Phoenix Real Estate Podcast with Oggie Penev

Here are three reasons why you shouldn't worry about a crash. Some people believe we're in a market bubble that's going to burst and cause a wave of foreclosures. However, if you take a look at the numbers, it's easy to see that this is extremely unlikely to happen. Here are three key reasons why we're not on the verge of a crash: 1. The banks are ready this time: When the market crashed and caused a surge of foreclosures in 2007, the banks weren't ready. The default servicing departments were understaffed, and they didn't understand how to modify loans or deal with short sales. Now, the banks are prepared and have hundreds of employees who know how to deal with foreclosures.  “I don't think foreclosures will negatively affect the market.” 2. People have equity: In 2007, a lot of people faced foreclosure because they had no equity and their property was vacant. They had a lot of motivation to get rid of their property, but it was hard to sell homes quickly. Because of this, they'd just stop paying and let the foreclosure occur. Today, most people in foreclosure or forbearance have equity in their property—their homes aren't vacant. They can sell easily if they need to. 3. We have a big secondary market: Right now, every market has small investors looking for homes to flip, rent out, or sell. We also have institutional buyers who are looking to buy many properties and hold them forever.  For these reasons, I don't think foreclosures will negatively affect the market. If you have any questions or would like to talk about investing in real estate, feel free to reach out to me. I look forward to hearing from you soon. 

Here’s what you should know about manufactured homes. Today we’re talking all about manufactured homes. Here are three things to look out for that will help save you time and money. 1. HUD labels/tags. These are metal plates attached to the back of manufactured homes and certify that the home was built to HUD guidelines. Every mortgage company requires manufactured homes to adhere to these guidelines so they can be financed. These guidelines started in 1976, so if a manufactured home was built before then, it most likely won’t be eligible for financing. “All mortgage companies require the affidavit of affixture.” 2. Affidavit of affixture. When a manufactured home comes out of the factory, it’s like a vehicle. It has a title and registration. The owner pays for the registration, then has the option to affix the manufactured home to a piece of land. All we have to do is go to the motor vehicle division, give them the title of the manufactured home, and get the affidavit of affixture. That is the legal document that gets recorded in the county, which combines the manufactured home with the land and makes it one piece of real estate. All mortgage companies require this for financing. 3. Don’t buy a manufactured home that has been moved more than once. These homes are designed to be moved once and only once. If they are moved a second time, it becomes ineligible for FHA and conventional financing. When the home is moved the second time, it causes a lot of damage and stress to the property. You can find out if a home had been moved before on the affidavit of affixture. Cash investors get burned by this issue a lot, so be careful if you or someone you know is thinking of purchasing one. If you have any questions for me about this topic or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here’s why I don’t think you should buy a real estate investment in cash. One of the secrets to successfully investing in real estate is to never pay cash for a property. Always use leverage and financing. I was recently a guest on a podcast where this topic came up, so I wanted to share my thoughts with you today. You don’t have to use your own money—use leverage. I would never advise anybody to buy with cash.  “Even if you have the cash, don’t buy real estate at full price.” Let’s say you and I invest in real estate and we each have $100,000 cash. You buy one property in cash and rent it out to tenants. I take the $100,000 and put a $25,000 down payment on four different properties, then rent them all out to tenants.  In 20 years, the value of all these properties will easily double. While your property is worth $200,000, my four properties are worth $800,000, and the tenants have been paying off my mortgages the entire time. I made four times the money by spreading the risk four different ways. Even if you have the cash, don’t buy real estate at full price. Go get financing instead. If you have any questions for me about investing in real estate, buying/selling, or real estate in general, don’t hesitate to reach out via phone or email today. I look forward to hearing from you. Watch the full podcast episode here!

Here are some critical investment property tax hacks. If you use the tax system properly, you could end up never paying income tax on your rent or a capital gains tax on the profit you can make from the sale of a property. If that sounds like a bold statement, allow me to elaborate:  Let’s say you bought a property for $250,000, then rented it out for a net cash flow of $10,000 a year. Clearly, this is a profit. However, the IRS considers your investment property as a business, and they require you to depreciate the building. There’s a certain formula they expect you to use when calculating that depreciation: the initial value of the property divided by 27.5 years. In our example, your $250,000 property depreciates by roughly $9,000 per year.  “A 1031 exchange is when you use the profit of your sale to purchase another rental property, in which case you wouldn’t have to pay capital gains tax.” On your tax returns, you’ll list that depreciation as an expense. Essentially, the money you collect from rent and the annual depreciation will offset each other, allowing you not to pay any income tax on your cash flow. Later on, let’s also say you want to sell that original property and buy another one for $300,000. If you sell it the regular way, you’ll have to pay capital gains tax on the profit. However, you could do what’s known as a 1031 exchange. That’s when you use the profit of your sale to purchase another rental property, in which case you wouldn’t have to pay capital gains tax. Basically, you’re deferring the taxes for later—but that ‘later’ never has to come around.  Instead of selling that second property for $350,000 and paying 20% on taxes, you can do a cash-out refi. Let’s say the appraisal comes in right at $350,000, and the lender gives you up to 75% of the value. So you get a $260,000 loan. You’d pay the first $200,000, then put $60,000 cash in your pocket to spend however you want. The IRS does not consider refinancing as a taxable event. That’s because the $60,000 you put in your pocket is still owed to the bank.  What you’re doing is putting a higher lien amount on the property. By pulling the money out, your payment goes up slightly. That’s precisely when the rent should be raised to support the higher mortgage payments.  If you have further questions on this or any other real estate topic, don’t hesitate to reach out via phone or email. I’m always here to help, and I look forward to hearing from you.

Three creative ways to finance a purchase if you can’t go to a bank. Oftentimes, homebuyers have enough cash saved up for a down payment but don’t have good credit, which means obtaining financing through a regular bank isn’t an option. In these cases, we use some pretty creative financing strategies. Here are three alternative routes you can take if you find yourself in a similar situation:  1. Lease purchase. When your credit isn’t good enough to qualify for financing but it’s just a matter of time—say, six months to a year—until you can repair it, this option may be one of your best. You can first rent the property you want to buy, then work on your credit (e.g., pay down debts) until it’s healthy enough to secure the financing you need. With this path, there will be two contracts: a lease contract and a purchase contract.  Typically, these lease purchase contracts last for about two or three years, giving you ample time to get your financial bearings straight. The best part: When you move in as a renter, you lock in the eventual purchase price right then and there. If after two years home prices have skyrocketed, you won’t have to bear that extra burden.  “You can first rent the property you want to buy, then work on your credit until it’s healthy enough to secure the financing you need.” 2. Seller carryback. In certain cases, when a seller’s home has been completely paid off, that seller can agree to act as the bank. For example, if a property is listed at $250,000, the seller may require a $50,000 down payment and the rest of that $200,000 to be paid off in installments of a specific amount for a certain period. This way, the buyer doesn’t have to go to a bank and try to get a standard mortgage.  3. “Subject to.” Let’s say a seller has an existing mortgage of $200,000 and wants to sell their property for $250,000. A buyer could put a $50,000 down payment on the property and take over those existing payments “subject to the existing lien.” Though this particular strategy has the potential for a lot of hiccups and hang-ups, it’s just another creative way to purchase a property without traditional financing.  Before pursuing any of these options, speak with an experienced agent who can help you determine whether they’ll make sense for the current market and/or your specific circumstances. If you have questions about this or any other real estate topic, I’m just a phone call away; I’d be delighted to help. I look forward to hearing from you!

