Ultimate Real Estate Newsletter 12/02/16 Edition

Unlimited Real Estate Magazine

Knowledge is everything in Real Estate

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Income generating property

Nice property in an excellent area that offers all the amenities close by. This is a condo and generates approx $700+ a month in income. This is a 2 bedroom 2 bath condo with a 1 car garage. Almost no rentals on the market in this area. This would be a highly desirable rental.

We also have our new property management in place that can handle all the leasing and management. The property will attract long term tenants and create nice income. Lets look at the approximate numbers.

Offer_____$ 65,000
Reahab___$ 10,000
Total_____$ 75,000

Rent_____$ 1200
Taxes____$   154
Assoc____$   224
P/M_____$   120

Net proceeds_$   701

Does your construction cost make sense?

 

 

I Got a call from a client today about his own personal home and what we could do to accelerate his equity position.

A lot of times most homeowners think that the cost is far too high to create any equity in their residence. For example what needs to be done to the home in order for it to be worth more might not make sense cost wise.

A lot of times adding a new bathroom or installing a brand-new kitchen with the right type of appliances and upgrades can be a huge difference in home pricing in a neighborhood.

Remember if you live in your house for a long time you may want to look at remodeling it to sell. If you’re moving it really makes sense to get someone into the home to help you analyze what it could be worth with rehab and what it is worth today. The numbers need to make sense.
In a lot of cases it makes a huge difference. For example updating a kitchen and painting the interior with up to date colors can give you a lot more interested buyers. That almost always means more money for your home.

You need to be careful and not over do it.  If you in a $150,000 home versus a $500,000 home updates are totally different and so will be your equity. The lower priced home will not make the money the higher cost home would in the long run.

Get a professional Realtor and contractor to get you all the sold properties in your are and what they had that you did not. Get the cost of the updating and boom you will know if doing the rehab makes sense.

If you do $20,000 in upgrades and it only gets you $25,000 more for your home, you may want to rethink it.  It that $20,000 gets you $35,000 more then that may be something that will add to your wallet. It is all about the bottom line.  Make sure you add in the closing cost associated with selling your property.

Every home is different and so are the neighborhoods.  Having a professional show you what can be done and what the potential profit benefit is, is priceless. Call Brett 216-703-5740 Century 21 Premiere and 602-363-6551 West USA Realty

The 10 Hottest Neighborhoods of 2020 in Phoenix

Great article that points out the hot new building and neighborhoods that will be hot for the next 3 years in the Phoenix area. The article comes from http://www.phoenixmag.com/ by Keridwen Cornelius.  There was one area that I was in last week that surprised me and that is Sunnyslope. A community in North Central Phoenix.

Sunnyslope
Why It Will Be Hot: Bargain prices, million-dollar views
Valley realtor and radio personality Melissa Sharpe says we don’t need a crystal ball to predict that gas prices and interest rates are going to rise. That means two things for the Valley real estate market: “It’ll be more expensive to commute. Businesses and living along the light rail will make even more sense. And when interest rates go up, the amount of home you can buy goes down.” With that in mind, she predicts a steep hot-factor rise for the ‘Slope, where million-dollar views often go hand in hand with fixer-upper grime. In 2016, light rail expansion will reach 19th Avenue and Dunlap, which is good news for the Arcadia-esque Royal Palm neighborhood nearby. Also, Sharpe recommends the North Central Heights area in the foothills of North Mountain Park – handy for the hip local restos and bars already gentrifying this divey indie ’hood.”

Sunnyslope is also close to shopping and a lot of other destinations.

Bob a friend of mine who is a Realtor and part of my property management team was taking care of an apartment he manages. That particular apartment complex was $900,000 and had $50,000 in repairs. Bob was not on the sell side of that transaction, but was getting the property income producing.  He has one more unit to fill, and the property will net about $9,000 a month.

When you looking at any income real estate you can save a ton of money with inspections.  In this case about $50,000 in repairs.  Using the right Realtors that have contractors is important to your success.

I recently saved a client over $4,000 on a heater install.  This was a unique situation and it needed to have someone in the investment real estate business.

Tempe Lakeside
Why It Will Be Hot: Luxury lakeside living, new streetcar
“Tempe is a really strong leader – definitely in the Valley, if not in the whole state – in moving toward sustainable urban planning development,” says Aaron Golub, associate professor of urban planning and sustainability at ASU. “The downtown and expanding lakeside areas where the streetcar will go [in 2016] will be really interesting, very urban places in 20 years.”

This is a well planned city that is were Arizona State University is located. Mill Ave has a ton of eateries and shopping down it.  You have PF Changs to a Irish Pub.

When your looking to purchase Real Estate especially income real estate, make sure that your dealing with a Realtor. Make sure the Realtor specializes in Investment Real Estate and has a team of professionals you can have at your disposal. This saves you money and time.

This is what I specialize in and have teams in Ohio and Arizona.  I have worked hard to get these teams together and help my clients get the best real estate on the market. Call Brett 216-703-5740 Century 21 Premiere and 602-363-6551 West USA Realty

Looking for Nice Income Real Estate?

