After reading this article and knowing the market place for these units.I decided to publish it. Real Estate in Phoenix Arizona is at the lowest in many years and the multi units are definitely at the lowest. Loans are difficult to obtain for them but they are still out there and with interest rates at their lowest in 37 years, you can afford to take a bit of a hit on the interest rate considering you are also buying at bargain prices.Multi units in Phoenix, Scottsdale, Glendale and surrounding areas are there for the picking.
Advantages Of Investing In Multi Units
By: Charles P.
Submitted: 08:46AM on Tuesday 13 January 2009
The author has permitted the reprinting and redistribution of this article.
See our Terms of Use for more information on reproducing it.
Usually the investors believe that buying single-home units will get them a good foothold in this particular field and they don’t have to invest a huge amount. This is outright a misconception. In a multi-unit investment, you can find more tenants and better cash flow compared to single units or homes. This, in turn, helps to pay off the mortgage on the buildings much faster. And the money which is contributed by the people for the maintenance work helps to take care of the maintenance in an easier way. As the payments made by the tenants every month come to a big amount it always gives you an opportunity to use the leftover money for reinvestment. Thus, it is better to create a strategy and contract a multi-unit property meant for many people. If you are able to increase the number of your multi-unit properties your level of income will rise and you can afford to hire the services of home management companies so your properties are well taken care of. Compared to buying individual family houses, buying multi-apartment houses seems to be more profitable from the point of view of retail, lease as well as wholesale.
There are further advantages of investing in multi-units, which will convince you better why investing in multi-units is one of the best options compared to investment in single units.
Higher cash inflow: When you invest in multi-units you are able to get an access to various streams of potential income instead of just one. Let’s take an example of a 60-unit apartment community or society where you have your occupancy on almost all the sixty units and you earn sixty times more than you could have earned from a single family home. Even if you have only 50 percent occupancy you would still make more than you would have done with single-unit investments.
Services from home management companies: Investing in multi-units will require recruiting someone to manage your property. There are a large number of home management companies that are always ready to respond to your request for maintenance and repair. They can prove to be helpful in getting new renters and can as well help you expel those who don’t pay rent. In this way you can save time and money as well.
Higher profit from selling: Those who invest in multi-units are usually on the lookout for potential buyers to make higher profits. You may not find buyers so easily but when you succeed in finding one you stand to earn a good amount of money. Even if the property gives you only a 10 % margin you will make more money compared to selling a smaller property.
Maintenance at a single location: When you invest in multi-units you have the advantage of maintaining your property at one location. This could prove to be really advantageous when you are to manage the property single-handedly. On the contrary, when you purchase ten single units at ten different locations you will have to do quite a bit of running around to look after each property. Naturally, it will be a pretty tiresome job. Moreover, by investing in multi-units, you will find all your tenants at one place. You don’t have to move frequently from here to there to answer all your tenants' requests.
So, if you are a smart real estate investor, invest in multi-units and make them part of your investment portfolio.
Friday, January 23, 2009
Sunday, January 11, 2009
Multi Unit Loan Alternatives
In a difficult loan enviroment for investors buying and investors wanting to transfer ownership of a multi unit these days here are possibile alternatives. You can produce creative alternatives and stay in compliance with the lenders and all legal responsibiltes.
Loan Workouts / Modifications / Assumptions – It may be possible to structure sales based on a negotiated agreement with the existing lender. New financing may not be a viable option in the current market. The following points may be considered:
Negotiation with lender – In many cases, the borrower / property owner is not the best person to conduct negotiations with the lender. A qualified real estate broker, mortgage broker or attorney may be best suited to represent the borrower. I am available to work with you and your client to present the best case to support a loan workout or modification based on current market conditions.
Loan Assumption / Modification – A new buyer may agree to assume personal liability and to reduce the principal balance in return for a reduction in the interest rate, a short-term period of interest-only payments, or other loan modification as part of a property acquisition negotiation.
Seller Carryback – The current owner may structure a carryback (subordinate financing) as an incentive for the buyer to complete the transaction. A carryback reduces the cash equity required from a buyer to close a purchase transaction, while enabling the seller to create an income producing promissory note secured by a deed of trust
Loan Workouts / Modifications / Assumptions – It may be possible to structure sales based on a negotiated agreement with the existing lender. New financing may not be a viable option in the current market. The following points may be considered:
Negotiation with lender – In many cases, the borrower / property owner is not the best person to conduct negotiations with the lender. A qualified real estate broker, mortgage broker or attorney may be best suited to represent the borrower. I am available to work with you and your client to present the best case to support a loan workout or modification based on current market conditions.
Loan Assumption / Modification – A new buyer may agree to assume personal liability and to reduce the principal balance in return for a reduction in the interest rate, a short-term period of interest-only payments, or other loan modification as part of a property acquisition negotiation.
Seller Carryback – The current owner may structure a carryback (subordinate financing) as an incentive for the buyer to complete the transaction. A carryback reduces the cash equity required from a buyer to close a purchase transaction, while enabling the seller to create an income producing promissory note secured by a deed of trust
Housing inventory updates in Phoenix & Area Arizona
The good news is that our sales pace and inventory levels continue to stay fairly steady. Inventory levels dropped nearly 4% over the New Year and closings picked up to give us a market supply of 8 3/4 months, nearly twice as many as 1 year ago when we were sitting at 15 3/4 months.You do have to take into account that historically good or bad market housing inventory always drops over the holidays. People don't like to put their property on the market during those times when they are busy with everything else and if their house is ever going to look like a disaster, that would be the time. All of us here at Cactus Country know if we could get some loans available to qualified people, our closing numbers would be so much higher and our inventory that much lower which would definitely stimulate some movement in the market. We can have the lowest interest rates, which seems to be the case right now but if the bank isn't going to lend, it does absolutely nothing for us. If you are positioned right for your financing, there are some excellent deals out there.