These tips will help you when a buyer starts making repair requests. In nearly every home sale, buyers make repair requests to sellers. As a seller, here are three tips that will come in handy when a buyer you have under contract starts making repair requests: 1. Try explaining to the buyer the difference between repairs and improvements. Repairs are for when something is broken, and the whole purpose of a buyer’s home inspection is to find items that are broken and need to be repaired—not search for improvements that might increase the home’s value. A leaking roof, for example, is something that needs to be repaired. A roof that’s old and might need to be replaced in five or 10 years is just something that could be improved.  “You should make sure the buyer can actually close the sale before embarking on any repairs.” 2. If something needs to be repaired, avoid doing it yourself. Always offer the buyer a credit in the form of a dollar amount so they can do the work themselves after the sale. A lot of issues can come up if you try doing any repairs yourself before closing. For instance, the buyer might not like the work you do, and that might lead to another round of negotiations. Or, if they decide after the closing that they don’t like how you’ve repaired something and they seek you out to fix it, that situation can get messy.  3. If the buyer insists that you do the repairs, do them near the official closing (e.g., a week or two beforehand). You should make sure the buyer can actually close the sale before embarking on any repairs, so wait until they’ve gone through the inspection, appraisal, and bank-approval phases to get started. You don’t want to spend all that money on repairs only to see the buyer back out of the deal.  As always, if you have questions about this or any real estate topic or are thinking of buying a home soon, don’t hesitate to reach out to me. I’m happy to help.

Here are the three key signs that show our real estate market is shifting. To determine whether the real estate market is shifting from a seller’s market to a buyer’s market, there are three warning signs that you need to look for: 1. Days on market. How long does it take for a property to sell on average? If the average is just 21 days, that’s pretty good. If the time increases to, let’s say, 45 or 60 days, that’s a good sign that prices will be adjusting downward. 2. Incentives. When sellers start offering more incentives, you know the market is on its way down. These incentives are signs that buyers are getting ever so slightly nervous about the market. 3. Supply. When supply starts to increase, that’s the ultimate sign of a market shift. If supply increases faster than demand, we’re moving away from a seller’s market to a buyer’s market. This could lead to an increase in demand and potential price adjustments. These three signs will tell you where prices are going, but even in a downward shifting market, it takes a long time for the market to shift—anywhere from eight to 12 months to see a significant impact. If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here are three signs to watch for if you want to predict a market crash. There are three signs you need to watch for if you want to predict whether or not the real estate market is going to crash: 1. Vacant homes. Many vacant homes and tons of motivated sellers can push prices down and impact the market negatively. 2. Desperate sellers. This could be caused by the state or city having economic issues like high unemployment. This type of problem makes homeowners unable to pay their mortgages. Also, sometimes sellers are desperate because there aren’t enough tenants for rental houses, so they aren’t earning income from the property.  3. Many people leaving. If a lot of people are leaving big cities and the surrounding areas for locations with better economies or more jobs, that means there won’t be enough demand in the market from buyers and renters.  If you have any other questions about how to predict a market crash or concerning real estate in general, please call or email us. We’d love to be your real estate resource.

Here are some legal situations to be aware of as a vacation rental owner. Whether you already own a vacation rental home or are thinking about purchasing one, there are three legal challenges that you should be aware of from the start: 1. Lease agreements. It’s very important to use the proper document for the type of rental property you have. There are two types of rentals: short-term and long-term. If you use a long-term lease agreement on a short-term rental, it could be a problem if you have to evict somebody. On a short-term lease, you have the right to call the police and get the person out of the property. On a long-term lease, however, you’ll have to go through the eviction process to get them out, and that could take a long time. “The sales tax for a short-term rental is much higher.” 2. Paying taxes. Every owner of a rental property is required to collect a sales tax from the tenant. Short-term rentals are taxed differently and are assessed a lodging tax, like a hotel or motel. If the normal long-term rental property sales tax is about 2% or 3%, the normal short-term rental tax is closer to 10% or 11%.  3. HOA restrictions. If you buy a home within a homeowners association, they have the right to change the rules and require “minimum rental days.” They could require you to rent the home for a minimum of 30 to 60 days at a time, meaning you couldn’t rent it out for a day or two at a time. If you have any questions about short- or long-term vacation rental properties or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

The holidays are here and we wanted to send a short message to all of you. Another holiday season is here, and it’s the best time to remember those who make the holidays meaningful. This year has been full of surprises and challenges, but now it’s time to slow down and focus on what really matters: enjoying life and having a good time with family over great food and even better conversations. We thank all of you for your support this year, and we wish you joy, happiness, and a very successful new year. To hear our full message, watch the short video above.

Here’s what you need to know about selling your home to iBuyers. An iBuyer is a person or entity like Opendoor, Offerpad, or Zillow, which gives you an instant offer for your home. Here are three things you need to know if you’re planning to sell your home to an iBuyer: 1. How iBuyers decide on the price of your home. Usually, they pull comparables out of the market via tax records, and they always go in the lower spectrum of those comps. For example, if a property in your neighborhood sells for between $220,000 and $250,000, they’ll always value your property at the lower end. iBuyers tend to price homes very conservatively. 2. They usually buy sight unseen. Most iBuyers make offers over the internet based on information about the property you provide. That can be dangerous because when they come to inspect the property, they’ll almost always find problems with it and will then try to lower the price to cover repairs. Be careful: The initial offer from iBuyers may not be the final offer. “iBuyers tend to price homes very conservatively.” 3. They charge additional fees. iBuyers like to say that there is no commission involved in the sale, but there will be additional fees. Sometimes they’ll call the fees experience fees or convenience fees. When you get the offer from them, be sure to read the fine print to see how much they’ll truly be charging you. We’ve created a special program called the Express Offer Program just for home sellers who want to sell to an iBuyer. We partnered with over 20 different iBuying entities, and we can submit offers to them directly on behalf of our clients, keeping your name and information confidential. We’ll also do a listing analysis for your property to see how much you would get if you decided to list the property on the market, allowing you to compare results side-by-side and choose which one better suits your situation.  So if you’ve decided to accept an offer from an iBuyer or have been considering it, reach out to us first. We’d love to help.

Today I want to tell you about two home improvements that will not bring value to your home prior to selling it: 1. Swimming pool. Spending the money to add a pool to your property will cost a minimum of $30,000, but will probably improve the home’s value by no more than $15,000.  2. Solar panels. If you plan on staying in the home for at least seven to 10 years, they’re a good long-term investment and will save you money on your energy bills each month. However, if you’re adding them right before selling in the hopes that they will improve your home’s resale value, that’s not going to happen. Leased panels will not bring any value at all. The only time it might have some effect is if the panels are completely paid off. Even then, it will add no more than ⅓ of the original cost of the panels to the home’s value. “Leased solar panels bring no value whatsoever to a home.” Bonus tip for fix and flippers: Do not buy a fridge. Over the last few years, I’ve probably saved $50,000 by not buying fridges in these properties. It’s never affected the price or how long the home takes to sell. If you have any questions for me about what you should do to your home prior to selling it, don’t hesitate to reach out via phone or email today. I look forward to hearing from you.

