Anyone interested in going 50-50 with me on a condo purchase in Vegas for under $100k?

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usctrojanman29_IHB

usctrojanman29_IHB

New member
I purchased a 1,180 sf 2bed/2bath condo with no garage back in March of this year for $129,000 (with a $2,500 lender credit) from Countrywide with a 5% 7-year I/O loan from BofA ($116k loan with no PMI). The condo community is in the nicer part of Vegas in the Northwest by Summerlin. I currently have the condo rented out at $925/month. My mortgage and property tax payment is $635/month and the HOA is only $152/month (hasn't gone up since since the community was converted to condos in 2005).



Anyhow, there are a few listings out there that range between $95k and $105k that have a garage (should be able to obtain $25-$50 more per month for it). I'd like to pick another one up, but there is no way a lender is gonna believe that I'm buying it as a 2nd home since I already own a unit in the complex. So I was wondering if anyone is interested in going 50-50 with me. The purchase would have to be classified as a 2nd home and will require 20% down using BofA (they are great to use on smaller loan amounts because they pick up the closing costs).



I lived and worked in Vegas for 2 years so I'm very familair with the area and I also travel to Vegas on a regular basis for work and to see my dad. I would be the buyside reatlor (I have had my NV real estate license for 2+ years) and contribute my share of the equity after closing as well as have my dad manage the condo since he lives 4 miles away (we'd have to set up an LLC because NV hits you with a property transfer tax of $.55 per $1,000 in value on non-family and non-LLC transfers). These things are selling 10-20% below rental parity and near replacement cost.



PM me if anyone is interested.
 
If I do it, does it mean you?ll hook me up with those Laker tickets you promised?

I need an additional two seats for this Friday?s game against Denver and for the Mav's game after Thanksgiving.
 
[quote author="tenmagnet" date=1227171515]If I do it, does it mean you?ll hook me up with those Laker tickets you promised?

I need an additional two seats for this Friday?s game against Denver and for the Mav's game after Thanksgiving.</blockquote>
You and those Lakers seats. haha My client is the one that has those great Lakers seats. If you partner up with me, I'll pick some seats up for you since I can run them through as a "marketing" expense. ;)
 
[quote author="usctrojanman29" date=1227172130][quote author="tenmagnet" date=1227171515]If I do it, does it mean you?ll hook me up with those Laker tickets you promised?

I need an additional two seats for this Friday?s game against Denver and for the Mav's game after Thanksgiving.</blockquote>
You and those Lakers seats. haha My client is the one that has those great Lakers seats. If you partner up with me, I'll pick some seats up for you since I can run them through as a "marketing" expense. ;)</blockquote>


I already got season seats and don?t bother going to those dog games like the Clippers you were offering me.

Did you not see Wall St?

Just like Bud Fox, I need to see more from you want to partner up with the Champ.
 
[quote author="stepping_up" date=1227172166]B of A won't believe us 'cause we have two primaries with them. Anything here locally that you see as a good deal?</blockquote>
As long as you don't own anything in Las Vegas, you shouldn't have a problem convincing them that it'd be your 2nd home. The problem comes is you will be able to qualify with the additional payment obligation of $700-$750/month. Vegas is trading at a discount even to the Inland Empire because it was the first to fall since there were so many speculators that handed the keys back to banks beginning in late 2006. Just to give you an idea, these condos sold for $220k-$240k at the peak of the market in mid-2005 when they were sold as condos (it's a 2003 construction - townhome apartments). Nothing in So Cal trades at such a discount to the rent as condos in Vegas (plus you don't have $300+ HOA dues).
 
[quote author="tenmagnet" date=1227172565][quote author="usctrojanman29" date=1227172130][quote author="tenmagnet" date=1227171515]If I do it, does it mean you?ll hook me up with those Laker tickets you promised?

I need an additional two seats for this Friday?s game against Denver and for the Mav's game after Thanksgiving.</blockquote>
You and those Lakers seats. haha My client is the one that has those great Lakers seats. If you partner up with me, I'll pick some seats up for you since I can run them through as a "marketing" expense. ;)</blockquote>


I already got season seats and don?t bother going to those dog games like the Clippers you were offering me.

Did you not see Wall St?

Just like Bud Fox, I need to see more from you want to partner up with the Champ.</blockquote>
One of my favorite movies. Ok Gordon, let me see what I can do on Laker tickets.
 
[quote author="usctrojanman29" date=1227173097][quote author="tenmagnet" date=1227172565][quote author="usctrojanman29" date=1227172130][quote author="tenmagnet" date=1227171515]If I do it, does it mean you?ll hook me up with those Laker tickets you promised?

