Changes in how to buy in the phoenix Arizona market.

Changes in how to buy in the phoenix Arizona market.

Part 2 Auctions.

Auctions can be a very good source for buying discounted properties. How ever it comes with many challenges. There are several types of auctions as well as several ways to buy auction properties. Let’s take a closer look at how to buy at auctions.

First let’s look at the two basic types of auctions. There are the Trustee sale auctions and the Privet auction house auctions. The Trustee sales are the most common and are the one that most people think of when thinking “Auctions’ that’s when a lender has repossessed a property and is running it through the sale to recover the loss for the first time. Many times the lender will not discount the note at the auction; therefore the minimum bid is what is owed to the lender. Sometimes the lender will go through the process of finding out the current market value of the property and start the minimum bid just below there. And of course there are properties that the lender just want to get ride of and discounts the property heavily and that’s where you will find a deal. It’s important to know that a very high percentage of the properties that are listed to be sold at auction never make it to the auction. This is for a verity of reasons barrower brought the loan current, second lien holder brought the loan current, the property was sold, loan modification was reached just to name a few reasons.

It’s also important that you know that most lender auctions are done at one of two places, the court house, or the trustee’s office. There are hundreds of trustee’s that perform trustee sales and knowing who and witch ones can be a challenge. Trustees can offer lists as well as witch properties have been canceled or postponed. However now a days with all the foreclosures many trustees have a website and it’s now a self service program, and that can be confusing.

Privet auction houses are privately owned business that silliest all types of owners to let them auction there properties off. If you are a seasoned investor and have had several properties listed on the MLS you may have been approached by one of theses auction houses. One of the conditions that a privet auction house has is that no other form of advertising can be done prior the there auction. Many of theses properties are removed from the MLS prior to the auction then if they don’t sell at the auction they are put right back on the MLS. Most of theses auctions are held in hotel conference rooms, or other convention type areas. These are usually heavily advertised on television and radio. Many of the minimum bids are the list price on the MLS from the week before.

There are some conditions to buying at auctions that will make a difference.

First most will require at cashiers check for as much as $10,000.00 to even bid. If you are the winning bidder you will use it as earnest money. Second you will be required to pay in full with in a very short amount of time usually 24 hours. Point is there are no escrows on auction properties, they are all cash purchases. Most of the time you will not have access to the inside of the property so do your due diligence.

Finally, understanding the auction process can be a challenge. Have these three things in mind when considering auction properties.

1) Do your due diligence on the auction house.

2) Do your due diligence on the property.

3) Have cash and be ready to go.

Happy Investing

Chris Bianco

Valleywide foreclosures.

Changes in how to buy in the phoenix Arizona market.

With all that has been happening in the market in the recent past thing have been changing so much it’s been hard to keep up with it. The number one complaint I hear is how hard it is to find good discounted properties. Here are some of the challenges that we are facing in the Phoenix, Arizona market.

The Freddie Mac & Fannie Mae seasoning issues. Most of us are aware of the FHA seasoning condition that comes with selling a property to a FHA barrower. Now Freddie Mac and Fannie Mae are requiring a 90 day seasoning on properties that you buy from them. This is a title condition that restricts a person from buying a property from them and turning the property in less than 90 days. How does this affect our industry? It should not affect the retail fix&flip investor as much as you local wholesaler. If you are a fix&flip investor you are more than likely dealing with FHA requirements and the Freddie Mac & Fannie Mae sentence run concurrent with the buyers FHA requirements, therefore it’s not a big issue. However if you are a Wholesaler that turns properties to clients you are effected. Unless you have the resources to inventory properties, you have lost a source for discounted properties. For the guy that works 4 or 5 short sales and is hanging in there with the lending institution for months and finally gets that approval he won’t be able to sell it if it’s a Freddie Mac or Fannie Mae deal for 90 days. Many of these Wholesalers do not have a marketing plan other than moving the property to a large wholesaler like us who have a client base and a marketing plan. Now not only is the Small wholesaler affected but the larger wholesaler is as well and at the end it all trickles down to the client.

Well maybe in time Freddie Mac and Fannie Mae will realize that real estate investors are a critical part of the real estate recovery.

