Why cash is king for buyers in this property investment market in Carson City, NV

Property Investment Market In Carson City, NV – Focus On Cash Deals

By Larry Crickon

There are many opportunities in the real estate investment market in Carson City, NV. From changing financial regulations and interest rates to an economic future that still has a lot of question marks about its direction, home buyers and home sellers are not sure how to proceed.One smart strategy that buyers and sellers are exploring is the all-cash strategy.

Why cash is king for property sellers

Sellers who sell their homes through traditional methods (listing with an agent for a market price) discover a number of challenging scenarios:
First, they often have to sink a lot of their own time and money into their property first in order to get it up to a level that will make it sale-ready. If a homeseller wants to do this, that’s fine; but many people lack the time, money, and skill to make the necessary changes to make their property sale-worthy. So a cash offer, although sometimes slightly lower than a market offer, can actually be more valuable by saving the homeseller the pain and frustration and cost of having to work on their property before listing it.
Second, houses sold at market prices can often only be bought by those who can get a mortgage… and sometimes it can take days or even weeks for a financial institution to grant a mortgage. Therefore, the seller is left waiting for that period of time while they wait for the buyer to get a mortgage. So selling with cash if extremely fast. Serious home buyers have the cash ready within hours or just a couple days at the most.
Third, financial institutions don’t always grant the mortgages that homebuyers think they’ll grant. Homesellers quickly realize that deals fall through fairly regularly as homebuyers don’t get the financing they were hoping for. Cash doesn’t have to wait for any financing — cash is ready to be used for the purchase.
It’s no wonder that homesellers love cash deals… they can save themselves time and money and they can sell their home fast.
If you’re a home seller and you want to explore the possibility of a cash deal, just fill out the form to get started.

Why cash is king for buyers in this property investment market in Carson City, NV

Home buyers love cash deals too!
First, cash deals can be obtained often for below-market pricing because of the value provided to the seller of a fast property sale (often “as-is”). Cash assures the seller that the property is accepted the way it is.
Second, cash is fast and there is no waiting. Sellers love the rapid transaction, and buyers love that they don’t have to wait for banks to approve a mortgage.
Third, cash is preferred because it doesn’t cost any more. When you buy a home with a mortgage, you pay interest on that mortgage — often thousands of dollars more than the original value of the home. But if you pay cash, the price you pay is the only amount of money you pay — and not a penny more.

Want to learn more about selling or buying with cash? Just fill out this form or give us a call at (775) 721-2274 and we’ll be happy to talk you through the info you need.

What Are The Risks of Note Buying in Reno?

By Larry Crickon

If you’re thinking about buying notes, you probably arrived on this article because you are doing your due diligence and you want to know what are the risks of note buying in Reno to help you determine whether or not to invest in them.
That’s a smart decision to perform due diligence before doing ANY investing, so we’ll answer your question, “What are the risks of note buying in Reno?” here.

Notes May Be Non-Performing… But Is That Such A Bad Thing?

Notes are like mortgages. When you buy cash flowing notes, you’re buying the possibility that the homeowner will continue to pay their “mortgage” payments. While many do (these are called “performing notes”), not all notes are performing. Some start out as performing notes and then become non-performing – that is, the homeowner chooses to no longer pay.
The good news is: there are a few ways you can deal with this risk!

• First, you can work with the owner to get them to pay.
• Or, you can sell the non-performing note to another investor who might be better at dealing with the situation (so at least you get some of your money out of the situation).

And better yet: if it turns out that you’re really good at making non-performing notes into performing notes then you’ll actually have another way of making money: you can become the investor who buys non-performing notes at a discount and turns them into a performing (cash flowing!) notes again.

Other Risks May Include An Out-Of-State Owner, Non-Predictable Notes, Etc.

Notes that are local might be easier to deal with than those that are out-of-state. However, this varies. If you’re just starting out then make sure you buy notes that are only in NV, or even just in Reno (if available).
Or, you might find that the note’s cash flow is just not very predictable. Technically the note is non-performing sometimes and performing at other times. You may simply need to work with the homeowner to help them find a payment method that works for them.

Summary

As with all investments, the risks tend to align with rewards: the riskier an investment is, the greater the reward. So it’s important that you find the balance between the amount of risk you’re willing to take on versus the amount of reward you want to have.
Avoiding risk completely will mean zero return… so you may need to take on some risk to get a return on your investment. Fortunately, with note investing, you can manage your risks and still enjoy a good reward.
No matter what level of risk you’re comfortable with, there’s probably a note for you!
At Oracle Property Solutions, we are note sellers and we would be happy to work with you to show you what notes we have available and help you start investing in notes. Just pick up the phone and call our team at (775) 721-2274 or click here now and fill out the form, and we’ll share our list of available notes with you.

