Welcome to "Building Passive Income Through Real Estate". This weekend we took another trip to Las Vegas on the way to Los Angeles to see Mark Victor Hansen at his Mega Speaking event. As always, Jason was awesome and we were able to get some great information from him and put in another offer on a new construction project with Kimbel Homes in Southern Highlands. Kimbel decided to open all of their lots this week and they started going fast. Previously, they were released 6 lots a month. Now it is open season and they will probably be gone next week. Each phase of the project is about $10,000 more than the previous phase. One of our investors is buying one in phase 17 of 20. These won't last more than a week so if your interested in investing in some new construction, contact Jason Tomei at WelcomeHomeLasVegas.com. The construction on Phase 17 is about 14 months out so your basically just holding up your earnest money. We ran into some problems with financing the four condos but hopefully those problems were resolved today. The fifth condo at $10,000 less is still available. It looks like we are going to pass on that one this time in favor of the new construction.

Contents:
1. Mark your calendars for the next BLM Land Auction in Las Vegas.
2. It's all in the numbers.

Mark your calendars for the next BLM Land Auction in Las Vegas.
by Kevin Davis

While in Las Vegas yesterday, we found out about the upcoming auction in November by the BLM (Bureau of Land Management). Based on what I have seen on the website, a majority of the land available is near Anthem and Southern Highlands south of Las Vegas. These areas have been great over the last few years and are seeing tremendous growth this year with many projects nearing completion. The Anthem area is older and more established than Southern Highlands. There is a new store going into Southern Highlands, this fall. There doesn't appear to be any slowing in the market in Vegas. While at the Kimbel office, we experience many people coming and going only to find out that the construction schedule is now 14 months out. This should increase the resale market since many people don't want to wait that long to settle down in their new home.

The auction is scheduled for November 6th. You can register online at their website below.

http://www.nv.blm.gov/snplma/Sale/currentsale.asp

If you look at the past sales, you will see that the final prices at auction are almost double the fair market value. This is because they are mostly bought by development companies and then subdivided. The agent at Kimbel was telling us of a recent transaction her partner and her made in the Phoenix area. They were able to net 1.2 million in thirty days with this type of transaction. Other news in Vegas is that some of the land in Summerlin will be return to BLM because it is unsuitable for grading with all the bedrock that has been uncovered. Because of this part of Summerlin will be expanding to the north, just north of Cheyenne. Of course this is just what we heard from our contacts in Vegas, we'll have to watch the next few months to see what happens.

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It's all in the numbers.
by Kevin Davis

While we know that the number need to work in order to select an investment property, we also need to consider what position our credit is in and how much reserve funds we have available for the down payment. Based on our lender from Stetson Mortgage, a good rule of thumb for your FICO score is 640 or above. While you can still qualify with less, you will end up paying for it. It also make their job harder as it lessens the institutions available to choose from. Qualification requirements for loans are always changing and differ from lender to lender. It can be very challenging at times to prequalify, get to the final stages of the loan and only to have the deal fall apart because of financing issues. You also want to be carefull during the loan process not to apply for any other credit or even apply for a cell phone. When applying for th ecell phone, they will also pull your credit report possibly lowering your score. There have been cases where a loan was denied on the final stages because the applicant applied for a car loan before funding and the lender pulled a second credit report which showed a lower score disqualifying them for the loan.

To improve your credit score, you want no more than 30% balance on any of your credit cards. If you are below the 640 mark, you will want to use a credit service to improve your score if you have any incorrect information on your report. Your credit report is only a snapshot in time. Problems with your report can be cleared up fairly easy and for a minimum cost. Checking your own credit report will not affect your score.

20 tips for good credit

An alternative to avoid all of this trouble is owner financing. I will get more into owner financing next week in issue 6.

For a recorded conference call with Ron LeGrand, send me an email at

mailto:webmaster@firehorseinvestments.com

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