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?
johnny
Has anyone read there website? check the experience section of the website! you will notice the absolute WORST run- on sentence in history!!
Sully
With the ability to buy for cash, is the NRES flip model or the Marmot improve and hold model the winner?
Short term the NRES flip is best, long term the income producing would be better. NRES has to know they are working within a limited time frame, whereas Marmot is going for the duration.
If you notice the type of companies Warren Buffet buys – they are all cash machines. Marmot (don’t know anything about them) appears to have the necessary support in place already via prop management and construction(repairs).
So, NRES will someday have to find another place to park its cash, whereas Marmot is already parking its cash. Also, they must have an awful lot of faith in this area to take on so many rentals. Perhaps, the few sales are reflecting some of the downsides to owning rental properties?
MikeZ
(though I have seen at least 2 of them show up on the MLS at prices that would have been a wash).
Something to keep in mind: if they’re passing a lot of money through real estate, but not actually making any money, they may just be laundering it.