How To Determine Value Of Land In NV – The Art And Science Of Valuation

December 14, 2016

By Larry Crickon

If you own a piece of land and you’re thinking of selling or even just wondering how much it’s worth, then you need to find information about how to determine the value of land in NV. In this blog post, you’ll read our best advice about how to do that…

What You Need To Know First About How To Determine Value Of Land In NV

The very first thing you need to know is: it’s an art and a science. There are many factors that go into the valuation of land and there is never one single number that you can definitively say, “THIS is what my land is worth.” So we’ll give you some of the factors below but be aware that when it comes to how to determine the value of land in NV, you’re really looking at an approximate range.

Market Price Is One Way To Determine Value Of Land In NV

Economists will tell you that the best way to know the value of your land is to sell it. The price that someone is willing to pay is the value of your land. Of course, you might not be ready to sell (perhaps you’re just trying to see how much you can get for it) but certainly the most definitive answer you can get is how much someone is willing to buy your land for. But as you’ll soon see, there are other important factors as well…

Online Prices Shouldn’t Be A Way To Determine Value Of Land In NV

When you’re thinking about valuing your property, one of the first places that many people look is at some websites that claim to give you the value. (Zillow is one such site but there are others.) Use these numbers with caution! They are derived from a number of factors and should only be considered one piece of information in a much larger puzzle. These numbers can be wrong by as much as 50% in some areas.

Agent Market Valuations Are A Simple Way To Determine Value Of Land In NV

Many real estate agents offer free market valuations to homeowners and land owners. So you may consider calling up an agent and asking for a market valuation. The agent will then look at data from similar properties that have sold recently in the area and they’ll use that as a way to help you determine the value of your land. Again, it’s not a perfect number (since factors change) but it’s a good starting point if you are looking to list your property with an agent.

Here’s The Most Important Way How To Determine Value Of Land In NV

The best judge of the value, though, is YOU. Three people looking at the same piece of land will get very different valuations – if one is a farmer wondering how hard it will be to clear the land and grow a crop, and if another is an owner who wants to build a retirement home in the wooded area, and if a third is a property developer looking to divide up the land and develop a subdivision. Each one will value the land according to their needs. So what do YOU see yourself using the land for? (And remember: value is not always a financial number but also includes the time, effort, and potential enjoyment you can get from the land).

If you want to talk about land with us, we’d love to connect with you. Perhaps you have a piece of land to buy or to sell, just click here to enter your info and let us know about the property you want or you own and we’ll get back to you quickly.

Advantages Of Hard Money Lenders In Nevada

By Larry Crickon

Real estate investors know that buying property and fixing it up to flip or rent can be a capital-intensive process! Sometimes you need money to help you acquire the property or to bridge you to when you can sell or rent it out. There are many ways to access capital but one of the most popular ways to access capital is through hard money lenders. In this blog post you’ll read about the advantages of hard money lenders in NV.

If You’re An Investor, There Are Many Advantages Of Hard Money Lenders In NV.

Hard money lenders give you more access to capital

It’s not always possible to do deals with the funding, capital, or credit that you currently have. So hard money lenders give you more access to capital so you can acquire a deal or complete it.

Hard money lenders often have real estate investing experience

Hard money lenders may not personally be real estate investors but many of them will have looked at several real estate deals and they can help you understand if your deal is suitable for a loan or not – which might be an excellent way to help you determine the quality of the investment you’re looking at.

Hard money lenders may not need your credit

If you’re a real estate investor with bad credit or no credit, or if you don’t want to touch your credit because you need it for something else, a hard money lender might not need your credit to do a deal. (Some lenders will but some won’t). The reason is because they are making a secured loan – one that is backed by the asset itself.

Hard money lenders are a financial “tool” in your toolbox

As a real estate investor, you’ll tie up your capital and sweat equity into a deal. And if you can’t complete that deal (because you can’t fully acquire it or you can’t get it up to a level of repair for rental or resale) then the deal will stall. A hard money loan can ease that situation and get the deal moving forward so you can complete it. Hard money lenders are not your only source of capital but they can help – that’s one of the advantages of hard money lenders in NV.

Hard money lenders in NV are familiar with state laws

You can rely on hard money lender in NV to be familiar with the lending and investing laws of NV. That is a valuable knowledge to rely on, and it’s one reason why hard money lenders are a better capital source than other less formal capital sources.

Hard money lenders help you to do more deals

Perhaps one of the best advantages of hard money lenders in NV is that you can do more deals. A hard money lender will get you the capital you need to move forward to complete the deal, to earn more money so you can do another deal. Using the money and profit from your previous deal, and perhaps another loan from a hard money lender, you can do even more deals or even bigger deals or even faster deals or even more profitable deals… all because of the hard money.
If you’re a real estate investor looking to fund more deals, a hard money loan might be the right choice for you. There are many advantages of hard money lenders in NV so find out more about how a hard money lender can help.

Click here to enter your information and get in touch with us – let’s see if we’re able to help you!

4 Top Financing Options for Flipping Houses in Fallon, NV

4 Top Financing Options for Flipping Houses in Fallon, NV

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 Sparks, NV

4 Top Financing Options for Flipping Houses in Sparks, NV

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.

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 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.

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.

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.