If LTV remains below 70% or 75%, how much higher are hard money loan interest rates and closing costs as compared to conventional loans?

Why is it in a market where you fight to overpay for property that real estate investors crawl out of the woodwork to start buying (like 2004 and 2005 where investors were content with sometimes less than 7% ROA) compared to the now very soft market when seemingly every investor I know or meet sits on their hands avoiding the best buyers market in years??

Here's the conversation between me and the selling agent.http://www.houstonhotdeals.com/conversation.htmActually after further research I would recommend offering a much lower price than list on this property based on how long it's been on the market and comparable properties. http://webmail.valueweb.net/index.cgi/login/realtor%40houstonhotdeals.com.authcustom/CB849D21744332A63EB953C4B3FDA188/1192235532?

there is really no other city to compare vegas to in terms of characteristics.in my humble opinion, many so called experts do not take the tip/gratuity income into account.

I have found a brand new one in an area that has no rent control, low unemployment, high job growth, good renters market, low crime, for $335,000 with reputable onsite management....So my question is : If this deal sucks how is it possible to get something better.....Or is it really that you are saying that as compared with a decent stock performance...this is bad.Thank you both for weighing in!

Given market conditions (very slow compared to 1 year ago, very few buyers right now) he will take $270k cash from me.

It will not cost all that much compared to the damage done if you get this wrong.You also might find that selling and taking the cash to invest in a different market provides better returns.

Also most of the comparable homes in the area sell for 55-65k.

Few basic reasons i moved here was the avaibility and price of rental property compared to Arizona, and then I had some family here to help get me on my feet and get started.

Fix it up comparable to other houses in the area or just little better.