Howard Bulloch can peer over the top of Mandalay Bay from 500 feet above the Strip.
“When you think of the Strip, that’s the view people want to see,” he said. “That’s the attraction Las Vegas has for the rest of the world.”
Bulloch was looking out of a helicopter hovering above the southern Strip at dusk Monday evening, across from a parcel of land that he has owned with partner David Gaffin for more than 12 years. Little more than a year ago, Bulloch and Gaffinannounced plans for SkyVue, an observation wheel on the scale of the Singapore Flyer, or theStar of Nanchang in China or the London Eye.
“People had been talking about putting an observation wheel in Vegas for years, and we just decided we were going to do it,” Bulloch said
Down on the ground, two pillars now 60 feet tall point skyward, showingSkyVue is more than just so much talk. Today, the project begins the second phase of a $200 million construction that Bulloch promises will have a wheel towering over the Strip by the end of the year.
A dozen semi trucks are set to roll into the construction site this morning, bringing enough steel cable to stretch from the Strip to the Golden Gate bridge in San Francisco to serve as supports for the massive wheel.
Plans are to have the hub and spindle for the wheel in place by the end of summer. By fall, constructions workers will begin forging large pie-shaped steel supports around the hub for a wheel expected to carry passengers late next year.
“The engineering behind it is like a big Erector set,” Bulloch said.
The wheel is going over a base of concrete submerged some 14 feet into the desert floor, where cheap hotels once stood on land Bulloch and Gaffin have owned since Mandalay Bay was under construction. The wheel will be flanked on each side by huge LED screens the size of football fields, advertising restaurants and retail shops that are part of the development.
It’s no coincidence that cable trucks are making deliveries just as the International Council of Shopping Centers is holding its convention in Las Vegas. Bulloch spent the day visiting booths at the ICSC, pitching his 140,000-square-feet of retail, dining and entertainment space.
The company has not published many final details about Project Linq, beyond covering about 500,000 square feet with a wheel about 500 feet tall.
Dennis Speigel, president of the consulting firm International Theme Park Services, has said he doubts the Strip could support two giant wheels.
“The first one out will be the last one in,” Speigel said.
Big wheel projects have been floated for Las Vegas in the past but none materialized. Now, Bulloch has various government approvals, but not the money, while Caesars has money without final approval from the county.
The popularity of the 443-foot tall London Eye, which has attracted more than 3 million riders a year since 2000, has attracted a slew of imitators from Singapore to New Jersey to Myrtle Beach, S.C. The latest generation of Ferris wheels come with enclosed gondolas — 22 passengers each for Skyvue — instead of open-air baskets.
“A giant wheel has become the icon du jour,” Speigel said.
“The London Eye has been a tremendous success,” said Bulloch, who will model ticket prices on London’s. The basic ride would cost $20 to $25.
The Monday ceremony also highlighted that big wheels are not financially foolproof.
The bearing Bulloch displayed is a leftover from a Beijing wheel that was never built. According to a spokesman, Bulloch paid about $840,000 for the unused, secondhand bearing.
Bulloch said he has received letters of intent from potential tenants for 15 percent of the retail space. A letter of intent indicates a formal interest, but not a rental contract.
At least some of the early skirmishing between Skyvue and Caesars has revolved around location. By placing his wheel right on the Strip, at a slight angle to the street, riders will get a better view, Bulloch said.
“That is the real appeal, not being off the Strip,” Bulloch said.
But Caesars senior vice president Jan Jones depicted Skyvue as relatively isolated.
“If I was going to argue location, I would rather have the center of the Strip than being on the end of the south end,” she said.
This is the granddaddy of them all. Now you can choose from 10-year, 15-year, 20-year-, 30-year, 40-year and even 50-year fixed-rate mortgages, all of which are completely amortized.
FHA Loans
FHA mortgage loan types are insured by the government through mortgage insurance that is funded into the loan. First-time home buyers are ideal candidates for an FHA loan because the down payment requirements are minimal and FICO scores do not matter.
VA Loans
This type of government loan is available to veterans who have served in the U.S. Armed Services and, in certain cases, to spouses of deceased veterans. The requirements vary depending on the year of service and whether the discharge was honorable or dishonorable. The main benefit to a VA loan is the borrower does not need a down payment. The loan is guaranteed by the Veterans Administration, but funded by a conventional lender.
Interest-Only Mortgage Types
Calling a mortgage loan type an “interest-only mortgage” is a bit misleading because these loans are not really interest only, meaning the borrower pays only interest on the loan. Interest-only loans contain an option to make an interest-only payment. The option is available only for a certain period of time. However, some junior mortgages are indeed interest only and require a balloon payment, consisting of the original loan balance at maturity.
Hybrid Types of Mortgage Loans
Option ARM Mortgage Types
Option ARM loans are complicated. They are adjustable-rate mortgages, meaning the interest rate fluctuates periodically. Like the name implies, borrowers can choose from a variety of payment options and index rates. But beware of the minimum payment option, which can result in negative amortization.