The Realtor calls are on the increase and the potential listings call have really increased this past week.
The Realtor calls are on the increase and the potential listings call have really increased this past week.
Sunday, January 4, 2009
Happy New Year and a Very Prosperous One
It will be interesting, I'm sure when we look back a year from now and see where we went and how many turns we took getting there.
Lets all hope that we get the banks to loosen up some money for credible, eligible people to get loans. We are at a 37 year low for interest rates. That's a great way to start off 2009. All we need is the banks to give up the money so we can take advantage of these rates. First time homeowners have a wonderful opportunity here and Realtors have to be searching out that client base that went on the back burner November 1 when the ability to use down payment assistance went away along with the strict lending guidelines that stayed constant. I bet those lists are coming out of files and being checked twice. Low interest, low prices and still be able to get seller assistance on closing costs just not down payment could produce some very positive results. As we all know a little movement at the lower level and it all moves.
Happy New Year
Lets all hope that we get the banks to loosen up some money for credible, eligible people to get loans. We are at a 37 year low for interest rates. That's a great way to start off 2009. All we need is the banks to give up the money so we can take advantage of these rates. First time homeowners have a wonderful opportunity here and Realtors have to be searching out that client base that went on the back burner November 1 when the ability to use down payment assistance went away along with the strict lending guidelines that stayed constant. I bet those lists are coming out of files and being checked twice. Low interest, low prices and still be able to get seller assistance on closing costs just not down payment could produce some very positive results. As we all know a little movement at the lower level and it all moves.
Happy New Year
Love House Kids Program update from Christmas
Love House Update
Wow! What a Christmas! We had more kids than ever in need for Christmas
and people came through with unbelievable generosity. We supplied over 850 kids this year with toys and 55 of them were complete wish lists for teenagers living in group homes.With the economy not so great and so many fears of what is coming, I was concerned about our
Christmas needs getting met. People didn’t leave us. They got more creative and
it turned out fantastic. Instead of one person or family taking on one child a two or
three families took on the one child. People reached out to friends and co workers
that didn’t know we existed and got them involved. From that great effort, not only
did the kids get Christmas but the Love House Kids Program got more exposure and
from that we have received more offers to volunteer services. Everyone won.
The Girl’s Place has certainly had its breaking in time and what a trip it has been
It is a place for the exceptional girl that really is putting her own actions and accountability into a customized program leading to success for a lifetime. There are
lots that want it but few that are truly willing to work it. Even the willingness to learn
how to work it and be accountable can be the difference in a life time for these kids.
We will work with them on breaking the dependency on the system and becoming
completely reliable on themselves creating a healthy life style. I don’t know who has
learnt more, them or me. I certainly can attest to knowing more about some subject matter than I ever dreamed of. We never know where the success will come from but
it will and in some situations, we may not know about it for years later but in the
meantime, we are the front seat audience.
We have had a gal that was at our fund raiser jump on board the love train with her
talents in socialized internet marketing and put the Love House Kids Program and Girl’s Place on Face book. She is so energized and already making a difference, She is also
looking at some fund raising events that she may put on. This is going to be an exciting time for all of us and if Christmas is any indication of what people are willing to do for our kids that range from 0-19, the economy won’t be allowed to restrict us. Everyone will
just get more creative so the burden is spread out and not so heavy. The power of one person doing one thing has never ceased to amaze me. One person does make a difference; the Love House Kids Program is full of those stories and is where it is today
because of them. All of the kids at the
Wow! What a Christmas! We had more kids than ever in need for Christmas
and people came through with unbelievable generosity. We supplied over 850 kids this year with toys and 55 of them were complete wish lists for teenagers living in group homes.With the economy not so great and so many fears of what is coming, I was concerned about our
Christmas needs getting met. People didn’t leave us. They got more creative and
it turned out fantastic. Instead of one person or family taking on one child a two or
three families took on the one child. People reached out to friends and co workers
that didn’t know we existed and got them involved. From that great effort, not only
did the kids get Christmas but the Love House Kids Program got more exposure and
from that we have received more offers to volunteer services. Everyone won.
The Girl’s Place has certainly had its breaking in time and what a trip it has been
It is a place for the exceptional girl that really is putting her own actions and accountability into a customized program leading to success for a lifetime. There are
lots that want it but few that are truly willing to work it. Even the willingness to learn
how to work it and be accountable can be the difference in a life time for these kids.
We will work with them on breaking the dependency on the system and becoming
completely reliable on themselves creating a healthy life style. I don’t know who has
learnt more, them or me. I certainly can attest to knowing more about some subject matter than I ever dreamed of. We never know where the success will come from but
it will and in some situations, we may not know about it for years later but in the
meantime, we are the front seat audience.
We have had a gal that was at our fund raiser jump on board the love train with her
talents in socialized internet marketing and put the Love House Kids Program and Girl’s Place on Face book. She is so energized and already making a difference, She is also
looking at some fund raising events that she may put on. This is going to be an exciting time for all of us and if Christmas is any indication of what people are willing to do for our kids that range from 0-19, the economy won’t be allowed to restrict us. Everyone will
just get more creative so the burden is spread out and not so heavy. The power of one person doing one thing has never ceased to amaze me. One person does make a difference; the Love House Kids Program is full of those stories and is where it is today
because of them. All of the kids at the
Love House Kids Programand me thank you for caring about us and being there for us. Those that don’t know who we are, please visit us at http://www.lovehousekidsprogram.org/
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