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Oct. 16, 2007
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REAL ESTATE INVESTOR SEES DEALS

By MARGARET ANN MIILLE
REVIEW-JOURNAL
Housing
Housing in Las Vegas
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Michel Maalouf stands by Laguna Palms, a complex where he and his wife own three condos. The couple rents out more than 40 local residential properties they have bought in 16 years.
Photo by Sara Tramiel/Review-Journal

Michel Maalouf remembers when homes in the Las Vegas Valley were going for $50,000 to $60,000.

It was about 16 years ago, and he and his wife, Mirna, started snapping them up. Today, they own more than 40 residential properties -- many of them fully paid for, all of them rentals.

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    • The current housing slump hasn't altered their investment strategy, says Maalouf, a 46-year-old ATA Airlines captain. They buy to hold.

    "I don't care if it makes money on a daily basis. My concern is the long term," he says. "We buy only good deals."

    Good deals aren't limited to distressed properties facing foreclosure, which applies to a handful of homes the Maaloufs have purchased over the years. Some sellers just want or need to liquidate their assets.

    The couple often pays in cash, which appeals to sellers and hastens closings.

    Maalouf believes the mortgage meltdown won't destabilize the local economy, partly because thousands of people move to Las Vegas each month. He also takes his cue from resort properties.

    "Casinos do their homework before they start building," he says. "As long as casinos are building, the future is looking good. As long as they are going to keep building, I'm going to keep buying."

    The approximately $600,000 the Maaloufs earn annually in rental income funded their segue into commercial real estate. In April, they bought their second such property, the Lucky Stop gasoline station and convenience store on South Eastern Avenue.

    Good deals are to be had, Maalouf says, because many commercial land owners either never built, never finished building, or couldn't lease out what they had built.

    When it comes to the residential market, the couple stays below $400,000 per home. The rent-to-mortgage ratio is poor at higher prices, Maalouf says, and larger homes are harder to rent.

    Their latest buy is a two-bedroom, two-bathroom condo near South Eastern Avenue and East Flamingo Road. They own two other properties in the same complex.

    "The guy needed to sell, we offered him cash," Maalouf says. "We got it for $30,000 or $40,000 less than it was appraised."

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    chris wrote on November 11, 2007 08:54 AM: Alot of Foreingers are snapping up alot of properties now because lenders didnt do there homework..Imagine giving money to people with no credit or no job..Unreal..


    chris wrote on November 11, 2007 08:40 AM: He may have bought 16 years ago..But im doing the same thing now..Im buying condos and homes that have tanked in value will sell them one day at huge profits.The maybe built a resort/casino using others peoples money...


    Home Buyer wrote on November 05, 2007 11:00 PM: Bob Stitts: If you are really interested in selling, and havent used your home as an ATM or are upsidedown, immidiately drop your price 20% to 30 % in order to get out ahead of this tidal wave of housing meltdowns.


    BigShot wrote on November 05, 2007 10:58 PM: The key to this Putz's success is that he bought most of what he owns 16 years ago! That's right you other masters of the universe mini Donald Trump wantabees, 16 years ago. Now of course with his cash flow, bet he doesnt borrow from the conventional lending vermin! He is doing what every bottom feeder is doing now, waiting for the greater fools to drop like flies. Good for him. But I would check back in 2 or three years after this market/financial meltdown to see who is still standing tall! South Florida and especially Miami was full of hot shot investors who bought 20 or 30 properties only to see that market go crash diving into a depression where bottom feeder Euro Trash buyers are now offering 20 cents on the dollar!


    Bob Sitts wrote on October 29, 2007 09:05 AM: I have a house that he can buy as I am in Seattle and my wife is in Vegas. We thought Vegas would be called home but I received a great offer in Seattle and we need to sell. We hate being apart. Now if only I had a way to contact him :)


    cas127 wrote on October 17, 2007 11:30 AM: "Casinos do their homework before they start building"

    Hmmm...is this why MGM Mirage needed the UAE to essentially provide a dressed-up multi-billion dollar bailout?

    Well supported rumor around town is that Cityplace was enormously over budget so MM had to bring in new money.


    Shauna wrote on October 16, 2007 09:39 AM: Good for them !


    Shawn Shepherd wrote on October 16, 2007 06:27 AM: This is an excellent example of a genuine, down to earth real estate investor. Long term is what real estate investing is all about. Too many so called investors, especially in Las Vegas, who were looking to make a quick buck are now up to their elbows in it. The worst of it is that they are taking honest, hard working renters down with them. At RentalForeclosure.com we have seen 2,855 new default notices this week. The RJ Reported that 37% of the Las Vegas population are renters. According to those numbers, 1,056 renters this week could lose their home at no fault of their own.