Las Vegas real estate questions answered. Episode #189
Todd: Hello! Welcome to Todd Miller TV. Joined here again today with Oana. And Oana, on my blog when people go and type in “Search term” and then they found my blog, I get to see what they typed in and I sort of seen a couple of things come up. Oana: Okay. Todd: A bunch of times so I’m gonna read them to you and let you answer them for everybody. Oana: Okay. That’s exciting! Todd: Okay. The first one is, the first question is what happens when the house you buy is occupied by a tenant? Let’s start with MLS sale. You buy a house, it’s occupied by a tenant, you buy it through the MLS. Oana: Okay, so it depends on what the provisions are. If the property is tenant occupied there are some provisions. One, you inherit the tenant. Todd: Okay. Oana: Or two, you get/the tenant will vacate the property before close of Escrow. Todd: Okay. Oana: So those are really the two main things that generally happen. Todd: But in general, if there’s no provision, and you buy a house with the tenant you can’t throw them out. Oana: You’re inheriting the tenant. Yes! Todd: So if the tenant’s got a 3 year lease, Oana: Yup! Todd: You should know about that upfront. Oana: Yes! Well particularly if you’re going to be inheriting the tenant, then you should definitely make provisions to also have their security deposit transferred to you at close of Escrow because that tenant will be looking to you for that security deposit. Tod: Okay. Oana: You wanna make sure that you know the terms of the lease, that you do inspect the property and at some point, you probably should go ahead so a new lease agreement with the tenant preferably right after the close of Escrow so that the rents come to you. They’re not still being sent to the previous owner. Also in you purchase agreement, make sure that you’ve got something in there that says “That our future rental we’ll pay to you Todd: Okay. What if they buy at the trustee sale and it’s got a tenant. Oana: Ooh! Fun! Well then you’re definitely inheriting the tenant. Todd: Okay. Oana: You know, if they got a valid lease then it goes one way that you could be in a position to have to honor the lease. If they don’t have a valid lease then you could go ahead and evict them. Todd: Okay. Good! So this one is unusual. I mean not really unusual, like people go to Google for this information. “Housing market in Vegas, will it go down?” Like Google is going to tell them what the future somehow. Oana: Okay. So I have my crystal ball here and I’m rubbing it. Real Estate prices are as elastic as we all know and you’re going to have variants going up and down. For the most part, the values in Las Vegas have stabilized. Ofcourse you got pockets that are going up and ofcourse you got pockets that are still going down. But over all Values in Las Vegas have stabilized. Todd: Okay. It’s interesting you say that because I got off the phone with somebody this morning who all they talked about was the negative new they’ve heard “Vegas is Distressed” and they’re just looking at buying stuff super cheap. You know, pennies on the dollar kind of a thing so. Oana: That’s not happening. Todd: Okay. How much should I get, Cash for Keys? Oana: Okay. That a really good question because people hear a lot of things of what the going rate for Cash for keys. And I hear this all the time. “Oh I heard that I could get, you know, some outrageous amount of money for Cash for Keys. The going rate/it’s funny because when the whole foreclosure thing started, we were starting out Cash for Keys at $500. And I’ve seen it as much as $5,500. A good way to think about it is that the go away for cash for keys is somewhere between $1,500 to $2,000. That’s generally what cash for keys goes for. it can go for more if you’re dealing with a million dollar property that then it could go for all that more money. But generally speaking it’s not a whole lot more than $2,000, it tends to be about the cap. Todd: Okay. Depends on the Bank. Oana: It does. Todd: Depends on the value of the house. Oana: Yes. So if we’re talking about a million dollar house, then yes you’re gonna get more money for it. Some banks are actually more generous. But only/Buy in large Cash for keys runs between $1,500 and $2,000. Todd: Investor to Trustee sale probably gonna offer less. Oana: Probably Yes! Todd: Okay. Does Homepath accept Cash offers? Oana: Well, I’m a little confused ’bout it ’cause Homepath is a financed program so if you’re financing then I don’t see the point of cash and vice versa. So Homepath is a financing program just like you’ve got FHA, you’ve got conventional. Homepath is another financing product. Todd: Okay. So I think when they see Homepath they think that’s the bank or something. That’s just a program offered by Fannie Mae. Oana: Yes! Todd: So that you can buy using that. You can buy FHA, VA, Conventional, pay Cash or get a Homepath Loan, only on Fannie Mae. Oana: Correct! Todd: So you/So I think what/you know, what they’re saying is if its says it’s Homepath eligible, can you still make an offer for Cash? Oana: Absolutely! Everybody Loves Cash. Cash is Good! Homepath is wonderful because they’ve got all kinds of cool programs like for investors, the 1st 4 properties they get to put 10% down and the next 6 properties it’s like 25% down. So that’s really cool for investors. For regular home buyer again, they’ve got lower down payments and that sort of thing going on. So the only thing that the Homepath is famous for is “No Appraisal”. However, they will do an appraisal if you’re doing a renovation loan. Todd: Okay. Cool! Alright. Well that’s/that was it. Those were the ones I wrote down. There were some others really weird ones. i never wrote them down. They were a waste of time. Oana: Okay. Todd: Anyway. Oana: That was fun! Todd: That was fun! Anyway, so that was my update for today and hope to see you on another video. Thanks!