Combo / Piggyback Mortgage Loan Types
This type of mortgage financing consists of two loans: a first mortgage and a second mortgage. The mortgages can be adjustable-rate mortgages or fixed-rate or a combination of the two. Borrowers take out two loans when the down payment is less than 20% to avoid paying private mortgage insurance.
Adjustable-Rate Mortgage Types
Adjustable-rate mortgages (ARMs) come in many flavors, colors and sizes. The interest rate fluctuates. It can move up or down monthly, semi-annually, annually or remain
Mortgage Buydowns
Borrowers who want to pay a lower interest rate initially often opt for mortgage buydowns. The interest rate is reduced because fees are paid to lower the rate, which is why it’s called a buydown. Buyers, sellers or lenders can buy down the interest rate for the borrower.
Specialty Mortgage Loan Types
Streamlined-K Mortgage Loans
Like the 203K loan program, FHA has another program that provides funds to a borrower to fix-up a home by rolling the funds into one loan. The dollar limits for repair work are lower on a Streamlined-K loan, but it requires less paperwork and is easier to obtain than a 203K.
Bridge / Swing Loans
These types of mortgage loans are used when a seller has put a home on the market but it has not yet sold and the seller wants to borrow equity to buy another home. The seller’s existing home is used as security for a bridge (also called swing) loan.
Equity Mortgage Loan Types
Equity loans are second in position and junior to the existing first mortgage. Borrowers take out equity loans to receive cash. The loans can be adjustable, fixed or a line of credit from which the borrower can draw funds as needed.
Reverse Mortgages
Reverse mortgage are available to any person over the age of 62 who has enough equity. Instead of making monthly payments to the lender, the lender makes monthly payments to the borrower for as long as the borrower resides in the home. The interest rate can be fixed or adjustable.
When you have little equity in your home, or owe as much or more on your mortgage than your home is worth, it can be difficult to find a lender willing to help you refinance. But for borrowers who have remained current on their mortgages, and have loans owned by Fannie Mae or Freddie Mac, there is hope. It’s called HARP.
Introduced in March 2009, HARP enables borrowers with little or no equity to refinance into more affordable mortgages without new or additional mortgage insurance. HARP targets borrowers with loan-to-value (LTV) ratios equal to or greater than 80 percent and who have limited delinquencies over the 12 months prior to refinancing.
Significant changes have been made to HARP since the program was first introduced. For example, in 2011 the LTV ceiling was removed, property appraisal requirements were waived in certain circumstances, certain risk fees for borrowers selecting shorter amortization terms were eliminated, and certain representations and warranties were waived. In 2013, the eligibility date was changed from the date the loan was acquired by Fannie Mae or Freddie Mac to the date on the note, increasing the pool of eligible borrowers.
Through HARP, you can get a lower interest rate (which means less out-of-pocket costs each month), get a shorter loan term, or change from an adjustable to fixed-rate mortgage. There’s no minimum credit score needed, either.
And now that HARP guidelines are simpler, even people who were formerly turned down may now be eligible for HARP refinancing.
If you are current on your mortgage; have a mortgage that is owned by Fannie Mae or Freddie Mac, and owe as much or more than your home is currently worth, you may be eligible for HARP refinancing. That can mean significant savings by:
Lowering your monthly payment
Reducing your interest rate
Securing a fixed-rate mortgage that won’t change over time
Building equity faster—shorter term options may be available
Lower closing costs because an appraisal is not usually required
HARP program includes:
No underwater limits
Borrowers will now be able to refinance regardless of how far their homes have fallen in value. Previous loan-to-value limits were set at 125 percent.
No appraisals or underwriting
Most homeowners will not have to get an appraisal or have their loan underwritten, making their refinance process smoother and faster.
Modified fees
Certain risk-based fees for borrowers who refinance into shorter-term loans have been reduced.
Less paperwork
Lenders now need less paperwork for income verification, and have the option of qualifying a borrower by documenting that the borrower has at least 12 months of mortgage payments in reserve.
Program Deadline
The end date to get a HARP refinance is December 31, 2018.
Answer: After you make the decision to buy a home, you’ll want to plan a budget and contact a real estate professional to guide you through the entire process. You’ll also need to research and compare available lenders to finance your home beyond your down payment. Your real estate professional will likely be able to suggest prospective lenders if you need assistance in choosing one. A lender will pre-approve you for a loan in the amount it determines you to be able to afford, so that sellers will consider you a serious and capable buyer. Once you’re pre-approved, your real estate professional will begin showing you possible homes. When you decide on a particular home, your real estate professional will make an offer on your behalf to the home’s seller–usually for a price slightly less than the asking price. This may lead to a counter offer, meaning that the seller tries to negotiate your purchase price closer to his or her original asking price. Once both parties agree on an amount, your real estate professional will work with a title insurance agent and/or escrow officer to draft all necessary paperwork. He or she will then schedule a date for you and the seller to meet for the closing, where the transaction is completed and ownership is officially transferred from seller to buyer.
