Ultimate Real Estate Newsletter 6/24/16 Edition

Unlimited Real Estate Magazine

Knowledge is everything in Real Estate

Arizona Discount Listing Service Starts at $995

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Listing Service Ohio Howard Hanna

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Income property for sale in Mesa Az

This property is a 3 bedroom 2 Bath home in Mesa Arizona. This home is remodeled home and ready to go.  The property is located in an excellent area.  The home has stainless steel appliances,Ceiling Fans and Tile throughout.  Low maintenance yard also.  Call Brett 602-363-6551 West USA Realty

Lets go over the approx numbers
Rent____________$1300
Property Manag
________________$  130
HOA____________$     32
Taxes________-__$   75
Insurance________$  60
Net Proceeds___$958 a month
If you already have a property manager that is great! If you need one we have a team already in place for your convenience. We also can get it rented for you with our licensed agents.
Call Brett 602-363-6551 West USA Realty

Having Real Estate Project Managers is Crucial

When your planning on buying a property, rehabbing it, and selling it you need a project manager that understands the whole process. For example you may need advice on what the home needs in upgrades based on the other homes sold in that neighborhood. You also need a plan to complete the home and sale it.

Having a bathroom on each floor will probably help sell a home with a finished basement and 2 other floors. Some properties need to have exteriors that match that neighborhoods lawns and exterior look.  For example how much does a 3 seasons room help the home in value and buyers view of the ad on?

You also need a manager to assist in making sure all permits are pulled and inspected through the city.  I had a sub contractor call me and wanted to get his final check for the job.  I ask if he had gotten his final inspection passed. He said his one inspection had passed, but that item needed two inspections to be final.  I ask him about the second inspection and he had ordered it but not had it done yet.  He did not get his final check until he got the final approval through the city.

These are very important factors when your doing a real estate project.  A project manger can also look at the workmanship and quality of the contractor and their workers.  I go to the homes under construction a couple times a week to help ensure that he work is getting done and that we are not missing anything.  I call the contractor if I have any questions or concerns on that property. The problems or questions are quickly addressed and the work continues.

I also video tape and update my clients weekly so that they can be informed of the progress. Who knows they may have someone that wants to buy that home also.  Cross Marketing can really boost you potential home buyer pool.

I am a Realtor also so I look at how to market and sell the property in the most efficient way. Having clients preview the home before it is completed gives me more of a prospective of what that client may like and not like. This gives me the upper hand on some of the questions or concerns buyers might have? For example I had buyers preview a property and they did not like how one of the interior doors opened.  They were right and I will be getting that fixed.

Having all the information that is needed to buy and sell any type of real estate whether it is flipping or income real estate requires a Project Manager that has been in the business.  After 950+ transactions helps me see things that other Managers may not see.  Call Brett 216-703-5740 Howard Hanna Ohio and 602-363-6551 West USA Realty Arizona

 

Northeast Ohio home sales were up 7.3 percent in May; prices still rising

Here is the latest news on the market in the Cleveland Ohio area. It comes from http://www.cleveland.com/ by Michelle Jarboe, The Plain Dealer  that talks about the current home sales in Ohio.

Sales of new and previously owned homes were up 7.3 percent from their May 2015 levels, according to listing-service data spanning 15 counties. Buyers in those communities grabbed 4,354 houses and condominiums last month, as the traditional spring sales rush showed little sign of slowing.”

As you can see from this statement the sales are not slowing down anytime soon. People are moving to this area and relocating need homes. The inventory of nicer mid priced homes is very low and the demand is high. Me and Lori have over $1.1 million dollars of rehabbed homes going on the market soon.  They are all mid priced and should sale very quickly.

In the busiest county, Cuyahoga, sales increased by 7.6 percent, based on statistics compiled by the Northern Ohio Regional Multiple Listing Service. Sales dipped in the second-busiest market, Summit County, falling 4.4 percent from May of last year.”

Almost all of our listings will be in Cuyahoga county where you are seeing the biggest increases.  The real estate that is taking longer to sell in $500,000 and up.  A lot of that has to do with the updating of the home.  Some homes in those areas are simply outdated and need a refresh to sell at the higher levels.  Gates Mills is extremely slow, and I think a lot of it is the homes need updated.

” In Cuyahoga County, the average sale price was $155,769 in May, up 3.4 percent from a year before. In Summit County, the average sale price jumped 8.1 percent, to $148,668.”

