Real Estate and Beyond Blog

I WAS GOING TO CALL THE OFFICE

They say the number ONE reason for investors getting out of the real estate market is because of tenant relations. Let's face it! There are three steps when it comes to real estate investing as follows

1. Acquisition
2. Rehabbing
3. Property Management

All the real estate gurus make this process so easy. I have to admit that the first two steps are easier than the last step. The first two steps involve money going out of the investor's pocket. Now, the investor wants the money put back in his pocket. This comes from the tenant. Everything is great when the tenant is paying the rent. Then, the first month the rent does not come in. The investor freaks out and wants to know what happened to the easy money.

I have a real estate investor that has seven properties paid off with tenants. He has had three tenants been in the property for two years with all of them paying rent on time. However, they stopped paying rent because each one had something in their life. Now, he is seriously thinking about hiring me as the property manager.

WHEN THE CAT(LANDLORD) IS AWAY THE MICE(TENANTS) WILL PLAY?

I have a tenant that did not pay their rent this month. We exhaust all methods before evictions process begins

• Phone calls-all numbers are disconnected
• Emails-no response
• Mail sent out 5 day notice
• Call emergency contact no response
• Physical knock on the door

The tenant answered the door. I asked her "What are we doing with this month's rent?" She informed me that she lost her job. Then she says, "I WAS GOING TO CALL YOU TODAY!" She was seeking assistance and would later call me that day for an update on the rent. Well, she never did call me. I reported back to the owner of her actions. He will decided Monday if he will proceed with the eviction process.

Finally, a great property manager will get the answers and get the job done like myself. Phoenix Property Management is not for all. One must be organized, good with people, and be able to get the job done.

TENANTS SCARY, CALL HARRY 602-549-9764

DOOR LEFT OPENED! IS IT OK I CHANGE THE LOCKS TO SECURE THE PROPERTY?

The number one reason for real estate investors to leave the business is tenant relations. I work with many investors who love to invest in Phoenix real estate. However, they give me the property management side of the business. Why? It is because they would rather pay me $60 per month than deal with the tenants on their own. Personally, I think it is a wise investment. I am better educated about the Arizona Landlord Tenant Act and the overall Phoenix real estate market compared to the real estate investor. Do you really want the tenant to call you in the early morning stating that their toilet does not work?

TOP 5 THINGS TENANTS DO TO DO IT YOURSELF LANDLORDS

1. Pay rent late or not at all
2. Abandon the property over night
3. Trash the property
4. Obtain pet on premises without permission from owner
5. Re-key property without permission from owner

My investor called me the other day on one of his properties. His handyman was doing work on the property. We evicted the one tenant but they keys were never returned. He called me to see if he could have them change the locks to secure the property. The answer was NO. The tenant had until that day to leave the property abiding by the judgment. I advised the investor to lock the door from the inside. Then, he could change the locks the next day. It is best to abide by the court judgment to the letter or face consequences down the road.

Finally, it is great to have a trusted property manager on the team to maximize profits and minimize losses. Properties R Us only charges $60 per month per door for Phoenix Property Management.

SUMMER FUN CONTEST FUN IN THE SUN FOR HARRY AND COMPANY

THIS IS AN ENTRY FOR THE POSTIVE ATTITUDE FOR THE WEARY SOUL GROUP CONTEST!

FUN IN THE SUN WHILE BUSINESS STILL RUNS! JOIN THE CHALLENGE TODAY

We have entered the summer season with school ending and the kids being off from school. What are we going to do for the summer to have fun? Personally, I believe one must have fun at work. So, we do plan family getaways to recharge the batteries. Otherwise, Harry becomes a boring person. I very much look forward to my family vacations in order to create memories for the entire family. Yes, it seems to be tough to take vacations as a real estate agent. However, real estate is a team sport. Plus, today's technology makes it easier for me to be on vacation without my clients knowing I am on vacation for a week or two. As they say on Broadway, "THE SHOW MUST GO ON!"

