Many lenders – residential and commercial – still think of Las Vegas as the bottom of the barrel. Citing lack of industry diversification, real estate values that dropped 300% during the Great Crash, lack of qualified employees, and an overall generally negative opinion of our town, many lenders still won’t lend in Las vegas. I’ve lived in Las Vegas for 35 years, and from my point of view, if real estate values dropped 300%, I would be the first to buy Las Vegas real estate and lend on Las Vegas real estate at those low values all day long, because that is how you make money. Real estate cycles and smart investors know that buy low-sell high is the way to accumulate wealth and equity.
Yes, Las Vegas was caught up in the flipping frenzy more than most cities in the US, but most of it was due to huge sums of money coming in from California when the sale of their California real estate assets netted them very nice profits. These investors wanted in on the reasonable prices found in Las Vegas, and didn’t care how much the payment was as they were going to sell the property fast. And a lot of people offloaded the properties in time, and the rest didn’t. But that doesn’t mean that Las Vegas is – or has been for the past 8 years – a bad place to invest. Just look at the hedge funds that scooped up every piece of real estate they could. And Capella Mortgage was right there lending hard money on almost every request we got with not a single foreclosure resulting from our loans.
Commercial real estate died in Las Vegas between 2008 and 2015. Banks were in trouble, and banks weren’t lending. It is different now. Investors are buying up land, developing land, going vertical, buying apartments like they are going out of style, leasing space and banks are almost back in the game. But when you want fast and easy – when you want common sense – when you are tired of the never ending list of items from the underwriter – then call Capella Mortgage. If you have equity, and if you have a solid exit strategy with a strong profit potential, and you have money, then nothing beats hard money.