Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Omar Merced

Omar Merced has started 34 posts and replied 358 times.

Post: Las Vegas Nv, Live-in Flip

Omar MercedPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 395
  • Votes 257

Great Job! Do you have pictures? Did you already close on the sale? 

Post: Vegas SFR primary - Ever acceptable to Lose?

Omar MercedPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 395
  • Votes 257

Hi Kyle. It’s about risk tolerance and projections. Yes, sometimes it’s ok to lose short term for a longer play however that is usually reserved more more experienced operators and even those people don’t like it they tolerate it. No one goes out looking for alligators to feed. With the information you provided I think there are better opportunities out there for you that will serve your purpose. Plug into the local REIAs and meet some smart people in person. I run www.SinCityREIA.com come out and say hi. 

Post: I am trying to build a future with real estate

Omar MercedPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 395
  • Votes 257

Hi Jovani. Your absolutely right. The people around you can lift you up or try to hold you down. Plug into the local REIA and meet some great people. www.SinCityREIA.com Welcome to your journey

Post: any Las Vegas meet ups in april?

Omar MercedPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 395
  • Votes 257

Pretty sure www.SinCityREIA.com will have one 4/18

Post: Single Story Rehab in Las Vegas!!

Omar MercedPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 395
  • Votes 257

Great job!

Post: security deposit and early lease termination fee

Omar MercedPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 395
  • Votes 257

From what I remember in my property management days we have 30 days to provide a final account statement. This is a big deal because if it is not done within that timeframe there is damages available. If this wasn’t done properly and you go to court you will win. So in this instance not only would I go to court I would request damages. Google NRS 118A.242

I am not offering any legal advice. Just got to put it out there. 

Post: Condo Certs Fees Seller Paid After Offer Received - Several Qs

Omar MercedPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 395
  • Votes 257

Hi Wendy,

Sorry to hear that. It happens more times than I think people are aware. Having a good agent could definitely help reduce those fall outs. Thank you for your in depth question. I'll try my best to help.

1. You have to check the pre-approval letter and see how it was worded. You should be looking fo a fully underwritten approval letter with the property appraising and title being a couple of the  only contingencies.

It's not a done deal until it records. Literally as an agent the whole job is to make sure everybody is doing what they have to do to get to the glorious closing. It's like herding cats.

2. There are a couple of fees that the seller must pay in a VA loan. I'm almost positive it is, but not an expert, I'm sure someone will chime in. A quick google search got me here. It covers a lot more than just the VA loan.

3. HOA are jerks. But we need them because some people cant keep the property clean and kept up. Your HOA resale package is definitely is good for some time but I think the payoff will have to be reordered after a certain amount of time. But thankfully for you all you have to do is call your HOA and they will answer that.

4. Don't know and really don't understand why you were paying anything prior to closing...but I'll ask my VA lender that question and let you know.

5. This is generally the order of financing that as an investor I prefer:

Cash is King. But you'll have to give up some equity. These buyers know that and sellers should too. For example I can close before the end of year on your property but it would have to be at a discount.

Hard Money Loan. These are usually reserved for us flippers but some buyers that don't qualify for standard loan products so its almost as good as cash. Just have to jump through minimal hoops and usually there is 10%-50% down.

Conventional are the next best thing because the seller is putting down from 5%-20% down. These buyers will have a nice EMD and are usually more stable meaning that they don't "usually" flake.

FHA. These are the the majority of the buyers out there. As you can guess this is where the most fall out we see. The buyer only has to put down 3.5%. So sometimes they just have enough to do that and closing cost so if anything goes wrong they sometimes can't recover in time. Now of course this isn't everybody but just the experience I've witnessed. It all comes down to the buyer.

VA. Being a veteran I appreciate what they tried to do however the program has quite a bit of room for improvement. The buyer can get in with no money down. However I will say that the majority of VA loans that we accept get all the way through with no problems but it's about the team you have around you. The agent should now about VA loans or have the common sense to call the lender and ask all the questions about the flow and how to get to a successful closing. The lender has to know what they are doing because this program has it own set of rules that usually requires expertise. The best lenders usually has someone that only does these.

