Friday, November 21, 2008

Knowing What Your Buying

I had a comment in my blog about knowing what your buying. Great thought!
As an example, with our service, homes are always inspected and all rehabs are quoted by licensed contractors. This is completed during the inspection period allowing our investors to make an intelligent decision regarding their purchase.


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

Another Brett Property Story


I had just purchased a new vehicle, and decided to take on a Sunday drive. On my way I stopped at two open houses. Both homes were in the same neighborhood with the same sq footage and looked very similar. I found out later that one sold for $50,000 more than the other.
When I investigated what had happened, I discovered the only difference was an extra bathroom. At the time I happened to have a construction company. The cost of a new bathroom with the permits, plumbing, prints, fixtures (I always go to IKEA for that) and flooring cost around $4500. (Finding room in the home to add a bathroom without having to square footage can be a challenge). Could I put a bathroom in a home for under $5000 with a potential to make an extra $50,000 per home. Hmm?
I tested this theory on a home at 36th st and Indian School. Adding a bathroom allowed me to mark that home up $50,000 and bingo I suddenly had a new business plan!
I bought my next house without even looking at it. (I don’t recommend that though). The address was 2711 E Amelia Phoenix, Az. I did have a little problem though, there were renters in it.
Seeing the massive profit potential, I paid the tenants $4000 to get the heck out of dodge. They decided that they would take the money and run. I made over $40,000 on that home! I added a lot of bathrooms over the next few years all because I was paying attention.
Always keep your eyes open! You never know what you’ll find out there.

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

Should You Worry About This Economy?



Right now people are under great stress. It is no wonder! We are fed bad news daily. While listening to the news is important, just remember that people are still making money today.

I have bought homes under both administrations, Republican and Democrat. No party really knows the your business, only you do.
Real estate is a great in all economies. Rents tend to go higher when interest rates go up and down when rates are lower. Rentals are usually always good in a bad market. (People have to live somewhere.)
Everyday we hear about foreclosures and gloom and doom. Just keep your mind in a state of making money and making intelligent decisions on purchase’s.
I have done well in down markets. For example; Years ago, I was buying condo’s in Mesa for a song. Some for as low as $15,000. Sound familiar? Everyone said that real estate would never come back. I think you know how valid that statement is.
So be careful what and who you listen too. Remember, investors can make money in any market. That investor could be you! Plug into the opportunities you are comfortable with, keep it in budget and you will be fine!

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

Put Real Estate Under Your Tree This Year!


Buying real estate at today’s prices makes buying a lot easier.
I remember just a few years ago home prices seemed over valued. Fast forward a few years and presto you can buy homes for less than used cars!
I just purchased a few homes myself. I picked one up for $7000! Yes, only $7000. With an added $17,000 in fix-up, my $24,000 investment has become a $75K home in my portfolio! Another property was a very nice brick 3 bedroom. I paid $16,000 for it. $10k later it is worth $90,000 dollars!
You might be wondering how I determined these homes current values. These numbers are based on experience, comparable sales and current appraisals.
Some people say this is to good to be true….The perfect storm……. Ok! Ok! I challenge you to check it out. You will find an investors gold mine!
Sticking a few of these awesome buys under your tree will put money in your stockings next year. Owning quality, marketable real estate does not lose! In bad markets it rents, and in good markets it sells! I know because I’ve been doing this for 23 years.
Have a Merry Christmas and a Happy and profitable New Year!

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

Start Your Savings Plan With Real Estate





What is your savings plan today? You could use many types of investment vehicles.
One might be a bond at 3%-4% interest. Taking inflation into account you’ll be breaking even on that investment.
Stocks are another vehicle you can choose. Unless your portfolio is managed by a genius, you have probably taken a considerable loss this year.
I choose real estate. Today, the homes we are buying have a 30% cap rate, and a 50% return on equity. Compare that to the aforementioned investments and I think you might come to the same conclusion!
My wife and I have amassed $490,000 in equity with our real estate purchases in the last 3 years, and we are still buying. These are the same types of properties we are currently recommending to our clients.
Buying real estate in this down market will allow you to cash in on the best prices we have seen in years. When the market is good, real estate prices go sky high because everyone in the nation thinks they are real estate investors. However, some of the richest families in America have gotten that way in the worst of markets! Every analyst and financial guru will tell you to plan for your financial future. This is great advice, but the key to success is timing. No one can predict the future, but all indications point to the fact that NOW is the time to buy real estate


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

Tuesday, October 21, 2008

Another Brett Real Estate Story

Another Story……..
Buying investment properties in a great market can be very profitable. I remember a home in Phoenix on E Mulberry that I found for some investment clients.
Tom and Ted bought the home, and began remodeling. While is process, a neighbor came to ask if I would be interested in purchasing their home.

