Las Vegas can rightly be called one of the United States’ truly unique cities. While folks who live there know that “The Strip” of casino resorts is not the entire city, it’s fair to say that the presence of the world’s most renowned casino cluster does define much of the area. And because this makes the city so unique, it’s a different sort of place in which to start a real estate business.
Different isn’t necessarily negative, however, and in fact, the Las Vegas real estate market is one full of opportunity. And for those interested in the idea of starting a business in this market, we want to go over some of the basics involved in starting a successful Vegas real estate LLC.
Know the Market
Starting a real estate business in any city necessitates that you know the market you’re getting into. In Las Vegas though, that means getting acquainted with a housing situation that is frankly more robust than most people would guess. Ranking the most difficult places to buy a home in the U.S., one 2019 article put Las Vegas at seventh in the country, with a median home price of just under $300,000. That’s above the national average price and indicates a competitive, high-end home market — despite the misconception around so much of the U.S. that Vegas isn’t much of a residential area.
Follow LLC Startup Processes
While a real estate business can take a few different forms, forming a Limited Liability Company is a common choice simply because of the risks and liabilities involved in owning, flipping, or managing properties. An LLC is designed to protect the business owner’s personal assets from issues arising from these potential liabilities. So, if that sort of structure appeals, you’d do well to understand the steps involved in filing for an LLC in Nevada. Fortunately, this is neither as involved nor as prohibitive as it may sound. The entire filing process can be done online, and ultimately requires only that you formalize a few decisions about the business (such as its name) and fill out some state forms.
Know Neighborhoods Inside & Out
While Las Vegas is more residential than it gets credit for, it is a somewhat sprawling city with a wide variety of different types of homes and neighborhoods. So, unless you want your real estate LLC there to have a very particular niche, part of the business will be knowing these different homes and neighborhoods inside and out. That will mean understanding how the cost of living can vary even in a span of a few miles based on proximity to The Strip. It will mean knowing where particularly affordable housing can be found in parts of the city that aren’t as much in the public eye. It will even mean understanding the city’s HOA laws, which are relevant to some of the more expensive and/or exclusive neighborhoods. Ultimately, understanding factors like these is a good idea when starting a real estate business anywhere. But because of the variety of living conditions and neighborhood situations in Vegas, it is particularly important there.
Keep Tabs on What’s New to the City
You should also make every effort to be extremely up to date on what’s changing around the city. This too is a good idea in any market, but a particularly important one in such a heavily commercial city and tourist destination. Even in 2020, when so much of the city’s normal activity was at least partially paused, Las Vegas saw numerous changes. These included the opening of new restaurants, the debut of a new NFL stadium, the construction of the long-awaited “Sphere” events venue, and more. Simply put, this is a city in which each and every year brings about some notable grand openings, and remain updated on all the changes will give you the best feel for the market you’re selling in — as well as the shifting home values in areas near growth.
Vegas is a difficult market, all things considered. But if you get your real estate LLC registered and learn about the different things that make the city unique, you’ll have every opportunity to establish the business.