Real Estate Investing Financing Sources In Reno – The 4 You Should Be Using Right Now

By Larry Crickon

Who else needs financing for their real estate investing deals? If you invest, you’re probably looking for real estate investing financing sources in Reno… well, look no further because here are the only 4 you’ll ever need to do as many deals as you want to do.
As a real estate investor, you know that acquiring deals takes capital. And unfortunately, some investors reach the end of their capital and are forced to stop investing long before they reach their real estate goals. The good news is, you don’t have to fall into the same trap. When you tap into these 4 sources, you’ll have access to all the money you need to do as many deals as you want!

Real Estate Investing Financing Sources In Reno #1 – Financial Institutions

This is the way that most people know about, and it’s still a tried-and-true way to do more deals. When you use institutional financings such as banks and mortgage companies, you’re using the principles of leverage and other people’s money to do your deal. As long as you have the down payment, and some available “room” in your credit, you can acquire deals.

Real Estate Investing Financing Sources In Reno #2 – Hard Money And Private Money

These are similar to banks in that they’ll lend you money in exchange for interest payments but the difference is: they may not require a credit score or a down payment; in many cases, they’ll probably just secure the loan against the value of the property itself. So you can acquire multiple deals with the power of hard money and private money.

Real Estate Investing Financing Sources In Reno #3 – Cash Buyers

One way to invest in real estate is to work with cash buyers. There are a few ways to make this work – from wholesaling to partnering. Here’s one example: you might partner with someone who actually buys the property and, in exchange for finding the deal and managing it, you might get a share of the cash flow from the deal. Get creative!

Real Estate Investing Financing Sources In Reno #4 – Seller Financing

One often-overlooked way to invest is to work with sellers and instead of paying them a lump sum to buy their house, you pay them over time… just like a bank. More sellers are into this than you might realize! Just tell them about it and help them see the benefits of generating cash flow.
Now you have 4 very powerful and effective real estate investing financing sources in Reno. When you start using these, you’ll never run out of capital again to do as many deals as you want to do.

Want to take your investing to the next level? We’d love to work with you to acquire more real estate, connect with our favorite financing sources, and get you building your investing portfolio. Click here and enter your info or pick up the phone and call us at (775) 721-2274.

4 Top Financing Options for Flipping Houses

By Larry Crickon

Flipping houses can cost money. Here are 4 top financing options for flipping houses to help you get started. Use one, some, or all of these financing options to acquire all the investment properties you want to flip!
If you’re thinking about investing in real estate, you have several options… you can rent, rent-to-own, wholesale, flip, and many other options as well! If you’re thinking about flipping, you’re probably looking to acquire an investment property and then fix it up to sell at a higher price. If so, here are 4 top financing options for flipping houses…

Flipping Finance Option #1

You can get a traditional bank loan from a mortgage loan lender like a bank or mortgage company. These are usually similar to the traditional mortgage loan that you might get for your residence: you pay a down payment and “use your credit score” to borrow the rest. Unlike your residential mortgage, you would sell the house to a buyer and then pay off the mortgage quickly.
The biggest drawback to this method is that you can usually only get a few mortgages in your name at once before the banks won’t lend you anymore. That will limit how many properties you can flip at once.

Flipping Finance Option #2

Another way to finance your flips is to partner with other investors so that each of you put in a portion of the total cost. For example, you might acquire a $100,000 property by finding 3 other investors and each of you put in $25,000.
Of course you’ll also need to figure out what percentage each person will invest in the renovations, and what percentage each partner earns at the end. In the example above, the simplest option would be for each partner to invest 25% and then get 25% back but some investors might prefer to be just “silent partners” while other investors might want to roll up their sleeves and do the renovation work!
If you’d like to flip some properties and perhaps want to partner with other investors, why not get in touch with us at (775) 721-2274 and we might be able to give you some suggestions or even make some introductions.

Flipping Finance Option #3

In some situations, you may be able to invest in real estate with your IRA or 401(k). This is a very smart strategy (although you should be aware that there are some restrictions and guidelines — so make sure you talk to an expert who can help you).
There are some significant tax advantages to using this financing option, so it’s one that you may want to consider if you have money available in your IRA.

Flipping Finance Option #4

Seller financing is a very powerful way to finance your investments. Using this method, you by pass the bank and the seller actually becomes your bank! Instead of getting a loan from a mortgage company, you simply get the house and pay the seller a regular “mortgage” payment each month until you’ve paid the entire amount off. Some sellers like this because they want to sell fast and like the cash flow.

Summary

If you’re an investor who wants to flip houses, you probably need to finance the purchase of them. These are 4 top financing options for flipping houses that you can use to acquire as many properties as you want!

You can talk to us at Oracle Property Solutions about how to acquire more properties to flip, or to help you figure out how to invest with your IRA or 401(k). Just click here to enter your information or give us a call at (775) 721-2274.

4 Top Financing Options for Flipping Houses in Minden

By Larry Crickon

Flipping houses can cost money. Here are 4 top financing options for flipping houses to help you get started. Use one, some, or all of these financing options to acquire all the investment properties you want to flip!
If you’re thinking about investing in real estate, you have several options… you can rent, rent-to-own, wholesale, flip, and many other options as well! If you’re thinking about flipping, you’re probably looking to acquire an investment property and then fix it up to sell at a higher price. If so, here are 4 top financing options for flipping houses…

Flipping Finance Option #1

You can get a traditional bank loan from a mortgage loan lender like a bank or mortgage company. These are usually similar to the traditional mortgage loan that you might get for your residence: you pay a down payment and “use your credit score” to borrow the rest. Unlike your residential mortgage, you would sell the house to a buyer and then pay off the mortgage quickly.
The biggest drawback to this method is that you can usually only get a few mortgages in your name at once before the banks won’t lend you anymore. That will limit how many properties you can flip at once.

