Thursday, June 19, 2008

What do you get with our consulting fee?


The question is why do we charge one? One is we need to make a living, but is it worth it? I think it is, the reason I say that you get more than what I get out of it. Our company gives you mortgage companies, Realtors already screened and understands the business, Contractors that not only do the work but at a reasonable cost. Property management is probably the most important of all investors need low vacancies and you need your place to cash flow and less headaches. On top of all that I personally go look at the areas and monitor them. I’ve been known to replace some people when needed.
I see a lot of people tell you that you should not to pay a finders fee. I question those people because they’re selling a program that leads into more expensive programs. They call it a filter and it lead’s you in to more programs so you can be an expert! The more expert you get the more money you spend! I would check there resume and see what there portfolio is and how’s it doing. Have they done 300+ properties, have they dealt with investor’s properties? Have they been doing this in up and down markets? How long have they been doing it? Do they have the actual properties you can buy? Do they coach you thru the whole process? I think not( unless you hire them for a FEE hmm)…. I have done all that and know the mistakes investor’s make and help you not to do that.
My soul mission is to make you and me money. I also invest in the exact same areas and use the same people you do. I personally do not a penny off these companies I do expect a starbuck card every now and again. Let's just say this again I want you to make money so you’ll buy from me again and again and again. That’s why I charge a consulting fee.


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

Monday, June 16, 2008

How do you Value Real Estate Today?


Wow, what a loaded question! I’ve been studying this analysis for years. I’ve heard it’s a great market to buy in. Why is that? And is it true? I believe it is a yes and no answer in today's market. Values a noticeably going down in Phoenix, mostly because of three factors. 1. Almost all homes being sold today seem to be foreclosures, which, makes the bottom of the market questionable. 2. Lenders are running scared. They seem to be cutting only the programs clients need or want. Refinancing income properties in Phoenix is next to impossible. 3. A lot of investors money have gone into the oil market.

That still doesn’t clarify property values in Phoenix. I got tired of waiting to see a positive change, looked for investments elsewhere. After talking to many landlords in Phoenix, the general consensus is that cash flow is almost always even or negative. I personally have 7rentals in Phoenix that cash flow a little over a $1,000 a month that is on a $600,000 investment.
In 2006, I started buying in Midwest. I now have over $3,000 a month cash flow on $150,000. So what is the difference in the properties from state to state? Basically…. the price! The cost of homes there is unbelievable! In some cases they are 5-7 times less. Buying 2 homes in Ohio for $38,000! Is that to good to be true or what?
Those are great prices, but how do I know the future value? Well, we have to look back to Phoenix for that. In Phoenix, appraisals and sales price hardly ever match up. I had a listing in North Scottsdale that was appraised at over $500,000. I couldn’t even get $416,000 out of it. It is now in a short sale at $300,000. Why the difference? It’s very easy to explain….. EVERYONE IS LOOKING FOR A GREAT DEAL! Obviously, the current Phoenix market is not a great gage.
I tested the same situation in Kokomo, Indiana, where I bought a duplex for $18,000. I waited 90 days, and it appraised for $40,000 Based on that appraisal, I got a credit line for $15,000. Wow, that is an extra $12,000 I can invest. (80% of the value I can borrow).
This tells me that value is buying a less expensive investment property and using the equity to buy more.
Brett Young, Valley Realty http://www.rooftopprofitmax.com/

Sunday, June 1, 2008

Should Investors buy new homes

Should an investor ever buy a new built home?
New builds residential are tricky. Builders did not sell to investors during the big boom, but when the bust came they decided to let the investors in. What has happened since is almost criminal! They have agents that tell you that your getting at the rock bottom price. After your purchase you not only can’t sell right now but the builder in a lot of case’s will lower the homes even more. All this being said leaves the investor in a bad position. So buyer beware of new builds. The people who have already bought just has to keep there properties. They will eventually rise in price and you should make a good profit on them. The key to know or how to buy a new build consists of the following; 1. End fill lots are usually a great place for them. 2.High rise new build in the city may also be a great buy 3. In a great market if new home builders let you buy as an investor. All that being said all I can say is be cautious when buying new homes


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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment

Speculators Vs Investors


Speculators vs Investors
Speculators are investors that think they know the future. Most don’t. My investing is based on today. What are rents, values, etc. today not what they maybe in the future. I hear investors and wholesalers tell people that this home will be worth this after you remodel and put a lot of your money into it. I always wonder if that was the case, why are they selling them? If they aren’t doing it themselves, then how do they know anything? I have personally done over 100 properties and I am still buying them. I believe that you need to go to areas that offer monthly income at a low cost. Speculators want you to rent break- even properties with the hope that you will make money in the future. Investors should and want to make money today! The other argument is you don’t get any appreciation on these properties. Again seeing the future thru their eyes. Hmm….. In the meantime your cash flow properties put money in your pocket every month. Well the question is, do you want to break-even or make money? Do you want to hope that the future is what they say, or what it is today?

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

The worried investor


Worried Investor??
Why do people worry about investing?? They don’t have the information they need to make good decisions about buying investment properties and calculating profitability. We take care of all that with our own profitability matrix, verified leases, inspections, handymen, and property management already in place.
Most investors especially the newbie's have a limited amount of money and need an investment vehicle that they can afford. We search out and find the best places and the best buys. We find cities that have great cash flow, and cost a lot less than people expect.
We follow thru the whole process and provide consultation during each phase of purchase.
Lastly, I will never advise something that I have not done personally. I own and rent properties in the same areas I recommend. That being said, I believe in our program!
Brett Young, Valley Realty http://www.rooftopprofitmax.com/