Foreclosures in Las Vegas

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The foreclosure process is comprised of three sets of real estate investing opportunities: Here are the benefits and drawbacks to each of them

"Default/Pre-Foreclosure" phase (Short Sale)
The "Auction/Trustee Sale" phase
“REO" phase (Real Estate Owned, Bank Owned, Corporate Owned, Bank Repo)

1) Short Sale (Pre-Foreclosure)

Buying pre-foreclosures involves negotiating directly with the homeowner and sometimes the lender. The goal is to create a Win-Win scenario. One win is for the homeowners (they make a sale) and one win is for yourself (you buy the property at a substantial discount).

To accomplish a successful purchase, here are the steps that many successful Real Estate Agents will follow:

locate loans in default,
evaluate and narrow selections to pursue,
inspect the property,
evaluate the property owner's needs,
determine the market value of the property, fix-up costs, potential sales price and profits,
arrange for a Professional with hands on experience to help you with the default work out by negotiating with the owner and the lender, and putting it into the Multiple Listing Service if necessary
close on the property, repair and resell it quickly, or keep it and get it rented.

Benefits: This is a great investing opportunity if done correctly. Discounts off market value can range from 20% to 45% on average. A low cash down payment is possible if structured properly. You have ample time to research properties. Unique and flexible sales agreements are possible.

Drawbacks: It is sometimes difficult to contact the property owner. You will usually have a lot of competition. The court house research can be cumbersome. You may need to negotiate with the lien holders.

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2) Buying At The Auction

Buying on the court house steps at the auction can be the most rewarding way to buy properties and the most dangerous at the same time. The property is publicly auctioned off to the highest bidder, and the process moves very quickly. When bidding at the auction, you compete against the lender and other investors.

Benefits: Very good to excellent discounts. Investors can sometimes obtain anywhere from a 35% to 55% savings off market values and earn an excellent return on investment. This is the only investing method where you can really have an incredible rate of return.

Drawbacks: Auctions are frequently postponed, wasting your time and effort. It is rarely possible to inspect the property. To be safe, you should have a title search performed, which can be costly. Unusually large cash outlays deter most investors (note that this can also be seen as a benefit). Certified checks for the entire purchase price are required. Improper research can lead to dangerous results.

3) Buying REO's & HUD's

Commonly the fastest and by far the easiest way to buy foreclosed property is buying REOs ("real estate owned"), or HUD's (FHA loan foreclosures that have been foreclosed and then conveyed back over to HUD and put out to sale). REO’s occur when the lender takes back the property to gain possession and cut their loss. The lender, however, does not want the property because it is not in the real estate business and is therefore usually some what motivated to move the property depending upon area market situations.

Benefits: The lender is almost always the senior lien holder, thereby wiping out all other liens at the auction. This means an REO will always have clear title, which saves a lot of time, expense and worries when buying foreclosures. Most likely, the lender will also have paid any property taxes in arrears. The lender may either repair the property to acceptable standards or allow a discount to the buyer to accomplish the repairs.

Drawback’s: Rewards follow risk and this is a low risk investing method and the rewards can be on the low side as well. Average savings may range from only 5% to 15% off market value, although discounts of 25% or more are possible if you know what you are doing.

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Investing in foreclosures can provide excellent profits. Each of the three foreclosure opportunities presents both rewards and risks. Having a knowledgeable Real Estate Expert working with you!

Call me at 702-277-4605 or fill out my interest form.