[olecapt]

Originally Posted by saxnix

Sorry to use quotes , but just curious to know why this is your impression of him??

Runs ads continuously that offer returns that far exceed any reasonable level achievable for the places involved. Often more than double.

For instance...

Highlights
• Tenant in Place at $1395
• 29% CAP rate with 25% down
• Detached Home
• 3 BD/2.5 BA - 1,545 SF
• Dark Wood Cabinets
• Solid Surface Countertops
• Full Appliance Package

I would also point out that of the 20 units rented or for rent in that complex over the last year none were rented for more than $1200.

Every other unit for sale in that development has a $56 per month HOA...except his which is $40...

[saxnix]

Thanks for the reply and info.

[fishordie]

Originally Posted by olecapt

Runs ads continuously that offer returns that far exceed any reasonable level achievable for the places involved. Often more than double.

For instance...

I would also point out that of the 20 units rented or for rent in that complex over the last year none were rented for more than $1200.

Every other unit for sale in that development has a $56 per month HOA...except his which is $40...

Gosh, where I have heard of this technique before?? Oh yeah, I have been warning about it as one of the ways out of state or even in state investors can be led by the nose down the primrose path not only by creative sellers but by very creative Real Estate Brokers/Agents and their investment groups.

Interestingly enough I am not sure when a legal test case or if a test case dealing with real estate disclosure laws will come about regarding the knowledge of the seller as to the unit's noted income potential being well over reaching its market boundaries. Though I have been familiar with Glenn and his sales formula for some time (I believe he has done close to 30 of these things during this economic downturn) it would have to be a very rich and sophisticated buyer/legal counsel who could afford to pay for enough fact finding to prove what means, if illegal or in violation of real estate laws, Glenn is using to move his product. By the way, I believe most if not all of the units he sells in this manner are his or his own investor's group properties.

I cannot remember if I noted previously on this site I was in Panama up until last week and met a few real estate agents/brokers from the East Coast. When they found out I had some knowledge of Vegas they were extremely excited as some of them had clients or were personally interested in what they felt was a blood bath in Vegas. They had heard about the very low prices homes and condos were being sold at and were ready to jump into the fray sight unseen.

One has to remember in Jersey or New York a 1200 - 1500 square foot condo sells for at least 500,000 and many well over 1.5 million. To hear of units being sold for under 120,000 dollars yet renting for over 1200 per month was just too juicy, they felt, to pass up. Like other folks from out of state these East Coasters were ready to pony up the cash and or credit to purchase as many of these places as possible. All they needed to hear was ROI and they felt they did not even need to come out and do their own due diligence. After all, they would be purchasing using a licensed Real Estate Agent....... Choke.. Gurgle....

Needless to say I saved this mostly younger group's wallets a hefty beating as I explained to them the pit of hell they were about to jump into. The amazing part to me was at least one of these young folks was a real estate agent in Jersey who was caught totally unaware of what techniques are being used all over the world to lure the un-educated investor into the abyss. After all, in Jersey it is nearly impossible to have a positive cash flow on a newly purchased property so a perceived double digit ROI was just a no brainer.

To say these young folks eyes widened when I told them the harsh realities of today's investing environment, especially for the un-informed, they went back and did some serious soul searching. What was truly interesting was the young agent had already lined up a large group of Jersey investors as well as himself to pool their monies and buy numerous properties in Vegas simply based on ROI. Thank goodness that young man met me when he did. Without a doubt this well intentioned agent was about to destroy what ever credibility he had with his own real estate community should he have finalized and implemented his apparent slam dunk investment plan.

It is not my place to determine if Glenn's recipe for attracting buyers is legal, ethical or moral. Rather it is up to each investor, who are lucky enough to have learned of the traps being set out there by insiders and outsiders to the real estate community, to understand the nature of the human condition when it comes to greed. Applying this understanding of how far certain individuals will go to create a newer and more appealing sales model will hold the new or experienced investor in good stead. Funny, most real estate agents all over the country are falling for this model as they place their clients in what we know to be very questionable
purchases.

Glenn is not someone to ridicule or hate rather he is the perfect example and learning tool of why an investor must do his or her own due diligence not solely relying on the counsel of a real estate agent. Most agents are not even aware of the creative methods being used in other states or even their own states as the commission potential for these agents pushes them to close a sale and perhaps not perform as much due diligence as they should.

Best of luck to those who wish to purchase for investment purposes. I keep saying for those who were savvy and informed the last two years will have produced some fantastic investment opportunities. It will also by up to the savvy investor to watch as the next round of buying opportunities becomes apparent.

FOD

[eventusstultorummagister]

I have a question for the Las Vegas investors...

As sales volume increases do you think the banks will begin to bring more inventory to market in an effort to speed the process or will they continue at the present rate?

[007 license to sell]

This article address's how many home owners are underwater, with these kind of numbers it looks like distressed inventory will just keep going up.

Report: 85 percent of Las Vegas homeowners with mortgage are underwater

Source: Vegas INC

[khuntrevor]

Every time the Government steps in to "help," it just prolongs the problem. Moratoriums on foreclosures, etc..

[RCCCB]

Article is interesting and said the tax incentives we had to buy homes the last couple of years were a waste of tax payer money that just put off the adjustment for a while.
People are way under as are many of the companies that financed them.
A dire but probably accurate assessment.

Price of homes expected to dip another 8% this year.

housing-crash-getting-worse-marketwatch: Personal Finance News from Yahoo! Finance

[JohnG72]

Originally Posted by RCCCB

Article is interesting and said the tax incentives we had to buy homes the last couple of years were a waste of tax payer money that just put off the adjustment for a while.
People are way under as are many of the companies that financed them.
A dire but probably accurate assessment.

Price of homes expected to dip another 8% this year.

housing-crash-getting-worse-marketwatch: Personal Finance News from Yahoo! Finance

Pffft.........real estate never goes down

[clb10]

Is it hard to get approved by your lender to short sale a condo if you have a full time job, good credit and cash in a savings account?

[Melanie1616]

There are some big names in this blog and I am hoping for a quick response. Our short sale offer was returned by the bank asking for 10% less than the current average price in the neighborhood. Would you go for it, do you think prices are going to drop further?