Why is investing in real estate better than investing in stocks? More than investing in stocks, I prefer to invest in real estate. There are three primary reasons why: 1. Leverage. You can borrow money to buy a real estate investment. When you want to buy a stock for, say, $200,000, you have to get the cash and buy it—you can’t borrow money from a bank to purchase stock. If you want to buy a rental property for the same amount, you can easily go to the bank and apply for a loan. Leverage helps you buy a bigger asset, and if a property increases in value down the road, you’ll be able to pull some cash out by doing a refinance and spend the money somewhere else. 2. Forced appreciation. When you buy a stock, you just have to wait for the stock to appreciate in value, and you have to rely on the management team of the company to do a good job to ensure that the stock goes up. The average appreciation on stocks could be 6% each year, whereas, in real estate, you can force that appreciation by finding a property that needs repairs and buying it below market value. Then, you can fix it up and push its appreciation instead of waiting 10 years for it to reach a certain value. “Real estate is the only investment in which you can use other people’s money to make millions and never pay taxes.” 3. Tax benefits. Real estate is one of the few investments that, when structured properly, you could never have to pay taxes on—not on the income or on the capital gains. One benefit is the IRS allows you to depreciate the value of the property. They consider that a building loses value every year so that potential loss in value can be applied towards the income you’re getting from the rent. Even though you’re getting actual cash in your pocket at the end of the year, you can write off the depreciation of the building and offset the income. On paper, you’re not making any money. The second tax benefit to owning real estate is the 1031 exchange or the like-to-like exchange. If you own a property and its value goes up when you sell it, you’ll most likely have to pay capital gain taxes. However, if you roll that capital gain tax into another real estate purchase, then you’re avoiding the payment of this tax. Real estate is the only investment in which you can use other people’s money to make millions and never pay taxes. If you’re interested in becoming a real estate investor, please reach out to me. I’ll be happy to help you.

If you’re a landlord struggling to pay your mortgage, now there’s help. If you’re a landlord, I have great news. The Rental Property Owner Preservation Fund was established by the governor’s office to assist rental property owners here in Arizona. This program helps eligible landlords who have been directly or indirectly affected by the pandemic and are struggling to make their mortgage payment due to nonpayment by a tenant. This program has some limits, but it can certainly help many landlords.  The rent amount you apply for cannot exceed $2,000 per month per property, and overall financial assistance from this fund cannot surpass $50,000 per landlord. You can only apply for expenses accrued from April to August 2020.  “This program has some limits, but it can certainly help many landlords.” If you’d like to fill out the application for property owner assistance, you can do so here. If you’re a landlord you can apply yourself, or if you use a property management company, they can apply on your behalf. These are grant funds, and they come at a first-come, first-served basis. So if you need assistance, apply soon.  If you have any questions about this program or want to invest in real estate, please give me a call or send an email. I would be glad to help. 

Today we’ll discuss tips to help you write an offer on a bank-owned property. In the last installment of our series on writing strong offers, we focused on how to find out more about a seller’s primary motivations to sell. However, there’s another unique situation you need to know about where those tips won’t apply. When you make an offer on a bank-owned property, there are no emotions involved. Instead, you’re simply dealing with institutions, systems, guidelines, and numbers. Today I’ll share three tips on writing an offer that the bank will find acceptable. 1. Don’t make a lowball offer. The asset manager in charge of selling the house has a certain range around the list price that they’ll find acceptable—usually around 5%. If you write an offer at a really low price, you might end up having to wait another 30 days to see if they’ve lowered the asking price and then offer something less. “When you make an offer on a bank-owned property, there are no emotions involved.” 2. Follow the bank’s instructions. When dealing with a bank-owned property, simply follow the instructions they provide to you. That bank likely has multiple assets across the country, and they use a set system to sell off their assets, which they won’t change for interpersonal reasons.  You may be asked to show your proof of funds or a copy of your earnest money check. They may ask you to use a specific title company, or waive disclosures regarding the history of the property’s insurance claims. You may also be asked to execute an addendum from the bank. If you’re asked to do any of these things, they will be non-negotiable, as they’re set guidelines. The best thing for you to do is to focus solely on the price. 3. Do not ask the bank to make repairs. Simply consider the condition of the property and adjust your offer accordingly so that you can have enough available to make the repairs yourself after the closing. The bank doesn’t want the risk of putting extra money into the property prior to closing. There are many other things to consider when it comes to working with bank-owned properties, but these are just a few tips to keep in mind. If you’re interested in purchasing foreclosures, distressed properties, or bank-owned properties, just give me a call or send an email. I’d be happy to help.

Today, I’ll continue our discussion about writing winning offers with a few tips on how to write one when the seller is looking for convenience: 1. Allow the seller to choose when to close escrow. This typically comes up when a seller is trying to close on their property and also buy another one, but they’re not sure when their purchase will close. Allowing them to choose the close of escrow date lends them flexibility and makes your offer more attractive.  2. Offer the seller post-possession. We do this when the seller needs the money from their sale to move out of the property or to buy another one. Post-possession simply means the seller can live in the property for a certain amount of time after it has been sold. Usually, this is a short period of around five to 10 days and makes it more convenient to sell a property and buy a new one so they don’t have to move twice. 3. Accept the property as is. This could mean not asking the seller to do any repairs or waiving any disclosures to make it easier for the seller. If you’re looking to buy a property, we’d be happy to help. Just reach out to us by phone or email any time.

Here’s how to write the most secure offer possible. If you’re making an offer on a home whose seller values security above all else, what do you do to prove to them that your offer is strong and will close? Here are three tips that will help you: 1. Make your earnest money non-refundable. You can do this at the beginning of the transaction when you open escrow, but the most secure way is to do it right after the inspection of the property.  “By waiving the appraisal contingency, you’re showing the seller that it won’t affect you even if the property doesn’t appraise.” 2. Show the seller you’re a strong borrower. In Arizona real estate contracts, there’s a the loan contingency that states that if the buyer can’t get financing, they can withdraw from the contract at any time and get their earnest money back. Therefore, to show the seller you’re a strong borrower, you can waive this contingency. This leads me to my final tip… 3. Waive the appraisal contingency. In a multiple-offer situation, the purchase price can go way higher than the list price. However, this brings the risk of the property not appraising at the amount you’re willing to offer. By waiving the appraisal contingency, you’re showing the seller that it won’t affect you even if the property doesn’t appraise. This also means you’d be willing to pay cash to cover the difference between the appraisal amount and purchase price.  Of course, there are many other things you can do to be a strong buyer in our competitive market, so if you’d like to talk more about this topic or have any questions, don’t hesitate to reach out to me. I’m here to help.

Here’s how to make a winning offer to a home seller who values speed. When we are competing with other buyers to purchase a property, we have to tailor our offers to fit the seller’s needs. If the seller needs a quick close, we have to put certain things in the offer to make it attractive. Here are three tips on how to do that: 1. Inspection. Usually in Arizona, the inspection period is 10 days. If we reduce this to three or five days or waive the inspection altogether, you can cut down time on the close.  2. Appraisal. Right after the inspection is done, you order an appraisal. This usually takes about 10 days as well. What we do is write verbiage into the contract that shows the seller we will have an appraisal within 24 hours of the completed inspection and pay for a rush appraisal. Instead of waiting 10 days, we can get it done in two to five days. “If the seller needs a quick close, tailor your offer to that need.” 3. Pre-approval from a lender. Not just a pre-approval letter, but a fully underwritten pre-approval with all documents submitted. This can cut the time from 30 to 45 days to 20 to 25 days. This will help the seller close even quicker and could put you over the edge. If you are trying to buy a home and the seller has indicated they would like to close as soon as possible, start with these three tips. If you need more advice or have any questions that I can answer about real estate, don’t hesitate to contact me via phone or email today. I look forward to hearing from you.

