buyers are already questioning the responsibility of the Listing Agent to provide the disclosure they seek. Once they lament to an attorney that the Listing Agent was aware that previous damage existed and failed to disclose any information about the issue it seems to me that it is very possible that the Listing Agent could be held liable and end up in court.

Las Vegas home inspectors are licensed by the Nevada Real Estate Division, just like real estate sales people and our guiding regulations NAC 645D.460, which outlines professional conduct, states: A certified inspector shall:1. Perform his duties with the highest standard of integrity, professionalism and fidelity to the public and the client, with fairness and impartiality to all. In light of the information we possess and in consideration of our responsibility to the standards that we are required to observe should we advise the Listing Agent of the potential liability that exists?

I would appreciate your input so that I may decide how to act upon this issue. And thank you for your time. Paul J. Donohue, RHI, RREI, CREIPresident, Spectrum Inspection Group Inc.8345 Coyado Street Las Vegas, NV 89123Phone: (702) 269-6716Web: http://www.inspectlv.com/

Deed for Lease Gives Second Chance for Las Vegas Homeowners

Diann Tonnesen (Prudential Americana Group Realtors) — Sat, 07 Nov 2009 12:31:37 -0600

For Las Vegas home owners who have been unable to qualify for a loan modification and are facing foreclosure, a new Fannie Mae program would at least allow them to stay in their homes for up to a year if they are willing to sign over their homes to the bank on a deed in lieu of foreclosure. The bank would then lease the house back to the borrower at current market rate for up to a year. After the initial lease period expires, there's the possibility that the bank would extend the lease on a month to month basis.

The program, called Deed for Lease, is designed to help stabilize neighborhoods and reduce the amount of foreclosures on the market. Foreclosures in Las Vegas have been among the highest in the country. Many neighborhoods built during the boom period were bought out by investors and currently stand half vacant. According to Dean Baker, co-director of the Center for Economic and Policy Research, "Families that like their home, their neighborhood, or the schools for their children will have the opportunity to stay in their house even after foreclosure. This is also good policy for neighborhoods that have been hard-hit by foreclosures. The Deed for Lease Program will keep the homes occupied rather than being an eyesore and a potential safety hazard."

To qualify for the deed for lease program, the home must be the borrower's primary place of residence. A borrower-turned-tenant must be able to prove that the market rental payment is no more than 31% of his gross income. Any subordinate lien holders (second trust deeds, judgments, etc.) must agree to release those liens in full. For most homeowners, the rental payment will be far lower than the mortgage payments they were making.

The Las Vegas real estate market would seem ideally positioned for this new program. There are even rumors that in the future Fannie Mae would seek to sell the homes back to owner/tenants. Current short sale guidelines prohibit more affluent friends or family members from purchasing a borrower's home in the hopes that one day they would be able to buy them back. Banks could gain from potential appreciation over the next few years, rather than going through the expense of the foreclosure process and low prices now.

For a complete listing of Las Vegas MLS listings including foreclosures, please contact us at 702-985-7654,

Existing Homeowners Happy about Extended Tax Credits!

Diann Tonnesen (Prudential Americana Group Realtors) — Fri, 06 Nov 2009 21:00:56 -0600

Las Vegas real estate agents and homeowners alike are celebrating the news! It looks like the first time home buyer tax credit will be extended through April 30th of 2010, and more buyers than ever before are now eligible to take advantage of the new credit guidelines. Income caps have been raised from $75,000 to $125,000 for individuals, and from $150,000 to $225,000 for couples. In addition, move up homeowners are going to get a piece of the pie as well. Any homeowner who has owned his home longer than five years can get up to a $6500 credit on the purchase of a new principal residence. (The credit is available for the purchase of principal homes costing less $800,000, and vacation homes do not qualify for the credit.)

So what does that mean for the local market? The inventory of Las Vegas homes for sale has already dwindled dramatically in the third quarter of 2009, with less than 8,500 single family homes on the market at the end of October, down from a high of over 25,000 in October of 2007. Price decreases of more than 50% in the market lured investors back into circulation during 2009, and first time homebuyers, squeezed out during the boom, took advantage of affordable pricing. Competition for Las Vegas foreclosures has been fierce, with multiple offers submitted on properties under $250,000. (One property received a record 75 offers in less than three days on the market!)

One of the most frustrating aspects of the market during the past year, for both buyers and agents, has been trying to get an offer accepted. With more than 80% of the properties for sale being either bank owned foreclosures or short sales, the process has been arduous to say the least. Many buyers on short sales have waited over 6 months waiting for bank approval only to have the short sale package denied or to find out that the bank had foreclosed on it, even though there was a valid contract in escrow. And in some cases the sellers have "disappeared" prior to closing since they are getting no money out of the sale. Most buyers have had to put in more than a dozen offers on properties before finally getting one accepted. Plus the banks are writing all the rules. Negotiators are requiring full preapprovals from Las Vegas mortgage lenders before they will even consider an offer. And buyers are taking homes in "as is, where is" condition with no repairs made and no warranties or recourse against the sellers.

With any luck the new tax credit for move up buyers will stimulate "real sellers" to put their existing homes on the market. They will be pleasantly surprised to find that they are able to command more money for their homes than the bank repos and short sales, as frustrated agents and buyers will be zeroing in quickly to claim a "normal" transaction without all the headaches and hoops of the repos and short sales. Higher sales prices for homes should stabilize the market as well, and may even lead to increases by the time spring buying season rolls around. So break out the champagne and the paint brushes!

The Real Estate Master of Las Vegas---My Friend, Diann Tonnesen

Diann Tonnesen (Prudential Americana Group Realtors) — Thu, 04 Dec 2008 01:27:27 -0600

Via Debbie Ferrari :

The Real Estate Master of Las Vegas---My Friend, Diann Tonnesen

Realtor Diann Tonnesen, my husband, Bill, and me, Realtor Debbie Ferrari

My good friend, Diann Tonnesen, of Las Vegas and Henderson, NV, is for sure the best known Las Vegas real estate Realtor on the Internet in Nevada.

She has also held a dominant position for this area among other Realtors and specializes in both new and REPO, foreclosed residences and condos.

When it comes to knowledge about the Las Vegas Market, Diann has always led the pack and has held that position for the past 20 years.

I cannot recommend her highly enough. If you are thinking of finding an excellent Las Vegas Real Estate TEAM, call Diann.

Orange County Realtor Debbie Ferrari

posted by Debbie Ferrari @ 5:49 PM

Orange County California Real Estate
San Clemente Real Estate
Dana Point Real Estate

Las Vegas Real Estate - Financing for Canadian Investors

Diann Tonnesen (Prudential Americana Group Realtors) — Sat, 08 Nov 2008 11:55:49 -0600

We have discovered a great lender for Canadians wanting to buy Las Vegas homes or condos, either as a second home or as an investment! This lender charges no loan discount points or origination fees, and the rates are the same as what a US citizen can obtain.

Lately all our blog posts have been about finding Las Vegas mortgages for our clients. With the high rate of national foreclosures, many traditional venues and programs have been discontinued, leaving buyers, even those with substantial down payments, in limbo. It has truly been a challenge for us to find mortgage lenders with reasonable down payment and rate structures.

In our never ending quest for foreign national financing for Las Vegas real estate purchases, we have literally stumbled across a lender who is able to loan money at competitive rates to Canadian citizens. This lender is able to use Canadian credit scores and income to provide mortgage loans for the thousands who are trying to flee a harsh winter climate for a few months each year.

General program guidelines for this lender are as follows:

The program is available for both second homes and Las Vegas investment properties. The minimum down payment is 20%, although the best financing on investment properties would be with a 25% down payment.

The programs that are offered are full qualifying loans. Available are the 3/1, 5/1, 7/1, and 10/1 Adjustable Rate Mortgages. Each is a 30 year loan with a 30 year amortization locking in the loan rate for the short term of the loan. For example, if you got a 3/1 ARM, your start rate would be locked in for three years. (Rates are typically lower for shorter loan locks.)

The typical documentation list is as follows. Based on your own individual circumstances, more documentation may be required:

2 years personal tax returns including all pages and schedules
2 years T4s
2 years corporate tax returns including all pages and schedules (if self employed)
Most recent 2 months bank statements reflecting name, account number, and 2 month transaction history
Most recent 1 month retirement / investment account statement reflecting name, account number, and current balance.
Mortgage statement on any property owned in borrowers personal name reflecting name, property address, current balance, current interest rate, and current payment.
Line of credit statement on any property owned in the borrowers personal name reflecting: name, property address, current balance, current interest rate, current payment, and available balance.
Lease agreement for any rental properties.
Clear copy of passport to include the signature page and picture page.