I know many real estate agents that never take time off and just work every day of the week. Sorry! I am not programmed that way. Now, I could do that lifestyle if I was single. However, that is not fair to the entire family. Yes, there is an entire plan in place while I take time off. My business continues while I am traveling on a daily basis. Offers are still being made on homes, still collecting rent monies and blogging is done with a cup of coffee near the water early AM before the rest of the family gets up.

REAL ESTATE IS A TEAM SPORT! I stand behind this statement and continue to practice it on a daily basis. All great real estate agents have processed and procedures in place. Furthermore, I have cross trained my assistant to handle many functions in place of my temporary physical address. So, THE SHOW CONTINUES TO GO ON for my business.

This year we have decided to visit Colorado for ten days. We want to explore the Durango and Pagosa Springs section of Colorado. We have everything planned out for ten days. We got the entire family in on the planning process. This makes the kids excited as the parents for the vacation. I am so looking forward in getting away with my family to make some great memories.

GREAT TOOLS AND PEOPLE TO MAKE THINGS HAPPEN WHEN ON VACATION

• Toshiba Satellite laptop computer full multimedia capabilities
• Sony digital camera
• Sony digital video recorder with 80 gigs of memory
• HTC EVO 3D smart phone with text, email and Internet access unlimited data plan
• Full 8 functional web sites 24/7 for the public to view
• Leasing agents to handle my tenant leads
• Docusign to obtain signatures while on the road and submit offers
• ActiveRain on the road cup of coffee by the pool and blog
• Buyer agents on the team to continue to show properties
• Personal assistant to act on my behalf

THE PLAN IS IN PLACE FOR ALL TEAM MEMBERS TO TAKE A VACATION. Other real estate agents ask me the following question "HOW CAN YOU AFFORD TO TAKE A VACATION?" I come back with my question "HOW CAN YOU NOT TAKE A VACATION AND MAKE GREAT FAMILY MEMORIES?" Then, I get deer in the headlights. I will pick family over work any day of the week. That is how precious my family is to me.

Here is a great picture of brother and sister together in the woods. We spent the entire day in the woods that day. Our family loves to camp and be with nature. The kids love it. We cook over an open fire pit and make some great dishes such as

• Hot dogs and beans
• Eggs and bacon with hot coffee
• Burnt marshmallows
• Pancakes

I personally believe that vacations must be put into the annual real estate game plan so we are rewarded for hitting our goals throughout the year. Also, I believe real estate agents need to recharge batteries with the entire family. The real estate business is very competitive and can get to one over a period of time. Overall, I wish everyone the best summer of 2012. Be safe and have a great time on vacation this year. Take plenty of photos and share them on ActiveRain.

TWO QUESTIONS TO ASK CLIENTS BEFORE ENTERING INTO A REAL ESTATE BUSINESS RELATIONSHIP

I remember when I first entered the real estate business ten years ago. It was quite overwhelming for myself at the time I had entered the real estate market. I had to learn by fire for the following reasons

• First child born November 2001
• Purchased first home in December 2001
• Let from from high paying job February 2002

I really appreciated to being mentored my first two years of my real estate career. Yes, I had a 60/40 cut arrangement at the beginning to start transferring knowledge from my mentor to me. The commission cut was changed to 70/30 commission cut after six months of being on the job. I had the confidence and know how to close deals. However, I still needed to learn the ropes from my mentor.

He instructed me to ask TWO QUESTIONS to every person that was interested in using my real estate services

1. ARE YOU CURRENTLY WORKING WITH ANOTHER REALTOR AT THIS TIME?
2. WILL YOU BE PAYING CASH OR OBTAINING FINANCING WHEN PURCHASING THE HOME?

OK-they seem to be innocent questions to ask potential clients. I did not really understand why until I started closing real estate transactions. My mentor was teaching me to stay out of trouble when it comes to real estate. Let's analyze both questions in more detail.

