Nevada Property
I live in CA and am thinking about investing in nevada developments..you put yourself on a list from a developer and as lots become available...you secure the lost with a $2000 down payment. takes 9-10 mo to complete home...during that time you have 8 months of equity...most homes are 170-500K...
Any response to this? I am a first time investor...do any seasonal investors think this is a sound proposition? thanks for any advice or direction
I have been doing that in Vegas for 2 years now. I don't know if you're looking for short term speculation or just an investment that will provide a healthy amount of equity by the time you close, but it's a strategy that has worked for me (I buy and hold, for now).
The developers predictably raise prices with each new phase release, so they build in the equity for you as you wait for the property to be built.
However, in addition to the long waiting lists for new properties, the builders in Las Vegas are not allowing investors to purchase at all, even for a 2nd home. There are ways around this, but it's going to require a lot more work than it did 2 years or even 1 year ago.
If you can get into new construction and can tie up some properties, then go for it. Keep cash in reserves if you're a buy and hold person - the rental market is extremely soft right now.
mkvalheim
"However, in addition to the long waiting lists for new properties, the builders in Las Vegas are not allowing investors to purchase at all, even for a 2nd home. There are ways around this, but it's going to require a lot more work than it did 2 years or even 1 year ago"
Would you please expound a bit on how to get around the investor status on new homes? There are some areas here in Vegas that I'd like to invest (speculate) buy and hold but I really having a heck of a time getting around this "investor" status.
Thanks,
LVREI