Memorial Day was my first venture into giving out US Flags on Holidays. It was such a HUGE success, I decided to continue on the 4th of July. Over 200 flags were placed in our neighborhood, making for an amazing display of patriotism. Thank you to everyone who called to say thank you. It was my pleasure.
Rancho Corona Community - Gilbert, AZ
Green Parks featuring AMAZING Playgrounds, Basketball Courts, walking distance to the award winning Cosmo Dog Park, and less than two miles from the Santan Shopping Mall. Oh, and about 5 minutes from access onto the US202, leading you to anywhere you want to go.
Homes ranging in size from about 2000 Sqft, to over 4000 Sqft, and prices bounce between just over $200,000 to almost $400,000.
Here are the highlight in my video featuring Rancho Corona in Gilbert, AZ.
"Shaking Up" The Real Estate Industry
EVERY industry has gone through HUGE changes in the last year. The Internet is used for everything, and if you're not taking advantage, you're fighting an up hill battle. I specialize in homes for sales in the Town of Gilbert, and have mastered online real estate sales to give your home every advantage.
The Islands - Lakeside Living in Gilbert, AZ
The Islands in Gilbert, AZ consists of three(3) lakes, with homes ranging from $200,000 to over $500,000. Living on one of these lakes, is like living on an oasis in the desert.
Playa Del Rey Water Ski Community - Gilbert, AZ
Playa Del Rey is one of only three(3) actual water ski lakes in Gilbert, AZ. Those looking to buy a home in Gilbert, AZ, it's a very cool option. Buying @ Playa Del Rey puts you into a very small, elite group of home owners in Gilbert, AZ.
FHA, and buying a home.
Let me cut right to the facts here. If you're a FHA buyer, you may find "winning" the perfect home might be challenging. Yes, FHA is an awesome program for first time buyers. They require a VERY low down payment, and seem to cater to those of us on a VERY tight budget. But remember, how a "Buyer" see's FHA is VERY different than how a "Seller" see's FHA.
From the Sellers perspective, Government programs such as FHA can be a nightmare. While I can go on and on about the details, I sum it up this way... What Government programs "Aren't" a pain for those administering it...? Inspections are more demanding. Appraisals are scrutinized deeper. Sellers will often accept an FHA offer, after all other offers (Cash/Conventional) are exhausted.
I spoke to one Seller, who was currently going through a nightmare over a FHA situation. He had entered into a contract with a FHA Buyer for a agreed upon price. They had an appraisal done, which matched the selling price. The Buyer went to the bank, and was told a second appraisal needed to be done. A new FHA requirement. To top it off, the Seller was asked to pay for it.
Needless to say, the deal fell through...
The story doesn't stop there. A second FHA buyer entered the picture, and since the first deal was FHA, the second appraisal was still required. This appraisal came in WAY lower than the first, crippling the Seller.
As you're guessing, this was the last time this Seller agreed to a FHA deal. It's not the Buyers fault, but they're paying the price.
My advise if you're a FHA Buyer? Walk into EVERY deal understanding the Sellers motivation. Whether it be an investor selling a flip, or a Seller trying to short sale their home. If you're FHA, you WILL be looked at differently, making it VERY important your offer (and negotiations) are competitive from the start. Look @ EVERY deal from the perspective of the Seller.
If you had two offers on your table. One was a CASH deal (no paperwork, simple), and the other was a FHA (Government complex) loan, which one would you pick? If you were willing to pick the FHA Buyer, why? What would it take "for you" to make the deal too good to pass up? Approach it from this mind set, and you'll have better luck.
Property as an Investment? I can't, right?
New Kitchen - Granite - Stainless
 
BEFORE
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Added French Door
BEFORE
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Investments? I don't think I can? For many years, I thought that investing in property was for those who had a TON of extra cash lying around. How would I, on my modest income, buy an investment property? Here's the simple, correct way of looking at investments. Something I had to figure out by DOING...lol. SHRINK YOUR FOCUS. When I first started looking into investment properties, I started right at the top; single family homes. I started here because that's what I was familiar with. I lived in a house, so it only made sense to look at similar homes. I soon found they were WAY to expensive to make any sense, and I was forced to stop in my tracks. I was going about it ALL WRONG. First, think small. On the current market you can purchase a 2 bedroom, 2 bath condo in a nicer complex for under $50,000. Yesss, you have HOA (condo) fee's to factor into your numbers, but they're simply another part of the money crunch. Focus on one thing at a time; how much can you afford to spend on the purchase? Second, look at EVERY purchase from the perspective of WHO CAN AFFORD IT. What type of money would the tenants need to make to comfortably move in? If you purchase a 4 bedroom, 3 bath, $400,000.00 home, you're catering to the very well off tenant, or buyer. This narrows your client pool. However, lets say you buy a $50,000.00 condo. You fix it up and rent it to winter tenants (like I do), or young couples on a limited income. Your client pool just got a bit larger. You now have an opportunity to attract a huge client base, increasing the odds that your INVESTMENT will provide a return. My first investment property was a 1 bedroom, 1 bath 630 SqFt condo, in a complex built in the mid 1980's. The inside was original, and needed updating. I ended up buying it for $32,000.00, and invested another $15,000.00 in the renovation. I gutted the inside, added a french door to open the space, and installed a top-notch kitchen (cabinets, granite, crown molding, high-end fixtures). The bathroom was treated in the same