This townhouse is over 1000 SF 2 bed 1 1/2 bath.  The Association is only $103.83 a month.  Very desirable area, almost not places to lease in this area.  You will not believe the price of this home. Lets go over the approximate numbers.

Offer__________$45,900
Rehab_________$  7,000
Total__________$52,900
Rent__________$1000
Tax___________$   87
Assoc_________$  104
P/M__________$   100
Net Proceeds $709
Nice property in a nice area.  Call Brett 216-703-5740 Century 21 Premier

 Investing In Real Estate For Retirement Income

Having an income that generates consistent income is crucial to retiring comfortably. A lot of people think that they have to be 65 to retire, but if you get the right properties and manage your portfolio properly you can retire at any age.

Lets look at what type of plan you may need and how many homes it would approximately take to generate $100,000 a year. You have to also look at the approximate equity that might accrue fro you property.  Probably a 5% growth is a good number to use.

Each property will need to net $600-$900 a month after taxes,insurance and property management. So lets make an average of $750 net per month. Which would be $9000 a year.  So you would need around 11-12 properties that generate these returns.

The second part of this formula would be the tenant turnover and the quality of tenants in your real estate portfolio. That is a very key factor to your success, a lot of investors just look at the net income, and never think of the tenant turnover. That cost you at least 2 months income and whatever repairs you might have to do.

Say you buy 3-4 year of quality real estate? Then you could retire in 3-4 years with the right real estate.  Generating income with real estate is not difficult with the right real estate portfolio.

I look at income real estate that you can buy for $70,000-$185,000 that would meet the income needs. I just looked at very nice $70,000 condo this week that will net approximately $700 a month. Do twelve of those types of properties and you over $100,000 a year.  These properties also have a great chance to get equity.

You will have some expenses for maintenance and renting them, but in the right neighborhoods you will have longer term tenants and very consistent income. We can also keep the maintenance low for you in many different ways.

If you use my property management we will guarantee the tenant for 12 months.  If they do not stay for 12 months then we will replace that tenant for FREE.  Same credit checks and all the other details that go into getting tenants.

Surprising Reasons To Buy A House In Real Estate’s ‘Worst Month’

Real Estate is a 12 month a year search for seasoned investors.  Most Realtors and some investors take the Christmas season off. There are always less investors in the December markets.  That is why I always look during this season.

Great article from http://www.forbes.com/ that talks about December being the best month to buy real estate and get the best deals.

Bargain prices

The final month of the year is known for frantic shopping and countless holiday parties but not necessarily for purchasing a home — and this can work in your favor. With fewer buyers in the marketplace, the available homes for sale are priced to sell. Plus, with fewer active buyers, there’s less likelihood of multiple offers, bidding wars, and escalator clauses.”
There are fewer buyers and that is the key.  Great time to buy any type of investment real estate expecially when there is less buyers. Some of the best deals are in December.
Motivated sellers
If a home is on the real estate market in December, there’s usually a specific reason the sellers are looking to move: It could be job relocation, financial hardship, or personal change of circumstance. Regardless, it gives you an opportunity to negotiate a sweet deal — lowball the listing price and ask for a closing date that works with your schedule.”
That goes for the foreclosed real estate also.  They need to sale long days on market real estate and clear there books. Investors forget that homes are sold 12 months out of the year,
“Builder incentives
If you’re building a new home, ask about holiday incentives — builders typically roll them out to finish the year with a bang. If upgrades such as custom cabinets, quality carpeting, and designer paint colors are on your holiday wish list, December may be the ideal time to purchase a new-construction home. With fewer units sold throughout the month, the last few days of the year are particularly important for sales.”
Home builders are also giving great deals in December because they need to reach their sells goals. 
Whether your buying an investment home or just a place to call home December is the greatest time of the year to do that! If you need a Realtor who loves to find real estate in December Call Brett 216-703-5740 Century 21 Premiere and 602-363-6551 West USA Realty      

Consumer confidence surges to 9-year high

Consumer confidence is an important part of the real estate market. Having buyers that have faith that the economy is only going to get better helps drive the stock and real estate market. This story comes from http://www.usatoday.com/ by George Petras

“A closely watched index of Americans’ outlook increased to 107.1 from an upwardly revised 100.8 in October as their views of both current conditions and the next six months improved significantly, the Conference Board said Tuesday. That’s the highest level since July 2007, five months before the Great Recession began.”

That is 9 1/2 years ago that we have had this type of outlook on the economy.  The outlook for 2017 looks very strong.  All the real estate buyers and investors that are on the sideline may re enter real estate to live and invest in. My personal feelings are the market is going to be strong in 2017 and even stronger in 2018.

“In November, the portion of Americans saying business conditions are “good” rose to 29.2% from 26.5% the previous month. The share saying conditions are “bad” fell to 14.8% from 17.3%. The portion saying jobs are “plentiful” increased to 26.9% from 25.3%.”

More jobs means that there will be more money in the market. There are less people thinking the direction of the market is not good. The monetary system is based on consumer confidence and that is what gives buyers and investors spending money.