I like the slower up tick on the housing prices.  Where else in the country will you find real estate more affordable?  Living well in the Cleveland Ohio area is less expensive than most other parts of te country.  They are also exceptional neighborhoods and communities!

I specialize in buying homes in these areas, either foreclosure or retail.  950+ homes and counting Call Brett 216-703-5740 Howard Hanna Ohio and 602-363-6551 West USA Realty Arizona

Housing supply shrinking in Phoenix

My practice includes the Phoenix Arizona market and it has really heated up. I have clients that have started buying income real estate and see this market as both an income and equity grab market.  This article comes from http://www.cnbc.com/ by Diana Olick.

The median sale price for single-family Phoenix homes increased 11.5 percent in May from a year ago to $223,000. Condominium prices also surged nearly 12 percent.”

The average equity growth has been somewhere around 8% in most of the desirable areas.  We are buying income homes that retail around $165,000-$185,000 in the areas that cash flow the best.  Mesa, Chandler and Gilbert are some of the cities we like.  Mesa is the 2nd largest city in  Arizona. These are 3 bedroom 2 bath properties that rent for appox $1200-$1300 a month.  The yearly taxes are around $700. The net after all the expenses except a mortgage or maintenance is approx $950+ a month.  We fell that the income on these are great and so is the future equity that could increase the values.

” “The market is moving very fast, especially under $250,000. Homes are lasting one or two days on the market. It slows down quite a bit in the higher price ranges,” said Erik Jensen, a real estate agent with the Caniglia Group.”

I did a flip one property earlier this year and sold the property in 12 hours. The retail on that home was $274,900. Our strategy changed a bit with the tight inventory in this market.  Buying the income real estate especially at below the median housing prices is doing two things.  Getting better income and quality tenants.

I have done over 300 properties in the Phoenix market and like the income real estate.  Arizona is also a very pro landlord state that gets non paying tenants out quickly.  We have property management if you need it and boots on the ground.  I have a partner Bob Dermer that I have worked with since 2000.  We are both licensed Realtors and our main focus is income real estate.

Wanting income real estate and lower maintenance homes. Call Brett 602-363-6551 West USA Realty to get all the information and detailed service that fits your needs.

 

Buying a Foreclosed Home: Info You Need to Know

This story comes from http://www.realtor.com/ by Margaret Heidenry and it goes into some detail of what to expect in buying a foreclosed home.

“While foreclosure is hardly a pretty story for the home’s previous owners, it can be a bargain bonanza for buyers. Since banks are often eager to unload these properties, they aim to break even with an asking price that’s typically the sum of the remaining mortgage note plus interest, lawyer fees, and penalties. On average, this ends up totaling about 15% below the home’s actual value—and homes often sell for less than asking price.”

That is true for the starting price.  You need to know who to get the foreclosed properties less than that if you have a Realtor that understands foreclosures.  For example I just found a property for a client near a lake, we purchased for $94,000.  The value was $174,900 when it was completed. That’s a 54% discount that we got on that property.  We did remodel and sale it for $174,900.  We had around $135,000 total in the property after rehab.

You need to know the area and what upgrades you want for the home.  I actually go in backwards when figuring a price on a home. Understanding the upgrades and the cost of those upgrades helps you make a better decision on what you are willing to pay for a fixer upper.

“The biggest caveat when buying a foreclosed home is that it is typically sold as is, which means the bank is not going to fix any problems. And there may be plenty of them, considering that many foreclosures have been slowly crumbling into disrepair due to the previous owner’s financial strain. And unlike a normal home sale, in which disclosure requirements force owners to reveal a home’s every flaw, there’s no such legal stipulation in a foreclosure. What you see (or don’t) is truly what you get.”

I use “As IS” to my clients advantage. For example if you know what a new electrical box, Heater, Air conditioner, roof and other important high ticket items cost you are way ahead of the ball game.  I have a huge advantage when I walk into any As IS property, because I know the cost and can pick up most of the items that may need repaired or replaced. More importantly I know the approx cost of those items.

The cost of doing the repairs can also be a factor if you are not dealing with a Realtor that knows construction and has the people to do it for reasonable prices. We had a 2006 Square foot ranch home that we added new wood, carpet, tile, all new kitchen, interior paint, new canned lighting, plugs and switches and remodeled both bathrooms for under $30,000.

This story says to hire a home inspector.  I question that because most of the better homes are gone quickly. That means you have to make a quick decision on the property. I don’t know how a home inspector can test anything when the utilities are not usually on in most foreclosed homes. By the time they do most good properties are gone.