Happy Investing
Chris Bianco
www.valleywideforeclosures.com

The Phoenix Real estate market gets national attention on TV’s Dateline

It just keeps getting better in Phoenix.

I recently wrote a blog about the Phoenix real estate turn around (http://www.valleywideforeclosures.blogspot.com/) and can it come out of the current state it is in quickly. Well just a week or so later I caught this in Nightline
http://abcnews.go.com/Nightline/ I think we are moving in a forward direction quickly.

Something else to think about: With the amount of activity in the Phoenix market today pricing will be affected. Now the federal Government raised interest rates the time is now to buy (see my blog from March 10th)

Happy Investing
Chris BiancoChris Bianco is the senior vice president of Valleywide Foreclosures. Chris and the Valleywide foreclosures team have been servicing there clients with Foreclosures and discounted properties through out the greater Phoenix area since 1992. To contact Chris please email him at chris@valleywideforeclosures.com Chris is also a member of linkedin. Be sure to visit our website at http://www.valleywideforeclosures.com/ for other articles and information visit our blog at http://www.valleywideforeclosures.blogspot.com/

Can Phoenix climb out of the Real Estate bust as fast as it got in it?

Can Phoenix climb out of the Real Estate bust as fast as it got in? Some very strong numbers are coming out of the Phoenix Real Estate market indicating that we are in a strong recovery. New home construction numbers continue to dip as reflected in the National Housing report. However the resale market is getting stronger by the month in Phoenix. Here is some eye catching numbers.

Active listings are down 11% from last month and down 27% from a year ago. Pending sales are up 4% from last month and up 48% from last year. Sales are up 14% from April and up 42% from last may. What does this mean? Inventory is shrinking and activity is increasing, dramatically.

Here is something alarming if you are an investor. The average price per square foot is rising. The Price per square foot last quarter was $174.25, last month $177.80 and as of May 17th. $181.22. What does this mean? Although pricing is moving up home values are still historically low in the Metro Phoenix area.


There is no reason to believe that Phoenix can’t recover quickly. Arizona has a whole is nationally ranked in the top 3 in growth rate. http://www.census.gov/Press-Release/www/releases/archives/population/011671.html Phoenix also ranks in the top 5 for Business relocation. http://www.entrepreneur.com/slideshow/164656.html
Housing affordability, climate, as well as cost of living make the Metro Phoenix area one of the most desirable places to live among the nations larger cities. This might be several reasons why the Phoenix housing market is showing signs of recovery.

The driving force in the activity in the Phoenix Housing market is first time home buyers and investors. Its well read what the Government has done to stimulate the first time home buyer market with tax credits and other incentives. Many investors are entering the Phoenix housing market to take advantage of early pricing and ample supply.

Numbers are only numbers. We still have too much inventory. New home sales are still way down. Construction permits are at all time lows and foreclosures are increasing and still coming. Maybe the Phoenix real estate market is a little like an artichoke, on the surface there is thick, course, spiny leaves but underneath is a soft heart that just might have a beat.


Happy Investing
Chris Bianco
Valleywide Foreclosures

Wow lots of things are happening!!!

Wow lots of things are happening!!!

It’s been a little while since my last post but we have been extremely busy.
As many of you know not only do we provide our clients with great deals we also build rental portfolios for clients and we do our own fix and flips. The retail side of our business has been going crazy. Last week we sold 7 properties in 9 days. We have not had a week like that in years.

I just want to let everyone know what is selling and what we sold. We sold 2 wholesale deals that needed fix-up to a client that is building a rental portfolio. We sold another wholesale deal to a client that will fix & flip it. We sold 3 of our retail properties to end users. And we sold a retail property to an investor that will use it has a rental. What a great week. The great thing about our sales was the verity of types of sales.

We sold properties to both “fix & Flip investors as well as portfolio investors. We also sold properties to end users. The national housing report for the month of April was again very encouraging. Home sale were up pending sales were up. The stock market responded positively to the report with gains again on Monday. Our own Phoenix market has been doing better than the National average based on population growth and affordability. Are these indicators a sign of a strong recovery?

