PRIVATE MONEY!
We continue to have a hot real estate market in Phoenix, Arizona. The active listings continue to decrease and pendings continue to increase. When will the rest of the bank owned properties hit the market? This is the same question many of us are asking around the country. They will be unable to handle them forever. So, we must put ourselves in position to take advantage of what is coming ahead of us. I believe there will be some great deals at the end of the year while other people are not buying during the Holidays.
Private money is the best way to take down a bank owned property because it is quick and both sides agree to waive inspections and liabilities. The bank will always take a cash offer with a quick close over a financed deal every time. Why? The banks want to get rid of the property. Furthermore, they want to close the deal so the buyer will not change their mind at the last minute. Hence, the use of private money.
Private money is very tight right now because lending institutions stopped extending credit. So, the people with cash are in a great position. They set the terms of the private money loan. The private money lender is looking for the following things in the borrower:
- Character
- Deal itself
- Exit strategy
I heard these private money loans are too expensive. Well, temporary money is nice to have when you need to close a deal. Then, turn around to fix and flip the property to make a profit. It is worth the cost of using private money in my opinion. The supply of private money is low and the demand is high. That means the price of using private money is high. Typically, one will pay between 2-5 points plus 14-18% interest rate. Plus, the investor will require between 20-40 down payment so one has skin in the game. The investor must always think that one might have to foreclose on the property, Then, sell the property to receive his/her money back.
Finally, I have built the Real Estate and Beyond Network to assist investors from around the world to invest in the greater Phoenix metropolitan area. It is a one stop shop for real estate investors. We have an auction coming up in early August. There will be over 200 properties being auctioned off. I have screened the list of the 200 properties to isolate the best deals being auctioned. Please visit my profile to contact me or visit my main web site address at www.DeliaTeam.com.
Make the Call, Set the Plan, Do the Deal$!
Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities. The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona. You can listent to past shows, or stream on-line.
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