Better returns on cash. You will get better returns on cash if you get a mortgage. The average minimum required to put down is 30%. If you split your money into 3 properties, you will eek out about 50% more on your cash. Rents in Las Vegas support great returns and here are actual case studies showing cash verses loans.
You can hedge against a bad real estate agent. To get a loan, the property must be appraised by your lending institution. If your agent doesnâ€™t do a good job finding you a property at or below market, you can cancel a typical deal as there is usually a contingency for the property to be appraised above the loan amount. Contact me if you want a list of pre-screened agents who wonâ€™t waste your time showing you houses above market.
Cash is not king. Many banks want the loans more than they want to unload the property. Even if you are the highest bidder with cash, a bank would rather take a lower offer if they can get the loan. Johnny Lunch bucket with a loan from Bank of America can cut you down if the property is owned by Bank of America. Smart agents will know which properties are owned by which banks. Investors go insane when they discover they lost an offer even though they were the highest bidder. Conversely, if you have a loan with a national lender, you can beat other cash offers.
Hard money loans are not the end of the world. Does anyone remember the days when mortgages were at 14%? Hard money loans are generally at 12% â€“ stiff but not unreasonable. Even if you factor in a 12% loan, you will still get a better return on cash. This page has a list of Las Vegas hard money lenders.
David Cooper Investor and Licensed Buyers Agent 702-499-7037
You definately need to get your Pre approval updated so you will be ready to go right away putting in offers.
The market has changed since the first of the year and most of the homes that are move in ready traditional sales and foreclosures are getting many offers on them so you need to be prepared to put in your highest and best on your first offer. (see my blogs for more info).
Even short sales are getting multiple offers in some areas, so be prepared to possible offer more than the asking price.
Recently a buyer of mine had to put in an offer $25,000 above list price to get the deal. Now, that does not mean the home will appraise at that, so there could be some adjustment later or some sellers right now are telling buyers "if it doesn't appraise, you will have to pay the difference".
Yes, absolutely. The hard truth though is that you will pay 5-10 dollars more per square foot if you want a non-REO or Short-sale property on the resale market or 20-40 dollars per square foot more if you want to buy brand new construction.
That is why, if they can afford to wait, many people choose to rent and attack the non-conventional market until something they like closes.
My team are experts in all types of sales. Please view our site at http://www.LasVegasRealEstateConnection.com.
Thank you very much
Realty ONE Group
These days, any Realtor in Vegas that's been in business more than a year has experience with short sales and foreclosures, but I do have a Short Sale and Foreclosure Resource certification (SFR).
Please be aware that if you're looking in the under $200k range, you will see multiple offers and the best properties will move quickly. Make your best offer up front.
I would advise you to seek an agent who is experienced with REOs or short sales, as well as knowledgeable on current market conditions. My brokerage specializes in traditional sales (no REO or short sale) homes which offer quick close and MOVE-IN ready condition.
Feel free to contact me directly for further assistance.