Seeing the value, I agreed and immediately put the home in escrow.
As soon as Tom and Ted’s home was complete, it sold almost immediately. Needless to say, they were very pleased!
During the process another buyer appeared and also wanted Tom and Ted’s house. I informed them that it was sold, but the one right across the street was available. I added $10,000 to the price I paid, and sold that property too.
When two other properties became available on Mulberry, I sold one to another investor for a nice commission and the other to women who came by during the cleanup of Tom and Ted’s home. I not only sold her that home, I remodel it also topping off a great month.
I did 4 deals in one month on one street, making over $30,000 just taking advantage of every deal that I could get! Brett Young Valley Realty http://www.rooftopprofitmax.com/

Hedging your Portfolio!

Hedging Your Portfolio
Substantial wealth can be accumulated in good and bad markets. Today’s market offers a tremendous opportunity. An abundance of renters and decreased property values, now makes cash flow investments the way to go.
Buying homes for $40,000-$50,000 allows for great income and equity potential! $40,000-$70,000 in equity can help build wealth fast. And these homes are available NOW!
There are generally two types of investors, good market and bad market buyers. Good market investors can make solid returns on their money, bad market investors can make HUGE returns, but this requires experience and careful consideration. Cash flow is the key. Risk is greatly depreciated when your investment brings 25% - 45% cash on cash return and provides tens of thousands of dollars in equity.
Now is a great time to cash in! I have personally acquired 10 units this year and am still buying. I like to rent and build equity in a bad market. But this is not just a bad market, it is terrible! So I have added a new rule to my current investing plan; Find the cheapest homes with the highest rents and greatest equity. That way, if you have made some bad buys or you have lost some equity in your portfolio, you can hedge your bet.
Knowing how to deal with any type of market can make you very rich. Understanding it will make you mega rich. Let me show you how!

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

How I became an investor

How I became an investor
In the early 1980’s while I was still a kid, I got a job working the afternoon shift and went to college full time. I did that for almost 2 ½ years until I finished my degree. I really didn’t know if I was coming or going. Working full time and going to school left me a with little time to breath, let alone enjoy life.
One day, while out looking at a new place to live, I happened into a condo in Mesa. The asking price was $35,000. (This was in 1985-86). I did not like the area for me to live in, but thought it would make a great rental.
I called a friend and together we agreed to purchase that property and test the rental market. The rental market was strong and it turned out to be a great investment. So we quickly went out and purchased more properties. Nine to be exact! We financed the down payments and rehabs with money earned through weekend auctions.
One auction in Tucson stands out. This auction had few good buys until the next to the last item. A huge, I mean huge, printer came up and I bought it for $1,000. It cost $250 to ship it to Phoenix and I sold it for $2500. That’s money I stuck in a savings account to help me buy more properties.
Another auction I remember was a waste of time until an organ that was valued at $25,000 went up for bid. I had to unfortunately out bid a Minster for it, but I got it for $1500. I ran ads but could not sell it. Then a friend contacted the Organ Society president. (Yes, there actually is an Organ Society). She happened to be looking for an organ. I sold it
to her for $4,000!
This is just one example of how I have created opportunities. Opportunities only come if you work toward them. What I mean is…. DO BUSINESS!!
My company was created to do just that. Through Rooftop Investment I have set up a place for our investors to do business. We actually provide real estate investment opportunities. So our investors can jump right into business and earn while they learn without extensive classes or large amounts of money to join! Brett Young Valley Realty http://www.rooftopprofitmax.com/

Can Real Estate Prices get any lower?

