Why Arizona? Arizona, I.
e.
Phoenix, Scottsdale and surrounding cities is one of the more attractive and sought after areas in the entire U.
S..
The phoenix market was unprecedented in the value/appreciation that the owners of property witnessed.
Literally, people could buy properties and hold them for as little as two months and then sell them for a 20% or more increase.
Properties appreciated some 200% in a matter of 3 years.
This was due in large part to people desiring the weather and economy there and because of the option arm fiasco that ultimately brought us down.
During the 2007/2008 mortgage meltdown, these beautiful Arizona properties took a major hit.
Homes that were selling for $400,000 had dropped to an appraised value of $200,000.
Now, when you combine the economy slowdown, the mortgage values dropping and the overall climate nationwide, things in Arizona looked bleak indeed.
For some 6 months, investors and homeowners alike were losing their shirts and their homes.
The area, while still beautiful, was something investors and owner occupant buyers alike, were staying away from.
Let's fast forward shall we? We are now in mid 2008.
The economic climate in the valley is turning around rapidly.
New commercial construction has begun with a vengeance, and the declining properties values have leveled off.
In some areas of the valley (also called the valley of the sun), prices are beginning to inch upwards..
..
But this is just the beginning and most people do not have any idea what is starting and it's our goal to capture and take advantage of this shift long before those other folks even know what hit them! To answer the question, why Arizona? Because this market will increase first and stronger than the rest of the country How About My Down Payment? As with all of the investments that we make available, we try and make it so there is as little out of pocket expense (if any) by our investors as possible.
The way that this can be accomplished is to have our investors apply for, obtain, and use unsecured lines of credit for their down payment.
For the investor that has a two year old business, it is advantageous to obtain unsecured lines of business credit.
This will allow the investor to utilize their business to obtain down payment money without the use of collateral and without going on their personal credit report.
For those individuals that do not have a business entity to use, we offer unsecured lines of personal credit that they can obtain, so that they still do not have to touch their own funds to bring a down payment to the table.
Whether the investor uses business or personal lines of unsecured credit, the monthly payment should be rolled into the cash flow that the property will bring in.
It should be remembered that, as always, it is cheaper in the long run to use your own funds.
We try to get the loan amounts as close to 100% financing as possible, but 10-20% down per property is what most of our investors are looking at at this time What Type Of Properties Will You Buy? This will vary quite a bit.
For the most part (and I will say 100% of the time right now), we invest in single family homes and condominiums (or condo type properties).
We always make sure that these properties are in highly sought after areas or areas that our professional team members tell us will be the next to rise in value.
The properties do not need any work and are in excellent neighborhoods.
When we go after the condo type projects, they are at unbelievable buys, have expert management in place.
At this time we stay away from commercial properties or multi-units as they are higher in price and require more knowledge to own.
Once some of our investors realize their appreciation of funds, we may take a vote if you will, and see if there is any interest in pursuing that path.
Note: At times, we run do across light rehab projects that could turn an amazingly sweet profit.
We have the people in place to do the light work.
When we get these, we run them by our investors to see if there would be any interest on their part.
How Can It Be Hands Off? Hands off or totally turnkey is one aspect of this system that makes it so perfect.
Most of the individuals that become investors, are not seasoned investors at all.
They are either running their own companies or they have careers that take up most of their time.
The one thing they do not need is another headache or another "something" that tries to take up more of their time.
They realize early on, and we realized it too...
They cannot make more time and it is the most precious of commodities! When our clients become investors, we have done everything to make this an easy operation to master.
First, we have located the properties, inspected them, and had our professional team run comparables and market surveys.
At this point, we navigate the lending process with either one of our traditional lenders, a new one that will fit these specific properties best, or the investors personal lender.
We make sure that they get with the investor and take as little of their time as possible in processing the loan.
We also use a nationwide title company that will come to the investors home or place of business and sign the documents for the loan and title work (again to keep the time factor down and make things as easy as possible for our investors).
Finally, each property will be handed off to a professional marketing and maintenance company that will locate tenants, evict tenants, collect the monthly rent (if needed) and do any and all of the late night phone answering and repairs that the tenants will need.
This is what truly makes it hands off for the investor.
Nothing Is Totally Risk Free I wanted to take a moment and state the obvious that is not something that people often want to think about...
The truth.
It is true that we have attempted to dot all of our "i's" and cross all of our "t's", but the simple truth is that things do go wrong sometimes.
Now, by inspecting the properties, knowing the area, having the best management companies and negotiating the prices, we take a lot of the worries out of the equation, but this is not a 100% exact science.
The tenant could have a death in the family and be forced to break the lease.
This could leave you covering the mortgage payment for a month or something like that.
These things do not happen often, but they can.
Again, my point here is to say that we feel we have the best investment opportunity for short term appreciation with a hands off system in place, but nothing is 100% guaranteed besides death and taxes.
Whenever you invest in property, it is the most sound investment there is, but don't expect never to hit a bump in the road.
Getting Started The first thing that you will want to do is figure out your own situation.
Will you need help to get your credit up? Will you need to apply for business or personal credit lines to come up with the down payment or do you have money saved? How many properties do you ultimately want to obtain? Once you have these questions about your own situation answered, then you will want to contact someone that can take you to the next level without fail!