Flipping Finance Option #2

Another way to finance your flips is to partner with other investors so that each of you put in a portion of the total cost. For example, you might acquire a $100,000 property by finding 3 other investors and each of you put in $25,000.
Of course you’ll also need to figure out what percentage each person will invest in the renovations, and what percentage each partner earns at the end. In the example above, the simplest option would be for each partner to invest 25% and then get 25% back but some investors might prefer to be just “silent partners” while other investors might want to roll up their sleeves and do the renovation work!
If you’d like to flip some properties and perhaps want to partner with other investors, why not get in touch with us at (775) 721-2274 and we might be able to give you some suggestions or even make some introductions.

Flipping Finance Option #3

In some situations, you may be able to invest in real estate with your IRA or 401(k). This is a very smart strategy (although you should be aware that there are some restrictions and guidelines — so make sure you talk to an expert who can help you).
There are some significant tax advantages to using this financing option, so it’s one that you may want to consider if you have money available in your IRA.

Flipping Finance Option #4

Seller financing is a very powerful way to finance your investments. Using this method, you by pass the bank and the seller actually becomes your bank! Instead of getting a loan from a mortgage company, you simply get the house and pay the seller a regular “mortgage” payment each month until you’ve paid the entire amount off. Some sellers like this because they want to sell fast and like the cash flow.

Summary

If you’re an investor who wants to flip houses, you probably need to finance the purchase of them. These are 4 top financing options for flipping houses that you can use to acquire as many properties as you want!

You can talk to us at Oracle Property Solutions about how to acquire more properties to flip, or to help you figure out how to invest with your IRA or 401(k). Just click here to enter your information or give us a call at (775) 721-2274.

4 Owner Financing Advantages for Buyers in Reno, NV

By Larry Crickon

If you’re thinking about buying a house, you’re probably weighing so many options right now – what to buy, where, and how to get financing. To help you make your decision a little easier, we’ll outline 4 owner financing advantages for buyers in Reno, NV to help you figure out if this the right way for you to purchase your next house.
Buying a house can be expensive, and might be out-of-reach for most people. Thankfully, there are financing options so you can get into a house that you may not be able to afford otherwise.
One of the best known ways to buy is through bank financing, where a bank or other lending company gives you a mortgage loan. They pay the full purchase price to the seller and then you pay the bank back over a number of years.
Another way to get financing is through owner financing. This is when the owner of the house doesn’t require the purchase amount up-front but rather will take regular payments (just like a mortgage) until the house is paid off.
If you’re wondering whether buying a house through owner financing is right for you, here are 4 owner financing advantages for buyers in Reno, NV…

4 Owner Financing Advantages For Buyers In Reno, NV

#1. You can buy a house even if the bank says no

Before a bank gives you a mortgage, they’ll check your credit. If your credit is pristine, you may get the mortgage; if your credit is anything less than pristine, you probably won’t get a mortgage. But with owner financing, your credit may not come into play so you may be able to get owner financing even if the bank wouldn’t give you a loan. This allows you to get into a house sooner instead of trying to fix your credit first.

#2. There’s no credit impact

You don’t need to have bad credit to get owner financing. There are many times when people want to buy a house but just don’t want to have the negative impact to their credit scores. Perhaps they need to make another purchase, or maybe they are investors who want to buy several houses without impacting their credit; whatever the case may be, owner financing allows you to get into a house while still keeping “room” in your credit for anything else.
Did you know that we do owner financing? Click here and fill out the form to learn more and to see our list of available properties.

#3. Little or no down payment

Many buyers discover the difficult truth that banks require a very expensive down payment, of 5%, 10%, even 20% of the purchase price of the house. This can be almost too much money to save up! Fortunately with owner financing, you may be able to structure the deal where you have little or no down payment to make – essentially you pay back 100% of the house in monthly payments.

#4. Flexible terms

When banks create a mortgage loan, they are forced by their head office to follow fairly strict terms. But when you work with a seller then you can create flexible terms so that are suitable to both of you.
Owner financing has many advantages but these 4 owner financing advantages for buyers in Reno, NV make it a very compelling way to buy a house.

Want to see what owner financing options we have available? Click here now and fill out the form to see what properties we have available and to learn more about our owner financing deals. Or call our friendly office any time at (775) 721-2274.

How to find good investment property in Reno

By Larry Crickon

Lots of investors are looking to get started, and as active real estate experts in Reno NV, we get asked to share our secrets quite a bit.
Fortunately, we love to share 🙂
One of the biggest questions we get from local investors is ” How to find good investment property in Reno NV?”
With the flood of foreclosure deals all but dried up (compared to where they were a few years back)… people are having to get more creative in finding the best deals on great local Reno investment properties.
We source our properties from a variety of marketing routes… online, offline, etc… so there is no one way that is the best way to find good investment properties in Reno.
But the info below walks you through some ways you can put to action to find great properties to add to your investment portfolio.

Most investors are afraid of competition – they think that if they share their secrets, someone will steal their ideas from them.

That’s not how we work. We work with other investors to accomplish things together that we can’t do alone.
We share our learning and our philosophies here because we want to improve the quality of investment in Reno to build stronger communities. Ultimately, we’re all investing in the same places, so it makes sense to do it right.
There’s a few core principles that are important to understand if you want to get the best investment property deals.

First, think long term.

Real estate doesn’t move like the stock market. It’s where people live, work and play – not just numbers on a screen. It’s almost impossible to make a huge amount of cash in a short-term real estate deal, those come few and far between.
So don’t expect to get away with fancy tricks, or that you’re smarter than the people who have been doing this stuff for years. Thinking long-term means learning from the past to better anticipate the future.
It also means that if you don’t find the local investment properties you’re looking for right away… just know that this isn’t a sprint… it’s a marathon.
That’s why it’s a great idea to find several sources of properties that fit your criteria (like our Reno Investment Property Buyers List >> ) so you have a heavier flow of great deals to look at.

Second, focus on relationships.

