Las Vegas—a Real Estate Market On Steroids

Las Vegas homeowners hit the jackpot according to the February 20, 2005, Review Journal
article by Hubble Smith. “For many Las Vegans who sold their homes last year, they probably
made more money from the increased value of their homes than they did at their jobs.”
http://www.reviewjournal.com/lvrj_home/2005/Feb-20-Sun-2005/news/25847028.html
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Las Vegas has been an incredibly hot market. According to an article in the Review-journal by
Hubble Smith. Last year set records and SalesTraq president, Larry Murphy, expects records set
last year to be broken in 2005.
http://www.reviewjournal.com/lvrj_home/2005/Jan-22-Sat-2005/business/25714132.html
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The Las Vegas Residential Real Estate Market can be broken down into 4 general segments.

a. New Home Developments
b. Traditional Single Family Residences—Resale
c. Hi-Rise Luxury Condominiums
d. Condo Conversions

The Real Market Experts of Nevada will be providing our Nouveau Riche investors with
carefully positioned opportunities in each of these segments.

The Las Vegas city planners have done an excellent job of keeping city growth and expansion on
track. A significant portion of the city’s income is based upon tourism and that industry was
threatened by the Terrorist attacks on 9/11/01. After 9-11, local leaders shifted their marketing
dollars away from airplane travelers and toward travelers who could drive. The shift was highly
successful, as evidenced by the severe Sunday night traffic jams in the middle of the desert
between Las Vegas and Southern California.

Job growth is not the only driver of housing demand, as evidenced by the fact that the three top-
selling communities were all age-restricted.



The information contained herein was obtained from 3rd party sources and is deemed reliable but not guaranteed. Buyer to verify all
information. This information is being presented by The Real Market Experts of Nevada, independently owned and operated by
Investment Realty Group, LLC. The Real Market Experts Franchise, Inc. does not control the accuracy of the information displayed
here, is not the publisher of the information, but acts solely as the distributor for its participants.

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Las Vegas Economics

Las Vegas is undergoing fundamental changes on virtually every level. According to Market
Solutions, the quarterly Vegas Economic Review, “the economic rocket ship that is Las Vegas is
shooting for the stars again. When Wynn Las Vegas opens on April 28, buckle up your seatbelts.
2005 will be a fast, fabulous ride, no matter what happens to the American economy as a whole.”

Some of the highlights are:

a. Job growth in 2004 exceed 4.9%. That is the best in the nation. Job growth is expected
to stay strong in 2005.

b. While other states struggle with revenue short falls, Nevada is using strong State
Government Revenue to promote growth. There was a $300 million sales tax surplus in
2004.

c. Las Vegas broke all tourism records in 2004 and has continued to accelerate during the
first quarter 2005.

d. Residential Real Estate sales and prices broke records in 2004. New home sales set a
new record pace during first quarter 2005.

e. The opening of Wynn Las Vegas, April 28, 2005, will add 8,000 new jobs to Las Vegas.

f. A new furniture market, The World Market Center, plans to open its first 1.3 million
square foot building in July and has announced a planned expansion to 12 million square
feet. That is 500,000 square feet larger than the currently largest furniture show room in
North Carolina.

g. The Nevada to the Rescue campaign http://www.expand2nevada.com/walkingwounded/ by the
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Nevada Commission on Economic Development is aggressively attracting business and
jobs. 38 California companies relocated or expanded to Nevada in 2004.

h. The Las Vegas Convention Center estimates that 5.7 million people attended conventions
in Las Vegas in 2004.

i. McCarran International Airport is now the sixth busiest airport in the nation.

j. Retail is booming in Las Vegas. The Las Vegas Convention and Visitor’s Authority
reports that retail sales were up 27% last year from 2003.





The information contained herein was obtained from 3rd party sources and is deemed reliable but not guaranteed. Buyer to verify all
information. This information is being presented by The Real Market Experts of Nevada, independently owned and operated by
Investment Realty Group, LLC. The Real Market Experts Franchise, Inc. does not control the accuracy of the information displayed
here, is not the publisher of the information, but acts solely as the distributor for its participants.

