All Forum Posts by: Andy Chu

Welcome to bp. The Vegas market has an absorption rate of about 92 days and increasing. This lets you know that if we did not add anymore inventory, it would take this many days to sell all inventory. Home prices have stabilized and dropped a little due to being the 4th quarter. Some people (like myself) have decided to take profits and see what the market will do.

If you are looking to buy and hold, a key ratio for yourself is the capitalization rate or cap rate. Revenue (rents)-all operating expenses (not including mortgage)/ purchase price. This number is about 4.5-5%. In other words holding onto real estate in the Las Vegas market will yield you that return.

If you go owner occupied, then rates for FHA and VA will exceed that yield at least with the mortgage insurance built in.

Basically, you will be buying at a close to negative cash flow and only be hoping for future appreciation to offset your negative cash flow.

yes it is definitely possible. You must first determine if the mortgage has a higher balance than what you are willing to pay for the property. If the owner has equity, then you are racing against a foreclosure clock. If the answer is no, then you must submit for a short sale and you are still racing against the foreclosure clock.

Meracord specializes in owner financing loan servicing.

The title company/ attorney will usually draft the following

1. Mortgage/ Deed of Trust
2. Promissory Note

3. Title Insurance to show your property is free of all encumberances except the loan you put on.

Realtor.com shows the listing agent name and office number. Go to your local realtor association and look up their profile.

As long as you know what you are getting yourself into, its not as scary as everyone thinks.

Yes they do sell with a QCD (Quit Claim Deed) and Occupied, but half the time, if you drive the property, the home is vacant (but not trashed out).

Don't take anything they have on their site for face value.

Lastly, they will do everything they can to get you to their reserve. They will go as far as bid on the seller's behalf. In this format, if you win the bid, you know that it hit the sellers reserve.

*We've bought over 20+ and sold 5 properties on their site. *

The logic doesn't make sense. Lets say I bought a house 10 years ago, and the rates were at 9%. I wanted to pull money out for another house and the reduce my rates down to 4.5%. You are telling me that it cannot be done unless I sold my house to a family member to refinance? If that's Fannie's guideline, then find a lender with a portfolio loan. That's insane!

I can't speak on the legal aspect of it. Frankly, getting paid prior to services rendered is a much better situation (for yourself) than having services rendered and trying to collect. There are no downsides for yourself that I can see.

I would add a handy man in the mix as well. Sometimes small things break and a general contractor is not really needed for small toilet leaks, minor touch up, and etc.

I cannot speak for Indiana, but most places allows a person to GC their own property.

Carla Carvalho The purpose of an LLC is for people like yourself. In the event you get sued, your properties are in its own bubble. LLCs are fairly easily pierce-able because it can be found at the secretary of state's office. Once the plaintiff finds it, they will find ways to show that funds were commingled, etc etc etc.

This is a strategy we sometimes use. It works pretty well, but the TAX ID, operating agreement, articles, and etc need to be changed and transferred.

When you are purchasing the LLC, it is like purchasing with a Quit Claim Deed. This means no title insurance policy, all liens stays in place, any hot water that they may have gotten themselves in or possible liabilities in the future are all yours.

Definitely weigh the risks.