Nunbie Looking for Advice

I found a person who has a home in LV who wants to sell. The home is near forclosure, in a very nice neighborhood with the property value (before the fall) of approx. 650K. Now, in this market homes in that area are running about 300K-350K. The owner really wants to sell because it has been vacant for some months and was recently vandalized. My question is what would be my best option, to do a wrap would mean I would have to try to make up back payments with the lender (too much money) or do I just try to find someone who wants to try to buy it from me if I get the sale option from the owner? I don’t want someone else to come in and get this deal if I can do something to salvage this for me and for the owner. :help


First you did not say what square footage or how many bedrooms and baths this home is with what amenities?

Second you did not indicate what is owed on the current mortgage?

Probable the only way to buy this house is do a short sale, with that said Las Vegas is a tough market to find a end buyer in as there are so many properties with a limited number of buyers.

How long until the trustee sale? Do you already have a family member or friend interested in the property where you have an immediate end buyer?

Probable a short sale is the answer! How many mortgages are against the property? (1st or 1st & 2nd)

Good luck,


The question you need to ask yourself is why not? What do you think buying this house will do? The answer I would like you to give is because if I buy it at $x and spend $y on it I can sell it at $z and make a profit of $a on it. The thing is it is not hard to find a house to buy. The hard part is finding a person to buy a house you have for sale. There is only 1 way to sell a house. That is to sell it cheaply compared to everyother house in the neighborhood.

What the houses used to sell for is irrelevant. What the houses are going to be selling for when you are about to sell your house is the most important. If the houses are selling for $300k now, I would not pay over an amount that would allow me to sell it for at the most $250k. That way I can sell it $50k less than the competition and move it quickly. That $250k includes fix-up and holding costs which means you probably need to pay $150k for the house.

The size of a house or how pretty that house is does not enter into your decision to buy a house or not unless you are buying it for yourself. Otherwise it needs to have the same amenities as the neighborhood and be priced 20% to 30% more below the neighborhood. That will usually get you a contract within a month.

Actually 30% below is alot. IMO many homes prices 10-15% below market will move fast if the home owners mortgage is up to date and it is not a short sale situation. More and more end home buyers are growing tired of the 4-7 month process of a short sale. They like the idea of traditional financing and knowing what the price is and not haggling with the bank for a price. But you should be prepared to have at least 6 months holding cost for the home. Get an agressive realtor to market the home unless you have a buyers database for end users.

Market the home on free websites of course. List the home on bulletin boards in areas and make sure you have great pictures for people to view…

Throw in a bonus maybe to get them in like a $2000 furniture gift certificate or something. Perks still make people move on the deals and the perks are including in the price anyway.

on a property that size you def want to find the buyer before you close.

just because it is a discount does not make it a good deal.

listen close because this has saved me countless 100’s of thousands.

“Where the rental value meets mortgage, taxes, insurance and repiars…that is the market value”

That can be argued hundreds of ways but it allows you to put money in the bank each month instead of taking it out.

Figure out that PITI number and if renting the house won’t cover it, do not close on it yourself. My guess is it probably won’t. A quick scan of craigslist for the same neighborhood will most likely confirm this.

[quote author=matt-gerchow-real-estate

“Where the rental value meets mortgage, taxes, insurance and repairs…that is the market value”

In the areas I invest in that is half price and I would buy them all day long and sell them for 50% more chop chop without any problems. Now if only that will happen, jet set here I come.