Two unique benefits of this lender are their rate renegotiation prior to closing and their loan modification process.

The rate renegotiation is available to a client in the event that they lock their rate in but before closing rates drop. The borrower has the ability to renegotiate the rate to that day's pricing with a modest premium paid.

The loan modification process would come in to play should rates drop after the borrower has closed the loan. There is a one time modification available to the borrower. It allows them to simply lower the rate with no documentation, appraisals or closing fees that a refinance would incur. It is one page that the client signs and it gets recorded behind the deed of trust. Again, a modest fee is paid for this privilege should the borrower elect to take advantage of it.

Like all loan programs, there is no guarantee on how long this one will last. So if you are a Canadian citizen who has been thinking about purchasing property in the States, call us right away so we can put you in touch with this lender. 702-985-7654 Once your financing is in place, we can find you a phenomenal STEAL on Las Vegas foreclosures! Las Vegas Nevada real estate hasn't been priced this low in almost ten years.

Financing for Foreign Nationals Discontinued

Diann Tonnesen (Prudential Americana Group Realtors) — Fri, 24 Oct 2008 02:22:36 -0500

Once again the mortgage lending guidelines have changed with the wind. For a brief period there was a window for foreign nationals to obtain mortgage financing on investment and second homes in the United States with down payments as low as 25%, but now that window has been slammed shut along with a host of other "make sense" loan programs. (Don't even get me started on condo hotels that can't be financed by anyone with even 50% down!)

Many of the foreign nationals who contacted us in recent weeks were willing to put down as much as 30% to 40% or even 50% on Las Vegas foreclosures. With the current housing market crunch, what are the big banks thinking? Here are people with real money, good credit and big down payments that would love to take advantage of lower prices and they can't get financed?!!! Some of these investors were already under contract on projects in development, and they may have to walk away from substantial deposits unless alternative financing is brought online. (Just as a side note, permanent resident aliens are still able to obtain financing on the same terms as US citizens. If you are a permanent resident alien and need a Las Vegas mortgage, please contact us at 702-985-7654 so we can put you in touch with the right lender.)

On top of all this, with the stock market dives globally, even those foreign investors who didn't need financing and were planning on paying all cash are now stepping back as they watch the value of their portfolios diminish. The Euro is back down to 2005 levels and the British pound has plummeted even below that level.

Canadians, who saw their dollar rise to all an all time high against US currency at $1.10, have watched it tumble in just the past few days to 79 cents versus the US dollar. Literally thousands of Canadians were looking for winter getaways in the US, but have had to put their plans on hold. Again, many of these were all cash buyers looking for modest Las Vegas condos under $100k, but with the devaluation of their dollar they have once again been priced out of the market without financing.

And even US citizens are being crunched/punished in the mortgage marketplace. The latest is that anyone who has three or more properties with any kind of mortgage on them cannot get financing for a fourth property. Again, even if they are willing to put 50% down and have low loan to value ratios on their existing properties and excellent credit and income, they still can't get a fourth loan. Not even if you're Donald Trump.

With all the resale Las Vegas homes and condos for sale, not to mention the hundreds of thousands nationwide, and all the opportunities to pick up great deals on foreclosures, our banks are not willing to lend to these impeccable buyers who want to buy and have money. Certainly I am not suggesting we should go back to no or low money down programs with no income or asset verifications. But why not create some solid loan programs to entice these good buyers, whether or not they are citizens of the US? The banks would be able to lower their inventories of properties substantially, which would in turn stimulate the economy and gradually raise prices again in a controlled manner.

All I know is that in the months to come, those with cash who are willing to take a chance on the market now are probably going to come up looking like geniuses in couple of years. My other prediction is that while Las Vegas real estate was one of the first to fall, it will also be one of the first to recover, and I am personally putting my money where my mouth is.

Financing Foreign Investors for Purchase of Las Vegas Homes

Diann Tonnesen (Prudential Americana Group Realtors) — Fri, 03 Oct 2008 07:23:27 -0500

With the dollar expected to rise against foreign currencies later this year (that trend has already started), foreign investors are hurrying to purchase real estate in the US while their dollar goes further. Most of these investors are targeting the Las Vegas real estate market in particular, where the sharp decline in prices (due to the high amount of Las Vegas foreclosures) and the world class amenities have made it an attractive get-away destination. In particular, Canadian buyers are looking to Las Vegas homes as a vacation retreat from their harsh winter climate.

Most banks will not loan on real estate outside of their own country. With all the recent shifts in the credit markets, the qualifying criteria has changed for mortgage loans in the United States across the board, including those to foreign purchasers. Prior to this year, a foreign national could obtain financing from US banks as long as they had 35% to put down with no or limited documentation. Now US mortgage lenders are requiring full documentation of income and assets on all mortgage loans without exception, though the down payment requirements have dropped.

A citizen of a country other than the US can obtain a loan for property in the US based on what classification they fall under. A permanent resident alien is a foreign national who has been granted the right to work in the US permanently and who has been given a US social security number. A permanent resident alien can purchase property under the same guidelines as a US citizen. They can get a loan with as little as 5% down payment for a primary residence, either on a fixed rate or adjustable rate mortgage at the current interest rates available to US citizens.

All other foreign nationals, including those with temporary work visas, are required to put down a minimum of 25% for properties under $650,000 or 35% for properties over $650,000, whether the property is a primary residence or a rental property. Lenders will also require the equivalent of a US TRW rating as well as full documentation of their employment income and assets. In addition, the down payment money must be "seasoned" in a US bank for at least 60 days prior to the close of escrow.

These loans to foreign nationals are only currently available as adjustable rate mortgages or ARMS. The fixed rate terms can be for 3, 5, 7 or 10 years and interest rates are currently running between 7.5% and 8.5% with approximately 5 loan discount points prepaid for the amount of the loan (points can vary on a day to day basis just like interest rates). Each point is the equivalent of 1% of the loan amount, so on a $100,000 loan 5 points would be $5,000.

Another alternative is for the foreign national to obtain an equity credit line on their property in their home country and come to the US with cash in hand. Cash offers are very strong, and enable the buyer's agent to negotiate the best possible price on behalf of their client.

For more information on getting qualified for a Las Vegas mortgage and to receive the latest listings on great deals in Las Vegas new homes, high rise condos or MLS listings, please contact our office at 702-985-7654 or email us at sold@greatlasvegashomes.com.

Las Vegas Home Inspections

Diann Tonnesen (Prudential Americana Group Realtors) — Sun, 28 Sep 2008 20:50:58 -0500

I really must begin by thanking Diann Tonnesen for offering to allow me to blog on her site. In case you're not aware Diann is somewhat of an icon in the Las Vegas real estate community. To be offered to provide input for her web site is truly an honor. Thank you, Diann.

Diann told me that I could write about anything I wanted to write so I chose something that has been needling me for quite some time now; the way people shop for a Las Vegas home inspector. Do you realize how most people shop for a home inspector? They gain a list of inspectors, usually from their real estate agent, and call three or four inspectors asking what they charge for the inspection. They generally do this without knowing what they are buying. Especially with all the Las Vegas foreclosures on the market being sold "as is, where is" this truly boggles the mind.

Can you imagine people shopping for a car they same way they shop for a home inspector? It would look something like this:

Ring, ring.
"Hello, Lamborghini, Mazarati, Rolls Royce, Bentley dealership, can I help you?"
"Yeah, hi. You guys sell cars, right?"
"Yes ma'am, we do."
"What do you charge for them?"
"Excuse me?
"Yeah, you know, how much do they cost?"
"Well are you aware of what kind of cars we sell?"
"Naw, I'm really not interested in hearing about that, I'm just calling around getting prices."
"Well we have a beautifully reconditioned Bentley on sale this week that is valued at $35,000 that we are selling as a lost leader for $22,000.
"That's great. Twenty-two thousand hunh? Okay, I may call you back. Thanks for your time."
Ring, ring.
"Yeah, Arties Autos. What do you want?"
"Yeah, hi. You guys sell cars, right?"
"Why sure we do. What cha lookin for toots?"
"How much do you charge?"
"Well I can put you in this sweet little Yugo that was towed in, I mean, that came in last night for say... $15,000."
"Fifteen thousand hunh? Okay. Sweet. I'll take it."