I need an additional two seats for this Friday?s game against Denver and for the Mav's game after Thanksgiving.</blockquote>
You and those Lakers seats. haha My client is the one that has those great Lakers seats. If you partner up with me, I'll pick some seats up for you since I can run them through as a "marketing" expense. ;)</blockquote>


I already got season seats and don?t bother going to those dog games like the Clippers you were offering me.

Did you not see Wall St?

Just like Bud Fox, I need to see more from you want to partner up with the Champ.</blockquote>
One of my favorite movies. Ok Gordon, let me see what I can do on Laker tickets.</blockquote>


That?s the spirit.

Show me that you can close.

Speaking of which, watch me work on the OC restaurants thread.
 
[quote author="usctrojanman29" date=1227172958][quote author="stepping_up" date=1227172166]B of A won't believe us 'cause we have two primaries with them. Anything here locally that you see as a good deal?</blockquote>
As long as you don't own anything in Las Vegas, you shouldn't have a problem convincing them that it'd be your 2nd home. The problem comes is you will be able to qualify with the additional payment obligation of $700-$750/month. Vegas is trading at a discount even to the Inland Empire because it was the first to fall since there were so many speculators that handed the keys back to banks beginning in late 2006. Just to give you an idea, these condos sold for $220k-$240k at the peak of the market in mid-2005 when they were sold as condos (it's a 2003 construction - townhome apartments). Nothing in So Cal trades at such a discount to the rent as condos in Vegas (plus you don't have $300+ HOA dues).</blockquote>


That's our wine budget..... but Vegas just doesn't appeal to me. I like the idea of investment property for appreciation in the long run rather than a few hundred bucks a month. I'd just buy more wine with a few hundred a month :)
 
I wonder how many renters there will be next year?



Everything I read is that NV is taking it in the shorts. I read that the casinos are down 25% in the past few months. I read that there is a net out-migration for the first time ever.



Have you calculated what will happen if you have to drop the rent to $750 to get a decent tenant? If it sits empty for three months out of 12?
 
[quote author="usctrojanman29" date=1227171107]I purchased a 1,180 sf 2bed/2bath condo with no garage back in March of this year for $129,000 (with a $2,500 lender credit) from Countrywide with a 5% 7-year I/O loan from BofA ($116k loan with no PMI). The condo community is in the nicer part of Vegas in the Northwest by Summerlin. I currently have the condo rented out at $925/month. My mortgage and property tax payment is $635/month and the HOA is only $152/month (hasn't gone up since since the community was converted to condos in 2005).



Anyhow, there are a few listings out there that range between $95k and $105k that have a garage (should be able to obtain $25-$50 more per month for it). I'd like to pick another one up, but there is no way a lender is gonna believe that I'm buying it as a 2nd home since I already own a unit in the complex. So I was wondering if anyone is interested in going 50-50 with me. The purchase would have to be classified as a 2nd home and will require 20% down using BofA (they are great to use on smaller loan amounts because they pick up the closing costs).



I lived and worked in Vegas for 2 years so I'm very familair with the area and I also travel to Vegas on a regular basis for work and to see my dad. I would be the buyside reatlor (I have had my NV real estate license for 2+ years) and contribute my share of the equity after closing as well as have my dad manage the condo since he lives 4 miles away (we'd have to set up an LLC because NV hits you with a property transfer tax of $.55 per $1,000 in value on non-family and non-LLC transfers). These things are selling 10-20% below rental parity and near replacement cost.



PM me if anyone is interested.</blockquote>


Okay, so let me get this straight. You want someone to pony up half ($10k) of the $20k down payment on $100k condo in the highest foreclosure ratio state in the nation. So we can rent it out for $925 a month to some meth lab chemist, and with a P&I (I hate debt, and would want to pay it down) mortgage payment of roughly $533 a month (roughly 7% for a second home) with a HOA of $152 and taxes of roughly $100 a month, for a total of $785, just so I could net $70 a month? Gawd forbid the place is ever vacant for more than 3 days, otherwise I have to pony up almost $400 a month to keep this thing afloat, and it would take almost 6 months of that net $70 a month to get back that one month loss of $400. Then... what if rents go down, like they tend to do in bad economic times, and the rent is $850? Now that $400 loss takes over a year to recover because all I am netting now is $32.50.



Are you sure you went to USC, or did you go to Panda's school of investing? I'm sorry, but this sounds like a horrible investment. I still think LV has a long way down to go. Do you see any jobs being created there, or do you see casinos laying people off? Do you see more foreclosures? Good luck with it, I wouldn't touch it, but you might want to PM Panda. I think I can make more money off the ebay to tenmagnet Laker ticket arbitrage than I would ever make on this deal. Sorry, but I am willing to wait a while longer to be buying something that will pen out a bit better than this. Because there will be better deals that will, and they will be here in OC.
 
