Real Estate and Beyond Blog: Arizona

THE ROAD LESS TRAVELED IS LONG BUT JUST DO IT

Happy New Year 2012. I am writing my first blog of 2012. Many of you have been asking about Harry D'Elia. I would like to thank many of you for inquiring about my presence and well being. We all face challenges in life from time to time. Well, my challenge was last year about this time. I would like to announce that the roller coaster ride has ended for me and my family. It feels good to be normal and to get down to business. So, what happened to Harry that was so tragic.

My wife of 21 years embarked on a journey back to Louisville, KY, to settle her parents affairs. We only calculated her being gone for two months. It lasted nine months. Both of my inlaws were diagnosed with dementia. So, the plan was to empty the house and put it on the market for sale. It sounded like a logical plan when it comes to real estate. Right?

Well, we had to go through 40 years of personal belongings which is never easy. Then, we discovered the home had structural issues that had to be dealt with at the same time. This meant obtaining bids from licensed professionals in the local area and completing the work. We decided to enroll our kids into the public school system. I had to go back to Phoenix, Arizona to continue my real estate business and to take care of my inlaws. It has been a long road.

Also, I decided to join a new real estate company that offers full real estate and property management services to the public. I have never practiced property management. I had to learn this part of real estate from the grown up. Wow! I have a new respect for property managers. Currently, I manager well over 100 units and counting. I am now able to offer my clients a true ONE STOP solution when it comes to real estate

• ACQUISITION
• REHAB
• PROPERTY MANAGEMENT

My life was put on hold last March of 2011 when my father in law died. I flew out to Kentucky to bring my family back home. It was a long and hard trip. We buried my father-in-law with full military honors here in Arizona. It was a great day as they had arranged two planes to fly over his burial services. Picking up the pieces is never easy in one's own life. However, I believe we are a better family after it. I was learning a new part of real estate, closing deals, and taking care of my sick in-laws. I do not regret one thing about it.

3 LESSONS I HAVE LEARNED FROM THIS LIFE EXPERIENCE

1. FAMILY FIRST AT ALL TIMES IN LIFE
2. I CAN DO IT
3. ASK FOR HELP IN YOUR CIRCLE OF INFLUENCE

IT IS NICE TO BE BACK WITH MY AR FAMILY

TOP 10 WAYS TO GET ONES FINANCIAL HOUSE IN ORDER BEFORE THE END OF THE YEAR

Everyone one I know including myself is cutting back both in business and personal budgets to overcome this dip in the economy. There is nothing wrong on reevaluating the budget here and there to save money. I am glad that people are going back to basics. I know many people that were using their house as an ATM machine. That was wrong. Here are my personal tips on money management

1. Overall Snapshot of my Financial Picture right now
2. Obtain a second quote on all of my insurances from insurance broker
3. Do not count on that bonus this year
4. Take better control of one's money
5. No more impluse buying
6. Pay cash no credit whenever possible
7. Obtain a copy of ones credit report to check for mistakes
8. Put money away for retirement
9. Purchase rental house for retirement
10. Put away money for college costs

IT IS GREAT TO HAVE A MENTOR IN MY LIFE. HOW ABOUT YOU?

Real estate is heating up. There are many more real estate agents entering the market because they see easy money. We have to love these seasonal agents. However, professional agents make the difference. Personally, I have had a mentor since I came into the business. I believe this is why I am still in the business.

Why have a mentor?

1. Accountability
2. Learn from a master in your field
3. Learn to reflect
4. Solve problems faster
5. One is not alone in life
6. Get an honest opinion
7. Brainstorm
8. Have balance in life
9. Friendship
10. Networking

Great Hints to Find a Mentor

• Do not settle for second best. One must have a direct relationship with the mentor. I would advise having a real person and avoid long distance mentoring.
• Set up realistic times to meet. There will be a time commitment for both sides.
• Ask for character references
• Complete a thorough background check on the individual

Conclusion

Having a mentor is the best investment at this given time in one's life in my opinion. I truly believe that the right mentor will have a direct impact in one's life personally, professionally and financially. 