Sound absurd? Well sure it does. But many, many people who are about to make what is often the single largest purchase they'll make in their entire life shop for their home inspector and their Las Vegas mortgage loans the same exact way.

So here is where I am coming from: I retired from the Navy in 1998 after spending nearly my entire adult life as an engineering inspector. I wasn't just an "engineering inspector," I was an engineering inspector and instructor where I was one of eight members of an elite team that earned the distinction as the most successful engineering inspection team in the history of the United States Navy. The distinction still stands today where our success record has never been matched.

When I retired from the Navy I transitioned into the civilian world as a Las Vegas real estate agent. After several years as a modestly successful real estate agent I became very frustrated with the quality and depth of home inspections available for my clients. There simply weren't any good inspections available. The inspectors were more interested in protecting their own liability through the use of complicated and legalistic inspection agreements than they were in protecting my clients. I couldn't even find an inspector who would walk on a concrete tile roof. They mostly used binoculars to review the roofing.

I thought the public deserved better. I thought people wouldn't mind paying a little more for a true quality inspection where the inspector spent hours really investigating the home rather than hiring an inspector that spent several minutes walking through the home filling out a worthless checklist that contained no actual useful information.

I set out to create such a service. Now, after nearly eleven years performing thousands of home inspections, continually refining our procedures, attending thousands of hours of training, holding hundreds of training seminars, and developing an organization that is truly unique and first class I can truly state that there is no better inspection service available in the entire Las Vegas Valley, regardless of the price. It is not an opinion; it is a fact. We have inspecting Las Vegas homes down to an art. We don't do cheap inspections, and our service is nothing like the inspections that the cheap guys perform.

Nowadays, the most common comment I hear is that we don't charge enough for our inspections (compared to what we provide). I once had a home buyer say that he didn't think we charged half of what we should charge for our service. I promptly quipped, "That's not a problem. You're more than welcome to pay double." To my astonishment he did exactly that.

It is a statistical fact that the average home inspector ends up in litigation an average of three times each year because of issues the inspector did not discover and disclose in the course of his inspection. In eleven years that my company has been in existence neither I nor any of the inspectors who work for me has ever been named in any litigation in conjunction with a home we inspected. We have never gone to arbitration; we have never gone to mediation; and we were recently named on the Honor Roll for the Better Business Bureau of Southern Nevada, once again, for maintaining a complaint-free status.

For the consumer who swallows the paradigm that all home inspections are pretty much the same and selects their home inspector based solely upon the price of the inspection, they often get exactly what they are looking for: a cheap inspection. But for the consumer who shops for their home inspector based upon the quality of the service provided and who is able to discount the paradigm that all home inspections are the same: these are people who draw outside the lines and when they stumble across our firm we reward them with a Picasso every time. I can only hope that when it is time for you to get a home inspection you are able to discern the difference between "Art" and "Artie." Have a great day!

Paul J. Donohue, RHI, RREI, CREI
President / Senior InspectorSpectrum Inspection Group Inc.
8345 Coyado Street
Las Vegas, NV 89123

Email: pdonohue@INSPECTLV.com
Web: http://www.inspectlv.com/
Scheduling: (702) 269-6716

Good News for Cosmopolitan Contract Owners!

Diann Tonnesen (Prudential Americana Group Realtors) — Sun, 07 Sep 2008 18:40:53 -0500

To the right, the Las Vegas Cosmopolitan Condos and the
Bellagio Hotel and Casino, to the left the MGM CityCenter project.
Phot0 taken September 5th, 2008.

Many proposed high rise condo projects around the country have had the plug pulled in the past two years due to cost overruns and tightening credit. Since Deutsche Bank announced they were beginning foreclosure proceedings on the Las Vegas Cosmopolitan condo hotel project at the beginning of 2008 on their $760 million dollar loan, over 1800 contract owners have been holding their breath, wondering if the development would be completed. Or if they would get their money back in full if the development was canceled.

There were many "interested parties" making bids to purchase the project, but as of this week Deutsche Bank has taken over full ownership of the Cosmopolitan under an affiliate, Nevada Property I. Deutsche Bank was the high bidder, paying $1 billion at a recent foreclosure sale to acquire ownership of the project.

And Deutsche Bank isn't letting any grass grow under its feet to make sure the project goes forward. It has already inked contracts with Related Companies to take over as the resort's new developer. In addition Perini Corp. signed a new contract to complete construction work on the project. Perini has been working on the project from the beginning, and was being paid under an interim agreement since March when Deutsche Bank began foreclosing after the original developer, Bruce Eichner, failed to complete a deal to secure more financing. Increased construction costs helped drive the Cosmopolitan's construction budget from its original $2 billion price in early 2006 to its current $3.9 billion price, and Eichner was unable to find a new partner with enough capital to infuse into the project.

A letter has already been drafted to contract owners by the resort's new developer, Related Companies, letting them know of the management changes and informing them of progress to date. This letter will go out on Monday to almost 1825 contract holders, assuring them of the project's completion. To date over 50% of the Cosmopolitan's exterior construction has been completed, and it is anticipated that by December of 2008 owners will be celebrating the "topping off" of both towers, including the penthouse units. The new proposed completion date for the entire project is estimated for the second quarter of 2010.

Along with a rebounding resale housing market, this is great news for the local Las Vegas real estate market. For four months straight statistics have shown a significant rise in Las Vegas homes sales, with multiple offers on lower end properties, especially Las Vegas foreclosures. The buyers are back!

Las Vegas - Letter to Anthem Country Club Homeowner's Association

Diann Tonnesen (Prudential Americana Group Realtors) — Sun, 08 Jun 2008 18:57:33 -0500

Fellow Anthem Homeowners:

Unfortunately, like most homeowners in Anthem Country Club, I have left it to others to determine the fate of our community, trusting that those who choose to volunteer will always act in our best interests. Volunteering for a seat on an HOA board is usually a pretty thankless task, and I rarely criticize decisions that are made by those volunteers. I give them a lot of credit for putting in many hours of unpaid labor on our behalf. Plus these are our friends and neighbors, and I enjoy the company of those Board members that I know on a social basis.

But after receiving a disturbing communiqué from Secretary Kathy Gillespie relating to the recent activities of the HOA Board, I decided to attend the March HOA meeting to see for myself what was really happening. I definitely do not always agree with Ms. Gillespie about either the issues or in particular with the way she handles things - she can be way too outspoken, and unfortunately her rhetoric often gets in the way of her message. But I do know her to be well meaning and honest in her business dealings, and I am glad she was there to be the "whistle blower" and bring to light things which we as homeowners should be aware of. I do think that we should have an HOA Board that can work together harmoniously in carrying out the will of the majority of the homeowners. Our HOA Board should also be able to negotiate and work in tandem with the Golf Club to promote our fine community as the best in the Las Vegas Valley. But all this needs to be accomplished by following the proper procedures first as set out by NRS statute governing Las Vegas homes.

While I don't claim to know what has gone on before, I can relay specific issues that I personally observed at the March HOA meeting and the subsequent April HOA meeting. The following are my own observations and/or opinions:

At the March meeting HOA President Rich Raines publicly announced over the microphone to more than 170 homeowners, including myself, that he was taping the meeting and that a copy of the tape would be made available to ANYONE who wanted it later. But at the subsequent April meeting when asked for copies of the tape, Rich claimed that he made the tape as a "private homeowner," not as a board member, and that he would not give anyone a copy of the tape. No apology was made or any explanation given for why he reneged on his promise to provide copies of this tape. I have to say, this did upset me, and I still have to ask, "Why not, Rich?"
At the March meeting it was brought up that there was an almost $11,000 debt owed by the club to the HOA. The majority of the Board members deemed this debt uncollectible and a deal was struck with Paul Anderson to exchange the $11,000 debt for a $2,500 food and beverage credit. I do not question the right of the Board to deem a debt uncollectible and to attempt to negotiate a settlement on our behalf. The Board is there to make the best decisions it can based on the information it has at the time. But unfortunately this deal was negotiated WITHOUT the benefit of an official resolution by the board. A resolution was only made after the deal was negotiated. Whether or not the members who made the deal assumed they had the backing of the other Board members is immaterial - there are certain procedures that must be followed to preserve the Board's integrity. Furthermore, it has been discovered that some members of the Board have used this credit to consume food and alcoholic beverages while conducting HOA business. When called to task by homeowners at the March meeting about using the HOA's money to consume alcoholic beverages, none of the Board members involved denied using this account in that manner, nor did they apologize to the membership for doing so.
At the March meeting it was also brought up that the Board had decided to lease space for HOA offices rather than letting the property management company provide such space as in the past. Again, I do not question the Board's decision to make such a choice. But again they failed to pass a resolution to lease that particular space until AFTER the deal was negotiated. The original resolution passed by the Board specifically called for a smaller, much less expensive space to be rented at Windermere on a 7 month sublease. Several members of the Board decided on their own to lease a larger, much more costly space for a three year term without a specific resolution to do so. (Hmmm...why does the remind me of the Las Vegas schools system?!!)
Then at the April meeting, again in front of over 150 homeowners, the majority of the Board voted to ratify a set of incorrect meeting minutes. The fact that they were ratifying a set of incorrect meeting minutes was pointed out to them by Ms. Gillespie in front of all the homeowners. But despite this the Board members STILL went ahead with this vote, although an accurate set of minutes was available for ratification as well.
At both the March meeting and the April meeting, the Board retained the HOA attorney to be present to defend and explain their actions. (Two different attorneys were retained, as the first one quit in between meetings.) The HOA attorney is supposed to defend the HOA, not the individual Board members. We paid $275 an hour for what many feel was the Board members' personal defense at two separate meetings. It is my opinion that this was an inappropriate use of HOA funds and should be reimbursed by the Board members involved to the HOA.
The Board sent out two separate politically oriented mailings, explaining/defending their actions and denigrating Ms. Gillespie's actions. Again I do NOT question their right to do this - Ms. Gillespie sent out her own political mailings as well. (Plus there was a highly inflammatory "anonymous" mailing that did not come from Ms. Gillespie personally, but most likely did come from one of her cronies.) The big difference is this - Ms Gillespie paid out of her own pocket for her mailings, but the Board used HOA funds for their mailings to the tune of literally thousands of dollars. I would like to officially ask these members to repay this money to the HOA. It is my opinion that it is inappropriate for the Board to be using HOA funds for political mailings.
In addition, the Board again indirectly appropriated HOA funds in using an issue of the Viewpoint to further their political slate by printing a letter from the former HOA attorney, expressing his opinion. (An opinion, by the way, that is not necessarily shared by other attorneys or the Ombudsman's office who have been asked to review these issues.) Again, in my own opinion, this was an inappropriate use of our HOA funds. The Viewpoint is supposed to be used strictly for community news, not as a political platform.
At the April meeting the suggestion was raised that since there seemed to be such divisive feelings within the community, ALL Board members should put their seats up for re-election and we would start over with a clean slate. This would allow the Homeowners to evaluate their position based on the most recent facts and hopefully elect a new Board which would be able to work together in harmony. This suggestion came, by the way, from the previous attorney whose letter was quoted in the Viewpoint. But members of the Board, who pointed with alacrity to the attorney's letter in the Viewpoint when they felt it supported their cause, declined to accept this suggestion from the same attorney. Again, just my opinion, but I feel that accepting this suggestion would have gone a long way toward defusing the situation and restoring calm and decorum to the election process.
At the April meeting the Board decided to limit the Homeowner's Forum to 30 minutes total. In a random review of minutes of previous meetings going back through 2001 from the association web site, I was unable to find another instance where the Board limited the Homeowner's time to question Board decisions and give input. Many homeowners were unable to voice their opinions and/or ask questions of the Board members as a result of this restraint of open Forum time.
In addition, the Golf Club Board has now decided to intervene in HOA business. At Golf Club member expense, a mailing was sent out asserting the Golf Club Board's opinion that the current HOA controversy may lower our Las Vegas real estate property values. The Golf Club Board also published this same letter in today's Libretto. The first part of the letter would have been fine, as it exhorted Golf Club members and HOA members to work together. But then the Golf Club Board specifically directed Club members to vote AFTER visiting the site www.anthemhoa.org to read the ex HOA attorney's opinion. Besides the fact that it is inappropriate for the Golf Club Board to post anything using official Golf Board venues about HOA business or take a stand on HOA politics, www.anthemhoa.org is a public web site and NOT password protected. If the Golf Club Board or HOA Board members are concerned about protecting our property values, this information should not have been posted on a public site. Potential buyers are already accessing this site and making the decision not to purchase in our community, even for the best deals on Las Vegas foreclosures'
], until they see how our internal issues are resolved. Except for this site, these buyers would have no access to this information, which does not even appear in HOA minutes. It would certainly behoove us as an association to make this site password protected and accessible to "members only" in the near future.
Lastly, a question - Why are the February, March and April 2008 minutes not posted on the HOA web site for all to read?

Two other things have occurred which concern me, and I have no idea who is responsible. But hopefully this type of behavior is not sanctioned by any current or prospective Board members:

I chose to put a sign up in my yard supporting a slate of candidates who are running for the vacant seats on the HOA Board. That sign was stolen from my yard and others like it were taken from the yards of other residents in the community. Several other homeowners who put up signs were threatened that their homes would be vandalized, and one actually had his sign spray painted - unfortunately they overshot and spray painted a portion of his wall too.
Printed material was put directly into homeowner mailboxes endorsing a slate of candidates rather than mailing it through the US postal service. This is a violation of Federal law and hopefully our association will not be held accountable for this action. Perhaps the parties who took this action were unaware that they were violating the law, but will now be informed that they cannot do this in future.

The above facts only take into account what I actually know and have observed myself. They do not take into account any of the many other items that have been addressed at the latest HOA meetings, including the fact that the 2008 budget appears to be incorrect and that there have been no finance committee meetings to speak of. Also from what I understand, there has not been a set of HOA financials approved since August of 2007? Since I am not a finance expert, I am relying on others for the accuracy of this information. But all seven current HOA Board members did at least admit that the 2008 budget was incorrect, and that they were all collectively responsible for not seeing that it was done properly and in a timely fashion.

The above also does not address the issue that, as per HOA minutes, in January of 2008 Terra West tendered its 90 day notice of resignation as the property manager for Anthem. Since ACCA was one of their biggest accounts, I am sure it was a hard decision for them to consider resigning. Yet later the HOA Board claimed it "terminated" Terra West. Nowhere could I find in previous minutes any reference to the HOA Board being dissatisfied with Terra West's performance. This, along with the sudden resignation of our previous attorney, bothers me greatly. Attorneys and property management companies do not often drop huge accounts for no good reason. That would be similar to Bank of America deciding all at once that they did not want to give out Las Vegas mortgage loans.

My main concern in all of this is that currently our HOA Board does not seem to be following the guidelines of proper procedure. This is not the Board's fault - it is the fault of all of us who have not actively participated in making sure the Board follows the will of the homeowners. Our apathy has led to the HOA Board's assumption that it can pretty much behave as it wishes. At the Candidates Night, one thing I did pin down with EVERY single prospective Board member by individual verbal poll was the specific promise to tape record ALL future HOA meetings, and post them immediately to the HOA web site. This way there can be no doubt about what transpired and how each member voted.

My new personal resolution is to volunteer for one of the HOA committees and take an active part in creating policy, as well as becoming a contributing member of our community. I hope that others will do the same so that we can restore harmony and pride to our neighborhood. Anthem Country Club really IS the best place to live in the entire Valley - we just need to remind ourselves of how lucky we are to be here. I hated the fact that certain members of our community were rude to one another at the HOA meetings. This needs to stop, and we need to be respectful of each other's opinions, especially when we differ. It is my sincerest wish that once we get beyond these elections that we can again function as one and proceed without any further finger pointing or acrimony. We are neighbors, and blame has no place in these proceedings - rather we need to rectify our shortcomings, elect HOA Board members that are responsive to the goals of the majority without interference from the Club Board, and just "get ‘er done."

Sincerely,

Diann Tonnesen
39 Plum Hollow Dr.
Henderson, NV 89052
Anthem Country Club's first permanent resident March 1999

Making an Offer Subject to a Short Sale on Las Vegas Homes

Diann Tonnesen (Prudential Americana Group Realtors) — Tue, 01 Apr 2008 03:13:32 -0500

Of all the types of distressed properties, shortsales are probably the hardest to close escrow on. Often the seller is still living in the property. He or she may have invested their life savings making a down payment that has disappeared with a declining market. They are upset that they are losing their home and fearful, as they will probably have little or no money to make a move with. Plus their credit is shot and there are few landlords that will even consider renting to them without a substantial deposit. Of course, if they had a substantial deposit, they could afford to make their monthly payment!