Now... if you told me you were going to be in Vegas today <a href="http://www.zillow.com/homedetails/5281-Valencia-Crest-Ave-Las-Vegas-NV-89139/63230173_zpid">to pick up this home at the auction for $120k</a>, then my ears might perk up. But, after going through the list that is twice as long as OC's foreclosure list, I would seriously reconsider anything as an "investment" in the Vegas area. Actually, I wouldn't touch it for another two years.
 
[quote author="graphrix" date=1227187986]Now... if you told me you were going to be in Vegas today <a href="http://www.zillow.com/homedetails/5281-Valencia-Crest-Ave-Las-Vegas-NV-89139/63230173_zpid">to pick up this home at the auction for $120k</a>, then my ears might perk up. But, after going through the list that is twice as long as OC's foreclosure list, I would seriously reconsider anything as an "investment" in the Vegas area. Actually, I wouldn't touch it for another two years.</blockquote>
That home might as well be out in the middle of nowhere because it's far from everything. It know its gonna take Vegas some time to recover, but good luck ever buying a 5 year old condo in the nice part of OC for less than $90/sf. I never said a killing would be made on rental income, it's the longer term appreciation that would be the goal (a 100% return would be had with a price increase of $20k-$25k). Do you expect these newer condos in nice areas to sell for $50,000 in the next few years? I was looking at it becased upon rental parity and it more breaks even with a 10% vacancy factor while amortizing the loan each month.
 
Oh... dear... gawd... I had to check out the foreclosures. Now, I have to try and talk not only everyone out of doing a deal with you, but I need to talk you out of this deal and now. So, I will go with a visual aid and show you pictures of the number of foreclosures for Clark County vs. OC from tomorrow until the end of the month. I literally gasped when I saw the numbers.



First up Clark county...



http://xs233.xs.to/xs233/08474/lpsclark404.jpg



Now OC...



http://xs233.xs.to/xs233/08474/lpsoc109.jpg



Jeezus! Do you see a problem here? Don't do it trojanman, put down the Kool-Aid and step away from the NV. MLS. You can buy this property for half of what you want to pay at the auction. The best part, you have no competition because no one is buying at the auction. At least in OC 3 or 4 deals will go to investors, but you are lucky to see 2 in Clark county, and there are twice as many to choose from.
 
He he... I already picked up a small piece of land.... (and I mean SMALL) near the ocean. I'm waiting for Newport, but that might get a wee bit expensive. We shall see.

-bix
 
usctrojanman



I want in with you.



If I need to to put 10K it is no problem. I have a cashiers check for 20K available now and will send it to you.



Please immediately wire me the remaining 10K and we will be partners happily ever after. I will give you the number of my bank account upon request for the wire.



Sorry that the account is offshore.



Looking forward to a long partnership. :coolgrin:
 
[quote author="xsocal land merchant" date=1227225015]usctrojanman



I want in with you.



If I need to to put 10K it is no problem. I have a cashiers check for 20K available now and will send it to you.



Please immediately wire me the remaining 10K and we will be partners happily ever after. I will give you the number of my bank account upon request for the wire.



Sorry that the account is offshore.



Looking forward to a long partnership. :coolgrin:</blockquote>
Nigerian scam, eh? haha
 
[quote author="usctrojanman29" date=1227188905][quote author="graphrix" date=1227187986]Now... if you told me you were going to be in Vegas today <a href="http://www.zillow.com/homedetails/5281-Valencia-Crest-Ave-Las-Vegas-NV-89139/63230173_zpid">to pick up this home at the auction for $120k</a>, then my ears might perk up. But, after going through the list that is twice as long as OC's foreclosure list, I would seriously reconsider anything as an "investment" in the Vegas area. Actually, I wouldn't touch it for another two years.</blockquote>
That home might as well be out in the middle of nowhere because it's far from everything. It know its gonna take Vegas some time to recover, but good luck ever buying a 5 year old condo in the nice part of OC for less than $90/sf. I never said a killing would be made on rental income, it's the longer term appreciation that would be the goal (a 100% return would be had with a price increase of $20k-$25k). Do you expect these newer condos in nice areas to sell for $50,000 in the next few years? I was looking at it becased upon rental parity and it more breaks even with a 10% vacancy factor while amortizing the loan each month.</blockquote>


So if you are buying it for long term appreciation, are you thinking Vegas is at a bottom now? If not, why buy now? If these places fell another 10-20% before you bought, flexing further below rental parity, wouldn't your ROI be that much more?



I'm with Graph on Vegas, wouldn't even touch it with Ten's Johnson. Sands is having liquidity issues and is a bankruptcy concern. Other gaming concerns must be having the same cash issues. If the recession goes for a year or two, gaming is going to suffer huge. Casinos will get closed, lots will be out of work, etc. That would have to decrease short-term rental income prospects and potentially drive prices way down. Subprime did the first number on Vegas, massive recession should do the second...
 
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