In the last few years, many institutional buyers (or iBuyers) such as Opendoor, Offerpad, and Zillow have entered the real estate market. We receive tons of questions from clients about how their buying process works, what their offers are, and whether it’s better to sell to them than go the traditional route. So we created a program that gives our clients access to all the iBuyers that are buying homes in our area: the Express Cash Offer program. In the past few months, we’ve partnered with over 20 different institutional buyers in the Phoenix market.  Our process is simple: We come see your house, talk to you and get some information, then submit it to the iBuyers confidentially. Then within 48 to 72 hours we’ll bring you three or more offers and help you compare them so you choose the best one. We’ll also be bringing research on the retail value of your property so you’ll know whether it’s better to sell to an iBuyer for cash or list the traditional way.  If you’re interested in our Express Cash Offer program or have any questions, please call or email us. We’d be glad to help you.

There are two very important Arizona laws that all homeowners should know for their own protection: 1. The Arizona Homestead Exemption Law. This is designed to protect homeowners from general creditors. It protects the property for up to $150,000 in equity. Let’s say a property is worth $300,000 and you have a mortgage balance of $150,000. This means that you have $150,000 of equity that can’t be seized by creditors. This is great protection if you’re a homeowner 2. The Antideficiency Law. If you have a mortgage on your home and, for some reason, you can’t make your payments, the bank is going to foreclose and take the property back. This law says that the bank shouldn’t have any right to go after you for any losses or seize any of your personal property. That protection applies to residencies of less than 2.5 acres and less than two dwelling units. However, one thing to know is that this law doesn’t protect you in cases where you have already taken out a home equity line of credit (HELOC). This is pretty basic information about these two laws. If you want some more details about them, reach out to us and we will get you pointed in the right direction. We’re always here to help with any real estate needs as well. 

When a real estate investor is flipping a property, one of the most common things they forget about is the holding costs and their impact on the profitability of a transaction. If you’re in the fix-and-flip game, three holding costs hold the key to deciding the outcome. One is the cost of ongoing expenses such as utilities and property taxes that can add up after a while. The act of simply holding property for six months can cost you tens of thousands of dollars. To learn more, watch this short video above.

Here’s why homeowners are better off doing a short sale instead of a foreclosure. How can a short sale help you avoid foreclosure? A short sale is a process where the bank allows the homeowner to pay less than their current mortgage to sell their home. This benefits both sides: The bank saves money on legal fees and the homeowner doesn’t have to go through foreclosure. Opting for a short sale and avoiding foreclosure carries three big advantages: 1. You won’t have a foreclosure on your record for seven years. The only thing that will show up on your credit is an account settled for less.  “A short sale is a process where the bank allows the homeowner to pay less than their current mortgage to sell their home.” 2. Your credit recovers much faster. With a year or so of good payment history, you’ll be able to attain your previous credit score.  3. The bank provides relocation assistance. They like short sales, and they’ll encourage you to go through with them. They’ll offer you $3,000 to $10,000 just to relocate and sell your property before it enters foreclosure.  That being said, a short sale is a complicated process involving many loopholes you need to be aware of to do it successfully. If you’re facing foreclosure or know someone who could benefit from a short sale, don’t hesitate to reach out to me. I’m here to help. 

With all that’s going on in the world right now, a lot of people have been asking me about home prices and when they might start to go down. When the economy isn’t doing well, the first thing to get hit is the stock market, but the real estate market is always six to 12 months behind. Today I’m showing you three indicators that we’re following to tell whether prices will go down in the future. The first is supply and demand.

If you’re a landlord having problems with your tenants or a homeowner struggling to pay your mortgage, an economic injury disaster loan can help. Some of you may want to run straight to the PPP, in which loans can be forgiven. Don’t! You can also obtain the EIDL (Economic Injury Disaster Loan) and use it for a different purpose. I am talking about this loan before describing the PPP for several reasons. First, you can apply online immediately without having to talk with a banker, and second, you can receive up to $10,000 much more quickly and also get this amount forgiven. Here are the details: These types of loans have been around a long time and used in the past by those whose businesses were harmed by a natural disaster. Since President Trump essentially designated the entire country as a disaster area, these loans fall under the CARES Act and are now available to all business owners. They were also enhanced with an immediate relief check of $10,000 (for those that make too much to get the stimulus check, this is your chance to cash in and get some help for your business). The SBA has historically offered many favorable terms in their EIDLs: Loans are up to $2 million. The term is 30 years. Interest rates are 3.75% for small businesses and (2.75% for nonprofits). The first month’s payments are deferred a full year from the date of the promissory note. Now under the CARES Act, the EIDLs expanded provisions also include the following: EIDLs can be approved by the SBA based solely on an applicant’s credit score (not repayment ability and no tax return is required). The government specified that a prior bankruptcy does not disqualify you. EIDLs smaller than $200,000 can be approved without a personal guarantee, no real estate as collateral, and will take a general security interest in business property. It expands access to sole proprietors or independent contractors and all nonprofits, including 501(c)(6)s. The $10,000 emergency cash grants are the most interesting piece of the legislation. Borrowers can receive $10,000 in an emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments, or repaying obligations that cannot be met due to revenue loss. Moreover, applicants can get the emergency cash even if they don’t qualify for additional funds. Since lending decisions are based on self-certification and the applicant’s credit score, the review process is meant to proceed quickly. CARES also waives the requirement that you be unable to obtain credit elsewhere. That means you can apply even if you already have a credit line. You can start immediately and apply for these loans directly through the SBA at www.SBA.gov/disaster. There is no need to make an appointment with a banker to start the loan process. Also, as I stated above, you can apply for both the EIDL and PPP loans. Don’t listen to someone who says you can’t. The reason why there is confusion is that there is one particular restriction: The disclosure comes on the PPP application. It asks if you have received EIDL funds. Guidance in the Act says you have to disclose if you applied, but bankers aren’t currently asking, and the current app doesn’t ask this either (which will probably be updated). For now, I suggest you follow the written word and whatever is on the app. You have to sign and certify the information is correct on the app, and lying would be bank fraud. Don’t lie! From a strategic point of view, apply for the PPP first, then the EIDL if you’re concerned or the app is updated.  If you apply for both and the bank flags as such, it’s not the end of the world. The PPP amount would simply be reduced by the $10,000 emergency funds, but you can still obtain the long-term EIDL funds that aren’t forgiven. The other restriction is that if you want to receive “debt forgiveness” for the $10,000 EIDL money or any funds you receive under the PPP, the monies can’t be used or counted for both loans. For example, if you use the PPP for payroll expenses during the appropriate time and receive debt forgiveness, you can’t use the same payroll expenses to obtain forgiveness of the $10,000. However, you could use the EIDL money for other things like rent and get the $10,000 forgiveness with a different expense, or use the money for payroll after the PPP period. Finally, let’s be honest — this is not a loan for you to start a new business. You have to have been in business by January 31, 2020 to qualify. This is to build or save your business after the damages from the coronavirus, which you will have to explain in order to get this loan. Most importantly, this is a loan that you will have to pay back. If your business was already on life-support before COVID-19, maybe it’s time to reconsider your future plans rather than go into more debt. The Takeaway: File immediately for the EIDL $10,000 emergency funds and continue providing/uploading information to even get a bigger loan if necessary. You can always pull out of the process if you decide later you don’t need the money. Plan to use these funds for things other than the PPP (if you are applying there as well), but in the meantime get rolling so you don’t miss out on the loan if you need it.

