Frequently Asked Questions

Foreclosure

Investing Strategy for Las Vegas foreclosures          

Foreclosure investing is driving the US real estate market - we are starting to see an influx of investors from around the US and the rest of the world buying foreclosure homes.

It is evident that price to value for a foreclosure has become very attractive to investors and we think this trend will accelerate moving forward as foreclosure investing increases in popularity.

Las Vegas has a large inventory of foreclosures, and the implied values of the homes is driving multiple offers in many cases.  Be prepared for a bidding process that necessitates patience and market knowledge for foreclosure investing.   

Why would I invest in real estate now in the form of purchasing a foreclosure?

The best time to get into a good deal is when there is stress in the marketplace and when it is in chaos.  Of course there will be risk, but prices on foreclosures in Las Vegas are at historical lows in terms of affordability, depending on what type of home you purchase in Las Vegas or elsewhere around the country.

How do I know if I am a good candidate for a foreclosure purchase in the Las Vegas market today?

There are a lot of variables to consider.  Some of the primary issues include your employment position; good cash flow; and partner support.  Your employment stability is very important, lenders may not approve a loan for an individual with no visible means of income.  A good cash flow supported by cash reserves will be crucial.  In addition, if you are married or in a committed relationship, your partner must be completely supportive and encouraging.  You may need their assistance, emotionally and perhaps financially.

Who is not a good candidate for buying foreclosures?

Two words come to mind easily - someone looking for "easy money" – risk and reward live together in life.  There is no easy money unless you are able to walk into a casino, put a dollar in a $1 million payout machine and win instantly.  For the other 99.9% of us, a real estate investment in a foreclosure is going to require some good analysis and hard work to maintain the property, even if you have a tenant renting the property.

How can I do some creative financing to help me buy a foreclosure in Las Vegas?

Look at "friends and family" for creative financing, or a "personal joint venture" in business vernacular, for funding a purchase of a foreclosure.  This involves finding a relative or friend who may not have the time or interest in managing a real estate investment.  Offer to split the upside with them, while you take responsibility for managing the property as part of your investment.

How long should I plan on holding onto my foreclosure investment property to generate a decent return on my investment?

This is a "crystal ball" question and no one has a good answer for this.  The right answer is, be prepared to wait out the market and make sure you buy a Las Vegas foreclosure that is cash positive to offset your mortgage costs.  Then, you won't have a lot of pressure to sell it - let it sit and appreciate, making you more money.  Again, these are chaotic times and you want to drive a good deal by working with a knowledgeable realtor who knows foreclosure investing.

What is an ideal neighborhood or location for foreclosure investing?

You may want to take a very hard look at the neighborhood around the house you are assessing and work with a realtor that is technically savvy for astute foreclosure investing.  Also, you want to look at the houses up and down the street - are they well maintained and what is the general feel of the neighborhood?  A good neighborhood "around" your home will help to drive the curb appeal for a rental as well as long-term appreciation - don’t underestimate the neighborhood, as it is part of your investment.  A Realty Executives agent can search thousands of homes in all the Las Vegas neighborhoods to help you find the perfect investment property.

Is buying in distressed neighborhoods a good idea for foreclosure investing?

No, absolutely not, under any circumstances!  is our opinion for foreclosure investing.  You want your investment property framed with a great neighborhood around it – if the home is surrounded by a lot of homes in disrepair you may have problems renting and maintaining it as a foreclosure.  And don't let a "never again" bargain price dissuade you - you can't turn a sow's ear into a silk purse - hold your water as the old desert rats used to say and move on to the right deal – there’s a better foreclosure opportunity in another neighborhood, especially in today’s market. 

Foreclosure Buying Tips

What is a Foreclosure?

Foreclosures, a Good Investment