manner. My goal? To bring the condo up to my standards, and to a standard that would justify my goal rent. I also looked at the property as a possible “retirement property” for myself and wife. Often I would ask myself one simple question. If I was paying $1,500.00 per month for a 1 bedroom, 1 bath condo, what would I demand? My answer? It better ooze class from the minute I opened the door. I also crunched the numbers in this VERY, simple way... $1,500.00 divided by 30 (days) equaled $50.00 a night. First, where could my clients even rent an AVERAGE hotel room for $50.00 a night? Second, how much would I pay a night for my condo? If more than $50.00 a night, I was on target. The result? I was able to get my full rent amount, and hit every financial goal. It took more than a great condo to get to this favorable result. It takes effective marketing. I took detailed photos, shot a HOSTED VIDEO of the interior pointing out WHY the client should stay there, and a Facebook fan-page devoted to everything in-between... If your clients can't SEE THE VALUE, they will go somewhere else. In my case, I wanted to show WHY my clients “needed” to pick my unit. I knew that renting ANY UNIT sight unseen was stressful. I would feel the same way. However, if they rented my unit, I knew they wouldn't be disappointed. Every upgrade had been made. I was able to express the advantages of renting my unit, at my desired rent. Less expensive properties can be ideal investments, if you take the time, and hire the right agent. Focus on the TYPE of client you're looking to attract, and imagine yourself as those clients during the process. If you spend a penny, expect 2 back in return. It's an investment, which means it provides a RETURN. Yet Another Example: I spent $400.00 (and of course the time to install) on crown molding. Another $200.00 for 4” baseboards. $3,000.00 stainless steel package. $1,500.00 on 18” tile floors; they look nice and are easy to clean. Important when you're on vacation. $600.00 on a french door. It opened the space, and gave the interior a look that wasn't available elsewhere in the complex. It made my unit unique. Simply, I felt my $1,500.00 a month clients would expect a classy look, so I strove to provide it. Again, if you spend a dollar, that dollar should make you 2 in return. I've been able to rent my condo solid through the winter, and every client has been 100% happy. 2013 is already booked. If you offer a solid value, everyone wins. Buying an investment now, while the market is challenging, is going to pay for itself over time. It's about finding the right property, at the right price, making the right improvements, with the right terms. If you're thinking it's time to look into investing, please give me a call. It takes little time to figure out what your options are, and besides, it's also fun..! |
Arizona Market Recovering?
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Arizona Market Recovering? Many times I read the local newspaper so I don't forget how to read...lol. Occasionally there's an article that catches my eye. Today it happened.  The Headline: VALLEY REAL ESTATE AGENTS HAVE GROWING OPTIMISM If you would like to read the actual article, I've included a copy (just click on image). In a nut-shell the reporter contacted Bob Bemis (ARMLS CEO) who heads up our MLS (multiple listing service). According to Bemis they contact agents who have represented a buyer/seller in the last year, and ask them if they're confident in the housing market. Points are assigned, and a number emerges. In January 2012 the number was 87. 100 is a perfect score. In February 2011 it was 57. Do I agree? I do, and here's my perspective. First, and few personal observations. If an agent sold a home between February 2011 and January 2012, they're going to have a perky outlook... Most likely they sold little the year before, so any sale after a long dry spell, can do wonders for the spirit. I see it this way, and as you might have figured out, I'm all about breaking things down so I can easily understand. I'll even use Arizona in my analogy. You're in the middle of the desert, it's 115 degrees during the day, and you have zero water. After walking 10 miles looking for help, you start to feel your throat tightening, and you've stopped sweating. While not a doctor, you know you're in serious trouble. As you sit down, giving up, you catch a glimmer off something just out of view. Crawling, you discover a muddy puddle. Enough water, you think, to last several days. It suddenly appears you might survive until help arrives. You're outlook? Pretty damn good...lol. If it takes longer than a few days to be found? Well, you'll worry about that when you start sucking on the damp sand... I'm half joking, but I think you get my point. Studies based on "perspectives" are hard to trust. Here are the facts, and I've seen this trend myself. If you're thinking about selling your home, and it's a straight forward sale (not a short sale/foreclosure) you're in high demand. Those buying in todays market understand what's involved in buying a distressed home. Many buyers find it worth while to spend a bit more, to not subject themselves to the process. This drives up home prices, and creates demand. Oh, and new home sales are at record lows (40 year record lows), so buying new isn't an option. Foreclosures and Short Sales aren't going to go away, and some think they will increase over the next 12 months. Some buyers will rethink the hassle, and purchase. Demand for the "easy purchase" homes will go down, and home values might stall. Also, if more sellers decide to sell, home values will be effected. Supply and demand. THE BOTTOM LINE? It's a good time to sell. It's better than 12 months ago, 2 years ago, or even 3 years ago. It's also a great time to buy. If you're looking to get into something a bit nicer, increasing prices won't just effect your home. The one you want will increase as well.
Shelve all the unrealistic expectations, get your home on the market, and make your move. Hey, I'll help you with it...lol.
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