I have been through 1000’s of homes and bought over 950 foreclosed or distressed properties.  You want to find a distressed property in Cleveland or Phoenix?  I am licensed in both states and know the areas well and I can get you an approx rehab price.  Call Brett 216-703-5740 Howard Hanna Ohio and 602-363-6551 West USA Realty Arizona.

Lack of New Home Construction Is Bad Omen for Buyers

Here is a new story from http://www.realtor.com/ by Clare Trapasso that talks about the lack of new homes being built and how it will effect the real estate market.

“Trouble in paradise? By most standards, the national real estate market is booming. But not for everybody: Aspiring buyers frustrated by the lack of available properties and soaring price of homeownership shouldn’t expect to catch a break anytime soon.”

Inventory of homes also includes new builds and they are not going up fast enough. I was showing a property yesterday that is under construction  to some potential buyers.  They looked at the home and loved it.  They are considering the property….the reason I showed them the property before it was finished is because of the lack of inventory in that market.

“With the pace of new home construction lagging well behind the surging demand for these residences, it looks like the housing shortage is only going to get worse”

Real estate in most of today’s market is low.  A lot of the homes in the market need updating to fit a new families needs and wants. Updating a property can be pricey.  With most people not wanting to do the updating and not willing to lower their prices to compensate for their home price, it creates a lack of nice properties to purchase. Especially with a low inventory market.

“There’s no relief in sight,” says Jonathan Smoke, chief economist of realtor.com®. “We’re not building enough housing.”

If you need help updating your home and knowing what is needed I can do that.  Our Real Estate service helps everyone sale their homes faster and for more money.

When your thinking of buying a home to invest in or live in, be aware that they are not making more land or building enough new homes.  That’s why you need a Realtor that has sold over 950 properties to all types of clients.  Call Brett 216-703-5740 Howard Hanna Ohio and 602-363-6551 West USA Realty Arizona.

 

Look at the home we just put in escrow

When you looking at buying any type of Investment Real Estate you need to understand the areas and the benefits of that area for your portfolio. So many times I see newer investors look at the areas that real estate is easier to buy and cheaper. They buy and then realize that they have to do a lot more work on their property and have tenant turnover. Some get flip properties that look great on paper, but after they purchase the days on market are long.

That is not always the case. Every home buyer whether an investor or not wants to have the best real estate to live in and nice asset to their portfolio.  Having nicer homes also gives you an advantage of equity growth, Quality tenants, Quicker sales,and the list goes on. You can also sale it if you need to.  That is the major difference when your looking at an investment property, can you sale it if you need to.

Racing to the bottom with your real estate portfolio is not always the best strategy for you long term income needs.  Look at the property we just put in escrow in Westlake Ohio close to all the amenities you would ever want including Starbucks (my favorite). These type of properties attract quality buyers and tenants.  Call Brett 216-703-5740 Howard Hanna Ohio and 602-363-6551 West USA Realty Arizona

My Life as a Realtor with my Clients

As most people know I deal with investment real estate and retail real estate.  There are a lot of days I work into the evening and yesterday was no different. When your buying and selling real estate you always have to have your phones near you.

When I first got up in the morning, Windows 10 somehow had downloaded on my computer and really messed it up.  I had to call my computer tech that is remote to took care of getting my computer back to normal so that I could work. That was 2 hours out of my morning.

One of my flip properties that I had listed got an offer also.  I called the client and we worked up a counter for that buyer.  I usually wait til 5 pm to call the buyers agent back, I want the buyer and the buyers agent to think about it and also wait for more offers. This is a strategy I use to get the potential buyers that obviously loved the home to stress a little about their offer.

Lori got a call on another flip that we have listed (Only 2 are on the market right now) and the Realtor informed her that a offer would be coming over for that home later in the day. We will be calling the agent today with a counter offer.

After that I started working on my marketing and looking for more properties to buy for my clients.  During that time a quote came over for a home project I needed done to finish up a home and add some class to it.  I discussed the quote with the contractor to make sure I understood it. I then sent it to my client for their approval to move forward,

We then headed to the bank for some deposits and wrote some checks out for some contractors, Lori was also working on a landscaping project quote on another property that is currently under construction.

I drove to one of the properties that is being worked on and called the contractor for and update on that home and two others.  Getting these properties done as fast as possible is a key factor in this business. Discussing timelines helps keep me and my client up to date.

One of my clients called during that time to ask about the appliances we were installing in his property.  He was sending the check and wanted to have some more details on the appliances. I also talked to him about his other project and a property that was sold and waiting to close.