As you well know, real estate values are currently down and the lending industry is in turmoil. Access to money is a key factor to this current crisis. When that issue is corrected though the market will turn quickly. Maybe not to the point of our recent boom days, but we should still see 5-8% growth per year.
By buying now, you can lock in the lowest prices we have ever seen! Over the years, America’s wealthiest families have gotten that way through real estate. When times are bad, they invest. Warren Buffet is a wealthy businessman whom I admire greatly. He just purchased $5 Billon in Goldman Sachs. Mr. Buffet not closing up his wallet in this economy and neither should we.
Making money in life is only done when you act on good investments. I believe that the best investments are in real estate. The great thing about real estate is that you are the one in control. You do not have a $100 million CEO making the decisions for you. You control your destiny and it is time to take charge!
Today’s TV business news is filled with “gloom and doom”. I am amazed at the age of the analyst, they are young and inexperienced, yet they are the “experts”. How many deals have
they done? Their knowledge is based only theory. I would much rather rely on experience.
I figured out a along time ago that these people are not the people you want to listen too! There are plenty of people that can tell me how not to do something. I always look for the ones that tell me how!

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

Saturday, September 13, 2008

A Brett Property Story

When I started in real estate I had no idea how to get clients. So I started sending out post cards. Over the next 5 months I had no calls but I continued to send 200 a week out. One day a gentleman by the name of Larry called me.
He let me list a vacant lot in mesa. I listed my first property. I sold that property for nothing! I filled my agreement out wrong. I put in 3% instead of 6%, I had to pay the realtor. I sucked it up and didn’t make a dime on that deal.
Larry called me and wanted me to list his home for sale. This time I filled the paperwork out right! I sold that one and he was very happy with my service. I thought that was it for him.
A month later he called me and said he wanted to start investing. I sold him a home in phoenix and made great money (he did to).
He was a plumber by trade and was doing a pluming job in phoenix. He called me and said the owner wanted $70,000 for it and wondered if that was a good deal? I informed him I would need to look at it.
I went over and fell in love with it. I ask him if he would sell it to me and he did. He made a very good profit and so did I win win always. After buying I remodeled it and moved in it. The home was on Campbell/20th st before the real estate boom.
He bought a couple more from me. The moral of the story is I made over $200,000 on that one post card. That’s a great return!
Being patient and persistent in the real estate investment game will pay you big dividends in the end. Brett Young Valley Realty http://www.rooftopprofitmax.com/

Listening to the right people

I talk to a lot of people and notice that some can tell you everything on how not to do things. Like real estate they all you all the ways things can’t be done. They mention all the problems other people they know have had. They kind of go on and on about what they think things are like.
My first question to them is how many real estate deals have they’ve done? I mean would you hire a doctor to help you out in court? Doing this for over 23 years and 400 properties I think my insight is very educated. I’m not saying it’s all candy canes and peppermint rivers, but it’s a great way to get wealthy.
When I do my research I don’t ask just anyone about the area’s I buy in. I ask Licensed Realtor’s, Property Mangers, Finance people, Contractors. I verify what they say buy actual sales in that area. Knowing all the in’s and out’s is very important in making money in this business.
When you search for information on anything make sure you talk to people that know about what your doing. Make sure they’re doing what your asking them about.
Information is very important and you should get it. But it is equally important where you get your information. Anthony Robbins taught me this and it’s been very good for me since I’ve applied it.

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

What is a whole property? Part 3

Lets pick up on Question #5. Will they be there after closing? This is a very important question, because of the work that may be involved in the property. When your to this point you should have the rehab cost in hand. Our company has licensed contractors that have quotes in your hands before closing. We also monitor there progress and follow the whole process thru until completion.
We also follow it thru to selling or renting whatever you choose to do.
Question #6 If you can’t or do not want to sell, what is rent in the area? You always want to have a back up (if you are selling) plan in case you can’t sell. Knowing the rents is very important in your decision making. We deal with property managers in the areas we buy to know what the rates are. I think you can be more accurate rental rates with property mangers more than realtors. Also other options are to owner finance or lease option. Just consult an attorney or realtor to set these up properly.
Question #7 My company tries to find people that can finance these deals, I’ve been very challenged in today’s market of lender’s. We are currently setting up private mortgage source’s. I would advice you to have your financing in order. We can’t believe the changes in the rules and it’s almost daily. So making a few phone calls and knowing what type of financing will only make you more profitable with your investing. I always search out new source’s but with the lenders always changing the rules it’s very hard to predict what programs are around. I will tell you this we are always working to get more financing and better ways for our clients to get deals done.
Question #8 I sell a lot of properties in many areas. The only way I know it’s a great place to invest is I do it myself. Me and my wife own 17 homes in the mid west. I do what you do and keep doing it I have 2 places going as I write this newsletter. That’s why I understand what I’m doing because I actually do it.