ARE YOU CURRENTLY WORKING WITH ANOTHER REALTOR AT THIS TIME?

This is a great question to avoid AGENCY conflicts with other real estate agents in your local area. I remember I had a buyer that I showed a home. We were about to write a contract until my mentor called. He asked if I had asked both questions. Well, I had forgot to ask the buyer because I was so excited. So, I asked the buyer if they were working with another real estate agent? The buyer informed me that they were working with another agent but they could not reach the agent. Furthermore, I was writing an offer on a home that they viewed with this real estate agent. My mentor and broker informed to stay away from this transaction since there was implied agency at this time.

It is great to have wise mentors in one's life when it comes to real estate. Now, I mentor other agents in my local real estate market. I am passing it forward to other real estate agents that want to learn this business the correct way.

WILL YOU BE PAYING CASH OR OBTAINING FINANCING WHEN PURCHASING THE HOME?

It is best to obtain proof of funds or letter from a licensed mortgage professional stating that the buyer has the means to perform when an offer has been accepted. I learned early in my career to only take qualified buyers into my car or I am just a glorified taxi drive. It seems people love to look at homes but never pull the trigger simply because they are not qualified.

I believe in the KISS method which means KEEP IT SIMPLE AND STRARIGHT

The KISS methods brings CLARITY AND COMMUNICATION into one's real estate business.

I hope this blog post has been informative and effective for one's real estate business.

HARRY'S TOP 10 WAYS TO CREATE MORE REAL ESTATE BUSINESS TODAY AND TOMORROW

How many phone calls do you receive on a weekly basis from people trying to sell us something? I honestly receive about four phone calls per week. Where do they obtain our information? Well, they get our information for social media web sites such as ActiveRain and Face-book to name a couple out there. Companies use these web sites for farming purposes. They stick a person making $10 per hour to call people like us to see if we want to purchase X. Do you like receiving these calls? What do you say when they call you?

Realtors spend a lot of money on useless marketing. We are all trying to find something that works in this market. How many people would agree with this statement? Here is my advice to you.

1. Develop a niche in your local market
2. Create a one stop for real estate investing with Network of professionals
3. Each network professional refers each other's services within the group
4. Stay consistent with your brand message
5. Network Network Network
6. Create a database to send out monthly newsletters, hot properties, and invites to workshops
7. Follow up with past customers
8. Send thank you notes
9. Attend workshop on real estate and network with other Realtors
10. Blog on ActiveRain and meet great people around America

I have implemented these strategies into my real estate business. I like #10 myself.

Which number best describes you and your real estate business?

PURCHASE HOMES AT THE ARIZONA TRUSTEE SALES PHOENIX FIX AND FLIP OR PHOENIX BUY AND HOLD

Things are starting to heat up in Phoenix, AZ. Bank owned properties are starting to receive multiple counter offers on properties. That means homes are being priced right so that buyers an investors are competing with one another. Then, the listing agent asks for highest and best offer to drive the price up more for the bank. I have seen prices go between 5-10% of the original listing price. I represent many investors who want deals. Well, that means I am forced to enter the trustee sales at the court house steps.

DEFINITION OF TRUSTEE SALE:

Trustee sales are advertised the day before. In Phoenix, we have three times when you can attend trustee sales. They require all cash and must close the next end of business day. This type of investing is not for first time investors. One must have a Network in place to be successful. The lender who is in first loan position starts the bidding at the amount of money owed to the bank being foreclosed on. Successful buyers receive the trustee's deed. 