With the inventory still very low it will also take some for new builds to catch up with the increased demands. Remember we have not built enough homes for 10 years and most of the new builds are luxury homes. It will be awhile before they catch up in most areas.

Pressures on home prices will go up at a 4%-6% per year, Lack of inventory and pent up buyer demand will make that happen.

Looking to get the best real estate for your hard earned money? I look in areas that have hard to find real estate, basically more buyers than sellers. Call Brett 216-703-5740 Century 21 Premier and 602-363-6551 West USA Realty

Developers line up restaurants to give Pinecrest flavor

Another great shopping center is coming to Orange Ohio which is Scottsdale Az like neighborhood.  The area is about 30 minutes from downtown Cleveland.  This article comes from http://www.crainscleveland.com/ by Susan Condon Love.

When developers and investors start building these kinds of shopping centers and can get the financing you know that the area is going in the right direction. Shopping and fine dining is a nice feature to this shopping center. The homes in this area retail out from $300,000 and up.

“Developers of the 58-acre, $230 million Pinecrest project in Orange Village have a very specific strategy to make its restaurant offerings different from those found at nearby and established destinations such as Eton on Chagrin Boulevard in Woodmere and Legacy Village in Lyndhurst”

Woodmere is about two miles down the road and has a great shopping area also. May be the best laid out small town in America.

” With developers creating what he terms “an entertainment district,” consumers can visit Pinecrest for access to a 1-acre public plaza, walking trails, shopping, a movie theater and a Whole Foods grocery store. Nearly 90 residential apartments, a 145-room Marriott AC hotel and 150,000 square feet of office space will add to the likelihood that dinner out will be a natural part of the Pinecrest experience.”

They basically have built in clients with the 90 apartments and 145 room Marriott.  It will bring more convenient shopping to the neighborhood also. Whole Foods are always built in the higher income areas.  When you see one of those grocery stores, you are almost always in an upscale area.

” Red, the Steakhouse, an upscale steakhouse that also features fish, salads and pastas

Firebirds Wood Fired Grill, a restaurant and steakhouse with wood-fired steaks, seafood, specialty cocktails and select wines
Fusion, which features cuisine that combines elements of different culinary traditions, including Asian
Restore Cold Pressed, features juices, with limited food offerings

Flip Side, features specialty hamburgers, sandwiches, salads, milkshakes, plus beer and cocktail”

All these eateries are very nice and attract more well to do pate rants.

“”Pinecrest is certainly about commerce, but it’s also about creating Cleveland’s top district for gathering. It sits within the epicenter of the wealthiest and most-educated trade area in Cleveland. Given the ease of getting here, traversing very simple highways, we expect Pinecrest will draw the millennials from Ohio City, particularly given some of the TBA retailers, and all other points north, south, east and west.””

These are the types of areas you want to buy real estate in.  This type of building lets you know that the city believes in their area. $230 Million is not chump change for this kind of shopping area.  These are the type of areas I like to purchase real estate in both income and flip. These type areas have only one way to go price wise….up. Get into great real estate!

Call Brett 216-703-5740 Century 21 Premier and 602-363-6551 West USA Realty I can get you some of the most hard to find and best real estate in this market.

Buyers Working Quickly to Grab What’s Available

This article comes from http://www.themreport.com/ by Kendall Baer that talks about the buyers and how the market is doing.

“The latest Pending Home Sales Index from the National Association of Realtors (NAR) showed a slight increase from that of the year prior, rising 1.8 percent. Additionally the index indicated that pending sales grew 0.1 percent from September 2016.”

Even with the election and everyone glued to their favorite news channel, people still purchased some real estate.  Basically when their are big events in any area it will effect home buyers in that market.  We have never had an election like we just did and more people were watching that and not thinking about anything else.

“In combination with the latest Existing Home Sales and Builder Confidence reports, Stephen Melman, Director of Economic Services at the National Association of Home Builders, says, “These reports are good news for new residential construction as the housing recovery continues to address demand among first-time buyers and broadens across a wider range of markets during the balance of 2016 and into 2017.”’

That is great news and will attract a lot more home buyers in the market and they will have something to buy also. The key statement in that paragraph is that there is builder confidence.

” “Most of the country last month saw at least a small increase in contract signings and more notably, activity in all four major regions is up from a year ago,” says Yun. “Despite limited listings and steadfast price growth that’s now carried into the fall, buyer demand has remained strong because of the consistently reliable job creation in a majority of metro areas.””

With the recent consumer at a 9 year high and the stock market going up Real Estate has a very bright future in 2017. Even if the interest rates go up a bit it will still be a great market. The incoming administration has hinted on getting rid of some financial regulations that will benefit mortgage companies and their borrowers,

Remember how long it takes to get an auto loan…….they cost $40,000-$70,000 and you can get qualified in hours and get the vehicle the same day.  Regulations on mortgages need to be looked at and make them more reasonable for potential home buyers.

Looking at buying any type of real estate in Ohio or Arizona Call Brett 216-703-5740 Century 21 Premier and 602-363-6551 West USA Realty.

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