Next to the extra low purchase prices of these home, there's also the opportunity to rent out these homes for around $1,000 to $1,400 per month. So these homes offer an excellent cash flow opportunity.

There's an extraordinary potential that home prices in Las Vegas will double from the current price levels over the next approx. 5-10 years. The reason for this speculation is that only minimal construction of new homes took place in Las Vegas over the past few years, limiting future inventory leading to perhaps the first real housing shortage in the area. Due to the massive correction (bust) in home prices over the past few years, as explained above, home prices are currently at an extremely low level. This offers the possibility of large capital gains over the next approx. 5-10 years.

We offer the full spectrum of services which are necessary for successful implementation with investments in the SFR REO market:

We consider the favorable single-family home situation in Las Vegas to be a special situation. Fact is, that this current window of opportunity will not last. Once the home prices begin to increase then the initial investment will be higher and therefore the potential capital gains as well as the annual cash flow will be lower. According to Morgan Stanley housing analyst Oliver Chang, the home rental market boasts a total property value of $3 trillion.

▓ Warren Buffett says that buying the inexpensive single-family homes now and renting them out is one of the best investments:
http://now.msn.com/money/0227-buffett-houses.aspx

▓ Interview with Tom Barrack (Founder, Chairman & CEO) of Colony Capital about the largest asset class in the world, the $20 trillion U.S. housing market and its opportunities:
http://www.bloomberg.com/video/88655102/

▓ Wall Street Journal article about Beazer Homes and KKR (Kohlberg, Kravis & Roberts) teaming up establishing a REIT for Pre-Owned Rental Homes in Las Vegas and Phoenix:
http://online.wsj.com/article/BT-CO-20120503-716676.html

▓ Articles about private equity firms getting into the business of buying foreclosure homes and renting them out:
http://www.bloomberg.com/news/2012-03-13/private-equity-buying-u-s-foreclosures-for-hot-rentals-net-8-mortgages.html
... and:
http://www.bloomberg.com/news/2012-01-31/foreclosures-draw-private-equity-as-u-s-selling-200-000-homes-mortgages.html

▓ Blackstone Group LP has spent more than $300 million to purchase over 2,000 foreclosed homes in order to rent them out speculating on a recovery in the U.S. housing market:
Article at: http://www.cnbc.com/id/48235218

▓ Investment Home Sales surged 64.5% in 2011 (information provided by the National Association of Realtors®):
Video: http://www.bloomberg.com/video/89258365/

▓ Independent Analysis about the enormous potential of the highly profitable SFR (Single Family Residential) market for investors in the U.S.:
http://avistone.com/media/Smart_Capital_Report_April_2012.pdf

▓ The Las Vegas Commercial Real Estate market is burning hot! A new record for a Las Vegas Strip retail property was just set at $1,736 per sq.ft.:
http://www.lvrj.com/business/strip-walgreens-gets-record-1-736-square-foot-151090695.html

▓ Interview with Wall Street giant Howard Lutnick (CEO of Cantor Fitzgerald) who is aggressiveley pursuing the tremendous real estate opportunities in the U.S. via his company BGC Partners:
http://www.bloomberg.com/video/94285535-lutnick-on-bgc-s-real-estate-brokerage-business.html
... and article:
http://therealdeal.com/issues_articles/lutnicks-big-hedge/

▓ We're the acquisition experts for REO/foreclosure single-family homes in Las Vegas putting really strong real estate investment portfolios together for our clients. But it doesn't stop there. We have the complete infrastructure with the logistics for turnkey operations and package deals in place including contractors for quick and efficient renovations whenever required to make properties rental ready, property managers for the rentals as well as solutions for various exit strategies including REIT conversion or other securitization strategies.
Contact: Dietmar Scherf ▪ ds@scherf.com

Due to the fact that comparatively only a few homes were constructed in Las Vegas over the past few years (during the peak of the housing bubble up to 50,000 homes were annually built in Las Vegas while currently only approx. 3,000 homes are annually constructed), it is our opinion that we may enter into a housing shortage in Las Vegas over the next few years. The transaction volume in Las Vegas is already back to almost record levels of over 59,000 transaction per year (2011).

Because of these components, home-prices may appreciate automatically due to the economic principle of supply and demand. Rents are also increasing and are supporting a higher price level. This is an additional benefit which may further boost the profit potential.

Las Vegas is one of the fastest growing metropolitan areas in the world. With a population of more than approx. 2.4 million considering the population of the extended Las Vegas valley (since 2010, Las Vegas is once again the fastest growing city in the U.S.). Up to approx. 8,000 new inhabitants move to Las Vegas every month. This scenario results in a steady demand for rental properties as well as in a demand to purchase residential real estate. Las Vegas is also the most visited city in the world with over 40 million visitors a year from all over the world.

Via various risk management strategies, risks can be significantly reduced. One of the greatest advantages are the extremely low purchase prices for REO single-family homes. Due to this fact, losses regarding value are reduced. Today, the price per square foot is the same or even lower than approx. 20 years ago.

The second safety function is the rental these single-family homes. Rents for single-family homes are very competitive to the rents of apartments. Often, families with children prefer to live in a house rather than in an apartment, especially if the rents are virtually comparative.