REQUIREMENTS 

This is a public auction, and anybody may bid on the house to buy a house at a trustee sale one should know that:

1. You must provide $10,000 certified funds prior to bidding.
2. Must pay off the entire purchase price in full within 24 hours or by end of business next day
3. Properties sold at the public auctions are sold without warranties. There is a possibility that the property may have liens and judgements tied to the property. One might have to evict the property owner or renter.
4. 50% or more of the homes going to auction that day will cancel by the bank

BUYER BEWARE

The banks are selling these properties "AS-IS." They will not make any repairs. Hence, that is why you are receiving a deep discount. Here are things to be aware of when purchasing foreclosed homes

• All repairs must be fixed by the buyer
• All closing costs related to the purchased are paid by the buyer
• All cash or private money only
• Owners being foreclosed on sell the appliances, kitchen cabinets, etc
• Odors are left behind from dead animals and/or rotten food

CONCLUSION

I have developed the Real Estate and Beyond Network to assist people in investing in real estate. Trustee Sales is not for novice investors. However, we have a system in place to identify, purchase, and either wholesale or retail the home in this current real estate market. How? We are trained licensed real estate professionals that does the due diligence on each property. We identify properties that are winners for that day. It is true that there is a group of people that control the court house steps. So, they represent us in the bidding process. Their fee is between $2-3K per transaction payable the next day at closing. This way you have one of the sharks on your side. It has been a great experience for many people. One must be patient and in position to pull the trigger when a great deal comes to use. Please feel free to visit www.DeliaTeam.com for further information on this subject.

PHOENIX RENT TO OWN HOW DOES IT REALLY WORK?

The banks have tightened up their purse strings by making that it more difficult for people to qualify for a conventional home mortgage. People now need a 680 or better credit score to be approved by FHA guidelines. Are you losing hope that you will never own a home? We have created the Just Rent To Own Program for people who wish to obtain a rent to own home.

It will take from 1-3 years to restore one's credit. So, the rent to own program is the best option to restore credit and have the option to purchase a house.

Here's how our rent-to-own program works:

• An investor makes a house available on a lease option. There are times when the renter is able to pick out the home. Then, the investor will purchase that home.
• Lease option candidate puts down 2-3% of the total purchase price as down payment. Yes, this money will be credited back only of lease option is being exercised.  
• "Option to Purchase" the house will be given to the lease option candidate.
• Lease option candidate will obtain credit consulting from our network partner-Praxis Credit Consulting. This company will ensure candidate will maintain an acceptable credit score to obtain a conventional mortgage.
• Lease option candidate will be in position to purchase house back from investor any time after the 13^th month into this program.  
• Finally, we have a new home owner.

Why do people do rent to own programs? The typical person will rent another twelve months throwing money away. The rent to own program will credit part of the monthly rent towards the purchase of the house vs. money is gone when doing a regular rental.  

Now, one needs to pay careful attention when it comes to the rent to own contract. It must be a Win-Win for both sides. Please pay careful attention to the purchase language in the contract. One must ensure that the house will appraise for the final purchase price. Also, there must be language in the contract stating what happens if house does not appraise for agreed upon price.

Finally, I would advise that you call Harry F. D'Elia III to be your trusted consultant when doing a lease option. He has been doing lease options for the past several years and has become an expert on this subject. The Real Estate and Beyond Network is ready to put one in position to becoming a home owner. Obtain the American Dream with the Real Estate and Beyond Team on your side every step of the way. Make the Call, Set the Plan and Do the Deal$.

PHOENIX PROPERTY MANAGEMENT OWNER LEAVES BEHIND BELONGINGS BUT WE STILL RENT IT

I had the honor of meeting a father and son real estate investment team that own properties in Phoenix, Arizona. They were interviewing Phoenix Property Management companies to work with to manage their current assets. Furthermore, they were interested in obtaining more single family homes as investments. The meeting lasted over an hour. My broker also attended the meeting which only made things better for us.

So, they gave me one home to rent out to test the waters. We were able to rent this home out in one week. Then, the son gave us another home to rent out. Well, I soon learned that it was his personal residence at one time. He still had personal belongings in the home. He informed me he would either sell the items to a potential tenant or remove the items and put them in storage. OK-we rented this home out in two weeks. The tenant did not want to purchase any items from this unit. They were scheduled to move in the following weekend.