Here’s a look at how inventory levels changed over time—the numbers are staggering. Here’s a quick update about where our real estate market has been, where it is right now, and where it’s headed in the future. We started the year in a strong seller’s market; we’re down 48% on listings from last year. At 0:39, you’ll be able to see a color-coded, time-lapsed map illustrating the change in inventory starting January 12 of this year. We used different colors for different ZIP codes (ranging from light green to dark red), and the darker the color, the less inventory in that area.  Notice how in just six days (January 12 to 18), the map gets noticeably darker; by February 23, the entire map was red. There were five especially hot ZIP codes where almost no inventory was left and buyers were competing against 10 to 15 different offers on the same property.  The market has been going well for sellers, but the interest rates have dropped significantly, making it opportune for buyers as well. If you have questions about how to proceed with a real estate move in these uncertain times, please don’t hesitate to reach out. We’re always here for you. 

It’s that time of year again where our property tax information will be coming in the mail shortly. For today’s message, I’ll give a quick lesson on how the county decides on property taxes, how you can appeal if you’re unhappy with their decision, and how you can make sense of the “Notice of Value” you receive.    Early in the year, the county assessor will send you a notice via mail regarding your property, wherein they will detail your property’s value and the amount you’ll be taxed. Beginning at 0:28 in the video, you’ll see a sample of the Notice of Value form.  In the top right corner of the notice, you’ll see the “parcel ID.” This is used in place of your property’s address. To make sure the ID corresponds with your physical address, you can search online at Maricopa.gov.  Below that, you’ll see the property’s assessed value—your taxes are based on this number. If there’s been year-over-year appreciation on your property, you’ll see an uptick in your tax obligation.  On the second page, you’ll see a portion called “legal class.” Each class will have a number value assigned to it. For example, the number “3” in our county signifies a primary residence, while the number “4” is used to classify an investment property, which means the taxes will likely go up. Now, let’s take a look at the top center of the notice where it says “Authorization code.” Those who want to receive this form via email in the future can input this code into the county website.  If you’re not too fond of the county’s assessment of your property, whether you feel they wrongly valued or classified it, you can file an appeal within 60 days of receiving the notice.  This is how the appeal process works step by step:  You can go to the county assessor’s office and file the petition in person. Don’t forget to come with all documented evidence that supports your appeal. Once the petition is submitted, the assessor’s office has until August 15 to respond. If an agreement is reached, no further appeal is permitted.  If you don’t agree with the assessor’s decision, you can go to the Board of Equalization and submit an appeal with them. From there, if you’re still not satisfied, your final recourse is with the Tax Court. Keep in mind that you’ll be responsible for upfront court fees. You must file your appeal to the court no later than 60 days after the Board of Equalization’s decision has been mailed to you.  Links to some specific websites and the respective forms for this process are labeled below:  County Assessor Appeal Form  Petition for the State Board of EqualizationTax Court Appeal Form If you have any other questions concerning this process, go ahead and reach out to me. I’d be happy to help however I can! 

Today I’ll remind you of items you should include on your 2020 tax returns. When you finally get around to filling out your tax returns, don’t forget to include the following three items: 1. The interest rate on your mortgage. Every year, the bank through which you got your mortgage will send you a 1098 form, which states how much interest you’ve paid over the year. That interest is deductible on your tax returns. 2. A property purchased in the last year. On the final settlement sheet from your home purchase (if there has been one), you’ll be able to find prepaid taxes and prepaid interest—both of these items are tax refundable. 3. Energy-efficient credits. If you have done any energy-efficient improvements on your home such as replacing your old windows, water heater, or air conditioning unit, you might be eligible to get a tax credit. Before you do your taxes, be sure to check for any energy-efficient tax credits that might apply to you. If you have any questions or suggestions for a featured topic on our blog, please don’t hesitate to reach out to us. We’d love to help you.

Now is the time for homeowners to upgrade in our market. I'm sharing the three reasons why. Here are the three reasons now is the time to upgrade into a newer, better home:  1. The difference in prices. If you’re selling a lower-priced property ($200,000 to $300,000), you can take advantage of high demand and sell for top dollar. Then, when buying at a higher price range ($500,000 to $600,000), you can take advantage of less demand and negotiate a better price.  2. The market is good. Mortgage companies are offering low interest rates and many loan programs. 3. Quality of life. If you’re trying to time the market and waiting for better interest rates and lower prices, you’ll never move up. There are more important things in life such as providing for your family and living your life the way you should.  We have a special homebuyer program designed specifically for move-up buyers where, if you agree to buy and sell with us, we waive your commission fee. If you’d like to take advantage of this offer or have any questions about today’s topic, don’t hesitate to reach out to me. I’d be happy to help.

Saving up for a down payment can be tough, but it’s easier when you know that you have options. Here are three ways to help with your down payment that don’t require saving. Even if you don’t think you can afford a down payment right now, there are ways for you to purchase a home without one. A lot of people think they need 20% to put down on a home, but that’s not true. FHA only requires 3.5% down and other programs only require 3%.  Even so, a lot of buyers still can’t afford that. Here are three ways to buy if you’re in a similar situation: 1. VA loans. If you’re a veteran or active-duty military, you can buy a home with a VA loan, which offers 100% financing. This means you can buy a home as high as $484,000 without having to make a down payment. “Even certain neighborhoods have their own assistance programs.” 2. Family assistance. You can receive a down payment as a gift from a family member. The only thing they don’t allow is for the money to come from someone who isn’t related to the buyer. 3. Down payment assistance programs. There are over 2,500 different programs that you can use to help you with your down payment. Counties, cities, and even neighborhoods all have different kinds of programs you can use.  If you’re interested in buying a home but aren’t quite ready for a big down payment, we’d love to help you narrow down your options to find out which decision is best. If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Owning a home is a much better financial decision than renting one. Here are three reasons why. If you’re debating whether you should buy or rent a home, you should know that owning a property has some great financial benefits. Here are the three reasons that you should buy instead of rent: 1. Homeownership is a good investment. Homes generally appreciate every year, so your down payment could very easily double. If you buy a home for $300,000 with $10,000 down, a 5% appreciation will practically double your investment in the first year. “Rental rates are always going to go up with inflation.” 2. You’re paying for housing either way. Although renting a home won’t involve taxes and maintenance costs, renters should know that stuff is already built into their rate. When those repairs go up, the rent will go up too. You might as well pay for that stuff on your own and get the benefits of owning an appreciating asset. 3. Owning a home is a hedge against inflation. Everyone knows that rent rates move based on inflation, so they will always go up. Homeownership, however, allows you to lock in an interest rate for 15 or 30 years to protect against inflation. If you have any questions for us about this list or about buying/selling a home, don’t hesitate to reach out today via phone or email. We look forward to hearing from you.

