Investing in Las Vegas Real Estate – Pre-Foreclosures and Foreclosures Part II
The complexities involved in Las Vegas Distressed Property negations can be many, and an inexperienced investor without competent advisers might encounter major problems that could have many unpleasant consequences, including financial loss.
So, as a word of caution to the inexperienced, it cannot be said often enough that a thorough investigation and verification of all the factors involved in a purchase of this kind, by competent and trusted advisers, is the best assurance one can have of becoming a successful Las Vegas Distressed Property Investor.
In addition to a close and thorough inspection of the property by a licensed and experienced home inspector, other important issues must be investigated and resolved before committing to purchase a foreclosure or pre-foreclosure property.
Any additional encumbrances upon the property, in addition to monies owed to the lender, could cause unpleasant consequences for the buyer if a thorough title search and other investigations were not undertaken.
For example, the investor and advisers should have a thorough knowledge of all federal, state and county laws pertaining to the purchase of a distressed property from an owner, lender or government agency.
Outstanding utility bills, liens of any kind, and any title issues, such as the name or names appearing on the deed matching those on the title, etc., have to be examined and evaluated prior to any purchase commitment on the investor’s part
If a seller has declared bankruptcy, the seller no longer has the authority to deed the property to anyone. The proper filing through bankruptcy court and the disposition of the deed under the authority of the bankruptcy trustee is the final word on how a property is held or disposed of.
It is certainly advisable that the investor has satisfactorily checked out all of the above before making a purchase or no purchase decision. Use all of the safeguards at your disposal, (your advisory team, etc.) to protect yourself from any unforeseen consequences.
Buying REO properties at auction is one of the riskiest investment ventures a newcomer can choose to pursue. The dangers that a newcomer can face in the business of buying properties at auction, can easily be compared to jumping into a pool full of hungry sharks. The chances of survival are equally the same!
At auction you are bidding on “as is” properties, with no warranties or guarantees of any kind. There could be liens or loans still pending.
There is always the possibility of a lawsuit by parties attempting to overturn the sale, there could be extensive repairs needed to get the property in saleable condition, etc.
Certainly, there are investors with a solid background of successful auction buying and selling, but if you are new to this phase of real estate investing, you most probably won’t be one of them.
If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702.376.0088.
About the Author
Tony Sena is broker/owner of Shelter Realty in Las Vegas Nevada. For more than a decade Tony and his partners have provided residential real estate and property management services to sellers, buyers, investors, and property owners in the Las Vegas Valley. A Las Vegas native and former police officer for the City of Henderson, Tony brings to the table a unique local perspective that continues to serve his clients well.