The investment community in Reno is much smaller than most people think.
There are only a handful of brokers and investors who conduct most of the business in the market.
They’re used to working with the same people on a regular basis. It’s worth the time and effort to find them and learn from them. If you can, work with them. They’re your best source of good deals, now and in the future.
How do you get to know them? Go to your local REIA and find the people who are active and talk to them. Ask them which real estate agents they use, what wholesalers in the area are active (and get their info) and let everyone you can find know that you are looking for investment properties that fit your criteria.  Learning how to find good investment property in Reno isn’t hard thing… but relationships can be a key element in getting some of the best deals on properties that no one else has access to in the Reno NV market.
Who should you get to know?

• A few of the top investment friendly real estate brokers in Reno
• A couple real estate appraisers who deal w/ the types of properties you deal with
• The top handful of property wholesalers in the area
• The top handful of property rehabbers / flippers in the area
• Title agents that deal with investment properties a lot

Third, identify your target investments.

Investment is like many other aspects of life – the people who are the most focused often succeed the most. You have to find your niche. Some people make millions just in parking garages or storage units.
Others specialize in residential apartments, while others deal strictly with retail. If you take the time to do your homework, you can analyze the different segments of the market to see which opportunities are truly the best for you – and not just the best marketed. Once you find exactly what you want to own, you can create a plan to find out who owns it and make sure that they know to call you when they want to sell that property.
This takes a lot of work, but it’s a tried-and-true method for creating long-term wealth.

Finally – use technology.

Sign up for our list of exclusive properties, and we’ll notify you instantly when we find a great investment.
We frequently source properties for deep discounts, secure them and then sell them for a discounted rate to the people on our list who are ready, willing and able to invest. There’s other ways to get notified about properties on the open market – you should get familiar with searching the multiple listing service with the rest of the herd, because every once in a blue moon a great deal shows up.
We don’t deal with average deals – we only pass along great deals to our partner investors. We’re not real estate brokers, and our business is a niche within Reno.
If you’re looking to seriously invest in Reno, we’d love to chat with you to learn your wants, wishes and objectives.
So hopefully you now know how to find great investment properties in Reno. If you have questions give us a call or join our buyers list below!

Give us a call (775) 721-2274 or fill out the form to get started now.

Tips On Buying Real Estate At Auction In Reno – 4 Tips To Help You Do It Right

By Larry Crickon

Looking to acquire an investment at an auction? That can be a fun (and potentially profitable!) way to acquire properties but it can also be fraught with danger if you’re not a careful. Make sure you read these 4 tips to help you do it right…
The secret to most real estate investing is to buy at an attractive price and then either rent for cashflow or sell at a higher price. And one place to buy attractively-priced properties is at the auction… if you do it right. Unfortunately, many brand new investors swoop into the auctions and end up spending too much. If you want to avoid this “newbie” mistake, make sure you read these 4 tips to help you do it right.

Tips On Buying Real Estate At Auction In Reno #1 — Research

If the auction posts information about each property before the auction, take the time to do your research and determine the value and potential return of the property. Can you rent it out? Can you flip it profitably? Can you improve the value? Will you earn a return on your investment? Spend the time to do your research and figure out how much you can make from the property, which will inform you about how much you can pay. Set a firm limit and don’t over that limit for each property.

Tips On Buying Real Estate At Auction In Reno #2 – Find Hidden Gems

An auction is an open, unfiltered market, which means that you’ll be up against other people who may have done their research and want the real estate for the same reasons you do. This can result in properties being bid up to a very high price. The way around this is to dig deep in your research to find the hidden gems… the ones that people might not bid on but that YOU know are really valuable.

Tips On Buying Real Estate At Auction In Reno #3 – Wait Until The End

There are different kinds of auctions but if you are at a time-based auction where the deal stops accepting bids at a certain time then swoop in at the last moment with your best offer. If you time it right, you may give the best price and lock it in before anyone else can bid higher.

Tips On Buying Real Estate At Auction In Reno #4 – Avoid Emotion

One of the hardest parts of bidding at an auction is that you can get caught up in the emotion. At first, you are thoughtful and calculating but then you might get into a bidding war with someone and your emotions take over and soon you bid higher and higher just to beat the other person. Remind yourself to leave your emotions at home and make sure you know what your upper price limit when the heat is on!
Acquiring investments at an auction can be a great way to buy real estate. However, if you’re not careful, it can also be very expensive. Use these strategies to help you avoid the mistakes and pitfalls and acquire low-priced investments.

You can skip the confusion of an auction and just invest with us. Click here to enter your info and check out our inventory of attractively-priced deals, or give our team a call at (775) 721-2274 and we’ll help you find something that works with your budget.

What Insurance Should I Have For My Rental Property In Reno? An Investor’s Checklist

By Larry Crickon

Investing in real estate is different than investing in Wall Street stocks. Stocks are speculative, and they’re also a “paper asset.” The stocks might go up and down but there isn’t much that can happen to the “financial instrument” itself (especially since they’re stored electronically instead of as stock certificates now). Real estate on the other hand, when done properly, provides steady cash flow and is a real asset… which means something could happen to your real estate.
The cash flow is nice… but you need to protect the real asset (and yourself). That’s where insurance comes in. Insurance is like a “reset button” to help you recover financially from a loss. If you invest in real estate, maybe you’re wondering, “What insurance should I have for my rental property in Reno?”
Here’s a checklist of insurance that you may need:

Checklist: What Insurance Should I Have For My Rental Property In Reno?

There are many possible insurance products that can benefit you but the primary ones are below. (You may choose to purchase the relevant ones separately or you might want to ask your insurance broker if they have “landlord’s insurance” since some insurance companies will package the right ones together for your convenience.)
Property Insurance. Property insurance should protect you financially from many of the events and natural disasters that may damage your property. All policies are different but you might get property insurance that covers you for fire, lightning, wind damage, etc. If you live in an area prone to a certain type of natural event (such as floods), you may need to acquire an additional “rider” for that special situation.
Liability Insurance. If a tenant or visitor injures themselves on your property, they may sue you to help pay for their medical bills and loss of employment income. Liability insurance helps to protect you from the financial burden if a lawsuit goes against you.
Tenant Insurance: Tenant insurance isn’t something you need to get for yourself but we’re mentioning it here because it’s something you should urge your tenants to get. Tenant insurance is insurance for tenants that will cover any financial loss of their belongings.