If you’re thinking of buying an investment property anytime soon, here are the types of properties that appreciate the most. In previous videos, I talked about the criteria that make the best types of investment properties, but which type of investment property brings the best return on investment? As it turns out, homes priced between $175,000 and $225,000 appreciate the most per year—between 7% and 8%. Additionally, smaller homes (e.g., those under 1,000 square feet) have appreciated by an average of 6.4% per year over the last 19 years, whereas larger homes (e.g., those over 3,000 square feet) have only appreciated by 1.6%. Keep these facts in mind if you’re thinking of buying a rental property anytime soon. If you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

Escrow holdbacks are a great way to save deals from falling through. Here’s what I mean. What is an escrow holdback? When you buy a property, the bank providing your financing will send an appraiser to the home to appraise it. In addition to calculating the home’s value, they’ll check the home’s condition. Banks don’t like to see specific problems in homes that are under contract (broken windows, a bad roof, etc.), so if they see these problems, they’ll require them to be fixed before they finance the deal.  If the seller doesn’t have the money to make these repairs before closing or the buyer can’t make them either, that’s where an escrow holdback comes into play.  “An escrow holdback is a great way to save a deal from falling through.” For example, let’s say the roof needs repairing. In this case, we’d get a bid from a licensed contractor and show the bid to the mortgage company. After they approve it, they’ll instruct the title company to hold in escrow a cash amount that’s 1.5x the bid amount. If the bid is $1,000, for instance, the escrow holdback amount would be $1,500.  After the deal closes, they’ll give the buyer anywhere from two weeks to 30 days to fix the problem. Once it’s fixed, the mortgage company instructs the title company to release the escrow holdback amount to the buyer.  The bottom line is, an escrow holdback is a great way to save a deal from falling through.  If you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

Once you’re under contract for a home, there are three mistakes you must avoid as a homebuyer. When you buy a property, your mortgage company has to pre-qualify you for financing, which means at the beginning of the transaction they’ll check your credit and employment to ensure you can afford your mortgage payments. What most people don’t know, though, is that they do the same thing again shortly before the deal closes—they’ll run your credit and call your employer. “Getting new loans will reduce your credit score and add extra expenses that might prevent you from qualifying for financing.” This means from the beginning of the transaction all the way to closing, there are three major mistakes you need to avoid so as not to jeopardize your home buying position: 1. Quitting your job. Quitting your job, or changing jobs, will create a huge problem.  2. Making any major purchases using financing. Don’t buy a new car or any new furniture, because getting new loans will reduce your credit score and add extra expenses that might prevent you from qualifying for financing.  3. Applying for new credit cards or close current credit cards. This is another thing that will reduce your credit score and possibly prevent you from qualifying for financing.  If you have any questions about this or any other aspect of the home buying process, don’t hesitate to reach out to me. I’d be happy to help you.

How can you make sure that you choose the right tenant for your property? Here are six of my best tips. Here are some tips that you should follow to ensure you choose the right tenant for your rental property: 1. They should be making 3x the rent of the property. Having a good income will make it much easier for the tenant to pay rent on time. 2. Verify the tenant’s income. 3. Determine the tenant’s credit score. The average score is around 660, so they should be near that number. If you have a property in better condition than normal, you should be looking for higher credit scores than the average. “Look for an average credit score around 660.” 4. Talk to the tenant’s previous landlord. Make sure you ask them, “Would you rent to this tenant again?” 5. Ask the tenant about themselves and what they do.  6. Meet the tenant in person before deciding. These are just a few tips to help you choose the right tenant. If you need more tips or want us to take care of it for you, don’t hesitate to reach out and give us a call or send us an email. We look forward to hearing from you soon.

There are three mistakes you must avoid as a landlord if you don’t want to cost yourself money. Here are three costly mistakes you must avoid as a landlord: 1. Entering the rented property without notice. This act is subject to a fine, which is usually worth at least one month’s rent. If you want to enter your rented property, you need to give at least 48 hours’ notice to your tenant(s).  2. Not refunding the security deposit after the tenant moves out. In Arizona, landlords have 14 days to refund the full deposit or itemize what’s collected in terms of any damages. If you don’t do this within 14 days, you’ll be fined an amount three times the security deposit.  3. Speaking to your tenant(s) when they file for bankruptcy. If they do file for bankruptcy, you’re not allowed to talk to them at all—doing so will result in a $5,000 fine.  If you have any other questions about leasing rules and regulations or you have any other real estate questions, don’t hesitate to reach out to me. I’d love to help you.

Here are a few red flags you need to be aware of when choosing tenants for your property. When you’re choosing tenants to live in a property you own or manage, there are a few red flags you’ll want to keep an eye out for if you don’t want problems down the road: For one, if a tenant has a lot of unreported cash or is paid almost entirely in cash, that’s a red flag. The sources of that money are hard to track down, and if you eventually need to collect from a tenant, it can make doing so hard. Also, they could be getting paid in cash on purpose to avoid creditors, which is itself a red flag. “If a tenant has a lot of unreported cash or is paid almost entirely in cash, that’s a red flag.” A second red flag to watch for is a tenant who says they want to move in immediately. This is very uncommon, so you need to be careful; there’s always some story behind the request to move in right away. Finally, it’s a red flag if the tenant shows up late to the appointment. It shows that they don’t respect your time, which could mean they won’t respect you while dealing with the lease and paying rent on time. There are a lot of little things you should watch for while selecting tenants. If you’d like to know more or are looking for something to manage your property for you, reach out to me. I’d be happy to speak with you.

There are three things that make Arizona the perfect place for your next real estate investment. If you’ve been thinking about investing in real estate, Arizona should be at the top of your list. There are three big reasons why our state makes for such a good choice: 1. The economy and population growth: Our economy has been doing very well, and the governor recently announced that we have a $1 billion rainy-day fund. If a recession happens, this fund will help us manage its impact. On top of this, Arizona ranks sixth in terms of U.S. population growth rates. We’re sitting at around 1.4% growth per year, which equates to 200 people moving to Arizona each day. The combination of a good economy and a high population growth means that there’s plenty of demand for places to live — perfect for investment! “Because tenants have good credit scores and great income, it’s easy to find suitable renters or buyers for your property.” 2. We have good tenants: On average, Arizona tenants have a credit score of around 669. This is only slightly lower than the nationwide average of 675. In addition, the average income of Arizona tenants is $40,000 per year while the average Arizona income overall is $56,000. Because tenants have good credit scores and great income, it’s easy to find suitable renters or buyers for your property. 3. Eviction rates are very low: In 2018, Arizona had a total of 66,000 filed evictions. Of these, 43,000 ended up with judgments and 20,000 ended with writs. This means that only 2% of all Arizona renters were affected by eviction last year. This is a very low rate for our market. If you have any further questions about why Arizona is such a great place to invest, feel free to reach out to me. I’d also be more than happy to help you find your own Arizona investment property. Until then, I look forward to hearing from you soon.

