What To Do In Las Vegas If Not Fix/Flip?

11 Replies

Hello BPers,

I may find myself having to go back to Vegas soon. I was just about to start my fix and flip adventure here on the east coast. I'm told however, that there is no inventory in Vegas and trying to fix and flip would be near impossible, especially with no other markets nearby. So I'm wondering, what niche could I get into, or how could I get started in REI in Vegas, if not flipping? Thanks in advance.

-Jason E. 

Hi Jason,

There's a shortage of inventory, which means less competition on the back side of the flip. You'll just have to work hard to find the deals.

Phillip Dwyer, Real Estate Agent in NV (#BS.0142939)

This post has been removed.

With a shortage of inventory you will have to then use techniques that have you buying closer to retail value. You can look at lease option assignments. You can look at being the sandwhich on a contract that you flip (although I would stay away from owner occupants with any contract). I have a purchase contract that gives me 60-90 days to find an end buyer (lease option buyer) and I wont close the deal until I find that buyer or if I dont find the buyer I wont close then either. I do fully spell that out up front as well, so the sellers know what to expect, I dont like anyone to have surprises.

I also work with an investor that will pay cash for the home once a buyer who cant get a bank loan gets approved with them. The investor will do up to a 6 year lease option for the end buyer. The end buyer must have 8% down and be able to make the monthly lease payment, and be at least 1 day out of any bankrupcty, foreclosure, shortsale. I find houses that I put under contract, then work to find my lease option buyer, then get them approved with my investor, and then the investor negotiates with me on the home, we close, they pay cash, I make my spread, and on down the road I go.

I havent closed any of these deals just yet, but just started with these guys. They are very large, tied into hedge funds, and because I was mortgage Banker for 18 years, I can process the deal for them which is required by anyone that works with them. I get paid the spread on the home as well as a fee from the investor. I am going to get my loan officers license back over the next couple of months, but not required because this is not a loan.  

Originally posted by @Mark Kemp:

Be happy to teach you how to find deals, there are plenty, just got another deed lady night.

That would be great! I'm still waiting to hear back from a family friend on whether or not he's gonna be the guy that looks good on paper so that the HML will work with me. It's looking about 80/20 in my favor right now. Assuming that goes through, I will be ready to get into it and would be VERY appreciative of your help.

Originally posted by @Kevin R.:

With a shortage of inventory you will have to then use techniques that have you buying closer to retail value. You can look at lease option assignments. You can look at being the sandwhich on a contract that you flip (although I would stay away from owner occupants with any contract). I have a purchase contract that gives me 60-90 days to find an end buyer (lease option buyer) and I wont close the deal until I find that buyer or if I dont find the buyer I wont close then either. I do fully spell that out up front as well, so the sellers know what to expect, I dont like anyone to have surprises.

I also work with an investor that will pay cash for the home once a buyer who cant get a bank loan gets approved with them. The investor will do up to a 6 year lease option for the end buyer. The end buyer must have 8% down and be able to make the monthly lease payment, and be at least 1 day out of any bankrupcty, foreclosure, shortsale. I find houses that I put under contract, then work to find my lease option buyer, then get them approved with my investor, and then the investor negotiates with me on the home, we close, they pay cash, I make my spread, and on down the road I go.

I havent closed any of these deals just yet, but just started with these guys. They are very large, tied into hedge funds, and because I was mortgage Banker for 18 years, I can process the deal for them which is required by anyone that works with them. I get paid the spread on the home as well as a fee from the investor. I am going to get my loan officers license back over the next couple of months, but not required because this is not a loan.  

 That sounds like a great process. How are you going to market this? It seems that not only finding a home and getting it under contract, but then finding a buyer (lease option buyer to be specific), will prove to be very difficult. I'd think to take this on full time it'd have to be either very lucrative or you'd have to have a lot of volume.

What would everyones recommendations or ideas be on me getting my license and possibly doing property management? I'd like to get my license anyways to save the commissions and get MLS access. Then I was debating on trying to be an agent, or get into property management. I trade equities from the Vegas hours of 6:30-1:00 on M-F, so those hours I would be strapped to my desk, but also able to get a lot of filing or paperwork done. On the other hand, I wouldn't be able to leave the office and attend signings or do showings until after 1. I was thinking this may not be too much of a problem anyways being that I'm willing to work weekends and most people wouldn't go house viewing during the week. Especially with all the possibilities of electronic signatures nowadays. Thoughts? Ideas?

I always think getting a RE license is a good idea.

Inventory levels are not that scarce. A year or so ago they were very low. Now they have come up and while it is still a seller's market, the bidding wars have died down quite a bit.

You can find deals to flip but it takes some work to find them. The properties on the MLS tend to still get high enough sales prices that there is not usually enough equity to flip. With that being said I wrote on up an hour ago with the intentions of flipping it.

In regards to working part time in real estate, I say this sounds like a great plan. Real estate is like a machine that takes time to get going. your main job will allow you to cover all your expenses while building your real estate business on the side. As real estate takes off and you become busier you will have to decide how to juggle it all or what to cut etc.

I have a new agent starting that has a full time bail bonds company and wants to start real estate on the side as you have described. With programs like docusign etc you can do quite a but remotely but you will still need to get that face time in with clients to be successful. 

On my team I offer training and leads if needed. Feel free to reach out to discuss if your interested. Either way good luck with your real estate journey.

Robert Adams, Real Estate Agent in MA (#9530304 ), NV (#62827), and RI (#18138)
NV: 702-349-9175

You should definitely work on getting your license. Although not needed, who is going to work harder on your deals than you.

I wish you luck on your investing career. I am also a licensed real estate agent that you can reach out to if you need any help.

I would like to have a property in Vegas just so I could go out there twice a year for fun and write it off.  What would a 20K down payment buy me?  The last time I looked at it several years ago the banks didn't want to loan to an out of state investor, I wonder if that has changed.  Suggestions, comments welcome, Thanks.

@Glenn McCrorey  You'll have to see what you qualify for.  There are 10% down conventional loan programs from second home purchases.  

Phillip Dwyer, Real Estate Agent in NV (#BS.0142939)

@Glenn McCrorey   your best bet is to discuss your scenario with a reputable lender here in Vegas. I know for a fact out of state investors can get financing as we have done several deals this way. If you need a lender feel free to reach out directly and I will email you the contact info of the lenders we use here in Vegas. A lot has changed over the past few years in regards to financing guidelines. Either way best of luck!

Robert Adams, Real Estate Agent in MA (#9530304 ), NV (#62827), and RI (#18138)
NV: 702-349-9175

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