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/

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/

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/

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/