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

Ideas for profitable landlording

There are many good ways to get tenants in your vacant homes. I will going over some and I’m sure there are more that you could add to this list.
The first tip I’ll go over is the deposit. The deposit usually is 1 to 1½ months rent. Some renters have a hard time coming up with this plus the rent. I would consider breaking that payment up over 3 months. This allows you to get more renters and keep your units filled with paying tenants.
The second thing I do is always call your property manger about 1-2 times a month. This keeps you in touch with what’s going on with your properties. You can make better decisions on your properties by knowing what is going on with them.
The third idea I use id advertising. If you have a problem rental (all vacant ones are) then advertise it. I don’t expect or depend on my property management to do this. Most of the time they will have tenants in place but every once in a while you’ll need to do more. Example would be running ads in the paper with the property managements phone number. Always call them and alert them with what your doing. Craigslists is also a great place to advertise, it’s free too! If possible you may need to be a little cheaper than everyone else, and that would be temporary and get yours rented quicker.
The 4th Idea is If you have a one bedroom a weekly rate my be better. All that means is that the rent is paid weekly. It doesn’t mean that you only rent it for a week it just mean that’s how they pay. Rates run from $100-$135 a week. Some people budget there bills weekly and this works well for them and makes you more money. 52 weeks in a year give you an extra 4 weeks pay (4*12=48-52=4 weeks). We this type of renting a lot in Indiana.
The 5th Idea is to get a home warranty when you purchase the home. The inspection will give you a hard copy so that the warranty company cannot come back and say that the repair you need was pre existing. I just had a plumbing and roof problem taken care of thru my insurance in Indiana.
The 6th Idea is to keep great records on your rental properties. Your HUD 1 (closing statement) is a great starting point. You can put what you paid for it and the fees associated with the purchase. As you collect rent and pay bills you can update your data base or spreadsheet. This ls great for taxes and knowing your profit.
Brett Young Valley Realty http://www.rooftopprofitmax.com/

Tuesday, August 19, 2008

Making the right decision in this market

The right decision for one person may not be the right one for the next person. The money you have available to you will dictate what you can or want to do. Buying properties that you are comfortable with is important. What I mean by that some will take more risk like buying a property that is empty with fix up. They also have to get tenants to fill there units that may take some time. Some people want totally filled units that are turn key. Something they fell more comfortable with. The next decision you’ll need to make is your level of cash out lay that you are comfortable with. A lot of problems occur here. Buying properties that are to much work or money can hurt you chances of succeeding in investing. I recommend that you stay with lower end properties that cash flow in this market. You’ll spend more money on cars than some of our properties. If they’re doing that good in this market wait and see in a better market. So that being said play it safe right now and invest with our proven strategies. I hope you join us soon! Sign up for our club today.

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

Monday, August 11, 2008

What is a wholesale property? Part 2

Question #2 How much money is needed for fix-up and who determined the cost? This question is a very important one. Some wholesaler’s provide a rehab cost. If they have done their homework fine, but if not you could get stung. Make sure the quote is done by a qualified contractor and that it is in detail.

Other items to consider; DO they need permits and prints? Who will be over seeing the construction? Does this person have experience and can provide a substantial resume’. Make sure the quote is firm and how long the rehab will take to complete. Also be sure to inspect the work before you pay. If they know your are watching they are less apt to take short cuts.
Question #3 How many successful properties has the wholesaler actually done him/herself? Be sure to do your homework, especially if you are working a full time job, and are relying on this persons abilities. Always make sure that the person your dealing with knows what they are talking about. Chances are that if they have never completed a successful rehab themselves or have only done a few, they may not be qualified to advise you or they may be experimenting with YOUR money. I have done over 100 homes myself and will admit that I still cannot foresee everything. I have never sold anything to an investor before I had done several myself.
Question #4 Do they have all the systems set up to assist you through completion and beyond? Completing construction is just the beginning. Do you have an exit strategy? Can this person help you sell? Will they help with refinancing, if needed? What about property management ? Are they going to be there through the whole process, or leave after they get their money? Again working another job leaves you little time to deal with finalizing your property.
These are all things you must consider before moving forward. Please see next months’ newsletter for the conclusion of this story.

