I quit follow the everyday dealings of NRES last year. It was just too time consuming given the volume of their transactions, and it didn’t really add anything to the real estate discussion. These guys are really good at what they do, and are working the seems to reap millions.
HERE is what NRES owns at year end 2012 – 95 properties plus or minus. You can check on the dates and see that they are moving most of the properties they buy expeditiously. They are buying a lot more properties as REOs or short sales as Trustee’s Deed market closed down.
NRES bought 216 properties at Trustee’ Sales at the courthouse steps this year. There were 1508 completed Trustee’s Sales in 2012, so NRES snagged 14% of them gross. More than 80% of TDs go back to the bank, so NRES bought north of 70% of all TDs that went to 3rd parties in Washoe County in 2012.
It looks like NRES bought about 321 properties this year and sold 287. Through the years I followed them in detail, they averaged a 40% gross profit on their transactions, which I think ends up being a 25% net profit. 287 units X an assumed $150,000 average sales price at 25% net profit = $10,762,500 net profits in 2012. NET.
I know a couple of your readers have been involved with NRES properties. They paint the water damage, remodel the kitchens with granite counters, add new front yard sod. Perfection.
I feel mixed about the NRES dynamo in the market. Their expertise in buying low and selling medium high is definitely jacking up the market.