Here’s How These Insurances Work

As an example, if a fire starts, your property insurance may cover the repairs to the property, the liability insurance may cover you if the tenant chooses to sue you, and the tenant insurance will cover any damage to the tenant’s belongings.

Get The Insurance You Need

There may be other insurance to consider as well, including insurance for your business in case you are injured and unable to work, or there might be other insurance available (such as those through your credit card or bank) to cover bills if there’s a loss of income.
Insurance needs are different for every situation; we’ve covered the 3 basic insurances above to get you started but you should always talk to an insurance professional who can assess your needs based on your individual situation.

If you want to get an introduction to an insurance broker we trust and work with, click here now and enter your information, or phone us at (775) 721-2274 to get in touch

3 Ways To Value a Rental Property in Reno

By Larry Crickon

If you want to invest in rental real estate in Reno then one of the first things you’ll need to do is determine the value of the property. After all, how else will you know if it’s the right investment for you? In this blog post, we’ll share with you the 3 ways to value a rental property in Reno so you can know right away if you should invest in a property…
When you’re looking at rental real estate to decide whether to invest in it or not, the asking price is just one way to value the property. That’s the price the seller values the property at. Your job, as an investor is to apply some of these 3 ways to value a rental property in Reno and compare it to the asking price to figure out if it makes sense to you.

3 Ways To Value A Rental Property In Reno

#1. Cash Flow Potential

What is the potential income you’ll make each and every month from this rental property? Consider both gross and net so you can more easily calculate whether you’ll be cash flow positive right away. Ideally you’ll want to be cash flow positive (although there might be a strategic reason to temporarily not be cash flow positive).
Have you seen our list of cash flowing rental properties? Click here and fill out the form to check them out.

#2. After Repair Value

When working with a distressed seller, you’ll want to weigh their asking price against the value of the house after all repairs are made. As an example, a seller might be asking $75,000 for a house and you know the after repair value (ARV) would be $100,000. So you need to figure out how much it will cost you to make repairs. If it will cost you $25,000 to make repairs then there’s no profit for you, you so might need to counter-offer to a lower price.

#3. Value To Tenant

This is a surprising and often overlooked way to value your property – what is the value of the property to a tenant? If you buy a low-priced rental property but then learn that it’s far away from anywhere that a tenant wants to live, the property might not be a good investment. So look at the location of the property in proximity to work, shopping, etc., to help you determine whether a tenant will want to stay in your property and how much they’ll pay.

Summary

If all this seems complicated to you, here’s the great news! You can actually skip all the calculations and estimates and just talk to us. We have rental properties with a lot of these numbers crunches already… plus many of them are already cleaned up, fixed up, and ready to rent (some are even rented).
We believe there isn’t a faster way to invest in real estate in Reno.

Want to see what investment properties we have available? Click here now and fill out the form, or call our office at (775) 721-2274.

4 Advantages of Flipping over Holding in Reno

By Larry Crickon

Are you looking to flip real estate? Maybe you’re wondering if it’s better to hold real estate instead. In this blog post you’ll read about the 4 advantages of flipping over holding in Reno…
Are you thinking about investing in real estate? If so, perhaps you’re weighing your options and wondering if wholesaling, renting, or flipping are your best options. If you’re thinking about flipping in NV then here are 4 advantages of flipping over holding in Reno…

Flipping Over Holding — Advantage #1

The first advantage of flipping over holding is the quick turnover of income. You can invest in a flip on the first day of the month, make improvements through the following days, and then sell and be completely done with the property in just a couple of weeks or months.
This is a huge advantage because it means you don’t have to deal with a lot of problems that occur when you hold properties for a long period of time (such as maintenance and upkeep) plus you also get the benefit of generating your income regularly and getting a full return on your investment within weeks instead of having to wait years.

Flipping Over Holding — Advantage #2

The second advantage to flipping over holding is that you don’t have to deal with tenants. Investors who buy and hold real estate usually rent it out to tenants… and tenants come with problems! They don’t pay on time, they forgot to pay, they damage the property, and they sneak out in the middle of the night.
But with flipping, you’re only dealing with wood, nails, and drywall. These are things you control and you don’t have to worry about whether the tenant is going to steal from you.

Flipping Over Holding — Advantage #3

One of our favorite reasons for preferring flipping over holding is your ability to influence the selling price (and therefore your return). You see, with a rental property that you buy and hold, you’re limited by the rental income. You can’t charge more than what a tenant is willing to pay and there’s a limit to how much tenants are willing to pay! (And some areas of the country are even rent-controlled.)
But with flipping, you can knock down a wall or paint the walls or build a fence or add plants… and all to increase the value. and the best part is: the more you do, the more you can typically increase the value.

Flipping Over Holding — Advantage #4

Our other favorite reason for preferring flips over holding is the large pop of income. A rental property gives you only a few hundred dollars each month. You may invest thousands and eventually get it all back but in the meantime you only get a small trickle of cash flow month after month.
But with flipping (assuming you’ve bought low and sold high) you can make thousands of dollars at once. That’s a big pop of income each month!

Summary

If you’re debating about whether you should flip or hold, there are advantages and disadvantages to each. But these 4 advantages of flipping over holding in Reno give you a compelling reason to seriously look at flipping as an option for you.

If you’re looking for properties to flip, we might be able to help you out. We buy properties in Reno and would be happy to see if there’s a property that might work for your flipping needs. Just click here and enter your information or pick up the phone and call (775) 721-2274.