OPEN QUESTION TO AR

DO YOU HAVE A MENTOR IN YOUR LIFE TODAY?

ARIZONA REAL ESTATE INVESTORS EDUCATE THEMSELVES FOR LONG TERM RETIREMENT PLANS

Real estate investors are realizing much more attractive returns due to the multiple income streams from real estate investment that include the following:

Appreciation: The Greater Phoenix area has a track record of steady appreciation between 5-6% in a normal market based upon historical data. This is an automatic savings account for many people. The offers opportunity down the road as one holds onto the property as the value continues to appreciate. This provides to open a line of credit to invest in other investments offered by Real Estate and Beyond Network.

Rental Yield: The percentage yield from the rental income. This can be calculated as either gross or net. Experienced real estate investors use the net method.

Inflation: Inflation has a direct relationship with rents since rents increase as inflation increases. Mortgage payments are set in stone on a 30-year fixed mortgage. Currently, the Phoenix market is experiencing heavy foreclosure activity. There are plenty of renters here in the Valley of the Sun.

Leverage: If used correctly, this is one of the ways many people increase one's personal wealth. Leverage does involve risk that must be considered into the equation.

Principal Reduction: An investor will be in much great position if one uses the monthly cash flow to pay down the principal of the loan over a period of time. So, the principal of the loan decreases as the appreciation of the investment increases over time. Again, this is part of the leverage as discussed above.

Distressed Homes: Educated investors seek distressed properties to take advantage of the equity opportunity. The Real Estate and Beyond Network provides services to find, fix, finance and fill with a tenant. We have provided a one stop shop for our real estate investors. Please feel free to visit www.deliateam.com to search for homes.

Tax Advantages: One of your best partners in real estate is Uncle Sam. Everyone has an Uncle Sam on their side. The US Government forces all real estate investors to depreciate one's residential investment. Plus, one can deduct any expenses to the property such as any improvements, property management fees, closing costs, etc. The Real Estate and Beyond Network has a CPA to go over these tax advantages for every investor.

Retirement: The rules have changes on Wall Street. Many people are looking at real estate to be part of their retirement plans. However, many people shy away from real estate because one does not understand the power of real estate. The Real Estate and Beyond Network is here for you. We walk people from A to Z when it comes to real estate investing. Learn more on how to use Self Directed 401k monies to purchase real estate for retirement.

Leave a Legacy: Webster's dictionary defines legacy as money or property bequeathed to another by will. Tell me which parent does not want to better the next generation. We all strive for leaving a legacy. We at the Real Estate and Beyond Network strongly believe in this philosophy.  

GARAGE SALES GREAT BARGAINS AND GREAT PLACES TO DO REAL ESTATE

It is that time of year again. I am starting to see garage sale signs all over the Phoenix area. How many people love garage sales? Personally, my wife and I have a garage sale one time per year in order to remove junk from our house. Plus, it shows our kids not to be pack rats. Furthermore, it is a great way to make a few hundred bucks in a few hours depending on what one has for sale.

We have been doing garage sales for the last seven years. It is a great way to meet people in your neighborhood. I have a stack of cards ready to hand out to every person who comes my way. Hey, it is my house so I pass out my card. I have received on great lead each year. Now, I have some people that  refer me because they met me at a garage sale.

It pays to clean! A garage sale is another great sign that people might be moving. So, I stop at a few garage sales as I am driving around on the weekend. I always ask the people their motivation for the sale. There are times when they are moving and they do not have a Realtor. Great place to obtain listings and buyers.

Tell us more about your experiences when you attend neighborhood garage sales.

TOP 9 TIPS WHEN FOR FIRST TIME HOME BUYERS PHOENIX REAL ESTATE MARKET

You are about to make what will most likely be the largest transaction of your life: your home mortgage. Unfortunately, many home buyers do not take the time to research some of the little but weighty intricacies of mortgages. Researching the mortgage process takes little time compared to the tens of thousands of dollars it could save you.