At 5 pm I called the Realtor that had sent me an offer in the morning with our counter offer. He said that he would call me back. In about and hour he did with another slight counter. I called my seller and he agreed on that price! The sellers agent was informed and very happy, he will be opening escrow today! I will also be calling he lender to discuss the loan.

Lori got a call on an offer that her client had put in earlier in the week and she did not get he deal.  That area they are looking in is very hot! The buyer was not happy, but they are looking at more tonight and will get one soon.

These are the days of a Realtor and my clients.  Having the time and knowledge to help get deals done is what I do.  Call me if you have any real estate needs, we are full service Realtors that take care of our clients.  216-703-5740 Howard Hanna Ohio and 602-363-6551 West USA Realty Arizona

Mortgage applications up 3% on lowest rates in three years

Here is yet another example of the pent up demand for housing and the low inventory is making this a super sellers market. This article comes from http://www.cnbc.com/ by Diana Olick.
Total mortgage application volume increased 2.9 percent last week on a seasonally adjusted basis from the previous week. Applications are now nearly 35 percent higher than one year ago, when rates were considerably higher, according to the Mortgage Bankers Association
People are buying real estate because of the lack of inventory and interest rates. Loan applications are up 35% and that is a substantial increase from last year when inventory levels were not as low.
Purchase volume is now down 7 percent in the past four weeks, and the annual gains are shrinking. A historically low number of listings has cut into potential sales in this usually busy season for housing, as demand far exceeds supply. Homebuilders did not ramp up production much in May, and housing starts are still running well below normal levels, not even considering pent-up demand”
Purchasing is down 7% not because there are less buyers, but no inventory to sell those buyers. Homebuilders are not building normally,mainly because the new red tape that was created to add 30% on the homebuilders cost.  Until that is addressed that there will be a shortage of new home builds. You also have to consider the lack of new home builds in the last decade.
Watching this market trend to low interest rates and a lack of homes to buy makes it a great sellers market. That makes homes easier to sale in most cases and you can get more money for them.  Call Brett to get your home SOLD! 216-703-5740 Howard Hanna Ohio and 602-363-6551 West USA Realty Ohio

Existing-Home Sales Grow 1.8 Percent in May; Highest Pace in Over Nine Years

 

This article gives us a great real estate sales trend nationally. It talks about the some of the same issues and also some new ones to consider. The article is from http://www.realtor.org/ by ADAM DESANCTIS

Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, grew 1.8 percent to a seasonally adjusted annual rate of 5.53 million in May from a downwardly revised 5.43 million in April. With last month’s gain, sales are now up 4.5 percent from May 2015 (5.29 million) and are at their highest annual pace since February 2007 (5.79 million). “

The total residential real estate is up 1.8% and are up 4.5% from may 2015.  The homes are still flying off the shelves and buyers are out looking.

Adds Yun, “Barring further deceleration in job growth that could ultimately temper demand from these repeat buyers, sales have the potential to mostly maintain their current pace through the summer.”

The market will stay strong all of 2016 I believe.  Also 2017 could be a banner year for home sales and new home builds with the election coming up on us. Regulations will probably be tapered down and builders will want to do business again.

” All-cash sales were 22 percent of transactions in May, down from both 24 percent in April and a year ago. Individual investors, who account for many cash sales, purchased 13 percent of homes in May, unchanged from April and down from 14 percent a year ago. Sixty-three percent of investors paid cash in May. “

Investors are still seeing the advantage to buying real estate instead of stocks.  The market is hot and cash buyers are getting great deals to resell. The foreclosures are getting a little scarce, but there are other ways to buy real estate at a great price.

Distressed sales4 — foreclosures and short sales — declined to 6 percent of sales in May, down from 7 percent in April and 10 percent a year ago. Five percent of May sales were foreclosures and 1 percent were short sales. Foreclosures sold for an average discount of 12 percent below market value in May (17 percent in April), while short sales were discounted 11 percent (10 percent in April).”

I am always researching that part of the business and finding new ways to buy real estate.  That is key to real estate, you are always in a changing market and you need to understand current markets in order to prosper from them. As long as the deals are good and have the right equity position no matter foreclosed or not you buy.  I have 2 in escrow right now that are not foreclosures. You need to know how to find the good deals.

Buying or selling you need an Agent that understands your needs and has the team to get things done. Call Brett 216-703-5740 Howard Hanna Ohio and 602-363-6551 West USA Arizona 

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