The real advantage for any buyer, investor or end user, is the pricing and inventory. Inventory is feeling the impact of a recovering market. Many bank deals are now receiving multiple offers and overbidding is creeping back in again. Realtors are now suggesting writing offers above the list price to insure a deal. The number of months of inventory has declined again in April. History tells us that as inventory declines pricing will be affected. The good news is it will be a buyers market for some time to come however the best deals are going fast now a days. Don't foreget to visit our website.

Happy investing
Chris Bianco
www.valleywideforeclosures.com
chrsi@valleywideforeclosures.com

Building your team.

Building your team
For many new investors the whole concept of real estate investments can be intimidating, even for the most basic business plan. Building a team of good quality players will give you confidence through out your investment process. Here is a simplified roster of the 4 team members that will make your business a championship team. It's critical to keep in mind to have these players in position before your game starts. Here is the list of the 4 basic investment components.

1) Finance (short & long term)
2) Acquisition (buying)
3) Rehab and repair
4) Exit plan (resale or rental)

Finance:
Knowing what and how much money you will need, and can get, will give you a clear perspective of what you will be able to do. Keep in mind that all lending institutions are only as good as there loan officers. Make sure that the loan officer that you will be working with is a good one.

Acquisition:
Find a specialist for buying your investment. You would not take you car to a tire shop if it needed breaks, the same applies here. A good wholesaler has ties to many different sources for discount properties including probate attorneys, banks, auctions, divorce attorneys as well as the MLS.

Rehab & Repair:
This is the most challenging of the group. There is always the problem of turn over. A licensed and bonded contractor is the safest way to go. The register of Contractors can provide information to help you make a calculated decision.

Exit plan:
There are two types of realtors listing agents and buyer's agents. When selling your house use an agent that specializes in marketing a houses or a "listing agent" A good listing agent will have a well designed marketing plan for your property. In todays market it all about marketing. If you are building a rental portfolio a good management company will be essential.

Every real estate deal that has gone bad had a break down in one or more of these team members. Wither it's "I bought it wrong" "The rehab went over budget", the profit was eaten up in a bad loan, or "I just couldn't sell it" it all comes down to the TEAM. Building a successful business starts with building a successful team.

Happy investing
Chris Bianco
chris@valleywideforeclosures.com
and be sure to visit our website at http://www.valleywideforeclosures.com/

!!!!!!!!!The website is up and running!!!!!!

!!!!!The web site is up and running!!!!!

Well its been a long time and we are past our launch date but the website is up and running. We have some more work to do; we will be adding a FAQ page, and a resource page in the near future. Check out the progress and sign up. You will be able to see our inventory and see what we have been up to.

http://www.valleywideforeclosures.com/


Did you check out the paper over the weekend? There was not only another article in the paper about an improving Phoenix market it was also on the FRONT PAGE! I will add a link so check it out if you missed it.
http://www.azcentral.com/realestate/articles/2009/04/04/20090404housing0404.html


A comment on the article is that again they are looking at retail values that are below $200,000 that is the hottest section of sales. It’s good to know that the first to enter a depressed market are First time home buyers and investors. Many experts are expecting sales to jump in the summer for many reasons. One is that historically this is busiest time of the year for real estate sales. The 2009 tax credit is another reason; many families are planning to take advantage of that, and want to move when school is out.

This is a great time to buy if you are looking for either a Fix & Flip or a Rental:
Recent MLS numbers have shown that inventory may have peaked
Interest rates are historically low
Prices may not be at the bottom but seem to be very close.

Like any industry when inventory drops the price will increase. I do not believe that we will see any big jump in pricing but we will see it start to stabilize.

Happy investing
Remember to check out our new website. If you have any suggestions for the website or anything else please let me know, either email me through the website or comment on the blog.
Thanks again
Chris

More Great news!

Just thought i would share this with everyone.

Happy Investing!

Monday March 23, 10:30 am ET
By Alan Zibel, AP Real Estate Writer

Existing home sales rise 5.1 percent in February; prices plunge 15.5 percent

WASHINGTON (AP) -- Sales of existing homes rose from January to February in an unexpected boost for the slumping U.S housing market as buyers took advantage of deep discounts on foreclosures.