And even if the seller is cooperative, there is still the bank to contend with. In a market that is inundated with requests for short sale approval and where there is a large inventory of properties that have gone all the way through the foreclosure process, the bank's loss mitigation departments are backed up and understaffed. And often there is more than one bank to seek short sale approval from. (During the recent subprime lending years, buyers who had no down payments were able to borrow 100% of the purchase price on their home. Usually this was accomplished by putting both first and second Las Vegas mortgages on the property.) Very likely the second mortgage holder is going to be wiped out and has very little incentive to approve the sale.

Currently there are just over 5000 homes for sale in Las Vegas that are in short sale status, and of those almost 4,000 are priced under $300,000. (By comparison, there are just over 2,000 Las Vegas foreclosures or REOs, bank owned properties.) It is taking anywhere from 30 to 60 days to get an approval from the bank on a short sale. And the listing agent must jump through hoops getting the proper documentation together so that the lender will consider an offer in the first place. A typical Las Vegas short sale package would include:

Seller's Hardship Letter
Offer and Counter Offer on Subject Property
Estimated Net Sheet
Buyer's Approval Letter
Seller's Last Two Pay Check Stubs
Statement of Seller's Monthly Expenses
Copy of MLS Listing
Listing History of Subject Property
County Tax Record for Subject Property
Recent Comparable Sales for Subject Property

The seller must be able to prove that they have insufficient income to pay the monthly payment and that they have no other assets. The listing agent must be able to show a concerted effort to market the home for the best possible price. And once the offer is approved, if the listing agent forgets to put an expense on the estimated net sheet, the bank will refuse to pay it as they feel they based their decision on flawed information. Oftentimes it is difficult for the listing agent to accurately assess the costs as they may include sewer bills, unpaid HOA assessments or unrecorded mechanics liens.

And once the bank does finally approve the short sale, if another higher and better offer is received, the bank can choose to unapprove the first offer. They are not the owner of record for the property and no negotiated approval is binding on them in a short sale.

So if you are thinking of purchasing a short sale property, you need to have lots of patience, a great Las Vegas real estate agent and a bit of luck!

Differences Between Short Sales and Bank REOs or Repos

Diann Tonnesen (Prudential Americana Group Realtors) — Thu, 27 Mar 2008 04:17:37 -0500

As you know, it is a great time to be a "buyer" in our Las Vegas real estate market. Pricing on homes is almost back to the 2005 level, with many of them reduced to be "moved" by the banks. Bank repos, also known as REOs (real estate owned), are properties that have already been foreclosed upon by the bank. They may be in pretty rough condition, and it is very common for the landscaping to be completely dead and have to be replaced. They are sold "as is, where is" with no warranties. But in some cases you can make your offer contingent upon an inspection to see if any major repair work may be required. (Some banks won't allow the due diligence period for an inspection, so you may have to have one done prior to making an offer.)

Having said all that, you can get a "good deal" with a bank owned property as long as you allow for these extra costs and buy the home for the right price to begin with. Just because it is a foreclosure, it may or may not be a great deal.

Short sales are a different creature. The homeowner is behind on their payments, and, in most cases, is hoping that the lender(s) involved will let them sell "short" of what is owed. This means the bank(s) has to approve the sale. Again, in some cases, the house will be listed at an extremely low price designed to entice offers. These offers are brought to the lender (s) for approval and if there is more than one offer, the bank(s) will negotiate the prices up, if possible, to reduce their losses. Some banks may take 30-45 days to even respond to an offer, perhaps hoping to get more than one. And the bank usually does not sign off on the offer until just prior to closing, which means they may also accept a new offer up to that point. So even though you have verbal acceptance, until it is actually signed, a short sale can be revoked at any time.

Don't overlook regular owner occupied "turn-key" homes in this market either. Lately, most homes are priced to compete with the foreclosures: they come with home warranties and they don't need out-of-pocket cash dropped into them like most of the Las Vegas foreclosures do.

If you think you are interested in a foreclosure or short sale, send us the general parameters of what you are looking for: price range, number of bedrooms, pool, location etc. We will be happy to place you on our automatic email update system that will immediately send you any new listing that comes on the market with your foreclosure criteria. (The best ones go fast, so be prepared to act quickly!) Or call us at 702-985-7654 to discuss doing a customized search for you.

2008 Already Shaping up to be a Better Year for Las Vegas Real Estate

Diann Tonnesen (Prudential Americana Group Realtors) — Tue, 25 Mar 2008 02:08:03 -0500

The year 2007 was a rude awakening for owners of Las Vegas homes who found their properties steadily decreasing in value. Prices between November 2006 and November 2007 declined an estimated 10% and many of those who bought real estate during 2005 and 2006 found themselves owing more than their properties were worth. Las Vegas foreclosures led the nation and Las Vegas auctions had hundreds of properties to bid on.

But already in the last few weeks of December and the first few months of 2008, we can feel the scared-to-death-by-the-media buyers of 2007 coming out of hibernation, shaking off their fears and getting ready to cautiously dive into the real estate pool again. Experts have estimated that the worst is over, and that by the end of spring 2008 prices will stabilize and actually start to slowly appreciate in value again as inventory decreases. One think tank already is predicting a housing shortage by late 2009, assuming workers flock to the state to fill jobs created by billions of dollars of new construction on the Las Vegas Strip.

In the under $250,000 price range of homes we are even starting to see multiple offers on properties again!

"We're merely at the bottom of one cycle and heading back up on another one," said Jeremy Aguero, one of Applied Analysis' principals. He points to the stream of Strip mega-resorts planned to go up over the next few years, from Las Vegas Sands Corp.'s $1.8 billion Palazzo, opening this month, to Boyd Gaming Corp.'s $4.8 billion Echelon in 2010.

In all, the surge is estimated to add more than 40,000 hotel rooms by 2012 and create around 100,000 direct and indirect jobs, according to Deutsche Bank. "Typically, people read the papers," said economist Jim Shabi of Nevada's employment department. "They know when Vegas is building casinos and they come to town to find jobs."

G. William Barnett II, author of "Are You Dumb Enough to Be Rich?" says "These are the times smart real estate investors live for. There's more money to be made in chaos than at any other time, and no other investment strategy has created more millionaires than real estate." As for the housing markets Barnett likes best right now, he says number one is Las Vegas, which currently has $10 billion worth of commercial construction going on and will soon have a demand for thousands of new employees.

So, like it said in one of my favorite all time movies, Field of Dreams: "If you build it, they will come." And they will have to find housing! Now is definitely the best time to buy Las Vegas real estate, BEFORE the next boom comes and you are left standing on the wrong side of the wave.

Declining Markets and Increased Down Payment Requirements for Mortgage Loans

Diann Tonnesen (Prudential Americana Group Realtors) — Tue, 25 Mar 2008 01:57:38 -0500

Just when the Las Vegas homes market was starting to come out of the doldrums, Fannie Mae put another roadblock in front of many would be Las Vegas homeowners. We had been experiencing a lot more activity over the past month and at the auctions almost every property had actually been put under contract.

Then Fannie Mae announced a new guideline relating to insuring loans in declining or soft markets. In Clark County, the new guideline requires a 5% reduction in the form of an additional down payment by the buyer on the maximum loan allowed on a residence. This new guideline officially started on January 15, 2008.

Many banks are enforcing this guideline on all loans, not just conforming Fannie Mae loans of less than $417,000, but also on jumbo loans over $417,000 as well. Particularly hard hit has been the Las Vegas high rise condo market where instead of 20% down on a $1M condo an investor purchaser may now be equired to come in with as much as 45%. Many are unable to close and are walking away from substantial deposits.

There is a box on the standard appraisal form called the URAR (Uniform Residential Appraisal Report) that asks the appraiser if the market is "stable," "declining" or "increasing." If the appraiser checks the box on the appraisal report that says the market is "declining," the buyer's down payment on the selected loan program has to be increased by 5%, even if the appraisal comes in at or over the negotiated purchase price.

For example, the purchase price is $200,000 and you need 100% financing. The appraisal actually comes in at $220,000. Even though the appraisal came in higher, if the declining market box is checked, you still have to put 5% down on the $200,000 purchase price. If your loan program originally called for a 5% down payment, now you will need 10% instead.