The owner said he would make arrangements to remove the belongings and clean the home. Well, I always inspect the homes one day prior to move in just in case we have to fix items. The owner did not remove his personal belongings. I guess he was too busy to attend to this matter. I offered my assistance by having two guys remove the items and put them in storage. The owner said great idea and go with it. Items were removed and unit was cleaned.

Tenant moved into this unit on time and very satisfied. Just another example that real estate is a team sport.

WHEN THE CAT(LANDLORD) IS AWAY THEN THE MICE(TENANTS) WILL PLAY

It was just another week in Phoenix Property Management for myself. I received phone calls from many investors that do not wish to manage their own properties at this time. You might want to say that they lost that funny feeling. It has been my experience that people burn out at about five properties. It comes to a point when it become a second job with no success.

The mice in this picture seem very innocent. However, mice can cause major damage to a home when left unattended. Plus, they can make messes all over the home. They can reproduce at a high rate. When the cat is away, then the mice will take over a home if left unattended. So, I have noticed when it comes to out of state landlords. We have investors managing their investment homes from out of state and at times out of the country. That is a lot of trust if you ask me.

Here is a picture of a backyard that was under water when we arrived at this unit. I manage other units for this investor. However, this was the last one she handed over to me to manage. She informed me tenants moved out and cleaned it out. So, I was expecting a light clean out and get this unit back on the market for rent.

My guy arrived at this unit this past week to discover the front door was opened. The hot water blew and flooded the downstairs as well as the backyard. Furthermore, the entire unit was trashed with garbage all over that was left behind from the previous tenant. IF THE CAT IS AWAY, THEN THE MICE WILL PLAY AND CAUSE MAJOR DAMAGE.

PLEASE FEEL FREE TO VISIT MY FACEBOOK PAGE TO VIEW ALL PICTURES OF THIS UNIT

PLEASE CALL ME FOR PHOENIX PROPERTY MANAGEMENT $60 PER DOOR PER MONTH

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DO IT YOURSELF LANDLORD ACCEPTS PARTIAL PAYMENT DIRECT DEPOSIT

Real estate is a great way to obtain residual income when it is down correctly. I am in the property management business. Many real estate investors decide to manage their own property to have total control of their assets. OK-everything is fine until the tenant stops paying rent or pays partial rent. Does the owner accept partial rent or not? Sure, the tenant is good for it-right? That may not be the case. I have found that tenants know the local laws better than the landlords. Landlords are on an unfair playing ground. Landlords tend to trust too much. Furthermore, they would like to help the tenant out. To what extreme? Then, the tenant fails to pay rent for the next two months. Now, it becomes a problem. Most landlords become frustrated and do not know who to call to fix the problem.

Properties R Us LLC is a full service property management company located in Phoenix, Arizona. We cover the entire Phoenix Valley when it comes to property management. We charge $60 per month per door with complete 24/7 online access. Landlords love us because we handle the property management and tenant relations for one flat fee. Come on! I am sure time can be better spent than doing property management.

I just picked up a do it yourself landlord property last month. We sent out the proper notices to the tenants informing of the change weeks in advance in order to make their payment to Properties R Us LLC and not the owner. Well, the owner had them direct deposit the monthly rent into their bank account since they lived out of state. OK-it seems innocent and easy to all of us.

Now, the fun begins. The tenant deposit less than the full months rent. The owner was furious. Why did the tenant deposit the worng amount? Was the tenant playing games? I called the tenant to introduced myself as their property manager. I asked about the rent. The tenant took out repairs done to the home without owner's permission. Tenant was pretty stern and refused to pay full months rent.

We instructed the owner to do the following to protect his interests

• Send the money back to the tenant immediately with a form not accepting partial payments
• Follow through on Five Day Notice if tenant does not pay in full
• File eviction notice to have their day in court
• Start marketing property to obtain new tenant

Problem solved. Next-Please give us a call to manage Arizona Properties $60 per month per door.