It is possible, however, the transaction must be in cash. How much could you make? We usually seek out properties that are 30-40% (the more, the better!) below the market value. There are certain costs involved and there are certainly some risks as well. We go case by case in determining the feasibility of any given property.
It is not as easy as it might seem- there is a lot of research and market knowledge involved. With recent changes in foreclosure procedures in Nevada, the rate at which lenders are foreclosing will significantly slow down, so this opportunity most likely won't last long. Additionally, the first-time and repeat buyers credits definitely stimulate more purchases, but once again,there's a time limit- the credits will only apply through purchases that are in escrow by April 30th. Please contact me with further questions.
Saturday, December 12, 2009
Monday, December 7, 2009
WHAT IS SID/LID? WHY SOME COMMUNITIES IN LAS VEGAS HAVE THEM?
Special assessment for improvement (SID for short and LID is Land Improvement District and applies to Henderson) is a charge financed by the County in the form of bonds to the developer or (homeowners) of the community for the formation of the streets, curbs, lighting, gutters and driveways. It is pretty much a very convenient way for developers to pass on the cost of development to the County and this allows the County to collect interest from financing charges from the future home owner.
The classic example of this use is in Summerlin. Summerlin is a massive Master-planned community, currently the largest in Southern Nevada. When the developers came up with the plan and where the roads, parks, etc. were going to come in instead of paying for the roads and improvements themselves, they acquired bonds from the county and put a rate on each new home that would be built in the community. Basically, without getting too complicated and technical, the County fronted the money to the developers and the developers passed this charge on to the future homeowner. The new homeowner is assessed an amount with interest and pays this charge semi-annually.
In Development, these charges are called "hard costs". If a community is going to be built, then there are requirements such as building streets to the properties. Generally, the developer pays for this and passes on the charge to the new homeowner.
In a Special Improvement District, the charge is financed by the County and then passed on to the homeowner plus interest.
Regardless, whether the charge is added on to the home when the New Summerlin Home Owner buys it or if it is added in the form of a SID afterwards, the charge will be passed on to the New Home owner regardless.
However, there are some major benefits to the way the SID is set up. You'll notice a big difference in the quality of roads and maintenance within a Special Improvement District. Our opinion on this is that the roads and improvements are done by private companies hired by the developers and not overlooked by government agencies. Instead of taking six months to work on a road, it is done in 2 weeks. Very rarely within the community of Summerlin will you see road work being done that takes a year to do; unlike other areas of Las Vegas that do not fall within a Special Improvement District.
It’s set up originally at that amount, but the payoff is less than that. Here’s the link to it: http://amgnv.com/parcelsearch_results_detail_non_pop1.asp?searches=&menu=7&Dist_ID=7051&PARCEL=13726314002
The classic example of this use is in Summerlin. Summerlin is a massive Master-planned community, currently the largest in Southern Nevada. When the developers came up with the plan and where the roads, parks, etc. were going to come in instead of paying for the roads and improvements themselves, they acquired bonds from the county and put a rate on each new home that would be built in the community. Basically, without getting too complicated and technical, the County fronted the money to the developers and the developers passed this charge on to the future homeowner. The new homeowner is assessed an amount with interest and pays this charge semi-annually.
In Development, these charges are called "hard costs". If a community is going to be built, then there are requirements such as building streets to the properties. Generally, the developer pays for this and passes on the charge to the new homeowner.
In a Special Improvement District, the charge is financed by the County and then passed on to the homeowner plus interest.
Regardless, whether the charge is added on to the home when the New Summerlin Home Owner buys it or if it is added in the form of a SID afterwards, the charge will be passed on to the New Home owner regardless.
However, there are some major benefits to the way the SID is set up. You'll notice a big difference in the quality of roads and maintenance within a Special Improvement District. Our opinion on this is that the roads and improvements are done by private companies hired by the developers and not overlooked by government agencies. Instead of taking six months to work on a road, it is done in 2 weeks. Very rarely within the community of Summerlin will you see road work being done that takes a year to do; unlike other areas of Las Vegas that do not fall within a Special Improvement District.
It’s set up originally at that amount, but the payoff is less than that. Here’s the link to it: http://amgnv.com/parcelsearch_results_detail_non_pop1.asp?searches=&menu=7&Dist_ID=7051&PARCEL=13726314002
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