If you are looking to invest in real estate in the Phoenix area, you may
want to consider putting your money into multiple family dwellings.
Considering the current downturn in the economy, it really makes
good sense to invest in this type of housing verses a single family
home. Here is some information that will help explain why this would
be a smart decision.
Creating wealth through real estate investing is something many
savvy business people do. What are the advantages of putting your
money into small residential income properties? Suppose out of 10
units, 2 are vacant. The monthly costs to the investor are much lower
than that of an empty single family home. Make sense?
Here is an example:
Let's say owner "A" invested in a single family home of average size
that normally rents for $1200 with a mortgage of $1000 per month.
This home is now empty, and for one months mortgage the owner is
out $1000. This comes out of his own pocket.
Now, owner "B" has a 6 unit multi family dwelling and each unit rents
for $700 per month. The monthly mortgage on this property to the
owner is $3000. Two units are vacant, which means he will receive
$2800. This only leaves the property owner $200 short of making his
mortgage payment. Now, think about the outcome to you, the
investor. Would you rather have $1000 or $200 coming out of your
own pocket for that months mortgage payments?
This is one of the benefits of investing your money in multiple family
dwellings. You can see why putting your money in a single family
home isn't such a good idea when you can spread the risk among
more units. This helps you to create a more efficient cash flow for
yourself and create future wealth. Can you see how investing in
several multiple dwellings could help secure your financial future?
Owners of multi family dwellings also have plenty of other advantages.
With repairs, for example, you can write off a portion of the cost in
many cases. When you own a single family unit, you get no
immediate tax benefits.
Investing in real estate is one of the best ways to insure that your
future is secure. Real estate and residential properties rarely ever
decrease in value, and tend to increase over the years. Of course,
investing in single family homes is a good decision, but diversify and
put some of your money into multiple family dwellings.
Of course, the negative aspects of owning a multi family dwelling will
come to mind, such as getting calls from tenants with repair and
maintenance problems. This does occur, but it really isn't as often as
you imagine.
The hard and fast facts are that multiple dwellings will insure that you
have a steady income stream that is as recession proof as any
investment you could possibly make. Your family's financial security
depends upon making smart investments, and this is one of the best!
Tuesday, February 10, 2009
Thursday, February 5, 2009
Relocating To Phoenix, Scottsdale or Glendale Arizona
Phoenix Property – A Sunshine Filled Destiny
Whether you are relocating because of business, or just looking for a new home, Phoenix Arizona is a state filled with sunshine, fun and abundant living. If you are looking for real estate, our professional agents will help you find the house of your dreams – a place you will love to call home. We are the top pick when it comes to realtors who care, and truly want to help you make the right choice for your family.
If you are looking for homes for sale, or to sell properties you own, let us assist you. We will help make the process as seamless as possible! Our agents are professional and caring, with their top priority being your satisfaction. Our number one goal is to help people get the results they are looking for, whether it be buying the perfect home or selling the one you currently have.
Why should you choose Phoenix as your home? There are countless reasons. Along with being the 5th largest city in the country, Phoenix boasts many other attractions. Abundant golfing resources, beautiful sunshine most of the year, museums and restaurants for every taste are just a few of the reasons people love this city. The kids will love Castles and Coasters – this popular amusement park will fill their need for excitement!
Investing in Phoenix property is a smart choice, not only because of the huge amount of activities available in the city, but because of the constant growth as well. Our agents not only work to help you buy or sell a property, they also familiarize you with the town if you are a buyer. Your children's safety is more than likely your number one concern, and our real estate agents provide you with the information you need to feel confident about the education of your children. Neighborhood reports and demographics are also available for your perusal.
Having an experienced and knowledgeable agent whether your are buying or selling real estate is important. High caliber professionals will assist you with all of your needs, and make your transactions a breeze. Purchasing a home or selling real estate is much easier when you have an agent who is committed to you and your family. The best realtors join together as a team, so that someone is always available for your questions or needs.
If you are in the market for a house, Phoenix realtors have some of the most beautiful and affordable homes for sale that you will find anywhere. With the attractions the city boasts and the gorgeous weather nearly year round, this is the little piece of Heaven you've been searching for for your family. Phoenix property is unlike any other you will ever experience!
An established realtor will give you access to the sold market value of other homes with the same criteria in the Phoenix area. This helps you make an informed decision on what to offer for the property, and that the price you will pay is fair. Have you ever known someone who paid an exorbitant amount for real estate? We all have – but it doesn't have to be that way.
Are you in the market to purchase or sell properties? Phoenix is the place to be. Be sure to find a reputable real estate company that has an excellent reputation for client service and customer care. After all, it is your money and your family's happiness that's at stake!
Maureen Karpinski
Find your Phoenix Arizona Property at Cactus Country Arizona Homes & Properties
Whether you are relocating because of business, or just looking for a new home, Phoenix Arizona is a state filled with sunshine, fun and abundant living. If you are looking for real estate, our professional agents will help you find the house of your dreams – a place you will love to call home. We are the top pick when it comes to realtors who care, and truly want to help you make the right choice for your family.
If you are looking for homes for sale, or to sell properties you own, let us assist you. We will help make the process as seamless as possible! Our agents are professional and caring, with their top priority being your satisfaction. Our number one goal is to help people get the results they are looking for, whether it be buying the perfect home or selling the one you currently have.
Why should you choose Phoenix as your home? There are countless reasons. Along with being the 5th largest city in the country, Phoenix boasts many other attractions. Abundant golfing resources, beautiful sunshine most of the year, museums and restaurants for every taste are just a few of the reasons people love this city. The kids will love Castles and Coasters – this popular amusement park will fill their need for excitement!
Investing in Phoenix property is a smart choice, not only because of the huge amount of activities available in the city, but because of the constant growth as well. Our agents not only work to help you buy or sell a property, they also familiarize you with the town if you are a buyer. Your children's safety is more than likely your number one concern, and our real estate agents provide you with the information you need to feel confident about the education of your children. Neighborhood reports and demographics are also available for your perusal.
Having an experienced and knowledgeable agent whether your are buying or selling real estate is important. High caliber professionals will assist you with all of your needs, and make your transactions a breeze. Purchasing a home or selling real estate is much easier when you have an agent who is committed to you and your family. The best realtors join together as a team, so that someone is always available for your questions or needs.
If you are in the market for a house, Phoenix realtors have some of the most beautiful and affordable homes for sale that you will find anywhere. With the attractions the city boasts and the gorgeous weather nearly year round, this is the little piece of Heaven you've been searching for for your family. Phoenix property is unlike any other you will ever experience!
An established realtor will give you access to the sold market value of other homes with the same criteria in the Phoenix area. This helps you make an informed decision on what to offer for the property, and that the price you will pay is fair. Have you ever known someone who paid an exorbitant amount for real estate? We all have – but it doesn't have to be that way.
Are you in the market to purchase or sell properties? Phoenix is the place to be. Be sure to find a reputable real estate company that has an excellent reputation for client service and customer care. After all, it is your money and your family's happiness that's at stake!
Maureen Karpinski
Find your Phoenix Arizona Property at Cactus Country Arizona Homes & Properties
Friday, January 23, 2009
Advantages of Investing in Multi Units
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.
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.
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
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