The National Association of Realtors said Monday that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January. It was the largest sales jump since July 2003.

Sales had been expected to fall to an annual pace of 4.45 million units, according to Thomson Reuters.

The median sales price plunged to $165,400, down 15.5 percent from $195,800 a year earlier. That was the second-largest drop on record.

February's median sales price was up slightly from January, which recorded the lowest median price since September 2002. Prices are down about 28 percent from their peak in July 2006.

In contrast with the housing boom, when buyers took out ever-riskier loans and maxed out their home equity lines, "homebuyers are not over stretching" said Lawrence Yun, the Realtors' chief economist. "They want to stay within their budget."

By summertime, sales are expected to get a boost from a $8,000 tax credit for new home buyers included in the economic stimulus package signed by President Barack Obama last month.

The number of unsold homes on the market last month rose 5.2 percent to 3.8 million, a typical increase for the winter months. At February's sales pace, it would take 9.7 months to rid the market of all of those properties, unchanged from a month earlier.

The bursting of the U.S. housing bubble has caused foreclosures to swamp the market -- especially in particularly distressed states like California, Florida, Nevada and Arizona.

About 45 percent of sales nationwide are foreclosures or other distressed property sales, according to the Realtors group. Those properties typically sell for about 20 percent less than non-distressed homes.

That's great news for buyers, who are paying the most attractive prices in years. Plus, interest rates have sunk to historic lows.

The Federal Reserve last week moved to reduce already low rates by printing $1.2 trillion and pumping it into the economy through the purchases of mortgage-backed securities and Treasury debt.

The central bank also will double its purchases of debt issued by Fannie Mae and Freddie Mac to $200 billion.

Great news for the Phoenix market

Some great news is taking place in our market. The availability of Single Family Detached homes dropped below 40,000 this week to 39,828. This fact, combined with previous month’s closings at 5907, left the market supply at 6 3/4 months.
Active listings for single family homes have not been below 40,000 since March of 2007. May of 2007 was the last time we had over 5,900 closings.
Pending sale are over 10,000. That is the highest since June 2005 (The end of the boom years)
If you read newspapers to keep up with current real estate market conditions, makes you wonder where these facts have been hiding?
Sales are still slow in higher end properties, due to the nearly non-existence of realistic financing above conforming amounts of $417,000.
Now is a great time to buy. If you read my last post here about balancing loan rates with purchase price you will realize now may just be time to make your move.
Happy Investing
Chris

Is it time to buy?????

Is it time to buy?????

It may be time to take a good hard look at the Real estate market and decide on our own.
With all the negativity surrounding the market lets take a look at what really matters. Most investors are looking at property values as the only criteria as when to buy and what to buy. This is a major factor in deciding when to enter the market but a closer look shows that it should not be the only criteria. Trying to guess the bottom of real estate values could leave you with out the best deal. With mortgage rate at a 35 year low this can work to our advantage. Most experts think that we have seen worst in real estate values. What should be expected is some ticks down but that the sharp declines and drastic hits for the most part are behind us.

Now lets take a look at how values and rate affect us.

When thinking about building a rental portfolio the number 1 thing to keep in mind is "CASH FLOW" Popular opinion is the cheaper the better. consider this, not the cheaper the property rather the cheaper the payment. This is where the terms of the loan come into play. in many situations the terms are going to create a better deal. Fallow the example below;

A rental house that cost $100,000

$100,000 @ 5% = $537.
a 5% decrease in property values with a 1 percent increase in interest rates proves to be a bad deal.

$95,000 @ 6% = $570.

6% or $33 difference in payments.

There would have to be a decrease in property value of greater than 10.5% for the payments to be the same.

So the questions remains:
Is it time to buy?
Are we at the true bottom (rates & values)?
If i wait for property values drop will i miss the bottom of the interest rates?

With values at an over corrected state, rates at a 35 year low and inventory starting to decline now may be the best time to buy.
Finding a property at a discounted rate will absorb ticks in the value.


tell me what you think....................................