Although many lenders are looking at reconciling these types of challenges, today the appraisal of the home means nothing compared to whether or not the community has been stigmatized as "declining."

Fannie Mae and some national lenders have declared many areas around the country as declining markets. It doesn't matter what the value of the appraisal is. It's whether or not the county has been declared as declining that determines how much you can actually borrow. The maximum loan allowed is automatically reduced by 5%-10% in these areas, depending on the loan product.

Fortunately this guideline does NOT apply on government loans. So since the guidelines went into effect there has been a surge in applications for FHA and VA loans. (Many mortgage brokers didn't even have FHA or VA approvals over the past few years, depending instead upon a plethora of no down conventional programs.) FHA currently requires 3% down, but the seller is also allowed to pay that down payment on behalf of a buyer using their Nehemiah program. And VA still allows eligible veterans to obtain a loan on 100% finanacing. For more information on Las Vegas mortgages please contact us at 702-985-7654 and we will be happy to help you find the lender that has the best program and rate for your particular circumstances.

Streamline Towers Almost Ready to Open

Diann Tonnesen (Prudential Americana Group Realtors) — Sat, 22 Mar 2008 18:49:25 -0500

Streamline Towers Luxury Condos are open for sales and starting to close with theri first lucky homeowners! Call 702-985-7654 for more information and updated pricing.

While media attention has so far been concentrating on the glitzy new high rise developments going in along the Las Vegas Boulevard resort corridor, Mayor Oscar Goodman's redevelopment of the "Old Strip" along Fremont Street into a San Diego style gas light district may make downtown condos the next "hot buy!" For both investors and owner occupants alike, the Streamline Towers project could be a dream come true.

The Las Vegas downtown casino area is in the midst of a major redevelopment effort, and investors are starting to snap up the still relatively lower priced condo units there before prices go sky high along with the skyline. The rebounding Las Vegas real estate market should also help. The redevelopment plan calls for a retro Las Vegas atmosphere with several distinct neighborhoods including an arts district, an entertainment district, a casino district, the Las Vegas Academy performing arts district and an office district, as well as the 12 million square foot World Market Center and the Premium Outlet Mall with over 120 shops and restaurants.

Streamline Towers will be the first luxury high rise built in the heart of the new six block entertainment district featuring nightly live jazz venues, taverns, cafes, nightclubs and boutiques. Securely financed by Barclay's Bank and brilliantly located by the 200,000 square foot Neonopolis entertainment complex and the Fremont Street Experience, the building will be 21 stories high and have 251 elegant residences with private view balconies and 10 to 12 foot ceilings, rooftop pool, spa and terrace with Strip views, a fully equipped fitness center with Strip views, a 16th floor club house with Strip views, 11,000 square feet of neighborhood retail space including hairdressers, dry cleaners, mail facilities and boutique coffee shop, private secured parking and 24 hour concierge service.

Streamline Towers also offers onsite executive leasing services for nightly, weekly and long term rentals, making it ideal an ideal property for second home owners and investors. Prices range from $425,000 to $1,100,000 and condos range in size from 756 square foot one bedroom 1.5 bath units up to 1889 square foot 3 bedroom plus den 2.5 bath units. A total deposit of 15% will be placed into escrow upon contract signing and the project is due to be completed at the beginning of 2007.

And while there are nearly 100 Las Vegas condos and high rise projects in various stages of planning around the Las Vegas Valley, only an estimated 35% to 40% will actually be built. Streamline Towers is already fully backed and funded by Barclays Bank and ground breaking has started.In addition, owners will be able to walk a mere 162 steps from their front door to Fremont Street and the new businesses going in including:

Hogs & Heifers - the original New York honky tonk bar
Beauty Bar - straight from Sex and the City a beauty parlor with cocktails
The Downtown Club - by the owners of Whisky Sky - serious nightlife arrives downtown
Take One - Everyone's a star with live entertainment and a spectacular restaurant
511 Fremont - the nightclub
Hennessey's Tavern - an Irish pub straight from SoCal, dude
Mickie Finnz Fish House - a great place for a great time
Seven the Comedy Club - the best comics in the world
601 Fremont - clubs, boutiques and more
Triple George - a fabulous New York style restaurant
Cuba - a new night spot in your neighborhood
Celebrity - a night club with great live music and no cover charge

Amazing Deals on Units Available Pre Closing at the Palms

Diann Tonnesen (Prudential Americana Group Realtors) — Sat, 22 Mar 2008 17:39:03 -0500

Even at the Palms Place, where most buyers were the young and the wealthy with cash to burn, there were some buyers that knew a good investment when they saw it. They took the plunge and plunked down a 20% deposit on one of the elegant Palms Place condo hotel units hoping to make a bundle by the time the property was built.

Unfortunately in the meantime the national economy stalled and the Las Vegas real estate market dropped. Now, almost four years later, many of these same buyers are unable to obtain financing in the aftermath of the subprime market debacle. They are desperate to find a buyer just to recoup part of their deposit.

The units below are all available on the pre closing market. The original purchasers of these units want to assign thier contracts prior to closing with the Palms, and these prices are far lower than the units that have closed and are already listed for resale! Check out the one bedroom unit for only $700k! Now THAT is MOTIVATED!!

1 Bed	Strip	1.199,000
1 Bed	Mountain	1.088,000
1 Bed	Mountain	1.088,000
Studio	Strip	651,900
Studio	Strip	615,000
Studio	Mountain	537,000
Studio	Mountain	525,000
Studio	Strip	548,000

1 Bed Strip 700,000 - Deal of the Day!

* All units are fully furnished
* Closing March 2008
* Studio (approx) 620 Sq. ft.
* 1 Bedroom (approx) 1,220 Sq. ft.

**Please note, the units are all on the upper level floors. Residential units start on the 8^th floor. Floors 13, 14 and all of the 40's have been skipped due to superstition.

If you would like to find out the details on the assignments, please give me a call at 702-985-7654 right away!

If you can't quite afford the Palms Place but really want to buy Las Vegas high rise condos, there are also some GREAT deals to be had in the Residences at MGM starting in the high $300s.

http://www.prweb.com/releases/2008/03/prweb791764.htm

Las Vegas Foreclosures and Auctions - Free Seminars on Buying a Dream Home, Not a Nightmare!

Diann Tonnesen (Prudential Americana Group Realtors) — Thu, 20 Mar 2008 16:33:23 -0500

Everyone in the housing market these days is looking for a "steal." But around the country purchasers are finding that buying a property through foreclosure or at auction is not an easy process. There is no standardized format for purchasing, and banks and auction houses are selling these properties "as is, where is." So "buyer beware" is certainly applicable.

Las Vegas - (PRWeb) Currently the number of Las Vegas foreclosures is among the highest in the nation, and foreclosed inventory on the market has driven down prices in the Valley substantially from the all time highs of 2005. Investors are returning to the city to pick up great deals and benefit from the strong local rental market, while first time buyers are taking advantage of affordable housing. Lower priced Las Vegas homes under $250k are even receiving multiple offers, lending strength to the belief that the Las Vegas price decline may have bottomed out.

For those desiring to take advantage of the lowest prices in the past three years, but leery of buying a "lemon," a series of FREE 45 minute seminars on foreclosures and Las Vegas auctions is being sponsored by the Tonnesen Team of Prudential Americana Group Realtors. Speakers will be acknowledged specialists in the foreclosure and auction process. Participants will receive printed information on the "how to's" of purchasing along with detailed property listings, and there will be an open question and answer period. Each foreclosure seminar will cover a different area of the Las Vegas Valley, and each auction seminar will cover a specific upcoming auction event.

