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In business real estate quarterly real estate quarterly 10th person charged in mortgage scheme Las Vegas among cheapest U.S. cities for home rentals By Brian Nordli staff writer By Eli Segall staff writer A Las Vegas man was charged in a mortgage fraud scheme that cost lenders and financial institutions $15 million in losses. Jabari Marshall, 36, was found guilty of one count of conspiracy to commit mail fraud and wire fraud after a two-week jury trial. Marshall was the 10th person charged in the scheme, said Daniel Bogden, U.S. Attorney for the District of Nevada. According to the indictment and jury trial, Marshall and nine other defendants purchased 30 homes from 2005 to 2007. They made purchases using "straw buyers," people who allow their names and credit histories to be used to secure mortgages to buy homes they never intend to own or occupy, and submitted false information to financial institutions to obtain mortgage loans, Bogden said. Lloyd Gardley, who was considered to be the leader, worked with Candis Gardley and Marshall to recruit straw buyers, loan officers, an escrow assistant, an accountant, two real estate agents and a person who provided false verifications of rent into the scheme, Bogden said. Marshall also provided false Social Security numbers and documents for some of the loans, Bogden said. The scheme resulted in $15 million in losses for lenders and financial institutions. Marshall is scheduled to be sentenced on Jan. 9 and faces up to 20 years in prison and a $250,000 fine. Nine other co-defendants pleaded guilty before trial, with eight of those still awaiting sentencing. investors took advantage of the downturn Still recovering from the housing bust, and started buying cheap homes in bulk to turn into rentals. Some large Las Vegas is the second-most affordable big city in the coun- Top US cities for investment firms, however, now are paring down on local try for home renters, a new affordable house rentals purchases as it becomes toughranking says. er to book big profits on new Kiplinger, a financial news 1. Raleigh, N.C. deals. publisher, said the valley has 2. Las Vegas 3. Dallas Home prices have skyrocketthe largest renter population 4. Tulsa, Okla. ed, the rental market is softenand rental vacancy rate and the 5. Birmingham, Ala. ing amid increased inventory highest income among renters 6. Austin, Texas and home values are expected of the 10 markets listed in its 7. Memphis, Tenn. 8. Dayton, Ohio to cool down in the coming report. 9. Omaha, Neb. months. Local builders also are leas- 10. Richmond, Va. Kiplinger ranked Raleigh, ing more luxury apartments to N.C., as the best big city for rentresidents who Kiplinger said are "more confident in the economy and ers because of its basement-low rents ($640 per month on average), affordable cost of livtheir job security." Valley renters boast a median household ing (7.4 percent below the national average) income of $40,400. And while the rental and renters' above-average income ($34,567 vacancy rate is almost 14 percent, some per household). By comparison, Las Vegas' average 43 percent of local households are occumonthly rent is $776 and its cost of living is pied by renters, according to Kiplinger. When Las Vegas' housing market crashed, 0.1 percent below the national average. DIABLO INDUSTRIAL CENTER PARADISE AIRPORT CENTER STEPHANIE STREET POWER CENTER SPRING MOUNTAIN SQUARE SPEEDWAY COMMERCE CENTER II SPEEDWAY COMMERCE CENTER INDUSTRIAL | 14 October 2013 20131014_VI12_F.indd 13 | OFFICE RETAIL DEVELOPMENT 13 10/10/13 2:31:00 PM