Fennell & Associates Ron Boles just put 2 fourplex’s into Escrow! The Multi-Family market in Reno is finally priced to sell. Sell. SELL!!

On another Note…”The National Association of Home Builders is reporting that Nationwide housing starts and permits posted substantial gains in June as home builders responded to improved market conditions and the impending expiration of the first-time buyer tax credit. These stats comes from the U.S. Commerce Department.” – Realty Times Staff

Lots of incentives are flooding the market aiding the idea to help investors stimulate the market. Positive signs in both the commercial & residential markets shed light & perk interests. The market is indeed itching for a turnaround!

WHY GROW YOUR BUSINESS IN GREATER RENO-TAHOE?

Some Great information regarding, yet, even more reasons to relocate & grow your business in the Greater Reno- Tahoe Area… from EDAWN’s Website…

Businesses of all sizes are moving to Greater Reno-Tahoe. Here are just a few of their reasons. What will yours be?

Click here for a copy of the Why Do Business in Greater Reno-Tahoe

Click here for Reno-Tahoe International Airport Highlights

Tax Benefits

• NO corporate income tax
• NO personal income tax
• NO franchise tax
• NO unitary tax
• NO inventory tax
• NO inheritance tax
• NO estate tax

Operating Benefits

• Strategic location
• Room for new and expanding companies
• Diverse labor market
• Wide range of financial resources
• Entrepreneurial services and support
• Urban, suburban, rural living options
• Quality of life

Community Benefits

• Emerging new business dynamic
• Strong sense of community
• Four vibrant seasons of recreation, arts and culture
• A balanced life pace

No matter your business, Greater Reno-Tahoe’s tax benefits and business-friendly environment can work for you. And with everything potential employees want – from entertainment options to the beauty of the Sierra Nevada – moving to Greater Reno-Tahoe can attract and retain the right people. Talk about taking the gamble out of making a move!

Bottom line: Greater Reno-Tahoe companies keep more of their profits

 Today we are going to be focusing on REO’s. What are they? Where do they come from? Who buys them?  Most Real Estate Professionals know that REO means “Bank Owned” or “Real Estate Owned” & if they don’t, maybe it’s time to find a new Agent. 

While discussing REO’s in everyday conversation with the general public, I have come across many-a-deer caught in luminously blinding headlights when those 3 simple letters get tossed around. So, I think it’s time to set the record straight and explore the deeper meaning of the ever so mystifying jumble of  “R” + two vowels we call REO.

The Wikipedia, Free Online Encyclopedia’s definition of a REO or Real Estate Owned is “a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. As soon as the bank repossess the property, it is listed on their books as REO – Real Estate Owned – and is categorized as an asset (non-performing).

As soon as a property goes into a distressed status (the borrower/home owner misses mortgage payments) the bank will want to determine the amount of equity that the property has. A popular method to determine the equity is to obtain a Broker Price Opinion BPO or order an appraisal. Based on the amount of equity that is determined from the BPO, the bank will decide to try for a short sale or to allow it to go through the foreclosure process. If the bank is able to sell the property through a short sale or at a foreclosure auction, then the property will not become a REO property.

After repossession and the property becomes classified as REO, the bank will go through the process of trying to sell the property on its own. It will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a real estate broker (REALTOR). Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real estate investors will often go after these properties as banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property.

Once a property is REO, the bank or lender will try to get rid of the property by either selling it directly themselves or through an established broker. Many larger banks such as Bank of America and Wells Fargo have REO/asset management departments that will field bids and offers, oversee upkeep and handle sales. The majority of REO properties that are on the open market are listed in MLS by the broker/REALTOR that performed the BPO.”

So, now what we know what an REO is, and that it is actually a positive opportunity for someone looking to make a purchase, we can discuss how REO’s relate to Commercial Real Estate. Just like in Residential Real Estate, REO’s inhabit the Commercial Real Estate world as well. In the Residential world, if a homeowner can’t pay their mortgage, their home usually goes back to the lender or bank where the loan originated from. After the failed auction and repossession take place, the bank has an REO on their hands. This same scenario happens frequently in the Commercial Real Estate world with buildings, land, and anything that isn’t owned outright. A building owner defaults on his or her loan payments, the building goes back to the bank, the bank auctions the property off for the outstanding loan amount, nobody bids, the bank repo’s the property, and it is then labeled an REO. This same pattern is true for land owners. Many times the bank wants to quickly rid themselves of the property. So, for a buyer, this can be a very savvy time to stumble across a deal that might otherwise be nonexistent in a different economic climate.