The next free auction seminar covering the details on the upcoming Hudson and Marshall Auction will be held on Tuesday April 1^st at 6pm at 871 Coronado Center Drive, Suite 100, Henderson, NV. This auction will cover 100's of properties around Las Vegas, Henderson and North Las Vegas, with starting bids beginning in the $50k range but also covering high end luxury properties as well. (Exact dates and place for the auction are yet to be announced, but it will take place sometime in mid April.) This seminar will include:

getting pre-registered to bid at the auction
catalogue of the properties to be auctioned
how to do your due diligence prior to the auction
how the auction process works
what to take with you to the auction
preferred lender on hand to pre-qualify you to bid

The next free foreclosure seminar will be held on Sunday April 13^th at 2pm at 871 Coronado Center Drive, Suite 100, Henderson, NV. Foreclosures in the areas of Anthem, Seven Hills, Green Valley and Lake Las Vegas will be covered. Included at the seminar will be our "Top Foreclosure Picks" followed by an optional private tour of properties. This seminar will include information on:

the differences between foreclosures and shortsales, and how it affects you as a buyer
what to expect when bidding on a foreclosure - what the bank will and will not do
doing due diligence on foreclosure properties
a complete list of foreclosed properties in the day's featured area
agents on hand to do a custom search of foreclosure properties that meet your budget and needs
preferred lender on hand to pre-qualify you to put an offer in on a foreclosure (required on all bank owned properties)

Call 702-958-7654 to register now, or register online at: www.greatlasvegashomes.com/las_vegas_real_estate_investments.htm to participate in upcoming seminars.

In addition, every client who purchases a foreclosure or auction property from the Tonnesen Team will receive discount coupons for their home inspection plus the preferred lender will contribute a new washer and dryer!**

**Purchaser must use the preferred lender for their mortgage and close escrow to receive a free washer and dryer.

http://www.prweb.com/releases/2008/03/prweb791764.htm

General Las Vegas Real Estate Update

Diann Tonnesen (Prudential Americana Group Realtors) — Wed, 19 Mar 2008 22:44:51 -0500

Today's blog is bits and pieces of things that are currently going on in the Las Vegas real estate market.

Clark County commissioners have given final approval to plans for the $6 billion Las Vegas Plaza Hotel and Casino Resort (modeled after The Plaza Hotel in New York) to be built on the site of the former Frontier Hotel and Casino. Despite earlier rumors that the project was stalling due to a shaky credit market, Elad chief Miki Naftali said the project was "forging ahead as planned." Elad also owns The Plaza in New York and a Las Vegas spokesman for the group says groundbreaking could take place later this year on the 3,500-room Las Vegas Strip project which is slated to open in 2011.

Deutsche Bank announced that it was going to be commencing foreclosure proceedings on the Cosmopolitan Resort Hotel and Casino on the Las Vegas Strip. According to Deutsche Bank, they have made arrangements with the contractor to continue with construction. And sales are still being made out of the sales center in anticipation that developer Bruce Eichner will either find additional financing or will be bought out of the project. The Las Vegas luxury condos are already more than 80% sold out and the Cosmopolitan's location is the best on the Strip, making it desirable to potential purchasers or partners, and Eichner expects to reach an agreement before long.

Two major Las Vegas residential projects, Inspirada and Kyle Canyon Gateway, are having difficulties meeting their mortgage obligations. Inspirada, a 2,000-acre project, was supposed to give rise to as many as 13,500 homes. There have been about only about 162 homes sold so far, according to Focus Group, master developer. And some of the smaller partners that are joint venturing in the project are unable to meet their commitments, leaving the larger partners to either take on their portion of the debt and put more money in, or decide to walk away entirely. With existing Las Vegas new homes builders getting low on inventory, putting these two large projects on indefinite hold would certainly help stabilize prices.

The FBI is currently carrying out a number of investigations in the Las Vegas area, uncovering fraudulent schemes involving 14 financial institutions. Some of the schemes under scrutiny include artificially inflating home values and placing low income buyers and/or beginner investors into adjustable rate mortgages that they can't afford when the rates reset and forcing them into foreclosure.

Currently Las Vegas foreclosures are among the highest in the nation and foreclosed inventory on the market has driven down prices in the city substantially from all time highs in 2005. Investment buyers are returning to the city to pick up great buys and benefit from the strong local rental market, while first time buyers are taking advantage of affordable housing. Lower priced single family homes under $250k are even receiving multiple offers, lending strength to the belief that the price decline may have bottomed out.

When Should You Lock your Loan Rate?

Diann Tonnesen (Prudential Americana Group Realtors) — Tue, 18 Mar 2008 02:25:51 -0500

It's not bad enough that buyers are already leary of the the general Las Vegas real estate market. Borrowers also wonder if they should lock in interest rates on their new Las Vegas homes when they first apply for a loan, or should they wait and see where the market goes. My standard response is that my crystal ball is broken, and that if I really knew the answer, I would be playing the international money markets. I have literally heard every lender in town swear that rates were going down and all of a sudden they went up, and visa versa.

So either choice involves some risk. If you lock now and rates fall, you lose. If you don't lock now and rates rise, you also lose. It's all about how much risk you are willing to take and if you are going to be more unhappy if rates rise and you aren't locked, or if you will be more unhappy if rates fall and you are locked.

The first step is to understand how the rate locking process works. There are no industry standards to go by, a lock with one lender may be radically different from the lock in program with another. Here are some items to verify:

What is being locked in? An interest rate? Or an interest rate and points? Points are a form of interest, so if a rate is locked in but not points, then the effective rate for the loan can rise before closing if the interest level stays the same but the number of points increases.

How long is the lock in? A typical lock lasts 30 days, but longer terms may be available, even up to a year on new homes.

Is there an upfront cost to lock the rate? If you pay a fee for a lock and borrow at a different rate or from a different lender, then the prepaid fee will be lost. In some cases, lenders collect a lock in fee and then credit the money to the borrower at closing. In this situation, there is no additional cost to lock the rate if you go through with the loan.

One benefit to look for: is there a "float down" option? You would lock in a rate at the current market interest rate, but if rates fall prior to your closing you would have a one time chance to finance your purchase at a lower rate.

When you lock in a loan rate lenders have one of two choices: They can secure a loan commitment with an investor at the promised rate or they can play the market themselves and hope that by settlement they can get your rate or better.

But what happens if a lender plays the market and rates go up? The lender loses. The problem is that not all lenders play fair. It doesn't happen often, but some lenders will delay the loan application process past the lock period, thus ending their commitment to make the loan.

How can you avoid this problem? Consider Las Vegas mortgage lenders recommended by your broker. An experienced broker will know which lenders have a good record delivering on commitments.

In general, whether you lock in or not, it's best to be in continual contact with the lender. Make a point to promptly supply all required paperwork, and keep notes showing when you spoke with the loan officer and what was discussed. Get timed, dated and signed receipts for all paperwork you deliver.

So when should you lock in? There just isn't a single answer that works for every situation. You need to consider general interest trends and realize that no one can predict future rates.

For more information regarding lock in agreements for your purchase, just call us at 702-985-7654and we can review the features that can best serve your interests.

Tenants Beware of Deadbeat Landlords!

Diann Tonnesen (Prudential Americana Group Realtors) — Sun, 16 Mar 2008 12:48:35 -0500

It is happening all over the country - unsuspecting tenants are returning home from work to find an eviction notice on the front door. The bank has aquired the property through foreclosure and the tenant has to get out of their current home within 30 days. The tenant almost never is able to recoup any of the rent money paid or get the security deposit back.

And in a market rife with vacant homes for sale, Las Vegas has more than its fair share of deadbeat landlords and unscrupulous property managers. Almost half of the 19,000 homes currently listed are Las Vegas foreclosures and many of them are Las Vegas new homes that were purchased by investors and have never been lived in. One recent incident came to our attention:

A real estate agent who was renting a luxury 4500 square foot Las Vegas homes, came back to find the eviction notice on the front door. Immediately he called the property manager whose phone was all of a sudden disconnected. Doing some detective work he was able to track down the home's owner who lived in South America and contact him by phone. Turns out that the "property manager" was an unlicensed friend of the owner. The owner had had half a dozen properties his "friend" was "managing," and the "friend" was supposed to be paying the mortgages on them from the rental proceeds. (In Nevada, by law you must have a property management license to manage rentals that belong to someone other than yourself.)

Unfortunately, the "friend" never made a mortgage payment and absconded with the hefty security deposits and monthly rental fees being paid by the tenants. It also turned out that the owner had never even signed the rental agreement on this particular property. His signature had been forged and the "friend" had told him that this property had remained unrented.

The real estate agent's chances of recouping his $4500 security deposit is almost nil. He has to find another home to rent and move his wife, three kids and brother plus assorted pets in a very short time. The owner's home is already foreclosed upon and he lost all his equity to the bank. How can tenants protect themselves from this happening to them?

In Las Vegas, Noble Title Company is offering a $200 service for tenants called a "Request for Notice." The service identifies the legal owner of the property and whether or not the property is currently in foreclosure. If the landlord is not in foreclosure, the Request for Notice requires the bank to notify the renter should the home go into foreclosure, which would give the tenant at least four months to pack up and move before the bank repossesses the home.