Doesn't it make sense to become as completely informed as possible before you buy your next home? This special report is designed to help you avoid nine common mistakes. Remember that the right lender can help you make good, sound business decisions based on your personal financial situation.

1. Find a Reputable Lender - This is the most important choice you can make when starting the mortgage process. If you don't trust your lender, you are in for a long and stressful home-buying experience.
   
   
2. Pricing - Don't be lured into a mortgage company strictly by promises of low rates. Find out how long the advertised rate is guaranteed for. Make sure there is enough time to close on your loan. Some companies may make these "promises" but will try changing the rate prior to closing. They may claim that your "lock-in" rate has expired so make sure you have the expiration date in writing. In some cases, the lender may even try to delay your closing to break the "lock-in" rate. In other cases the delay may be beyond the lender's control. Make sure to allow yourself plenty of time for closing. Delays in the process are common and everyone (builders, title companies, even yourself) is responsible.
   
   
3. Programs - You will see several programs that offer special low-interest rates. Keep in mind that they may not be the best program for your situation. Make your lender explain what programs they feel best serve your needs and more importantly, why.
   
   
4. Fixed or Adjustable Rate Mortgage (ARM) - Conventional thinking is that fixed is always better and while this is sometimes true, it is not always the case. The key here is to ask, "How long am I going to live at this property?" An ARM can actually be a better choice if you are going to be in the home for a short time. The average for how long a first time homebuyer keeps their mortgage is less than four years. In general, the longer you plan on staying in your home, the better a fixed rate mortgage will suit your needs.
   
   
5. Don't try to bottom out the market - Deciding when to lock in to a mortgage rate can be difficult. Many people will float, trying to guess when rates have hit bottom. Unfortunately, a lot of times they will wait too long and end up with a much higher interest rate. There is nothing wrong with floating but keep a close eye on economic indicators. Your daily newspaper or even the nightly news can be an excellent source of information on the latest interest rate activity. As closing nears, it might be worth locking in.
   
   
6. Negotiate problems prior to closing - Its common for a problem to arise before closing. Waiting until closing will rarely be in your best interest. For instance, if you accept $400 at closing in lieu of the seller making a repair and after closing you find that the repair will actually cost $600, you've obviously made a poor decision. Whether the builder agreed to add an item and has not or the seller has made a repair that is not acceptable to you, discussing a solution prior to closing will give both parties time to analyze and determine options.
   
   
7. Be prepared for closing costs - In addition to the down payment, you will be required to pay fees and other closing costs at the time of the final transaction. Closing costs typically range from 2 percent to 6 percent but will be dependent upon your situation. Lenders must provide you with a "Good Faith Estimate." The "Good Faith Estimate" will breakdown all costs so that you may know what to expect at closing.
   
   
8. Close at the end of the month - When making a mortgage payment, you will be paying interest that has accrued from the previous month. Upon closing however, your lender will charge you prepaid interest for the date the loan is recorded through the end of that month. Therefore, one way to lower your closing costs is to close in the latter part of the month. This will lower the adeliajos of prepaid interest that you must pay.
   
   
9. Look out for hidden fees -- Check for certain miscellaneous fees such as inspection, notary, and document preparation. These types of fees can mean hundreds of dollars in closing costs. Remember that this is your money at stake. Never should you be afraid to ask for explanations of fees you are being charged.

Please let me know if the above tips help you. I like number 9.

FROM KINDERGARTEN TO REALTOR IT MAKES SENSE TO ME NOW

Here is an old black and white picture of me when I was actually in kindergarten. I still remember the first day like it was yesterday. I kissed my Mom on her cheek and told her I would see her later. I was not afraid like most of the kids in my class. I was a natural born networker on the first day of class. It seems I befriended everyone in the class within the first week. I had other kids following me on the playground. It felt very natural for me.

