OfflineI am a Canadian entrepenuer looking to the states for some quality property. I was thinking of starting to tap into the Vegas forclosure/pre-foreclosure scene. Good or bad Idea?
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Viva Las Vegas!
Posted on: Tue, 03/31/2009 - 14:43
The Las Vegas market is one of the highest foreclosure areas in the United States. The market is taking one of the steepest declines in value. If you keep this in mind when you are purchasing you can find good deals.
Rentals are doing great in the central united stated. The markets here are selling very low priced property with little drop in the rental market and amounts.
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O.K. I was actually concered about that particular area. And renting property after I buy it. I was reading up on the current market there and it was stated that it was best not to buy houses with the intention of renting them or having the lease to own option. This was simply because of the high rate of migration to and from Las Vegas.
What would your opinion be on this? Anything helps.
See, a lot of people who write articles like to make blanket statements or assumptions. That is actually good for us when people follow such advice, because it creates a niche for people to fill a void where others are sitting on the sidelines, just like the housing market in general right now.
Sure, you have more people come and leave Las Vegas for work, but not everyone is working a seasonal job like Rehab at the Hardrock Hotel, or in a situation where employment shifts like the wind.
Like any other rental owner anywhere, if you screen your renters well, you will have a better chance of a stable long term renter. Also, if you get your deal so cheap that you can still cashflow the property while seriously undercutting other comparative rent costs, you shouldn't have much of a problem keeping it rented even if you bouncing around every few months with flaky renters.
So long as you can get first and last months in advance you should be covered. Now, cashflowing is ideal, but if you have the money to carry properties without it, then you are in good shape either way because we are looking down the road for the uptick.
Also, the goal is to basically steal a property, get a ridiculous price, so you are insulated from any further downturn (unlikely) and can actually resell it at any time, more likely at a profit, but at least without a loss.
These principles really carry over to any market, or any intent (rent, flip, lease opt, buy/hold)...
Can I PM you? I am here in Arizona and just did a couple of deals with some Canadian buyers in a golf course community! I have another that I am working with also that will be out here in a couple of weeks. I would love to let you know what we have here. Great place to invest!
Niki
I live in Edmonton AB, I was recently offered a property (a town house in Vegas), by a Canadian who had to move back to Edmonton. She says she paid 200,000 for the property and now wants $100,000.
She has a renter who wants to stay paying about $1,000. Per month. If all checks out to be correct I was thinking of proposing an owner financing deal to her over x amount of years at X interest rate. She does not need the money right away, could I offer say $60,000 amortized over 20,000 years?? If she wants full payment quicker I could offer to pay her out in full in say three years. I got the general idea from a seminar I recently attended. Does it make sense and does anyone have any suggestions,
Kevin