5 Disadvantages of Buying a Home via Owner Financing in Reno

By Larry Crickon

If you’re thinking about buying a house from a seller using seller financing (also called “owner financing”) make sure you’re aware of the advantages as the drawbacks! Keep reading this blog post to learn the 5 disadvantages of buying a home via owner financing in Reno so you can be prepared
When a seller wants to sell their home in the 89515 zip code area, they could wait for buyers to come up with bank financing, but there’s another option as well: they can offer owner financing (also called “seller financing”) in which the seller acts as the bank. The buyer simply pays monthly payments to the seller until the house is paid off.
For many people, owner financing is an excellent alternative because it allows buyers to get into a home that they might not have the credit to purchase, plus it gives the seller a steady cash flow if they don’t want or need the large amount of money from the sale of the house.
But is owner financing right for everyone? It may not be.

5 Disadvantages Of Buying A Home Via Owner Financing In Reno

#1. Harder to get

Bank financing is the most common way to sell so some owners might not be aware of owner financing as an option to sell their house. (However, we do owner financing and it’s very common at our office so give us a call at (775) 721-2274 to talk to us about our owner financing options).

#2. Fewer options

Because it can be harder to find an owner willing to do owner financing, that might mean you have fewer potential houses to choose from when buying, or it might mean that you have to look at more houses before you find one that the owner is willing to sell through owner financing.

#3. Terms

Owner financing comes with many more flexible terms than you might normally get at a bank. However, this can also be a disadvantage because if you are not familiar with the all the possibilities you may overlook a term or you may create a term that does not give you an advantage.

#4. You may pay more

With traditional bank financing, the interest rate is set by the bank. Owner financing may have higher interest rates (depending on the other terms of the contract) and you might end up paying more for the house. However, you might be fine paying more overall if it means you can get into a house that you couldn’t otherwise get into.

#5. Owner

With bank financing, you work with a bank and they are professionals who have a code of conduct and industry regulations to follow. But with owner financing, it’s just an agreement between you and the owner so make sure you are comfortable with the owner first before making an agreement with them.

Want to see what owner financing houses we have available? We have an inventory of houses for purchase, many of which can be owner-financed. Click here now and fill out the form to see our options, or call our team at (775) 721-2274.

When Is The Best Time To Buy Investment Property For Nevada Investors – 3 Tips

By Larry Crickon

Thinking about investing in real estate but wondering about timing? Smart move!
If you’re an investor thinking about diversifying out of Wall Street stocks and into real estate, or if you are an active real estate investor thinking about improving your investing to invest more profitably, then perhaps you’re wondering, “When is the best time to buy investment property for NV investors?”
As many savvy investors know, it’s not really about when you SELL a property that the money is to be made in a deal, but rather it’s about when you BUY the property and at what price. You may not be able to “time the market” perfectly but you can certainly watch the trends and make smart buying decisions to buy attractively-priced properties based on what the market is doing.

3 Tips To Know When Is The Best Time To Buy Investment Property For Nevada Investors

Tip #1: There’s a balance between buying at the right time versus getting caught up in “analysis paralysis”. Hang around real estate investors long enough and you’ll meet some who aggressive action takers while others just end up thinking and analyzing and waiting (years!) for the best deal to come along. Unfortunately, it’s entirely possible to wait for the best deal forever because you’ll ALWAYS find reasons not to buy.
On the other hand, it is important to do your due diligence and to determine if an investment is right for you. There’s a balance. Connect with us and we’ll help you find a potential investment that may be a good fit for you. Just call our office at (775) 721-2274 to speak to our team about what you’re looking for.
Tip #2: Buy low. This might seem obvious but it’s important to mention. If you’re watching the market and trying to figure out when is the best time to buy investment property for NV investors, it’s easy to fall into the trap of waiting for the bottom of the market and then noticing that everyone is selling… so you decide to wait for the prices to come back up so you know that you won’t lose any money on the value of your asset. However, you SHOULDN’T wait for prices to come back up; you should buy when prices are low, even if you don’t get the exact “bottom” of the market.
Tip #3: Buy now. The third tip needs to balance out the first two tips: buy now. Rather than waiting to see if prices will go lower, or waiting to see if there’s a better deal in the future, it’s often better to buy a good deal at a good price and enjoy good cash flow now, then to wait for a perfect deal at a perfect price for great cash flow in the future. The years you may end up waiting for that “unicorn” perfect deal will mean lost cash flow that you could have been earning.

Summary

Wonder when is the best time to buy investment property for NV investors? It’s simple, do your due diligence, buy low, and buy now.

Click here and enter your information to get in touch with us — let’s see how we can help you find great deals that might be a good fit for you

Buying Investment Property in Reno With A Partner

Buying Investment Property With A Partner – Oracle Property Solutions (775) 721-2274

By Larry Crickon

Are you looking to acquire real estate investments and maybe considering bringing another investor into the agreement? Then make sure you read this blog post first! Buying investment property with a partner can be a great way to invest, if you follow these 3 strategies…They say “two heads are better than one” and that’s true in many areas, including buying investment property with a partner in Reno. But remember: a partner brings benefits to the table but also adds a layer of complexity to the situation. The best way to make sure you have an enjoyable and mutually profitable investment is to discuss and agree on the following 3 strategies…

Strategy #1. Agree On What Each Partner Brings To The Table

When people think about partnering, they often first think of the money and how much capital each partner brings. However, depending on the investment, each partner might bring different things including capital, sweat equity, knowledge and experience, an existing business and/or existing relationships, and a good credit score… just to name a few. There are many ways that both partners can contribute in an investment deal in Reno.

Strategy #2. Agree On Each Partner’s Ongoing Responsibilities

Once the deal is acquired, they might yet be more work to do. If you’re managing the property yourself then you’ll need to figure out who does what; if you’re hiring a property manager then you’ll still need to decide who speaks to the property manager if you need to. You’ll need to decide who deals with the tenants and who deals with the NV taxes and paperwork.

