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....................................