Archive for the ‘Phoenix Investment Property’ Category

When dealing with income producing properties in the Arizona Real Estate market, ideally the investor will want to quantify the inherent ‘VALUE’ of said property as a key factor in determining potential yields income property will bring.  One simple factor is often used in an attempt to assign a value to the income producing property, and that is the Gross Rent Multiplier (GRM) which is equal to the investment property Sales Price divided by Gross Rent.

GRM = Sales Price / Gross Rent

The beauty of the GRM lies in its simplicity and ease of use.  The GRM for a investment property may be calculated just like that – hence multiple properties may have their GRMs compared very quickly for an approximation of relative VALUE.  The problem with GRM also lies in its simplicity.  It does not take into account other factors such as additional operating expenses, vacancies, and other things associated with the investment property.  For a more detailed analysis of VALUE in investment properties, use the CAP RATE (Capitalization Rate):

CAP RATE = Net Operating Income (NOI) / VALUE

To truly understand exactly how CAP RATEs are determined, one must understand all the components of NOI.  Back to school, here we go:

CAPITALIZATION

Scheduled Gross Income (100% Occupancy)

-         Vacancies (% of Gross Income)

-         Credit Losses (% of Gross Income)

=        Effective (Adjusted) Gross Income (AGI)

-         Expenses

=        Net Operating Income (NOI)

-         Adjusted Debt Service (ADS)

=        CASHFLOW

/         Downpayment

=        Cash-on-Cash Return (x100)

Now that we have the basics out of the way, are you ready to take on a Phoenix Investment Property that will bring you positive cash flow through out these hard times? How do we know it will be a positive cash flow producing income property? Because due to bad loans from certain lending agencies, many have lost their homes due to foreclosure. That means, those people will not be qualified to buy a property in Arizona for some time leaving them with having to take on a lease.  This is where the Phoenix investor comes in. Buy a property for $40 to $60 cents on the dollar, lease it and gain your positive cash-flow.

Article written by: Angel Karchev with www.realvisioninvestor.com

Our nation has suffered some severe home value declines over the past 3 years, the investment property market has been tough…finally some good news. U.S home values have shown signs of recovery and growth in May for the first time in a long 3 year stretch.

Many indicators are showing that the Phoenix housing market is improving. Pending home sales, a forward-looking indicator based on signed contracts, rose in June for the fifth straight month. And in April, pending home sales had their biggest monthly jump since October 2001. Existing home sales rose 3.6% in June and 2.4% in May, with some homes receiving multiple offers. And the most recent Standard & Poor’s/Case-Shiller 20-city housing price index shows a month-to-month increase of 0.5% in housing prices in May. It is the first monthly gain since July 2006. This has led some industry experts to anticipate that the decline in housing prices will soon bottom out if not there already. The time to purchase an Arizona Income Property is now.

Our nation has suffered some severe home value declines over the past 3 years, the Phoenix investment property market has been tough…finally some good news. U.S home values have shown signs of recovery and growth in May for the first time in a long 3 year stretch.

Foreclosure homes in Arizona are anticipated to see a spike in the next month, which will mark the bottom and last push by banking institutions and Assets companies to release their Toxic assests.  And with recent efforts of the government, confidence is moving higher and we are beginning to see signs of recovery in other areas as well.

 The economy is in no way out of the woods yet, but when new investment potential homes in Metro Phoenix are selling at prices unheard of in years (10 to 30% of contemporary market values) why not invest your money in one of the most proven ways to accumulate wealth…owning Real Estate.

 Where prices of Phoenix homes are heading from here….well Phoenix home sellers and owners are hoping up of course ; ) but no one can foresee the future. However, with the low price of homes in the Phoenix current market, coupled with government intervention for loan modification for existing homeowners, $8,000 tax credits for Phoenix first time home buyers and historically low interest rates, the Phoenix homebuyers have began to come out of the woodwork and shop around. More Arizona homeowners are showing signs of wanting to remain in their homes and have modified their loans, cutting out the short sale, foreclosure and distressed inventory will bring begin a slow up rise of the phoenix market values.

About a week ago, Federal Reserve Chairman Ben Bernanke said that the housing market “has shown some signs of bottoming” after three consecutive years of declining. 

