For those of you out there ready to live the lifestyle of the rich and famous, have I got a high rise condo for you. Located on the fabulous Las Vegas Strip, in a penthouse unit at City Center’s Mandarin Oriental on the 42nd floor. The owner of this amazing penthouse is willing to lease option this spectacular property and furniture is optional. I’ve included photos of this spectacular property as well as this unit as currently furnished. Check out the spectacular views from this breathtaking high rise, everything the executive while either visiting or living in Las Vegas. Listed at $5,250,000, call me today to discuss how it can be yours. Of course, you’ll have to be prepared to provide financials prior to viewing. Call or email us for more details. 702-531-4798
Freshly rehabbed 2 bedroom 2 bath condo close to the Strip. New paint, new tile floors, new appliances, complete with tenant in this 951 sq ft condo with a balcony that offers extra storage. $40,000 with 9% cap rate, Tenant just signed a one year lease at $600 per month. This long standing Las Vegas community offers community pool and spa, and location to buses, Meadows Mall, and a short hop to the Strip. This is a great property for the beginner or experienced investor.
Centrally located, just a few minutes from the Strip, located at the Las Vegas County Club, charming home built on a double lot. Pool & Spa. Backyard has a private gate that opens to the golf course. Great views of the Strip, Golf Course & Mountains. Spacious rooms and verandas. Owner will consider private financing, lease with an option to buy. Golf cart included. Easy to show. Bring all offers. 3,907 sq ft, 4 bedrooms, 4 1/2 baths, master bedroom is downstairs.
Out of the 23,918 properties on the market as of today (per our MLS and including single family homes, condos, townhouses and manufactured homes), 360 are open to selling with terms. That is less than 2% of the sellers out there that will consider selling with owner financing or as a lease option. The remaining 98% percent are made up of bank owned and short sales, and private sellers who either don’t understand owner financing, aren’t open to it, or their agents don’t understand how to present it as a viable option for their sellers.
Currently 7% of the houses on the market here are not being sold as a distress sale. That means they are not a short sale or foreclosure property, but a seller with actual equity either because they didn’t over finance their house or they are an investor trying to make money flipping a house they bought after rehabbing it. And out of this 7%, only 7% will consider creative financing terms.
As investors who bought houses in the last year or two, who were trying to flip them for a quick profit discover that this is still not a great market in which to flip a house, we hope will become open to seller financing in order to sell their investment property. The reason they may consider it is because they get someone to live there who will take care of the property because they want to make it their own, give them a good return on their money, and turn all of the maintenance and repairs over to the new occupant who wants to be a homeowner.
What that does mean to you is the pool of these types of properties is very small and if you see something that will work for you, you need to act on it quickly. You may not get everything you want like a brand new kitchen, or a pool, or you may have to drive a bit further than you hoped. But if homeownership is your goal, and traditional means aren’t available to you because of credit or being self employed, this is a great way to purchase a home.
As licensed agents here in Las Vegas, we strive to make this deal as painless as possible. So do your homework, be prepared to show proof you have a deposit, be able to explain why you can’t get traditional financing, and don’t be afraid to work towards fixing the issues so you’ll be able to refinance in 2-5 years. Expect to see new properties added to our blog several times a week. And if you don’t see what you’re looking for, don’t hesitate to ask. Properties get added regularly.
Our goal in 2012 is to help as many of you become homeowners as possible.
Happy New Years from us at Owner Carry Only. 702-531-4798 firstname.lastname@example.org
There is a big difference between Lease Option and Owner Carry or Owner Financing.
When you lease option a property, you are still a tenant but have the right to buy the property at a future date. You give the landlord/seller a deposit that they agree to credit you for, in addition to a portion or your rent each month, that will be used towards your down payment and/or closing costs when you exercise your option to purchase. Depending on how the agreement is written, you may also be responsible for any maintenance, upkeep and repairs on the property while you live there (remember, you do plan on owning it one day).
For example, you and the seller agree that you will buy his house for $100,000. But since you can’t get a loan right now, you will give him $5,000 as an option deposit, and out of the $1000 a month rent you pay, he will credit you $250 each month your rent is on time. So at the end of one year or 12 months, you’ll have $5000 + (12 X $250 or $3000), which totals $8,000 towards purchasing the house. If you’re able to purchase the house in 12 months with an FHA loan, 3 1/2% or $3,500 would be counted as your down payment and the rest of your credit of $4,500 would be used towards your closing costs.
The good news is you now have enough money to be used to purchase, had 12 months to fix whatever your credit problem may have been so you can qualify for a mortgage, and you probably won’t have any additional money to come up with in order to get a loan. You didn’t have to come up with 10-20% as a down payment. Also, you don’t have to buy the house if you don’t want to but the seller can not sell to anyone else until you decide whether or not to exercise your option. Of course, you have to pay your rent on time or you can void the contract.