Lease Option /Seller financed. Sometimes this is the best way to buy and/or sell the house. This subject  is a whole three day course so what you need to know is don't do this unless you're working with an expert or are the expert.

6. EMD. Is whatever the contract says. If they released it without your signature they probably already have it in writing in the offer you signed. There is a loan contingency that is usually 14-30 days that says something like if the buyer can't qualify they are released out of contract with no damages awarded.

There are some things that I hope you and others learn from this. One is read and understand the contract and everything you sign. Everything is there and anything that is changed has to be in writing and if there are disputes the contract will be the document used to resolve. Two, you have to understand who you are working with and what is happening (to a degree). Regardless of contribution and character. At the end of the day this is your investment and you have to control the outcome. To do that you have to understand how it works. And if the person is not willing or able to break it down for you they're not the right person. And three, **** happens, deals fall out everyday, just reset, get back to it, and try not to make the same mistakes again. Hope this helped. Merry Christmas!

If your interested in learning more plug in to your local REIA. Just don't buy the course on the first visit.

I run www.SinCityREIA.com. If you're in Las Vegas on the third Thursday every month come visit.

Post: Partnering with end buyer on a Las Vegas Duplex

Omar MercedPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 395
  • Votes 257

@Jay Hinrichs Like it. What would be fair fees to charge? I thought this structure was the fairest option with upside for both parties. And yes I can flip it but I could be done with this deal in 60-90 days vs 120-180 days waiting on end buyer financing.

Post: Partnering with end buyer on a Las Vegas Duplex

Omar MercedPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 395
  • Votes 257

Great questions. I have the property locked up. We're scheduled to close in a few weeks. The thought process is the end buyer fund the deal and renovations. Renovation can be in draws and construction at cost. No markup. The title would be in the end buyers name so we don't have to pay transfer tax and the end buyer would have full control in case something went wrong. I stand behind my numbers. If we weren't able to get the price I indicated on the open market the difference would come from our half. Meaning if we could only get $180k we would only make $7.5k. Our profit is at the end and only if we make our numbers. The end buyer could refinance in which they would have to get an appraisal and possibly get most if not all their capital back. The split would still be from the gross because you are still getting the property at a 15% or higher depending if it could sell for higher on the open market. The only stipulation I would include is if you decided to sell at open market we benefit from the upside just like partners should. Does that make sense?

Post: Partnering with end buyer on a Las Vegas Duplex

Omar MercedPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 395
  • Votes 257

Hey BP community. I want to try something new (well at least new to me). I want to pre-sale or partner with someone to flip a duplex 2/1. Here are my thoughts and numbers. Would love some feedback of my super smart folks out there.

I just picked up a single family zoned R2 that I've confirmed with the city can make a duplex. It's located downtown in the City of Las Vegas (which MIGHT be able to be made into a vacation rental, more research is required). The area is a little run down but beginning to turn. I'd say it'll still be a few years before it gets there but I've seen a lot more activity lately. So this is what I was thinking. I could get a hard money loan and go through the regular process but I am thinking if I can get a buy and hold partner we can both save/make more money. Here are my numbers:

$82k PP and CC

$60k renovation (fully permitted)

$3k holding and misc

$145k all in

$200k ARV

Rents range from $650-850 (of course I think for a brand new unit we'd command the highest rent)

$55 gross profit

So if I went traditional I'd spend another 13k in closing and agent fees.

When our investors fund the entire deal we share 50% of profits so why not find the end buy and hold partner in the beginning and give them that 50% discount on the property. The property would be in their name and the buy and hold investor would be all in $172,500 for a brand new duplex in one of the hottest markets in the country. I also have my property management permit so I would find and place a tenant in there as well as part of the deal and could manage it for them as well. Well anyway thats my idea.

What do you think? If you're a buy and hold investor would you do this deal? Why or why not? And, would this would open a lot more opportunities where the margin is a little tighter because you wouldn't have to pay agents and CC?