During a recession, one of the problems facing the real estate market is the people who are moving out of state and decreasing its population.  However, Arizona has demonstrated positive growth—our population grows an average of 1.4% each year, which means that around 200 people move to Arizona every day. This will keep the demand for purchasing and renting homes high.  Another factor that affects the real estate market during a recession is the overall economy of the state. In Arizona, we’re prepared for that. Recently, the governor announced that we have a $1 billion “rainy day” fund. Additionally, the constant population growth brings in new people, who, in turn, bring new employers. This makes for a strong economy with a low unemployment rate. “When people have jobs, the median income is high, which means they can afford to rent and buy new properties.” For example, during the last year in Arizona, we’ve added 80,000 new jobs. When people have jobs, the median income is high, which means they can afford to rent and buy new properties. The final factor that affects the real estate market in a recession is the number of vacant and distressed homes. In the previous recession when the real estate market was really bad, that was one of the reasons that real estate prices plummeted. However, today’s market is quite different; over the last 10 years, buyers have purchased homes with decent down payments and have built lots of equity. There’s also a high demand for rental properties. In the upcoming recession, I don’t think there will be a lot of vacant homes or distressed sellers, which will help the market. One thing is for sure: The recession is coming. But I don’t think it’s going to be as bad as the last time. On the contrary, I think Arizona will largely be fine. If you have any questions about this topic, please feel free to reach out to me. I’m happy to provide you with more information.

We’ve been doing some research lately about how streets got their names. It’s really fascinating, so today I’ll share the stories of how three streets were named. 1. Indian School Road. This Phoenix street was named for the school that was located on the road. The Phoenix Indian School opened in 1891 and closed in 1990 when it was bought by a commercial development and converted into a park. 2. W Bell Road. This street was named after Harvey Bell, a farmer who formed the Paradise Verde irrigation district in 1916. That district was responsible for the horse reservoir on the Verde River. 3. Grand Avenue. This street got its name from developers from Fresno, California, who were inspired to make a quick and easy route to attract newcomers to the west side in 1887. If you’re interested in learning more street-name history, click here. If you have any other questions, don’t hesitate to reach out to me. I’d love to hear from you.

There are three ways to handle a situation in which a potential buyer pitches you a lowball offer for your home, and today I’ll walk you through them.  But before we get to them, the first rule of any offer is to respond always, either verbally or in writing—do not ignore any offer from any buyer, no matter the price. This is a home-selling must-do. With that in mind, here are three ways to approach a lowball offer: 1. Test the market. If your home is listed for $225,000 and you’re given an offer for $190,000, it might be a good idea to test the market to see if you can’t get a better price than the $190,000—perhaps you could get $205,000 or $210,000 for it. Usually, when we drop the price, we’ll get a flood of multiple offers and bid them up to around $210,000. “The first rule of any offer is to respond always, either verbally or in writing—do not ignore any offer from any buyer, no matter the price.” 2. Counter their offer, but stay close to your list price. This will show the buyer that you’re a tough negotiator and you’ll see how high they’re willing to go if they’re serious about the house. 3. Politely decline their offer. If their offer is so low that you can’t even entertain it, tell them that you appreciate their interest but you don’t think this property is right for them and that they should move onto something else. This way, you’ll see if the buyer is truly serious about purchasing your home or if they’re just trying to get a good deal. If you’re looking to sell your home and you need a good negotiator on your side, please reach out to us. We’d be happy to show you what we do to list and sell your property for a great price.

If you’re in the market for a rental property, there’s a popular scam going around that you need to watch out for. How do we know how it works? We were indirectly affected by it.  You see, we listed a vacant property, but about a week later, we started getting calls from people asking about getting the keys to it. We had no idea what they were talking about, but we eventually found out what happened.  As it turns out, someone stole pictures of that property and used them to make their own fake rental listing on Craigslist. They even researched its tax records to find out who the owner was so they could create an email unsuspecting renters could respond to. Basically, they were trying to list the property far below market value and trick anyone who was interested in it to wire money to them in exchange for the keys to be delivered in the mail. “If the price is too good to be true, it probably is.” How can you protect yourself against this scam? There are a couple of red flags that you need to watch out for.   The first is if you come across a listing whose price is very low. If the price is too good to be true, it probably is. The second is if the person you contact for the listing tells you they can’t meet you at the property to walk you through it and/or hand over the keys.  The best thing you can do if you’re suspicious about a property, though, is give our team a call. We’ll research the property for you. You can also do the same thing yourself by just calling the “listing agent,” checking if the property is listed elsewhere online, or driving up to it in person and seeing if there’s a “For Sale” sign in the front yard. If there is, call the number that’s written on it.  As always, if you have any questions about this topic, don’t hesitate to give me a call or shoot me an email. If you’re thinking of selling a home or you have any other real estate needs, feel free to reach out to me as well. I’d love to help you.

For the last year, we’ve been testing new, innovative ways to market properties, and we’ve found that selling them through online auctions is one of the best avenues to do this.   With that said, we’re announcing the official launch of our own auction platform, which will cater to motivated sellers who’d like to sell their fixer-upper quickly and a little under market value to interested buyers who are looking to take on an investment opportunity.  The idea behind this new platform is to maximize value for both sellers and buyers. For those looking to sell as is, your home will garner attention from thousands of investors, rather than only receiving a handful of offers via the traditional way. “The idea behind this new platform is to maximize value for both seller and buyers.” This way, you’ll receive multiple offers, which will elevate your home’s price and keep you from leaving money on the table.  As for buyers, our platform will provide numerous opportunities to purchase fix-and-flip properties, hold investments, and other hidden gems that you won’t find on the MLS or anywhere else online.  For more information, go ahead and visit our website here. We’d love to hear your feedback. If you’re a seller interested in selling your property as is, we’d be happy to introduce you to the platform and show you how it works.  If you’re a buyer looking to invest in a discounted property, please give us a call as well. We look forward to hearing from you soon!

There are many reasons why rental properties are a popular and profitable investment vehicles in real estate. Here are the three most important: 1. Prices go up. On average, the appreciation of a home is between 3% and 5% per year. Over a long-term period, that means a lot of profit. 2. Rent goes up. Rent is usually tied to inflation, and it typically goes up between 2% and 4% per year. You could buy a rental property today and charge $1,000 for rent now, and be able to charge $1,500 in five to 10 years. “Owning rental properties is a fantastic investment.” 3. The rent pays down the mortgage. Every year, your mortgage goes down and that becomes equity. Therefore, you end up with a paid-off property. Owning rental properties is a fantastic investment. You just have to choose the right properties and manage them the right way. There are numerous other benefits that we didn’t even cover today. If you have any questions for me or want to learn more about how you can get started investing in real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

As a buyer, it’s important to know the loopholes in the Arizona real estate contract, in case, for whatever reason, you need to get out of yours. There are about a dozen such loopholes, but here are three less common ones you can use: 1. If the seller is late in providing the Seller Property Disclosure Statement. The seller is required to provide this to you within three days of signing the purchase contract. If they fail to do so within the designated time frame, you’re allowed five days after it’s provided to disapprove the disclosure and cancel the contract if you see the need to.  “Always work with an experienced agent who knows the ins and outs of the Arizona real estate contract.” 2. If the seller fails to provide the rules and regulations of the HOA. If the home is located in an HOA neighborhood, the seller is required to provide the rules and regulations of the HOA to you within a certain date. If they’re late in providing this information, you’re once again allowed five days after it actually is provided to cancel the contract.  3. If the seller fails to provide a lead-based paint disclosure for a house built before 1978. Similar to the first two loopholes, if the seller fails to provide this disclosure up front during the beginning of the transaction, you have five days after the disclosure actually is provided to cancel the contract.  These loopholes further illustrate an important point both buyers and sellers need to remember: Always work with an experienced agent who knows the ins and outs of the Arizona real estate contract.  As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d be happy to help you.