Strategy #3. Agree On Each Partner’s Expected Return And Exit

As the property starts to deliver a return, you will need to figure out what each partner gets. Do you split the cash flow? By what percentage? Will you split the value of the property if the property is sold in the Reno market? By what percentage? It doesn’t have to be 50/50 if one partner brings more to the table than another. You also need to decide on your exit strategy – for example, under what conditions will you choose to the sell the house? What happens if one partner wants to leave the agreement?

Summary

Buying investment property with a partner in Reno or anywhere in NV might seem like it’s fraught with peril but it’s really not – as long as you figure out ahead of time what the agreement will look like between the two of you. You need to sit with your partners and determine what you’re each bringing to the table, what your ongoing responsibilities are, and what you each expect to get out of the deal. Knowing this ahead of time will help erase many difficulties and misunderstandings, and ensure everyone feels fairly treated.

Ready to buy right now in Reno? Great! We’re here to help.

If you’re buying investment property in Reno with a partner, and if you and your partner are ready to start looking at property, call our office at (775) 721-2274

or click here and enter your information on the form to see what’s available.

Tips on Buying Reno Real Estate with your IRA

By Larry Crickon

While most people understand that real estate is an investment, many people are taking advantage of the qualified retirement accounts to purchase real estate as an appreciating or revenue-generating instrument like IRAs.It’s really important to understand the tax implications, legal ramifications, and various other intricacies of purchasing Reno real estate within your IRA.
So, lets dive into some tips on buying Reno NV real estate with your IRA!

Tips on Buying Reno Real Estate With Your IRA

If you don’t have a self-directed type IRA… first off… you’ll need to connect with your trusted financial advisor to find a reputable and low fee self-directed IRA. Or, connect with us and we can direct you to some very good self-directed IRA companies we’ve worked with in the past.

Open a Self-Directed IRA

The first step for purchasing investment properties in Reno within your IRA is to open a “self-directed” IRA. You can do this by visiting a qualified financial advisor or other trusted fiduciary to act as the IRA custodian. A fee-only financial advisor can help you set up this account with minimal hassle, while a commission-based financial advisor may attempt to steer you clear of purchasing tangible assets within your IRA (he or she won’t earn much on the investment).

Types of Properties You Can Buy With Your IRA and Rules

You can own a wide variety of properties within your IRA, including residential, commercial, and industrial structures, as well as unused land. Many savvy investors choose to purchase parking lots, storage unit facilities, and other types of property that require little maintenance, but generate steady income.
Your IRA cannot own any home where you live or vacation. Legally, you aren’t even allowed to spend one night in the property. You cannot avoid this restriction by “renting” the property from your IRA, or renting to your spouse, children, grandchildren, parents, or grandparents, nor can you use an IRA to purchase property from close family. You could, however, rent to property to a sibling, cousin, or friend. A solution that many investors implement is to purchase a home for their IRA, rent it out for income until retirement, then assume residence upon retirement.

How Does Income Work With Real Estate In An IRA?

The income generated in your IRA may not be used for your “personal current benefit.” This means that all income generated by the property must remain within the IRA until you retire. Selling the property will require you to leave all profits within your IRA. Also, property taxes, insurance, improvements, and other costs associated with the property must be paid by the IRA. Failure to comply with these regulations could disqualify your IRA, subjecting you to income taxes on the entire value of the property, plus a 10% early distribution penalty.
It’s important the all distribution rules associated with an IRA (or Roth IRA) including taxation, required minimum distributions, beneficiaries, and other factors do not change when using a self-directed IRA to purchase property. There can be a huge upside to real estate in your IRA, but it’s best to know exactly what’s in store.

Learn About Our Properties In Reno Call Us (775) 721-2274
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How To Buy An Investment Property In Reno With No Deposit

By Larry Crickon

Buying investment property is a great way to build a portfolio that delivers wealth now and sets you up for a comfortable retirement in the future. But buying property can be expensive if you’re not careful. In this blog post, you’ll learn how to buy an investment property in Reno with no deposit.There are few types of investments better than real estate. Real estate assets appreciate over time, they’re an excellent hedge against market declines, and the cash flow you get from a rental property is a game-changing way to build wealth.
Unfortunately, many investors find that real estate investment properties can be too expensive to purchase, even just saving up a deposit for each property you want to buy can really add up and you might find it difficult to save up enough money for a deposit. Fortunately, if you want to know how to buy an investment property in Reno with no deposit, there are 3 effective strategies to use.

How To Buy An Investment Property In Reno With No Deposit

Strategy #1. Seller Financing

If the seller is willing, they might “be the bank” and offer terms like a mortgage, so you can skip the deposit and just pay them directly over a period of years until the property is paid off.

Strategy #2. Buy Privately From An Investor

If you have the money available, perhaps in your IRA, but simply do not want to pay the deposit then you may want to buy privately from an investor. They may not require a deposit if you are able to arrange full payment in a certain amount of time. (Sometimes the investor might require a deposit to indicate you’re serious but you can also often get around this by buying multiple times from the same investor). At Oracle Property Solutions, we sometimes sell some of our properties this way, or we are connected to other investors who do. So reach out to us at (775) 721-2274 and we’ll see about how we can help you.

Strategy #3. Partner With Another Investor

If you have the capital available to buy the house but perhaps you don’t have a deposit available, then consider partnering with another investor who will put up the deposit for you. Since the deposit might just be a fraction of the purchase price of the investment, you might consider giving them a portion of your ongoing cash flow, or paying them back the loaned amount plus interest.

Do you want to buy an investment property in Reno with no deposit?

We work with investors in all kinds of situations. If you’d like to buy an investment property with no deposit, get in touch with us and let’s see if there’s something we can work out.

Give us a call anytime at (775) 721-2274 or click here and enter your information on the form to see what’s available.