 “Although some of the boost to sales in the market for existing homes is likely coming from foreclosure-related transactions,(Phoenix bank owned homes and short sales) the increased affordability of homes appears to be contributing more broadly to the steadying in the demand for housing,” he said. This was welcome news to the real estate markets, as new home sales show a substantial uprise as well.

Chairman Bernanke noted the average rate for a 30-year fixed-rate mortgage has fallen nearly 1 ¾ %  since August, and falling Lender owned and distressed property inventories is setting up for a recovery in the Phoenix Real  Estate market and the national market as well. 

In addition, the Fed chairman said the economy should bottom out very soon and “turn up later this year,” assuming that gradual repair of the financial system continues.

Chairman Bernanke noted that the U.S. economy has “contracted sharply” over the past half year, and that he sees “further sizable job losses” and a rising unemployment rate in the coming months.

However, he also stated that the U.S. economy could return to growth later this year, provided that improvements in the financial markets continue.
He noted that, “In coming months, households’ spending power will be boosted by the fiscal stimulus program, and we have seen some improvement in consumer sentiment.”
 “Even after a recovery gets under way, the rate of growth of real economic activity is likely to remain below its longer-run potential for a while, implying that the current slack in resource utilization will increase further,” he said. “We expect that the recovery will only gradually gain momentum and that economic slack will diminish slowly.”

This was certainly an encouraging statement from one of the most powerful monetary policy figures in the world. Whether we are seeing a bottom or not is still a question to be answered. However, hard economic evidence shows an increase in home sales, coupled with low interest rates, which has only helped the Phoenix housing market. We will see in the coming months if we can continue to sustain momentum and finally gain traction in the real estate market. Phoenix investors, do not wait until the real estate market makes a complete recovery. Now is the time to purchase positive cash-flow producing Arizona income property and wait for appreciation. Homes located in central Phoenix are selling for below market prices (upwards of 30 to 50% below market) will not last. Slowly but surely, bank owned inventory is being absorbed quickly by investors, and once they diminish, its inevitable that all these homes will slowly begin to regain their value. Contact RealVision Group today and begin structuring your Phoenix Investment Property portfolio with expert advice and guidance.

Angel Karchev

RealVision Group – “where success is by design”

602-762-3636

602-686-0456

Arizona bank owned properties (lender-owned property), also sometimes referred to as REO (real estate owned) homes or properties, are often seen by qualified borrowers and investors as good investment opportunities, and most of all good Arizona income property potential. With signs of the real estate market in the valley making a Spike, the opportunity to purchase an investment property in the Grand Canyon State is now. There are a few things to consider before submitting an offer on bank owned real estate investment properties. All lender owned properties are sold on an “as is” basis regarding the physical condition of the property and occupancy of the property. Transactions are usually expected to close within 30 days of acceptance of an offer. For Phoenix investors usually a 10% minimum down payment and $5,000 deposit is required (in some cases more) which is non-refundable upon the execution of a contract. Because the specific circumstances affecting each property are unique, we will be happy to answer any questions you may have. Just follow the appropriate link or call the phone number listed below.

You can register to search our inventory of Arizona bank owned investment property in your area of interest by following the link below.

Hello All,

Today I have taken over your favorite Phoenix Investment Property Blog and tied up all it’s investing specialists…..To help YOU, navigate the move to Phoenix, Arizona once my friends here get loose and find you that perfect investment : ]

Factors to Consider -

#1Time of Year – This one is huge….Arizona 7 months of the year is HOT – Depending on when you move, temperatures can reach 115 degrees and I would say that a winter, to early spring move is primetime here.

#2 Location – Depending on where your located, the terrain is varied from woods, to desert, to mountains. Prepare accordingly. If your lucky to work with the investors here, you too may not need to worry when they find you  that beautiful property in Scottsdale or Phoenix.

#3 To Use Movers or Not? – This I suppose is a personal decision, based on finances and need, but if I had a recommendation I would check out the best Phoenix Movers and give Az Best Moving and Storage call at 877-MOVIN-AZ (877-668-4629) or if your in the valley already try 602-412-3360
Run by an honest family man Alex Ganev, you can expect the best care and a highly professional service, and best of all the price is Fair and Honest.

