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.

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$.

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

MAKE THE CALL TODAY

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.

ART OF CLOSING THE DEAL (Fix and Flip)

1. Closing is the last step in buying a home. Unless you are paying cash for the house, you cannot buy without backing from a lender, which comes in the form of a commitment letter. The lender will require that you have a homeowner's insurance policy on the property, so you will need to arrange this before the closing.

2. At closing you will be asked how you want to hold the title, which basically refers to ownership. If you alone will own the house, it's sole ownership; joint tenancy applies when two or more people are purchasing, but each holds the right to dispose of his or her share. Tenancy in common applies when the property is owned jointly with an agreement that if one owner dies, the share goes to his or her heirs. Tenancy by entirety is only an option for married couples who will make joint financial decisions and, if one spouse dies, the property is inherited automatically by the survivor.

3. The down payment is due at closing and must be provided in the form of a cashier's check. Usually there's already a deposit on the house being held in escrow by the real estate agent; the deposit is produced at closing and included in the down payment.

4.Closing costs are an aggregate of itty-bitty administrative fees incurred behind the scenes to process the loan, the appraisal, the title search, and so on. These many individual costs add up, but they are also beyond your control, so it's really a matter of accepting the inevitable early on. When you first apply for a loan, the lender is required by law to give you a Truth-in-Lending estimate of what the closing costs will be.

5.Costs payable in connection with the loan alone include points, loan origination fee, assumption fee, application fee, credit report, appraisal fee, home inspection fee, and processing fee. Depending on the loan package you select, you may not have to pay points. Consider that one point is equal to about 1 percent of the loan adeliajos. This is negotiated when you decide on a lender.

6. The main purpose of closing is to review and sign all appropriate documents. While it is essential that you understand everything you sign, it's not feasible to read through the volume of documents put before you on the actual day. Whenever possible, try to get documents you will be signing ahead of time so you can review them. This way, you can get your questions answered before you sign.

7. After all signatures are on the dotted lines and the money is transferred to the proper accounts, you are finally the proud owner of a home. Many buyers make the mistake of thinking they can move out of the old and into the new on a very tight schedule. It's far wiser to give yourself a five- to seven-day overlap in case loan closing gets delayed or the seller doesn't meet the deadline. In the long run, paying a little extra rent is not nearly so expensive as holding up moving trucks and camping in hotels. Plus, you'll have that added peace of mind at a very nerve-wracking time.

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• Checkbook Control - Self Directed Retirement Plans structures your IRA or 401(k) so that you have checkbook control over your retirement plan assets. No more begging a broker to allow you to invest your own money. You are in total control. Participate in time sensitive investments, including foreclosures and tax liens, without the time restrictions of the custodial paperwork process.
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We have lender who will lend up to 50% on a residential property on a nonrecourse loan. The minimum loan amount is $50,000. So, the purchase price will have to be $100,000 or more to meet the $50,000 minimum loan amount. If you have further questions, please visit my web site at www.deliateam.com or view my profile to contact me directly.

SENIORS ENTERING FIX AND FLIP MARKET TO GENERATE EXTRA CASH PHOENIX, ARIZONA

How do you picture your retirement life? I think of a three car garage with two cars plus a golf cart living next to water and a golf course in my retirement years. However, I will never stop working because I want to keep myself busy so I keep sharpening my skills. So, I host a popular weekly radio show here in Phoenix, Arizona called "Real Estate and Beyond Radio." I do it every Saturday from 12-2PM Phoenix time. I have been receiving many calls from senior citizens that want to fix and flip homes in order to generate cash.

Many of them informed me that they have lost about thirty percent of their portfolio during this economic downturn. Furthermore, they are tired of only receiving a two percent return on their monies in regualr saving accounts or money market accounts. They cannot live on that money. So, they would rather take a portion of their money to fix and flip homes. Wow! I was pretty excited about the opportunity.

Currently, I have four senior citizens in my personal pipeline ready to fix and flip homes. By the way, there are opportunities for people to team up with one another in order to obtain courage and support from one another. We can have a real estate lawyer draw up documents to make everything legal between both parties. The post below is with a senior citizen client that needs to pay off some debt so she wanted to leverage herself in a conservative manner. She is expected to profit between $12-15K on this home once it is sold.

PHOENIX FIX AND FLIP DONE THE RIGHT WAY

Real estate is a team sport. Everyone on team has their part to play in a fix and flip. I have got it down to a science. We strive to have the house on the market in seven days after purchase from the trustee sale.

WE AVOID TOP 5 MISTAKES MADE BY NEW REAL ESTATE INVESTORS

If you wish to learn more about real estate investing, please feel free to visit www.DeliaTeam.com.

MAKE THE CALL, SET THE PLAN, DO THE DEAL$ TODAY

The top 5 mistakes that I see investors make when investing in real estate:

1. LONE RANGER MENTALITY-Investors think they know everything and can do everything themselves. Real estate is a team sport as expressed in Rich Dad, Poor Dad book series. The Lone Rangers of the world will get to the top. However, it will take them longer because they do not have a team to assist them.
2. NO PLAN-Many investors do not create a plan before investing in real estate. That is a huge mistake. "Make the Call, Set the PLAN, and Do the Deal$" is my tag line on my radio show. First, we create the plan. Then, we do the deals. There is a natural order to follow.
3. LACK OF PROTECTION-Many investors do not cover the proper insurance both personally and professionally. Furthermore, most investors do not have their properties in LLCs for a layer of protection in case of lawsuits down the road. Many investors continue to increase their investors. However, they do not protect their assets.
4. OVERPAY-Investors will work with a real estate agent without asking their own experience. There is a lot of due dligence when it comes to researching investment properties. One must be skilled to judge the market and current market value. I have witnessed many investors pay too much for the property. Here is my motto"DO NOT PAY RETAIL."
5. ANXIOUS-Real estate is a game of patience. It reminds me of playing chess. Most investors jump the gun too quickly. This costs them big time down the road.