What are the three ways investors make money out of a rental property? 1. The property appreciates in value. If you buy a property right now for $250,000, for example, and the average appreciation rate for homes is 3%, it’ll be worth $390,000 in 15 years. 2. Increasing the rent. Rent is directly tied to inflation, so it’s almost always increasing. This means if you increase it at the same rate as appreciation increases—3%—and you start at $1,500 per month, in 15 years, you’ll be collecting $2,300 per month.  “Based on our calculations, investors get a 40% to 60% return on their investment per year from rental properties.” 3. The rent pays the mortgage. If you start using your collected rent to pay the mortgage on the property, in 15 years you’ll have paid off a good portion of that mortgage.  Based on our calculations, investors get a 40% to 60% return on their investment per year from rental properties, which makes it one of the best investments you can ever make.  If you’re interested in buying an investment property or you have any other real estate questions, don’t hesitate to reach out to me. I’d love to help you.

Overpricing is a major mistake that, unfortunately, is common among home sellers. Usually, sellers overprice their home because they want to net more money. Occasionally, they also overprice in order to control the market and sell for more than what the market can bear, although this is very difficult. The problem with overpricing your home is that buyers are very savvy nowadays. All they have to do is look online at other comparable properties to see if yours is overpriced. To keep you from overpricing your home and ensure you sell quickly and net as much money possible from your sale, we created our trade-in program, a home selling program designed to attract buyers and entice them to offer better terms and fewer concessions in their offers. The first part of this program is the Buyer Rebate offer. With this rebate, buyers get $3,000 cash if they buy your property. This amount comes out of our commission, so it’s no extra cost to you. “The problem with overpricing your home is that buyers are very savvy nowadays.” The second part is the Buy and Sell for Free offer. If a buyer wants to buy your home but they have a property they need to sell first, we offer to sell that property for free—no listing commission charges at all. This will save them as much as 3% of their home sale costs. The third part is the Rental Lease Buyout program. If the buyer is a tenant and still has several months left on their lease and can’t afford to make two payments, we have them cancel their rental agreement and then pay for their cancelation fee. This saves you the extra monthly expenses of holding your property for that buyer. The fourth part is Relocation Assistance. If your buyer is from out of state, we offer to pay for their moving expenses. Again, this comes out of our commission and is no extra cost to you. The final part is the Next Day Cash Sale. If the buyer wants to buy but also needs to sell their current property quickly, we have an investment division that can make a quick cash offer for that home and close on it within 10 days. If you’d like to know more about this program or you have any other questions, don’t hesitate to reach out to me. My team and I would love to help you.

Today I’m going to talk about five different ways that we can sell your home for free. That’s right, we can sell your home in a number of different ways that result in you not having to pay any listing commission. Here’s how we do it: 1. Buy & Sell for Free Program. If you are planning to upsize into a bigger home from a smaller one, we can waive our listing commission if you complete both transactions with us. We are only paid when you buy a home. 2. Smart Seller Program. When you list a property with us, you always have the option to sell the property yourself and pay no commission. If you find a buyer on your own while we are selling your home, we won’t charge you any commission. “If you aren’t happy with your new home within the first two years of owning it, we’ll sell it for free.” 3. Auction Marketing Program. With this program, we will sell your property auction-style. It’s a five-day online auction that will get your home multiple offers. With this program, the buyer ends up paying all of these commissions for you. To find out more about this specific program, go to www.ArizonaRealtyAuction.com. 4. Sell to a cash investor. If your home needs some repairs or a lot of work in general, this is a great option. We can connect you directly with an investor who will pay cash for your home and they will cover our fees, leaving you to pay no commission fees. 5. VIP Buyer Program. Anytime you buy a property with us and you aren’t happy with it in the first two years for some reason, we will sell it for you for free.  If you have any questions or want to learn more about any of these programs we offer, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Are you thinking of renting out an investment property? If you’re looking to hire a property management company to help you, you need to consider what kinds of benefits they offer before making a hiring decision.  Here are five unique benefits our new property management division offers to property owners who rent through us:  1. We’ll find a tenant for your property within 30 days. If we fail to find a tenant within this time frame, we’ll waive the leasing fee. 2. No eviction guarantee. If we find and place a tenant for you, but they stop paying rent and need to be evicted, we’ll cover the cost of that eviction. We’ll then find a new tenant to replace them without charging any leasing fee.  “If you’re not happy with our service, you can cancel at any time—there are no long-term contracts involved.” 3. Pet damage guarantee. If you allow pets in your property and we place a tenant with pets in your property and they cause any damage that’s worth more than the security deposit, we’ll cover up to $1,000 of the cost.  4. Cancelation guarantee. If you’re not happy with our service, you can cancel at any time—there are no long-term contracts involved.  5. Free property management program. This guarantees that we’ll refund all the fees charged to you when you sell the property.  If you’d like to know more about what we offer if you rent your property through us or you have any more questions about our Free Property Management division, don’t hesitate to reach out to me. I’d love to help you.

How does our team handle bank-owned foreclosure properties? We’re going to give you a glimpse into this process today as we visit and inspect one we’re currently handling.  Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure:  00:15 — An introduction to today’s topic 00:43 — Taking a trip out to a real foreclosure property 02:15 — Arriving at the property 03:09 — Checking the property for occupants 03:55 — Preparing to enter the property 05:10 — Entering the property and examining its interior 06:47 — Explaining the next steps (taking photos, changing locks, and determining value) 08:42 — Leaving a legal notice for the ex-homeowner 09:32 — Completing the initial inspection  10:34 — A few closing words If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Penev Realty has an exciting announcement: We’re expanding! We’re now adding property management to our services, meaning that we will soon help investor clients handle their single-family, multi-family, and vacation rental properties.  As many of you may already know, we already have a lot of experience with property management through our work managing and selling corporate-owned properties. We’ve handled hundreds of these kinds of properties, including those with countless issues—legal and otherwise.  “Our experience in both investing and property management gives us a unique qualification to help our clients build their own investment portfolios.” In addition to this, Penev Realty has also managed its own portfolio of investment properties over the years. And this portfolio is now set to bring between 40% and 60% ROI each year. In short, our experience in both investing and property management gives us a unique qualification to help our clients build their own investment portfolios, as well.  So if you or someone you know is looking for help with investing or is in need of a property manager, please feel free to give us a call or send us an email. We look forward to hearing from you soon.

In our recent video on the current housing market’s condition, we told you that there’s nothing to worry about in terms of a crash. This is still the case, but we’d like to show you how we’re able to tell. There are three red flags that indicate when a market crash could be on the horizon: 1. The economy of the state. If the economy is good and there are a lot of jobs, then people can afford to buy homes. If the economy is going downward and there are fewer jobs, people can’t buy as many homes. “We always keep an eye on these indicators.” 2. People moving out of state. This is usually related to the economy—if people can’t find work in their area, they’ll move elsewhere for jobs. When more people are leaving than coming in, it’s a bad sign. 3. Vacant homes. When homes are vacant (for the previous reasons), sellers are more motivated to lower prices and sell quickly. Since we always keep an eye on these indicators, we usually have an idea of what will be happening in our future market. If you have any questions or need more information, feel free to reach out to us. We’d be more than happy to help!