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k. Major retail expansion is underway. Four of the five largest enclosed malls in Las Vegas
are not yet completed. Triple 5’s Great Mall of Las Vegas, Summerlin Center, Town
Square and Southern Highlands Center—all over 1 million square feet are yet to be
completed.

l. The NBA is considering playing its February 2007All-Star game in Las Vegas.

m. Las Vegas bills itself as the "Entertainment Capital of the World," and tourism, gaming,
and entertainment represent a large portion of the city's revenue. In addition to its
renowned casinos, Las Vegas attracts visitors to its outdoor shows, including simulated
volcanic eruptions, pirate duels on artificial lakes, and laser cannon displays. Indoor
casino shows, with world-famous entertainers, are also popular. Annual events include
the National Finals Rodeo and the Las Vegas Invitational Golf Tournament. Las Vegas is
a popular destination for tours and conventions, including Comdex, an annual computer
show. The Las Vegas Motor Speedway opened in 1996.

n. The federal government is also a major presence in Las Vegas. Nellis Air Force Base is
the city's largest single employer. In addition, there are a number of military bases
headquartered nearby.

o. Las Vegas is served by McCarran International Airport, rail service, and several major
highways.

p. The University of Nevada, Las Vegas, was founded in 1957. It is the main university in
southern Nevada. The Community College of Southern Nevada has its main campus in
North Las Vegas.

q. Specialty museums include the Liberace Museum and the Guinness World of Records
Museum. Other museums in Las Vegas include the Nevada State Museum and Historical
Society, which features exhibits on Nevada's history from 12,000 bc to 1950; the Las
Vegas Natural History Museum, which houses wildlife and dinosaur exhibits; and the Las
Vegas Art Museum.



The information contained herein was obtained from 3rd party sources and is deemed reliable but not guaranteed. Buyer to verify all
information. This information is being presented by The Real Market Experts of Nevada, independently owned and operated by
Investment Realty Group, LLC. The Real Market Experts Franchise, Inc. does not control the accuracy of the information displayed
here, is not the publisher of the information, but acts solely as the distributor for its participants.

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Appreciation
2001 Appreciation for the Las Vegas metro area is summarized in the chart below.

Source: Las Vegas Review Journal (www.reviewjournal.com)



The information contained herein was obtained from 3rd party sources and is deemed reliable but not guaranteed. Buyer to verify all
information. This information is being presented by The Real Market Experts of Nevada, independently owned and operated by
Investment Realty Group, LLC. The Real Market Experts Franchise, Inc. does not control the accuracy of the information displayed
here, is not the publisher of the information, but acts solely as the distributor for its participants.

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2002 Appreciation for the Las Vegas metro area is summarized in the chart below.

Source: Las Vegas Review Journal (www.reviewjournal.com)

2003 Appreciation for the Las Vegas metro area is summarized in the chart below.

Source: Las Vegas Review Journal (www.reviewjournal.com)



The information contained herein was obtained from 3rd party sources and is deemed reliable but not guaranteed. Buyer to verify all
information. This information is being presented by The Real Market Experts of Nevada, independently owned and operated by
Investment Realty Group, LLC. The Real Market Experts Franchise, Inc. does not control the accuracy of the information displayed
here, is not the publisher of the information, but acts solely as the distributor for its participants.

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2004 Appreciation for the Las Vegas metro area is summarized in the chart below.

Source: Las Vegas Review Journal, Sunday February 20, 2005
( http://www.reviewjournal.com/lvrj_home/2005/Feb-20-Sun-2005/news/25847028.html )
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The Master Plan
Las Vegas city planners are crafting growth for success and major expansion. This involves
vertical growth through Hi-Rise Luxury Condominiums.

The City of Las Vegas New Urbanization Plan Document is available at this link (it is a big file)
http://lasvegasnevada.gov/CompPlanningDocs/April_2005.pdf
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New Home Developments
One strategy many investors have utilized in high appreciation markets is the purchase of new
homes and then selling “flipping” the home upon completion. Although this can be lucrative
investment, the builders are adding addendums to the contracts which prevent this practice.
Builders curb buyers’ quick-sell plans, Wall Street Journal, by Queena Sook Kim
http://www.fortwayne.com/mld/journalgazette/business/9350557.htm
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Because of RME’s relationships with the builders we are able to place a limited number of
investors into new home developments. To take advantage of these opportunities is important to
respond quickly (within 24 hours) when these opportunities become available.



The information contained herein was obtained from 3rd party sources and is deemed reliable but not guaranteed. Buyer to verify all
information. This information is being presented by The Real Market Experts of Nevada, independently owned and operated by
Investment Realty Group, LLC. The Real Market Experts Franchise, Inc. does not control the accuracy of the information displayed
here, is not the publisher of the information, but acts solely as the distributor for its participants.

