Page Ventures has now closed out all but 2 of their TD buys. 649 Alpine View in IV is getting to where it will be a break even deal. 3065 Markridge has resulted in Page Ventures and their attorney receiving legal sanctions. The gross margin on their sales has been +45%, and I estimate their net profits have been +25%. When you realize that they churned the fund about three time, the ROI is pretty impressive.
NRES really slowed up on their TD purchases and resales, but have recently stepped up their buy side. Their gross margin on sold properties are averaging +49%. There have been a lot of new amateur players on the courthouse steps lately bidding up prices and trying to play a 20% margin between TD price and resale price. It might work in selective cases, but some of these folks are going to get creamed.
So here is my updated chart on Page Ventures / NRES activity. Activity since you last saw it on the original post is in blue. It is a pdf from my Excel spreadsheet, and I have about as much experience in Excel as billddrummer has as a novelist and I think he will be more successful the me at trying new things. It”s not perfect, but gives you a general idea of how they are making out. If anyone wants the Excel file to play with or improve, email me at mike@macassociates.com.
If I could by stock in NRES, I’d be all in. Their system is working, and they and/or their investors are making bling. I’ll be looking for when they pull back as a true market indicator.
DownButNot Out
Page brings up a good example of how smart purchases can be made in a down market. It makes me believe the Reno market isn’t all doom and gloom when I see properties being turned with such a high gross margin for profit on a regular basis.
It is a good time to buy if you do it like Page does.
How’s that for bullish, bobc?
smarten
Thanks Mike. Excellent mining again!
I think you’re being too optimistic in your net profit estimates. Let me point you to the two unsold IV properties on your list; Winding Way and Alpine View. In both cases Page Ventures[“PV”]/NRES have been sitting on their properties for 4+ to 5+ months. In both cases PV/NRES paid $550K-$650K all cash/up front. If I had over $1/2M cash; I had spent it on one of these properties; I was incurring carrying cost expenses [property taxes, insurance, utilities, maintenance, etc.]; and my investment was sitting on the market going nowhere; I wouldn’t be feeling so chipper.
I agree with you Mike that this isn’t a game for the novice.
DonC
smarten says “In both cases PV/NRES paid $550K-$650K all cash/up front.”
Your point about the costs of holding housing as inventory is well taken. When looking at the numbers, however, it’s good to keep in mind that not all cash sales are necessarily cash. The buyer may have arranged financing before or after the sale. Where I am some people “pay cash” for a property but the property is refinanced shortly after the purchase. This last point is relevant when wondering where all these people get cash — sometimes the answer is that they don’t.
Michelle Linenko
Page Ventures is the absoulute bottom feeder…………..I was the homeowner of 3065 Markridge Dr. I had owned my home for 26 years years. How can people think he is doing a good deal? He destroyed items in the home.sold items that were not his…He should be ashamed of himself he has no integrity. Do not be fooled by Page Ventures.I was!