All Forum Posts by: Robert Adams

My team and I have been getting bombarded with wholesalers looking to get started in investing. We used to work with wholesalers but unfortuntely it has become a major waste of time. Typically what happens is the wholesaler is new, went to an event and now wants to find deals.

We find the deals, get them under contract and then the wholesaler can't produce their end buyer/investor and the deal crumbles. This is not only a waste of everyone's time but a bad mark on our team reputation here locally that I take seriously.

Due to this we stopped doing double closings and assignable contracts for wholesalers (we still do assignable contracts for a select few clients that have different scenarios that require it). We have started filtering these wholesalers out by requiring the end buyer to be on the offer from the beginning and the wholesale fee be worked out up front. This has screened out about 99% of the wholesalers.

I am getting so many buyer leads that want to wholesale still, so I thought it was worth asking if other agents have a process that has worked for them that is mutually beneficial where we can help these clients and actually get to the finish line without wasting all of our time. Thanks in advance. 

With al the red tape on STR here in Vegas (more so than most markets) MTR is a better option in my opinion. Furnishing a property with good amenities and renting mo to mo will still allow the owner to charge a premium on rents. While the income is not as high as STR the costs are also extremely lower than STR. You avoid all the STR taxes, fees, restictions, fines, etc.

The MTR rental market is still appealing to those coming in town for WSOP, traveling nurses, corporate rentals, people relocating not sure where they want to buy yet, etc.

Given your scenario I would recommend going with an OWC. Getting 20%+ down, interest only payments of say 10%, with a 2 year balloon payment.

This will get you $100k+ to use on other investments in the short term, good cash flow monthly for the 24 months, and should the market decline further you will not take those losses. If the buyer dafults you can take the home back and keep th $100k+ and then reassess your options at that point.

Congrats on your first purchase! Hopefully, many more to come!

I would just like to add once you have your game plan and your investment formula, now is the time to make sure you don't make emotional purchases. Be disciplined and stick to your numbers and formula. The opportunities will become even more abundant as the economy worsens in the short term. Just keep telling yourself you only want to aquire homeruns right now. If it's not a homerun just wait for the next pitch.

Best of luck!

Investment Info:

Condo fix & flip investment.

Purchase price: $140,000
Cash invested: $155,000

This one is currently for sale as the lowest priced remodeled condo in all of Henderson. See the listing details here: https://www.greenvalleyhomefinder.com/homes/nv/henderson/nvvegasresall24618701031993249/737-anne-ln-unit-737-henderson-nv-89015

What made you interested in investing in this type of deal?

Great purchase price and ARV works with affordability since its the lowest priced remodeled condo available.

How did you find this deal and how did you negotiate it?

Found it on the mls and negotitated the offer the first day it was on the market.

How did you finance this deal?

cash with self directed IRA funds

How did you add value to the deal?

complete remodel

What was the outcome?

currently for sale but getting good action. was listed just a few days ago. expecting it to sell quickly.

Lessons learned? Challenges?

smooth easy flip

While we do have some of what you have described, in recent years majority of the people pouring into Vegas have been from high tax and high cost of living states like CA, NY, HI, etc. When working remote became common place a lot of people kept their high paying jobs in other states and capitilized on lower taxes and lower cost of living that NV provided. Most that came here came with large amounts of cash that was pulled from equity in homes they sold or refi'ed elsewhere. There were also a lot of people that relocated their companies here over recent years. Many from CA escaping the taxes and political climate there. Thought is was worth mentioning as your post made it sound like Vegas is a place of haven for bottom dwellers which is not accurate. Sure there is a certain element of that just like any city but definitely not the majory by any means.

Saw an interesting headline that said people's saving went from $6.5 Trillion to $650 Billion.

I feel like there is plenty of people willing to help you, info on the internet, and partners that will partner up with you if you bring ANYTHING to the table. And by "anything" I mean, bring a deal, bring money, bring a network, bring contractors, bring something of value and get something in return....get experience, get ROI, get realtionships, etc...

There is enough info out there that you can figure it out if the will to do so is there. Could you pay someone to take the work out of it and spoon feed you the info, deals and relationships? Of course. Could you totally waste your money and give your money to a dirt bag that offers no real value in return? Of course.

I think there could be success doing it on your own or using a mentor/guru, but it is up to you to put the time and energy into what you are investing in in either scenario. 

Just please don't be the person that puts no effort into either and then complains that they didn't figure it out on their own or got ripped off because they gave tens of thousands of dollars to a stranger with no track record or references.

I wish everyone nothing but success....happy hunting in the downturn that is coming! It will provide all the opportunity you need if you are prepared.

I would agree that Vegas tends to be more volatile than most markets especially those in the midwest. We tend to ride the same cycles as the rest of the country but when its good nationally it's usually exceptionally good here. And the opposite is also true when is bad nationally it is usually especially bad here.

With that being said one of the reason we get hit hard in downturns (mainly long runs of a down market) is because when the rest of the country is not doing well we are not doing well also. But in addition to that, people from other parts of the country are not vacationing here and spending all that hard earned $$ here on hotels, gaming, shows, conventions, etc. When that happens our entertainment industry stops slapping up Billion Dollar resorts and it trickles down to less jobs and less economic growth.

But again the opposite is also true, when the country is doing well they love to come spend that $$ here and we love to capture as many of those dollars as possible and jobs and economic growth are created.

Our no state income tax structure here also brings alot of money  
from people trying to escape the high tax states like CA, NY etc. When people are making less money they are also paying less taxes so this factor is not as motivating to them.

These are  few factors that came to mind. Hope this helps.