The bad news is you are still a tenant and don’t get any tax benefits from paying for the house. Also, depending on how your agreement is written, you may also be responsible for doing all the repairs on a house you don’t own. And most important, your deposit and any rent credit you may be earning is not refundable to you if you choose not to exercise your option to buy the house.
Owner financing is completely different. When you purchase a property where the seller/owner agrees to act as the bank, you will actually go through escrow. Your deposit is now a down payment, and your payments will be treated the same way as if the bank was financing with you. However, several things are important to know:
1. You will have escrow fees and inspection, and closing costs. Here in Las Vegas that is anywhere from 1-4% depending on the price of the house (the cheaper the house, the higher the percentage because some costs are fixed no matter what the price of the house is).
2. Your down payment will usually be as little as 10% to as much as 50% of the price of the house, depending on what you and the seller agree to.
3. You will usually pay retail or slightly above retail price for the house. Seller’s offer financing because they don’t want to sell for the same price the bank owned or short saled house down the street is going for.
4. Sellers offer financing because they can get better interest from you than they can from the bank, so expect to pay 1-5% more for your mortgage. Right now banks are financing loans for under 4%. Most sellers are offering to finance you for 5-10%. Its their house and they can ask whatever they want in interest.
5. The seller usually only agrees to act as the bank for 3-5 years, sometimes 10 years, but seldom longer. They don’t want to be the bank forever. So whatever is preventing you from getting a loan now, you have to use this time to fix your credit, stabilize your income, and possibly work with a loan officer so you’ll be able to get a mortgage in a few years.
6. You now become the owner of record and you get the tax write off for the property.
Owning is always better than dealing with a landlord, but either one of these paths will help you become a homeowner.
Every one is speculating on what they think will happen to Las Vegas and the real estate market in 2012. Is it going up, is it still going down, when we run out of distressed properties, will there be another bubble?
No one know for sure except that there will never be any place like Las Vegas. People come here for a variety of reasons for work, play, lifestyle, retirement, climate or the opportunity to say they live in a place every one has heard of and some day want to visit.
Personally, I moved here because I was tired of shoveling snow. Spending 8 years in Lake Tahoe, dealing with an average of 265 inches of snow on my driveway every year since we lived at 6700 feet above sea level was something I was anxious to get away from. Also, having grown up in Los Angeles, I missed having the excitement and choices a bigger city brings. Combine that with a wide variety of entrtainment, housing choices and employment options, Las Vegas seemed a great fit for my family.
As I look towards 2012 and put in my two cents about the real estate market, I believe that we have somewhat stabilized as far as prices go. We may drop a percent, possibly two over the next year, but just in the last month, our available inventory went from just under 12,000 properties to under 9,000. Prices are incredibly low and our average 3 bedroom 2 bath home sells for approximately $115,000.
Loans are not going to get any easier to qualify for with our politicians are busy fighting with each other, and not forcing the banking industry to make any real changes in the way they do business. That means people that still see the value in owning their home, or investors who realize its only a matter of time before the market starts to truly correct itself are busy looking for deals in our market. They are looking for a viable way to enter our real estate market.
If you were one of the many casualties of the bubble, having lost your home to foreclosure or short sale, but would still rather own than rent, you need to consider dealing with a seller who is open to creative financing. Currently, that’s only about 1% of the houses available in our market, so competition is fierce, but doable.
Don’t let this opportunity pass you by. Whether or not you have great credit,if you have provable income and a nice deposit sitting earning 1/2 percent in the bank (if you’re luck) then you need to put it towards real estate because at this state of the game, its only a matter of time before it bounces back.
Everyone has heard that the housing market has taken a beating. Home sales are down across the country. Buyers are having a hard time getting loans, even buyer’s with great credit can’t find a lender. What does this mean to you?
You may want to consider offering to act as the bank by offering owner financing. That means the buyer would pay you instead of a bank.
If you don’t need the money to move right away, or can get by with a smaller amount that the buyer would put up as a deposit, this could be a great option for you.
What are the pluses?
- Buyers put up 10-20% of the purchase price just like they would if they went to a bank
- Buyers make monthly payments to you
- Buyers have a vested interest in keeping up the property since they now own it unlike tenants who don’t care because its not their house
- Buyers will do all the repairs, and maintenance and not call you in the middle of the night because the toilet is running
- You have a steady amount of money coming in every month instead of the wild ride in the stock market or earning less than 1% interest at the bank
- You have a better chance of getting the retail price for your house instead of competing against the short sales and foreclosures in your neighborhood
- Unless there’s a deed restriction or home owners association rule against it, you can’t tell them not to smoke in the house or have pets
- Unless there is a home owners association, they may not take care of the yard the way you would
- If the buyers don’t pay, you may have to foreclose