Real Estate Investing Financing Sources In Reno – The 4 You Should Be Using Right Now

By Larry Crickon

Who else needs financing for their real estate investing deals? If you invest, you’re probably looking for real estate investing financing sources in Reno… well, look no further because here are the only 4 you’ll ever need to do as many deals as you want to do.
As a real estate investor, you know that acquiring deals takes capital. And unfortunately, some investors reach the end of their capital and are forced to stop investing long before they reach their real estate goals. The good news is, you don’t have to fall into the same trap. When you tap into these 4 sources, you’ll have access to all the money you need to do as many deals as you want!

Real Estate Investing Financing Sources In Reno #1 – Financial Institutions

This is the way that most people know about, and it’s still a tried-and-true way to do more deals. When you use institutional financings such as banks and mortgage companies, you’re using the principles of leverage and other people’s money to do your deal. As long as you have the down payment, and some available “room” in your credit, you can acquire deals.

Real Estate Investing Financing Sources In Reno #2 – Hard Money And Private Money

These are similar to banks in that they’ll lend you money in exchange for interest payments but the difference is: they may not require a credit score or a down payment; in many cases, they’ll probably just secure the loan against the value of the property itself. So you can acquire multiple deals with the power of hard money and private money.

Real Estate Investing Financing Sources In Reno #3 – Cash Buyers

One way to invest in real estate is to work with cash buyers. There are a few ways to make this work – from wholesaling to partnering. Here’s one example: you might partner with someone who actually buys the property and, in exchange for finding the deal and managing it, you might get a share of the cash flow from the deal. Get creative!

Real Estate Investing Financing Sources In Reno #4 – Seller Financing

One often-overlooked way to invest is to work with sellers and instead of paying them a lump sum to buy their house, you pay them over time… just like a bank. More sellers are into this than you might realize! Just tell them about it and help them see the benefits of generating cash flow.
Now you have 4 very powerful and effective real estate investing financing sources in Reno. When you start using these, you’ll never run out of capital again to do as many deals as you want to do.

Want to take your investing to the next level? We’d love to work with you to acquire more real estate, connect with our favorite financing sources, and get you building your investing portfolio. Click here and enter your info or pick up the phone and call us at (775) 721-2274.

How To Formulate An Offer For A House When Buying Cash In Reno – 3 Strategies To Formulate Offers

By Larry Crickon

Investing in real estate with cash is a smart way to buy but it’s not easy to know how to make an offer. If you’re wondering how to formulate an offer for a house when buying cash in Reno keep reading to learn more and to see how we do it…

You’ve Got A Property In Mind… Now What?

If you are looking for a real estate deal to acquire for cash and now you’re wondering how to formulate the offer, you’ll love these 3 strategies that many investors use daily to acquire deals in Reno. Be aware that they may take some practice… and they won’t work for every seller you meet so test them out a few times to perfect your ability to use them. Once you perfect them, you can use this as a system over and over to quickly and easily make offers.

#1. Market Price Less A Percentage

The first way to formulate an offer for a house when buying with cash in Reno is to find out what the market price is for the property and then subtract a percentage. You can get the market price by “pulling comps” (finding out what similar properties have sold for recently in the area). You can sometimes get this information yourself but if you partner with a real estate agent they can do it for you. Comps will tell you how much other similar properties have sold for recently and then you can subtract a percentage to formulate your offer.
For example, you can offer market price less 20%. So a $100,000 comp would mean that you’d offer $80,000 for the property.

#2. Profit Plus

The second way to formulate an offer for a house when paying cash in Reno is to work the other way (and to factor in what you can sell the property for). Figure out how much you want to make and then add your costs. That way, you build in profit into the deal. However, this way can be challenging if you don’t know how to accurately estimate your costs, so make sure you build a good relationship with a contractor who can help you.
For example, if you want to make $15,000 on the property and you know that the property will cost $25,000 to repair then you might offer $30,000 to the seller but plan to sell it for $45,000. Using this strategy helps you think ahead to consider what you can get for the property and whether you’ll be able to make a profit.

#3. Seller Financing

No discussion about how to formulate an offer for a house when buying cash in Reno would be complete without talking about seller financing. The first two strategies have highlighted a single sum that you would pay the seller but when you factor in seller financing into the mix, it changes everything: with seller financing, you might pay some cash and then have the seller carry the note for the remainder. This can adjust your profit point and how much you can pay for each deal.
Alternatively, you can bypass all the work and effort of formulating offers and making deals with sellers and instead to buy a property from us. We sell attractively-priced investments and have done all the hard work for you!

To see our inventory of available real estate investments, click here and enter your info or pick up the phone and call (775) 721-2274.

How Much Cash Flow Do You Need For A Rental To Make Sense in NV?

By Larry Crickon

If you’re thinking about investing in a rental property, you might be weighing the costs and potential income. If so, you’re probably wondering: “How much cash flow do you need for a rental to make sense in NV?” This is a great question, and the answer might surprise you…
Cash flow. It’s the reason why most real estate investors acquire rental property! So perhaps you’re wondering how much cash flow do you need for a rental property to make sense in Reno – GREAT question.
The answer is challenging to give (because the number is different for everyone) but here a few ways to figure it out for yourself…

How Much Cash Flow Do You Need For A Rental To Make Sense In NV?

Many investors want to start out of the gate with a highly profitable cash flowing property, but that’s not always the case. Millionaire cash flow real estate expert Robert Kiyosaki’s first real estate investment was just $25 cash flow positive each month! Today, Kiyosaki is very successful and wealthy.
So the first thing you need to do is make sure your expectations are realistic.
Instead of focusing on a single large cash flow amount each month, think of it this way: at the end of the month will you have less money left over, will you have exactly the same amount, or will you be profitable?
What’s interesting is: all of these are viable options…

Cash flow negative

This is when your expenses are more than your cash flow. While some investors want to avoid this scenario, it’s not that bad if the expenses-to-income is fairly close or if the expenses are more than cash flow for a short period of time. While you may not want to have a large cash flow negative scenario for years, it might make sense in the short term (especially if you are borrowing money to pay for the investment).