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Traditional Single Family Residences—Resale
Sales of existing homes in Las Vegas dropped from June 2004 until January 2005. During this
same period of time new home sales remained strong. This consolidation period allowed the
market to stabilize and has created a temporary availability of a few deals. Some would be
investors who purchased new homes with the intention of a quick flip have found that the
average time on the market has increased. Some of these sellers do not realize that the market
has been firming since late January 2005 (see chart below) and are willing to sell their properties
below market value. We will be locating and placing offers on these properties. Please note that
this is a temporary market condition and timely execution will be necessary.


Source: Salestraq, Inc.
Hi-Rise Luxury Condominiums
Las Vegas condos are selling fast in an already booming marketplace and Las Vegas is quickly
adopting the urban lifestyle! With over 80% of Nevada owned by the US government, land-
starved developers are going vertical to meet the demand for housing in the fastest growing city
in the country. There are currently plans in development for over 80 mid rise and high rise
condos for the Las Vegas Strip area alone, as well as the new breed of real estate investment - the
Condo Hotel or "Condotel." And condo conversions in Las Vegas - apartment complexes
renovated to upgraded condos - are another huge facet in the investment marketplace.
The "Condotel" caters to sophisticated investors by offering lavishly appointed fully furnished
units, onsite leasing agents and nightly rentals tied to the local casinos. When the owner is not in
residence they are maintained and leased out to hotel guests by a professional property
management company on behalf of the owner, and the demand for these complexes is so high that


The information contained herein was obtained from 3rd party sources and is deemed reliable but not guaranteed. Buyer to verify all
information. This information is being presented by The Real Market Experts of Nevada, independently owned and operated by
Investment Realty Group, LLC. The Real Market Experts Franchise, Inc. does not control the accuracy of the information displayed
here, is not the publisher of the information, but acts solely as the distributor for its participants.

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many projects are sold out before ground has even been broken. Cosmopolitan, Aqua Blue, the
Residences at MGM Grand and the Platinum are prime examples of this blossoming new
industry in Las Vegas condos.

Other developers are focusing on the local market and targeting young professionals who prefer
to live and work on the Strip with all the amenities of a luxury hotel. There's an increasing
customer base that prefers urban housing products such as lofts, live-and-work office lofts and
high rise condominiums. "It's a lifestyle choice for those Generation-Xers like you see in the
`Friends' TV show. It's an emerging market," according to Carina Corporation President Mark
Doppe. Carina is building several loft-style condo complexes throughout the Valley to meet this
demand.

"There is also a certain prestige attached to owning a Las Vegas high rise condo and quite a few
celebrities are also purchasing Las Vegas penthouses for their own use. Many investors are
taking advantage of the fact the most of these projects are pre-selling far in advance of actual
construction. They anticipate cashing in on the massive appreciation experts are forecasting and
many are purchasing multiple units in several complexes.

Whether you are an investor looking for an exciting opportunity or a homeowner looking for the
luxury condo amenities, Las Vegas offers an amazing (and bewildering!) array of choices.
High-Rise Frenzy: Going Up?
In his, Monday, March 28, 2005, article in the Las Vegas Review-Journal,. John Przybys,
outlines the idea that vertical living is taking root in Las Vegas.
http://www.reviewjournal.com/lvrj_home/2005/Mar-28-Mon-2005/living/26127981.html
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According to Przybys, the Las Vegas residential growth image that usually comes to mind is of
single-family homes sprawling out to the edges of the valley in every direction. Lately, though,
residential growth in the valley seems to be heading in another way. Straight up.

Over the past year, the Las Vegas area has become awash in plans for high-rise condominium
developments. Here are pictures of some of the latest and greatest projects:



The information contained herein was obtained from 3rd party sources and is deemed reliable but not guaranteed. Buyer to verify all
information. This information is being presented by The Real Market Experts of Nevada, independently owned and operated by
Investment Realty Group, LLC. The Real Market Experts Franchise, Inc. does not control the accuracy of the information displayed
here, is not the publisher of the information, but acts solely as the distributor for its participants.

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The information contained herein was obtained from 3rd party sources and is deemed reliable but not guaranteed. Buyer to verify all
information. This information is being presented by The Real Market Experts of Nevada, independently owned and operated by
Investment Realty Group, LLC. The Real Market Experts Franchise, Inc. does not control the accuracy of the information displayed
here, is not the publisher of the information, but acts solely as the distributor for its participants.

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The information contained herein was obtained from 3rd party sources and is deemed reliable but not guaranteed. Buyer to verify all
information. This information is being presented by The Real Market Experts of Nevada, independently owned and operated by
Investment Realty Group, LLC. The Real Market Experts Franchise, Inc. does not control the accuracy of the information displayed
here, is not the publisher of the information, but acts solely as the distributor for its participants.

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Document Outline

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