Posted by Richard C on August 07, 2011 at 15:52:01:
Ok, very recent comps !
Do you make the offers directly to banks or use an agent ?
How best can you utilize an agent ? ( cause they can get inside to see ? )
Thanks, Richard C
Las Vegas - Posted by Larry
Posted by Larry on August 03, 2011 at 19:57:29:
I am considering buying two SFR in LV using cash. Homes that sold for 300+ now are priced about 70-80K. 3 br. 2 ba. rent for about 1K per mo. But there is a glut of homes on the foreclosure market. I also heard a rumor the the Obama administration may go into the rental business to at least maintain these properties. Your thoughts would be much appreciated.
What makes these deals work - Posted by JT-IN
Posted by JT-IN on August 06, 2011 at 17:01:37:
What makes these deals work for you…? Obviously paying cash gives you a degree of stability and low pressure investments… but what makes these two homes the best deal for you now, versus another two or three or four homes elsewhere in Vegas…? Trying to establish what makes these two deals stand out here…?
Aside from that, any purchase that I would making today would have to be at a discount equal to not mroe than 75% of FMV TODAY… I can’t emphasize the TODAY number enough. It is too easy for someone, maybe a seller, or maybe a buyer if you really want to do the deal, to be influenced by that 300+K number. that number means ZERO today because that value is gone, and maybe forever. Do not be influenced at all by that number.
So as long as you are confident that you are buying at not more than 75% of FMV TODAY, and confident in Vegas long term… and it could be very long term, although somewhat mitigated if you are building in an additional 25% discount to TODAY’S FMV. So just know that these are long term investments, and I’m sure you know that… and you will be fine in the end.
Be prepared for further erosion into the mkt values in Vegas, as the fundamentals seem to indicate that this is on the horizon… hence the additioanl discount in TODAY’S FMV is critical. Good luck on them.
Re: Las Vegas - Posted by Aristotle
Posted by Aristotle on August 04, 2011 at 11:26:34:
I’d be more concerned with the job market in Vegas. Last I checked, they had a very high unemployment rate compared to other markets. Maybe you should do some research and talk to property managers there to see what the vacancy rates are in the areas that you want to buy.
Re: What makes these deals work - Posted by Richard C
Posted by Richard C on August 06, 2011 at 20:53:54:
@JT-IN
Hi there, how do you determine the 75% FMV on a property ?
e.g. Find 2 - 3 Comps on what has sold nearby in last 3 months to calculate the “retail” price sold per sq ft and then offer a 75% of the price per sq ft on the properties to the bank ?
Thanks so much, Richard C
Re: Las Vegas - Posted by Larry
Posted by Larry on August 04, 2011 at 11:45:33:
Thanks, that’s an excellent idea.
3 months - Posted by JT-IN
Posted by JT-IN on August 06, 2011 at 23:08:43:
In some mkts that are trending down, going back 3 months for comps may be too long. Sure, you will look at them and take in the info but I would weight comps more heavily that are recent… the past month or weeks old. Understand the trend, as this is the purpose of buying under the mkt (of what an investor will or should pay - no retail prices), to build in further shock absorber to the mkt fluctuations.
Study the data and if you are going to err in this mkt you must do so on the conservative side.
Re: Las Vegas - Posted by Chris in FL
Posted by Chris in FL on August 05, 2011 at 08:35:39:
I just saw in a presentation yesterday (unsure of how facts were gathered) that Las Vegas has the highest foreclosure rate in the country - 1 home in every 12… Top 20 cities were primarily around 1 in 19 - many in Florida and California… They didn’t mention the average for the nation, which have been nice to know for comparisons sake.
Best wishes,
Chris in FL