Alright the guys here are restless to help y’all with your Arizona investment needs, so I am going to skidaddle, but I hope in a quick wya I helped you outline a few points to consider when moving to Arizona.

Hot off the press…great news regarding our struggling Phoenix Investment Property Real Estate Market.  Phoenix foreclosure homes have significantly fallen in November. What does this mean to average home buyer…it’s a suggestion that lenders are finally working with borrowers to help them pay their loans and that possibly the Arizona Real Estate Market has hit bottom.  Last month there were 3,826 homes to go under foreclosure and that is a 17% decline from Octobers final foreclosure numbers.  The way things are looking is that Phoenix foreclosure home numbers will decline even more in December because notices of Trustee Sales and pre foreclosures fell 23% in November. 

Several  big dogs in the mortgage industry have announced to provide programs to work with struggling borrowers. What does this mean for the Phoenix Investment property market…this is just a perception but, when interest rates fall, the lenders loosen up and begin to lend to owner occupant real estate buyers in Phoenix, the prime real estate investment properties will begin to disapate.  There are more homes pending sale, things are looking good for the new year as far as programs, contact Real Vision Investment Group today and let us advise you on your next Phoenix Investment Property purchase.

 Real Estate Market Trends in Phoenix

According to the latest Zillow Real Estate Market Reports, home values in Phoenix decreased -20.23% in the third quarter of 2008, compared to the third quarter of 2007. Nationally, home values decreased -9.7% during this same period.  What does this mean to the Real Estate investor? Time to start structuring that Phoenix Investment Property Portfolio and adding some positive cash-flow real estate to your investor resume.

“Don’t be afraid to be one of the first in line to reap the benefit of this busting at the seams Arizona investors market”

Looking for the right Phoenix Investment Property? RealVisionInvestor.com specializes in acquiring positive cash-flow Arizona property investments.

Statistics are showing that new home sales increased 2.7% in September , according to U.S Census Bureau.  Even where we are today with that small inch increase, we are still down 33% in home sales from this time last year. To try and neutralize slower home sales, builders have reduced production dramatically and inventory of Single Family Homes has been offset slightly. At the currentl pace of disposition, it would probably take 10.4 months for inventory of Single Family Homes to be absorbed.

Published by: Angel Karchev of RealVisionInvestor.com

RealVision Group

602-762-3636

angel@realvisioninvestor.com

All we seem to hear these days is how bad the economy is, how bad the housing market is…we agree there is a long road ahead, but with all this bad news there is also some good news. We look at and analyze MLS (Multiple Listing Service) data almost daily and we are are seeing some promising data. We are sure you have heard California residential property sales are up approximately 66% from the same time last year. Well guess what, in Arizona we are seeing the same trend with the Greater Phoenix Real Estate market. FACT: Maricopa Count for the same month of October 2007 we sold 1,859 single family homes for this year in October we sold 3,103 single family homes this is an increase of 40.1%. Sure values have dropped…but what an opportunity for the folks that are buying these homes. Other areas within Maricopa County are showing even larger increases in home sales. Our conclusion is this increase would not be happening if the bying public didn’t think these homes have become a bargain. So weather you are a property investor or not, you might want to get on the move.  We all know that market trends, reactions to them do happen qickly and you don’t want to be the “would of, could of, should of bought that Phoenix Investment Property” person…

Report prepared by: Doug Hynes of RealVisionInvestor.com

RealVision Group

Doug Hynes 602-686-0456

doug@realvisioninvestor.com

Are you looking for advice on owning Arizona Investment Property? Phoenix Investment Property will be continually updating this blog, offering investors current Phoenix market conditions, credible insight and coaching  to help build and manage their residential investment portfolios and increase positive cash flow.

Here, on Phoenix Investment Property you will find information on:

• Arizona, Scottsdale, and Phoenix Investment Property
• Arizona, Scottsdale, and Phoenix Real Estate Investments
• Updated Arizona Market Forecasts and analysis
• Arizona Hot Spots that show increased profit potential

Please check back soon as we are in the process of growing our site…

Thank you for your time,

Phoenix Investment Property

602-762-3636

2648 E. Cinnabar Ave

Phoenix, AZ 85028