2. What steps are involved in selling a home?
Answer: The steps involved in the home-selling process are very similar to those involved in the home-buying process. Once you have made the decision to sell your home, you will need to establish an asking price for it. While some sellers successfully sell their homes on their own, a for-sale-by-owner arrangement can be complicated and will require a great deal more of your personal time throughout the process. For this reason, most people consider the commission paid to a real estate professional well worth the investment, for the convenience, time savings and overall guidance provided. Real estate professionals will also be able to tell you if your asking price is appropriate for your property or home. In addition, they will manage the marketing of your home–from front-yard sign to MLS listing–while guiding you in preparing the home to be shown to potential buyers. Once a prospect makes you an offer, you can either accept the proposed purchase price or make a counter offer. When both parties agree on a price, your real estate professional will work with a title insurance agent and/or escrow officer to draft all necessary paperwork. He or she will then schedule a date for you and the buyer to meet for the closing, where the transaction is completed and ownership is officially transferred from seller to buyer.
3. What is title insurance, and why do I need it?
Answer: Title insurance is an insurance policy that protects you against loss that could result from defects in the title of the property you are buying. The premium is paid only once and is good until the property’s ownership changes. Unlike most types of insurance which protect policyholders from future events, title insurance protects you against defects that could already exist.
4. What does a home warranty cover?
Answer: A Home Warranty offers a variety of home warranty options to cover a home’s appliances and major systems such as air conditioning, heating, electrical and plumbing.
5. How can I further research properties, neighborhoods, area schools and other demographic criteria important to me in my quest for a new home?
Answer: Use Stewart Title’s neighborhood search tool to locate the ideal location for your next home. Type in the address or ZIP of your desired location and see results on your potential neighborhood’s schools, climate, crime statistics, home types and values, etc.
6. What are the different types of housing available to home buyers, and what are the advantages and disadvantages of each?
A single-family home refers to a free-standing property that does not share walls with other nearby homes or structures, and that is built from the ground up at the site of its foundation, on its own piece of land. The pros for owning a single-family home include the fact that the owner owns everything — the home itself as well as the land it is on, and as such is able to landscape, remodel or rebuild the home to the extent desired. Possible disadvantages to owning a single-family home may include the fact that the owner is responsible for all repairs and maintenance, as well as any remodeling done to both the interior and exterior. He or she will also likely have fewer amenities than high-density living structures which often provide swimming pools, tennis courts and more as part of homeowners’ association fees charged.A townhouse is a home that is attached to one or more other houses, located on a specific property that the townhouse owner also owns.
Townhouses can range drastically in size and architecture, including multi-unit structures such as duplexes or triplexes. Advantages to owning a townhouse can include less financial responsibility for exterior maintenance and repair costs, heightened security afforded by a more high-density community and amenities for which the homeowner is not directly responsible (pool, tennis courts, etc.). Disadvantages often include less privacy than with a single-family home, less freedom to alter the home’s exterior and a monthly or yearly homeowners’ association fee.A condominium, or condo, is very similar to an apartment in terms of structure and multi-unit design. Often, apartments are converted to condos as the result of changes in complex ownership and management.
Condominium owners own only the interior of their dwelling — from the walls inward — and, just like with an apartment, their home is attached to their neighbors’. All condominium owners who live in a particular complex share the financial responsibility for maintenance and repairs to the overall property and building exteriors, through payment of a monthly homeowners’ association fee and, if necessary, a special assessment requiring a one-time payment of a predetermined amount. Possible advantages to owning a condo include less individual financial obligation for exterior home repairs and a lower purchase price than a single-family home or townhouse. Disadvantages may include greater difficulty when selling a condo, as compared to single-family dwellings and townhouses, monthly homeowners’ dues, less privacy than with other types of housing and usually a complete lack of freedom to alter the exterior of the home in any way.
A manufactured home,once typically referred to as a mobile home, is a single-family home that is built at a location other than the land on which it sits. Most manufactured homes are modular in structure, and final assembly occurs on the home site after separate “pieces” are transported from the manufacturing plant to the homeowner’s property. Advantages to owning a manufactured home may include that it is often a less-expensive means of acquiring a single-family residence, and in the event the owner moves to another property or sells the home, it may be easily transported to another location. Disadvantages include an obvious limitation in architectural options (since the homes are built off-site and then moved) and, often, reduced longevity in the durability of the home.
7. What are Flood Zone Determinations?
Answer: Simply put, flood zone determinations define geographic areas, or zones, according to their flood history using a classification system that assesses the potential for rainfall to be converted to storm water runoff. This information is very important to a buyer because it will likely affect insurance availability and cost. Likewise, it is important to a seller to know how the flood zone determination for his or her home may affect the sale of the home. Stewart Mortgage Information produces the highest resolution flood hazard analysis in the industry quickly and accurately. Ask your real estate professional or homeowners’ insurance provider about a flood zone determination.
8. What is a 1031 exchange?
Answer: A 1031 exchange refers to legislation that allows an investor to sell a property, reinvest the proceeds in a new property and as such defer all capital gain taxes. Asset Preservation Incorporated (API) is recognized as one of the leading Qualified Intermediaries in the nation, meaning that they have a proven track record guiding investors through the exchange process.
9. How can I better understand the terminology used in the home buying and selling processes?
Answer: Visit our Real Estate Dictionary to learn the terminology you’ll need to know before buying or selling a home.
