Why I use the MLS Part 1

Why I Use The MLS, part 1
There are many different distressed property lists. I have purchased many of them, thinking I had the list of all lists. Later, finding out that almost everyone else had the same list. What’s worse, the detail on the list was not verifiable. Meaning, no governing body was monitoring it to assure its accuracy. The list contained homes and their purchase prices, some listed for as little as $500 bucks. Wow! That sounds like a great deal, until you find out it is a place you never heard of. The list offers no information on the area, or the sales that appraisers look at. Some have the tax record sales in that area, but in today’s market, that could cost you a lot of money.
The MLS or Multiple Listing Service is the accurate compilation of all the properties listed by licensed realtors. It is governed by the State Board of Realtors, therefore regulated. The MLS allows licensed realtors to research comps, or current like sales in that area. My experience has been that generally, MLS homes sell for more than what was on the tax records. You ask how could that affect me? When you’re making a decision to purchase an income property, you need to have the best information. Information that has been verified and will be recertified by the time you close your deal. The other “lists” don’t assure that, sometimes leaving you in a bad position. If you pay cash for the home, you may never have it verified.
Another great tool the MLS provides is the SPDS, Seller Property Disclosure Statement. This is detailed information of what the seller knows about the property. This gives you an even better picture of what you’re buying. I always require my clients to get inspections, I haven’t seen any lists that offer that. Getting an inspection helps you know what type of fix up is needed on a property. If you buy something without this, you could run into serious cost: Mold, water damage, sewer problems. I personally had a tri-plex with a $7000 plumbing problem. If I had not had an inspection, I would have been stuck. Lastly and most importantly, the MLS not only monitors the information in the system, it also monitors the agents who use it. This protects you and me. I believe the MLS is a great choice.

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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/

Are distressed properties a good idea

Are Distressed Properties A Good Idea?
I always have mixed feelings about the subject of buying distressed properties. Having wholesaled many properties in Phoenix, I have made myself and my clients a lot of money. But in doing so, my goal was not just to make a profit. It was also to make sure that the seller was treated fairly. It was important to me that it was a win win situation for all parties involved. As a licensed realtor, I easily researched just how much the property could be sold for. And owning a construction company, the cost of fix up was efficiently and accurately calculated. Once the property was purchased and the construction was complete, the property was listed and sold at a discounted commission. This process served me well for many years.
Today, I see more and more wholesalers that sell the properties at figures that I find unbelievable. I have worked with a few clients that have bought from these wholesalers, and they are all losing money. One client bought a $400,000 so called investment home. The realtor did the deal having told the client that they cold sell it for a certain profit. When the deal closed the client was left with a $3000+ mortgage and a vacant home that is still on the market. Another client bought a $600,000 investment home that they could not sell I helped them get an additional $400 a month on their rent, still leaving them $2500 a month short. That’s a lot of money!
Considering the current market, I would consult you to really THINK about what you are buying. My rule of thumb is to never buy a home that is over $250,000 in Phoenix. Today, I would not even do that. The market is very soft, and chances are, all you will get is monthly bill. People will tell you, “Buy now. The value will come back.” I do believe that the value will rebound, but unless you are willing to take a monthly loss, you may want to rethink your strategy. That type of investment is speculation, betting on the future. I want to put money in your pocket today!
My company is currently buying homes in the Midwest that not only appreciate, but put money in your pocket every month. I bought a duplex in Kokomo, Indiana, at 212 N Webster, for $18,000 cash with $6,000 in fix up. Once repaired, I rented both units for $425 each, with $150 a month in expenses. I collected my cash for 6 months, then got a credit line against the property. It appraised for $40,000. That gave me $16,000 dollar profit, wow! I did it in this market for way less money with great cash flow to boot! Finding good deals like this takes knowledge and patience. I find them for me and my clients. So don’t get wrapped up in these huge profit deals that turn into another house payment. Be smart and look for deals that will cash flow today, not just in the future.

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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/