Fennell and Associates Commercial Real Estate Team has worked closely with many banks & buyers executing many successful REO transactions. Ron Boles, a Commercial Agent here at Fennell and Associates, currently has 3 REO properties listed for sale. Click the link below to view our inventory.

www.fennellandassociates.com

Great Source of information from EDAWN regarding successful businesses in Reno, Nevada

Greater Reno-Tahoe is the right place for your business, but don’t take our word for it.

Hear from business leaders why they chose Greater Reno-Tahoe

The types of business that EDAWN seeks to recruit, grow, and retain are diverse in their products, services, and employment opportunities. Through innovative and creative partnerships between the public and private sectors, we strive to improve the overall quality of life in the Greater Reno-Tahoe area by facilitating economic growth.Here are some cases of companies that both benefit from and contribute to the vibrant and diverse Greater Reno-Tahoe business community.Click the Link Below for the full Story!http://www.edawn.org/business/case-studies

Great Article From MSN by Bill Dedman. Realistic Economic Forecasts per Metro Area, Positive Signs of Growth, Building Starts on the Rise.

Check out the Link Below!

http://www.msnbc.msn.com/id/31192872/ns/us_news-the_elkhart_project

 

Good News for 1st Time Homebuyers:

On Friday, the U.S. Department of Housing and Urban Development (HUD) announced that first-time homebuyers using FHA-approved lenders can now get an advance on the $8,000 tax credit created by the stimulus package and apply it toward their down paymentsor closing costs

Basically, instead of waiting to get the $8,000 tax credit, first time home buyers can get the $8,000 for the down payment. This is huge especially for people who have been approved or are awaiting approval,  but do not have the down payment for a house. And we all know what’s good for the residential market is good for the commercial market.
 
Here’s the full article from CNN MONEY: $8,000 HUD TAX CREDIT NOW!

Mt. Rose, Reno Nevada (View of Lake Tahoe)

Once again, a great business cost comparison for Nevada Vs Idaho from NV Energy, Nevada’s One & Only Economic Development Website.

Click the link below for an in depth comparison of the two states:

Business Cost Comparison: Nevada Vs Idaho

Click the link below for NV Energy’s Website

http://www.nvenergy.com/economicdevelopment/taxes.cfm

 ”The incentives of doing business in Nevada are expansive. Nevada boasts one of the most liberal tax structures in the nation and from a tax-planning perspective, the return on investment in the form of tax saving dollars can be enormous. Explore the numerous advantages of doing business in Nevada.”  

 - Nevada Energy

Great Link to Nevada Energy’s Site explaining why living and working or owning a business  in Reno is extremely beneficial!

http://www.nvenergy.com/economicdevelopment/taxes.cfm

Interesting Reno & National Retail market stats from Costar.

Check out the links below:

Reno Retail  Market Stats 1st Qtr 2009

National Retail Market Stats 1st Qtr 2009

 Todd W. Collins, Broker/Salesman with PM permit
Areas of focus: Industrial, Office Leasing and Sales
Direct: 775-850-3117
Cell:777-848-8130

Through out Todd’s career he has always followed a simple philosophy that his clients’ needs are always the first and highest priority. Todd’s success is measured by the success of his clients.

Prior to joining Fennell & Associates, Todd was immersed in the Reno/Sparks real estate market as the Real Estate Manager for Clear Channel Outdoor from 2003 thru 2008. During this time Todd gained intimate understanding of a variety of property & zoning types and how to navigate through the local municipalities to maximize the highest and best use of all of them.Todd relocated to the Truckee Meadows in 2001, obtained his Broker/Salesman license and worked as a temp agent for several new homebuilders in the area. Todd’s real estate career began as an Asset Manager in the REO department of Countrywide Financial Corporation in Dallas, TX and later Simi Valley, CA.

Todd is a marketing member of the Northern Nevada CCIM chapter and is actively pursuing a CCIM designation. Todd is also a graduate of the University of North Texas, earning a BBA with a major in Real Estate. When not working hard to fulfill the real estate needs of his clients, Todd enjoys road & mountain biking, skiing, hiking and spending time with his wife and son.