At least with this service, if the tenant receives a notice that the property is in foreclosure, they could opt NOT to pay rent to recoup some of their expenses and their potentially lost security deposit. And they wouldn't be quite so jammed for time to find a new place to live. (The real estate agent mentioned above had a real problem. He already had his kids in specific Las Vegas schools, and there were no other large properties in that area for rent. He was not only forced to move his family to a different home, his kids had to move schools as well.)

So tenants beware! Even though you are only renting a home, you still need to do your due diligence to make sure you aren't unexpectedly out on the street and out of pocket as well.

Refinancing Your Home Profitably

Diann Tonnesen (Prudential Americana Group Realtors) — Fri, 14 Mar 2008 20:50:58 -0500

For homeowners who thought the federal tax refund checks were a nice surprise, you may be a candidate to save a lot more than a few hundred dollars. Fixed interest rates are still at very affordable levels, so it may pay to pull out your mortgage note and do a bit of comparing. Especially if you have an adjustable rate mortgage that is getting ready to go to a higher level. Refinancing may also allow you to avoid becoming a Las Vegas foreclosures statistic!

But before you jump on the refinance bandwagon, here are a few "dos" and "don'ts" that should help in your search for the best refinance option.

· - Refresh yourself with the exact terms of your current mortgage. Know your rate, mortgage balance, monthly principal and interest payment, possible pre-payment penalty and the remaining term. Las Vegas mortgage brokers will have trouble giving you the best advice if he or she doesn't know your current situation.

· - When you get a new mortgage, each monthly payment is divided between interest costs and principal reductions. At first, most of the payment goes to interest, but over time, more and more of the loan is devoted to principal. Refinancing starts the process from scratch, which again means most of the monthly payment goes toward interest. This is not necessarily a bad thing if refinancing means lower monthly payments. Additionally, mortgage interest is usually deductible.

· - Don't get sucked into a "low" rate with high fees. Avoid paying points. One point is equal to 1 percent of the loan amount in cash. If you borrow $200,000, then one point equals $2,000. Generally, if you pay points up front you can get a lower rate--but you have to look at the cost of a point versus the monthly savings from a lower rate. It is rarely advised to pay points to "buy down" the interest rate because of the time it takes to recoup the points. But all situations are different, so a good broker or loan officer will be able to run the numbers and calculate a payback period.

· - Consider a "zero closing cost" option if available in your area. Such loans, of course, have costs--they're just not paid at closing. Instead, you'll likely pay a somewhat higher rate. Lenders around the country offer refinance rates with no points or closing costs. This will enable you to refinance your Las Vegas home without any out-of-pocket expenses or loss of home equity.

· - Think about your objectives before shopping around for a mortgage. Do you want lower monthly payments? A larger loan to take equity out of your house? A shorter-term loan, such as a 15- or 20-year mortgage? If you plan to sell within a few years, what adjustable rate programs are available? Different loans will work best in different situations.

· - Don't take a loan with a pre-payment penalty. These programs can hurt if you pay off the mortgage completely or pay down a large part of the loan early. It's best to have the freedom to pay off the loan whenever you want.

If you want to check in to refinancing your Las Vegas mortgage, give us a call and we will be happy to provide you with information on some of the best local lenders in the city.

EcoBrokers Take Home Buying to a New Level

Diann Tonnesen (Prudential Americana Group Realtors) — Fri, 14 Mar 2008 20:49:14 -0500

For those that are energy conscious, a new breed of real estate agent has been born: the EcoBroker. EcoBrokers are educating the public on ways to make their existing Las Vegas homes more energy efficient, showcasing Las Vegas new homes builders who build eco friendly homes and giving advice on ways to make our lifestyles more eco efficient.

EcoBroker is a program designed to help people find real estate that embraces energy efficiency and sustainable design. EcoBroker trains real estate agents in green building and home technologies and practices so that they can help buyers find green homes and assist sellers to integrate and market green features in their homes to help them sell. The designation consists of a total of 18 hours of continuing education in energy-efficiency, green building programs, indoor air quality, sustainable development, and environmental issues..

The Tonnesen Team is proud to announce that Lisa SantaCaterina, one of only two EcoBrokers in the Las Vegas Valley, is joining their team. Originally from the San Diego area, Lisa has always been concerned about the environment and was thrilled to learn that she could proactively promote one of her life's passions through her real estate career. Lisa will be conducting a series of seminars on green real estate for team clients over the coming months. To register, please give us a call at 702-985-7654.

Builders Predicting Another Major Las Vegas Boom!

Diann Tonnesen (Prudential Americana Group Realtors) — Fri, 14 Mar 2008 20:46:26 -0500

Despite the decline in the Las Vegas homes market over the past two years, even major builders who have been the hardest hit are predicting that the bottom has been hit and another mini boom coming!

Fueling that boom will be the literally tens of thousands of jobs provided in the new mega resorts Fountainbleau, MGM City Center and Echelon as well as the millions of baby boomers set to retire over the next 15 years who are looking for a warm tax free climate. Many have given up on Florida where insurance is prohibitive and Texas where the humidity can be unbearable. Las Vegas' dry climate, $0 state income tax and reasonable cost of living is proving attractive to boomers on a fixed income.

Focus Group, one of the Valley's major land developers, has been intimately involved in acquisition and planning for the successful master planned communities at Inspirada, Mountain's Edge and Kyle Canyon. Focus was very aggressive in its Las Vegas land purchases and is now being forced to look at different avenues for restructuring that debt. Fortunately, Focus has a strong reputation and is in the process of negotiations that should prove fruitful.

Focus actually already had $150 million in sales in escrow for multifamily property, but the buyer was uable to obtain financing which killed the deal. "It all happened after the first of the year," Ritter said. "We would have been fine. We have talked to one of those companies, and it still wants to do the deal, but it can't find the money to build apartments. In 2009 and 2010 there is going to be a huge shortage of multifamily products and also homes, because if you look at the residential market, no one is starting new subdivisions this year. When it starts turning around, we have low interest rates and pent-up demand and much less product in the marketplace. It is going to get very strong here very quickly."

Personally, right now I am looking to buy as much rental property as I can while prices are still at a three year low, and I am advising all my clients to do the same.

Las Vegas Broker Defaults on 118 Properties

Diann Tonnesen (Prudential Americana Group Realtors) — Fri, 14 Mar 2008 18:33:39 -0500

It never fails, there is always someone who figures out a brilliant scheme to beat the system. But instead of leaving while they can, they get too greedy and end up with their hand caught in the cookie jar.

Several years ago one such enterprising soul went around town and broke into over 40 HUD repos. These are Las Vegas foreclosures that are usually vacant, and it may take HUD a while to get around to processing them through the system. He then proceeded to replace the HUD sign with a "for rent" sign, rented out the properties and collected hefty security deposits as well as the first month's rent.

But not content to take the money and run, this guy stuck around for over six months amassing additional rent. Until one day HUD wised up and the Feds showed up to arrest him as he was making his monthly collections. A couple who later became one of our clients was a tenant of this fellow who they said could not have been nicer. The had chosen the home because it was near the Las Vegas schools they wanted their children to attend.

Now a Las Vegas real estate broker and her husband are facing federal charges they made millions of dollars orchestrating a mortgage fraud scheme during the crazy days of sub prime lending.

U.S. Attorney for Nevada Gregory Brower says Eve Mazzarella, 30, and her husband, Steven Grimm, 45, were indicted Wednesday on bank fraud, money laundering and aiding and abetting charges.

Allegedly Mazzarella and her husband bought properties at inflated values. They have been charged in with fraudulently obtaining mortgages on hundreds of Las Vegas homes here in the Valley. The feds say the couple submitted or arranged to have over 400 straw buyers submit loan applications which they knew contained false information and kept most if not all of the money for themselves.

"These schemers have contributed significantly to the demise of the real estate market in Las Vegas," FBI Special Agent Steven Martinez said.

Grimm was arrested Thursday in Las Vegas and is due to appear Friday in U.S. District Court in Las Vegas. Mazzarella is still being sought. If convicted, each could face more than four decades in prison and millions of dollars in fines.

The couple allegedly controlled transactions worth more than $100 million.

They supposedly defaulted on mortgage payments on most of the loans, causing at least 118 properties to be sold in foreclosure.

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