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

What is a whole property? part 1

……I got a call early last week and was asked if I had wholesale properties for sale. The term wholesale can be confusing. So I though I would share what I know about wholesaling and why the term raises yellow flags for me.
A wholesale property can be bought many different ways; bank REO’S, Hud, VA, Short Sales, etc. I have also seen them at investor events. Some are good deals and others are not If I were to buy from a wholesaler I would want to know a few things before I committed to the sale.
1. How was the value determined? 2. How much money is needed for fix-up and who determined the cost? 3. How many successful properties has the wholesaler actually done him/herself? 4. Do they have all the systems set up to assist you through completion? 5. Will they still be there after closing? 6. If I can’t or do not want to sell, what is the rent in the area? What is my profit picture with that scenario? 7. Do they have recommended financial institutions? 8. Do they own proprties in the area?
Let us consider the above questions: #1. Value. Determining the value of a property can be very complex. Comparable sales must be considered. These are sales of like properties in the subdivision or area. The square footage should be within 10% of the subject property. The number of bedrooms and baths should be the same. The properties should be in similar condition and lot placement. For example, has the property been recently remodeled? Or is it located on or near a busy street, commercial property, railroad, shopping center, etc.
As you can see there are many factors to be considered when calculating the value of a home. That is why I recommend that you consult with a licensed professional realtor. Their access to information and expertise can help you avoid a potential costly mistake.

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

Friday, July 4, 2008

How to learn to be an investor

Many investors learn all there knowledge thru books, tapes, and seminars. I have done all those myself, and learned a lot. The hard part is to start investing. I started in 1985 and made many costly mistakes along the way.
I did not have the benefit of a system or anyone to help me. I could have avoided a lot of grief if I had had a system to follow. I not saying that our system is the end of all, but it does help our investors evade the big mistakes.
Having done hundreds of properties makes me smarter than someone who hasn’t. It’s like anything else, the longer your at it the better you get. For example, when I look at homes that need repair I always steer away from major stuff at first. Roofs, Tear Downs, Siding just to name a few. I go with the light fix ups if the equity is still the same. What is a better deal, $250,000 with $70,000 equity or $32,000 with $50,000? Of course the $32,000 deal is. And you could buy 6 more for what you paid for the other one. The apples for apples comparison is $250,000 gets you $70,0000 equity, but the 7 at $32,000 (7 x $32,000=$224,000) gives you $350,000 equity. Wow that’s A BIG difference!
There are many things an investor needs to know, such as the landlord tenant laws for the area in which the rental property is located. This is very important in order to do business there. Other important topics are; How much should you pay for fix up? How much fix up does the property really need? Should you get an inspection? Does every property need title insurance? As you can see there are many things to know. The devil is in the details!
Rooftopinvestment.com not only locates the investment properties for you, we also teach you how to be an investor. We show you all the in’s and out’s, and plug you into our turn key system! Bottom line, we work hard to make sure you have a great investment experience.
It’s your money. Do what you want. I can only tell you from experience that doing it alone is much harder and way more expensive than doing it with a proven turn key system at Rooftopinvestment.com.
Brett Young- Valley Realty http://www.rooftopprofitmax.com/

Making More Money With your Money!


Learning and knowing your equity position can make you 6 x richer than not. Buy a home in the Phoenix area, (I talk about this area because I have purchased 200+ homes here and understand the market), where the average single family home cost $150,000-$250,000. After all the repairs you are going to have around $30,000-$50,000 in equity. If you rent the unit (tough to sell in this market) your net maybe $200 a month tops. That’s just an average. You may do a little better or a lot less.
Now consider the Midwest. After purchasing a home and fixing it up, your going to have a $50,000-$70,000 equity position and net $300-$600 a month. The difference is being able to buy 4-6 more homes for the same amount as you would pay for 1 home in Phoenix. EX: $150,000/$40,000=4 homes $250,000/$40,000=6 homes. 4 x $50,000 equity =$200,000 or in Phoenix 1 x $50,000 equity =$50,000. You can see that the difference huge! This is the wealth building difference that the cost of homes in the Mid-west makes.
That is how you make more money with your money! It’s not magic, it’s just a different way to do it. Rents plus the purchase price allows to you put cash flow in your pocket. EX: $300x4=$1200 per month vs. maybe $200 in Phoenix.
So please check out are system before you buy. I don’t just teach, I am an active investor too, just lke you.

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

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.


--
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


--
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?

--
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/

Friday, May 16, 2008

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.

--
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.

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