Investor F.A.Q.’s

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F.A.Q.’s

 

How do I know buying a specific wholesale property is a good “deal” or not?

The agents at Nevada Corp will supply you with a packet containing all pertinent information on the properties including comps, ARV and estimated repairs. The information we provide you with is based on repairs, and while reviewing the information, the investor must understand that there are a variety of different factors that can change.

Before buying a property, it’s critical that you do your own, independent research in addition to the information we provide you in the packet. It is recommended that you base your decision on the information you gather from multiple sources and do not limit yourself only to the information provided by Nevada Corps. The process works only when investors follow their own good judgment based on their knowledge and experience with the real estate market.

  1.  Why should I work with Nevada Corps to acquire properties instead of buying direct?

Nevada Corps is a unique source for finding untapped revenue-generating, value -add and off-market properties because we have developed proprietary technology and tools that are unavailable to the general public. Our experienced partners are continually developing strategic relationships within the real estate market and can provide investors with a remarkable degree of knowledge that can only be obtained through experiencing an amassed volume of investment real estate transactions.

The Nevada Corps process solves the four main problems investors like you deal with:

  1. Access to Inventory

    • Over the past 10 years, Nevada Corps has curated direct relationships with the TOP Asset Managers in the Country and Private Sellers.​

  2. Ability to Due Diligence

    • A team of 42 top professions trained to due diligence within a rapid amount of time​

  3. Quick Access to End Buyers

    • Thousands of buyers have been curated over the years Hungry and ready to purchase properties, consistently!​

  4. Efficient Funding

    • Rapid, financing is in place for ALL levels of investors and for retails buyer as well.​

2.  How much research is done on the front end when a Nevada Corps property is offered?

We start off by doing basic equations of acquisition costs, repairs, ARV and identification of True Equity. True Equity is the difference between the current owner’s acquisition cost and the current value of the property.

Recognizing that there is a degree of risk in any investment we recommend that you consider your own risk tolerance and variance when considering a particular opportunity and keep in mind that a property estimate is just a general guideline and should be verified in greater detail by a professional that will be managing the repairs. Also keeping in mind that even with the best estimates factors may change and affect the investment process: the labor market can change, the cost of materials can fluctuate, and the investor’s level of construction management experience plays a big part in the cost of repairs.

The sale price of the home is also hard to predict accurately: given the fluctuations in neighborhoods, investors choices in deal value and repair value is directly proportionate to the level and quality of the repairs performed. it is important to understand that real estate is a high-risk/high-reward proposition and the occasional failure should be expected even for the most experienced investor.

3.  How do I buy a property from Nevada Corps?

The first step in the buying process begins with a strategic planning call with one or more of our 4 Managing Partners to discuss your investment needs and strategies.  i. This personal meeting provides both you and us with an opportunity to develop a clear understanding of your buying criteria, abilities and establish a game plan for property provisioning. The in-office meeting is a great place to start because, not only will you learn about the process of buying a single-family home, a portfolio or commercial property and as well as what to expect from us.

All of the properties that we have are provide are purchased on a first-come, first-serve basis, which will save you time and effort. Unlike buying a house on the retail market, closings here at Nevada Corps typically only take a matter of days or weeks and are straightforward, simple transactions.

4.  How long does the average investment process take?

Generally, the average time to buy/fix/sell a property takes about 90 days to resell from the time of purchase.

There are two important timeframes in the investment process:

Investor Selection: This the timeframe in which you have made an initial decision to analyze the property for underwriting. (3 days from receipt of Property Package)

EMD: Earnest Money Deposit Submission: This is the timeframe in which you must submit your EMD to the title company to secure the property. ( With 3 days after LOI and POF have been submitted and accepted by the Nevada Corps).

Once the property contract has been ratified you have 5 days before the EMD goes hard. (Is NON-refundable) A ratified contract is a term used with real estate transactions. It refers to a contract in which the terms have been agreed upon by all parties but has not yet been fully executed, signed, and delivered. The typical steps in the contract process include the offer, acceptance, consideration, and ratification.

However, if there is a project that is going to yield a higher return, then it can take anywhere from six months to a year to complete the process and still be considered a good potential investment.

5.  What kind of return on investment is expected or considered good for a property investment?

For the investors who are sometimes willing to accept smaller returns to tackle a higher volume of transactions, the return margins may as low as 5%. Such a thin margin may seem small to an investor who has the goal to buy one home per quarter, but a fund may purchase one-thousand homes per year and rotates within them a ninety days, four times a year, then it represents a hugely successful business that can out-compete a huge segment of the smaller market. Thus as a Takedown Partner, the margins may be lower but the overall return can be considerably more significant.

On the other end of the spectrum are investors who may consider the EMD partnership of much more interest given the possibility of up to 17% Cash on Cash return.  Generally, EMD investors are those who only look at properties with large margins and don’t find many properties that suit their needs. Therefore, the EMD transaction may be more palatable considering the higher yield over the six-month term. The discounts that you’re willing to accept are proportionate to the margin that you’re also willing to accept.

6.  How do I get started with Nevada Corps property investing?

Step One: Determine how much you are willing to invest.

Step Two: Register as a Nevada Corps Investor and Sign NDA (click here).

Step Three: Submit P.O.F., Personal/Corporate Real Estate Holding Bio and Buying Criteria

Step Four Receive Property Matches, Evaluate and Select a property.

Step Four: Submit LOI and/or PSA

Step Five:  Buyer Interview/Questionnaire additional NDA

Step Six: Buyer/Seller Introduction

Step Seven: Offer/Counter Offer  present by GameChangers and acceptance

Step Eight: Due Diligence

Step Nine: Financing and Waiver Contingencies

Step Ten: Closing at Escrow

 

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