Cash flow equivalent

This is when your expenses are about equal to your income each month. If you’re cash flow negative, your goal should be to get to equivalence as quickly as possible. Achieving equivalence for the short term may mean you’re on way to profitability. However, if you maintain equivalence, you might be hoping for a profitable pay-off on the sale price of the house when you choose to sell.

Cash flow positive

This is when your expenses are less than the income you earn each month on your properties and it’s a great place to be. In the words of Kiyosaki (from his book Cash Flow Quadrant), he would be willing to buy investments that were even $80 cash flow positive each month – and he’d be willing to buy as many of those as he could get his hands on. Fortunately, it’s not hard to reach this level… and beyond.
So, how much cash flow do you need for a rental to make sense in NV? Probably less than you think! After all, Kiyosaki started with just $25 cash flow positive each month and there are some scenarios where even temporarily cash flow negative investments make sense.

Want to see what cash flowing rental properties we have available? Call our office at (775) 721-2274 or click here now and fill out the form.

Why Owner Financing Makes Sense in Reno

By Larry Crickon

If you’re thinking about buying a house and you’re exploring your financing options right now, there’s a good chance you’re deciding whether you should go through bank financing or owner financing. There’s already a lot written about bank financing, so this blog post is meant to give you the other side of the coin, to talk about why owner financing makes sense in Reno and the surrounding area…
You’re probably familiar with bank financing – that’s when a bank (or other lender) gives you a mortgage loan so you can buy a house. The bank pays the seller the full amount that you buy the house for, and then you pay the bank back over a period of several years until you own the house free and clear.
But it’s not the only way to buy a house, there’s also seller financing (also called “owner financing”). That’s when the sellers agrees to not to take the full purchase price for the house right away but instead takes the money over a period of years. In effect, they are acting like a bank, accepting partial payment over time until you’ve paid off what you owe.
So you might be wondering, “Why owner financing makes sense in Reno?”
Good question!
Here’s our answer…
There are 3 main reasons why owner financing makes sense in Reno:

3 Reasons Why Owner Financing Makes Sense In Reno

First, it can allow buyers to get into a home faster. Owner financing can sometimes be useful if a buyer does not have the credit score available to get a mortgage loan, or if they cannot afford mortgage payments that a bank might require. With seller financing, the owner may not require clean credit or high payments, allowing buyers to get into a home faster when they may not be able to do so with bank financing.
Second, it provides flexibility to both the buyer and the seller. A bank uses fairly traditional terms: You’ll pay so much money as a down payment, then the rest paid back over time – either as a fixed rate or variable rate mortgage. But a seller and a buyer may find different terms that they agree to that aren’t as rigid. In fact, some agreements can become very creative and flexible for both parties!
Third, it can be a win the seller, too. A seller wants to sell their home, so offering owner financing gives them access to more buyers who might not typically be able to buy. By offering seller financing, they increase the number of potential buyers who would even look at the house. And not all sellers necessarily require all the cash up-front (which why would get through bank financing). Instead, they may prefer the cash flow that owner financing gives them.

Summary

Owner financing is a great tool for both sellers and buyers; if you’re thinking about buying a house in Reno, owner financing can give you the means to buy your next house.

If you want to learn more about owner financing and see houses that we have available to buy, click here and fill out the form, or call our office at (775) 721-2274.

What Are The Expenses Associated With House Flipping In Reno?

By Larry Crickon

Are you doing your due diligence before flipping property? If so then make sure you read this blog post to know what are the expenses associated with house flipping in Reno…
Flipping houses can be a high profit investment strategy. But you will only maximize your returns if you are careful about your costs! If you’re wondering what are the expenses associated with house flipping in Reno so that you can budget effectively then here are seven of the biggest expenses you’ll encounter.

Acquisition Expenses

These are your costs associated with acquiring the property. They will of course include the purchase price of the property but they may also include marketing costs, the costs to meet with the seller, and any clean-up costs, legal fees, or closing costs you cover as a service to the seller.

Demo And Renovation

This is one of the more obvious expenses! These are your costs associated with demolition and renovation. It may include cabinets and counter tops, fixtures and appliances, new carpet and windows, etc. These costs are going to be a pretty major portion of your budget in most situations.

Team Costs

Once you have all the supplies and raw materials, you need someone to do the work! Even if you do a lot of the work yourself, you might need someone to help you or you might have to hire a licensed tech to do some of the work for you.

Carrying Costs

This expense is often overlooked by the “newbie” flipper but you’ll learn soon enough how important these are: Carrying costs are the costs of utilities (power, gas, water, etc.) that you need to pay during the time that you own the property. These expenses will add up, especially if your timeline is extended. The faster you can flip the property, the less money you’ll pay in carrying costs.

The Extras (Dumpster Rental, Licensing And Permits)

There are plenty of extras that you need to account for in your budget but that you might not realize before you start. These include things like dumpster rental or tool rental or even bringing in lunch for the team! And don’t forget to make sure you have the right permits or you’ll end up with another expense — a fine!

The Unexpected

Every flip since the beginning of time has had an unexpected surprise that threatened the budget and timeline. It could be problems like mold or termites, or just a delay due to inclement weather. Nearly every surprise adds an expense to your project so make sure you plan for it so it doesn’t derail you.

Sales Costs

You will also incur costs to sell the property, including marketing and furniture rental (for staging). Be prepared for these costs to they don’t surprise you.

Summary

If you are counting the cost of your potential flip before you start, you’re wise to be asking, “what are the expenses associated with house flipping in Reno?” Make sure you account for these expenses in your budget. Expenses aren’t necessarily bad — after you all, you have to spend money to make money!

If you’ve read through this blog post, you’re doing a great job of gathering all the information you need to start flipping like a pro! And we’re here to help: we sell real estate properties to investors like you who want compelling real estate that might make the perfect flip. If you want to check out our inventory for your next flip, click here and enter your info or call us at (775) 721-2274.