NRES is still the flashiest player in the Trustee’s Deed and flip cadre, and they have been VERY active lately again. But there are a lot of smaller players investing in a different niche – buy, improve, and hold as rentals.
Marmot REOF (Marmot Properties) is an interesting one. Family owned and utilizing OPM, they are buying up a lot of properties in “Midtown” as short sales or bank reposessions. All but one have been cash sales. The properties are all older, a bit funky, on the low end, and potentially cash flow as rentals (though I have seen at least 2 of them show up on the MLS at prices that would have been a wash). Interesting family – one’s into property management, another into design, and a 3rd into construction. They buy the properties, fix them up to “rental” standards, and rent them out. Here’s what they have bought so far:
|Property||Sale Date||Sale $||Type||Comments|
|390 W 11th||2/12/2010||$200,000||Duplex||Owner Financing|
|350 W 11th||3/2/2010||$172,000||Duplex|
|307 Moran||1/25/2010||$117,750||SFR||Building unit in basement|
|440/450 Claremont||3/11/2010||$110,000||2 SFR|
|308/308A Vassar||4/8/2010||$115,000||2 SFR||One can be retail|
|221 Pueblo||2/1/2010||$250,000||5 units||SFR + 4plex|
|128/160 Caliente||11/1/2010||$140,000||2 SFR|
So what do you think? With the ability to buy for cash, is the NRES flip model or the Marmot improve and hold model the winner?
Bonus Jack for those of you who read this at REreno and not on RRB. Somersett Development just got hit with 2 more NODs on just about the last properties they still “own”. 232-010-65 was a $500,000 loan from 12/2006 and they missed the 1/5/2011 payment to Nevada State Bank. 232-051-01,02,03,04 was a $1,547,000 loan from 7/2006 and also missed the 1/5/2011 payment.