I learned the following basics that I learned in kindergarten in my business today:

1. It is OK to take a siesta during the day

2. First Impressions do mean something

3. Network Network Network

4. Take charge the first day and people will follow

5. Keep It Simple and Straight Forward

I have witnessed too many times that other Realtors make the real estate game too complicated for themselves. I truly believe that Real Estate is a Team Sport just like the great spirit we all felt in kindergarten. I still remember the first day when I learned to tie my own shoe laces. It was an accomplishment for me.

Another thing that I truly enjoyed was the cardboard building blocks that we played with in kindergarten. I would play with these blocks all the time. We were allowed to use our imagination and creativity in class compared to today. I believe that kids of today watch far too much television in my opinion. Personally, I do not own a TV in my house for this such reason. I want my kids to use their minds.

The blocks allowed us to build a structure and knock it down to start all over. This time we can build it better with a group of friends. I was able to develop teams and able to see others talents to ensure a WIN WIN. I do the same thing today in my real estate business.

Kindergarten was my best real estate class to this day.

IT ALL CAME A TUMBLING DOWN BRICK BY BRICK

It is always a pleasure having my son in the car with me while I am practicing Phoenix real estate. I was visting a fourplex that I just got under contract to do Arizona Property Management. A hospital is located directly across the street. This is ideal when renting out units. There is plenty of traffic on a daily basis.

So, my son notices that they are taking down some multiunits across the street. Yes, we pulled the car near the fence since the sign did say no trespassing. However, this was a real life machine taking down the structure. It was pretty interesting to see live. My son loved to watch it.

Real estate is always happening in your local market.

VALLEY ACADEMY CHARTER SCHOOL SCHOOL SUPPLIES BE IN STOCK AT ALL TIMES

Yes, it is that time of year to shop for new school clothes and school supplies. I have been the last couple of weeks getting my children prepared for the upcoming school year. Many parents forget about the school supplies until the end. Valley Academy Charter School has their main web site full of information. This is great for parents who want to be in the know. OK-what school supplies do they need?

This question was easy to answer because the list for the third grade was on the school web site.

VALLEY ACADEMY CHARTER SCHOOL SUPPLIES NEEDED LIST PER GRADE

The link above makes it real easy for parents to be prepared for the upcoming school year when it comes to school supplies. The next question is "Do they really need all these supplies mention on this list?" It is a fair question.

So, we brought the list on Meet the Teacher day. We met the third grade teacher for my son. We spent twenty minutes with her. Then, we asked her about the supplies list. Well, she informed us that he will need the majority of the items listed. OK-we have every item on the list.

Where is the best place to obtain school supplies. We believe WalMart is the best place to obtain school supplies this year. Many of the Dollar Stores were higher priced than WalMart. This have been our experience.

Where are you purchasins school supplies this year?

VALLEY ACADEMY CHARTER SCHOOL PHOENIX, ARIZONA OFFICIALLY STARTS AUGUST 15TH, 2011 READY TO ROCK THIS YEAR

Valley Academy Charter School is officially starting the first day of school on August 15th, 2011. I know parents and children are ready for another great year. Meet the Teacher day was this past Friday. I felt that I was on a college campus with my children. Charter schools have come a long way to compete with pubic schools.

Mission Statement:

Our mission is to offer back-to-basics, traditional education by providinga challenging, sequential, teacher-directed, standards-based, textbook-driven curriculum supported by individual accountability and high academic and behavioral standards.

Parent involvement is heavily encouraged in this school. Parents can get involved in the following committees see below:

• Special Events
• Curriculum review
• Event Fund raising
• Office Fund raising
• Library
• Student Recognition
• Athletics
• Valley Communication
• Staff Appreciation
• Volunteer Communication
• Coyote Pride
• Promotion

Yes, I signed up for Valley Communication since I am in sales. I am here to serve my community. It is time to Pay It Forward. I am very excited to begin the school year.

MAKE IT A GREAT ONE 2011-2012