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
124 Caliente 10/18/2010 $175,000 Duplex  
221 Pueblo 2/1/2010 $250,000 5 units SFR + 4plex
1698 Plumas 3/10/2010 $150,001 SFR  
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.

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