Phoenix Investing : Motiv8td

Scottsdale, Arizona Top Ranked City

Well, I can't really say I'm surprised.

Bloomberg Business via Yahoo Finance votes Scottsdale, Arizona #4 as America's best city!

Of course this means great things for homeowners who are not interested in investing at all.

However, this also means great things for investors interested in the Scottsdale market! Last month, in the 85255 zip code, it was reported that nearly 300 transactions were recorded from what I'm told. That's a lot of transactions! A lot of potential profitable spread an a lot of transactions.

In South Scottsdale(zip codes 85251/85257), homes are really cheap! As a landlord/buy & hold investor Scottsdale properties can easily be bought at 1% or better. Scottsdale is a desirable area for renters. Just having the Scottsdale address & zip code by itself actually allows for a slightly higher rental rates.

In zip codes 85258 & 85260 price points are higher but profit spread on great deals are even great as well. A lot of quck flip opportunities available.

Interestd in looking at whats available? Get in touch with me, we'll chat about what you're looking for and we'll search together on whats available on the MLS and what local wholesalers might have available in invetory.

Why Is The Chase Never Worth The Prize???

I had to make a very hard decision today. At first, I felt maybe it was just an emotional response so I gave it some time and thought about why I felt that way, was it worth it to me to have these emotions etc..

I came to the conclusion that I was right in thinking my thoughts. Josh will probably not like the results of my conclusion but in all reality, my decision makes sense and it wasn't like it was ever really really beneficial to him, this site and its current & active members.

The decision I made today was regarding my efforts in helping Josh gain members here on BiggerPockets. I'm always referring people when I speak with them to come to BiggerPockets. I'm always linking a great post on my Facebook wall, tweeting the post. You name it, I do it.

I don't do this with any expectation. I do it because I know what a great place this is and what great benefits it has for its active members. I know I'm not the only one who has made a decent coin doing deals, networking etc.. here on Biggerpockets. So why not share that with others so they can realize the benefits as well?

A few short stories to help you understand my decesion reasoning.

As some of you know, I recently became licensed after years of scorning those who considered it. I have my reasons and I won't go into them here. Just know that when the time comes, I will own a very active and successful brokerage that doesn't subscribe to the same 'ol endless chase.

I chose a great brokerage. I have no regrets on where I chose to hang my license. I like the brokers sense of being the best in town and where they want the brokerage to go in years to come.

I've several times made mention that my brokers and my brokers recruiter hook up with Josh about getting some of the agents active on the site. It literally would help them and all of us. So many people with so much great experience to share, it seems logical that we all connect and learn from eachother. Josh and I even agreed that we would put on a class for the agents together so that they would learn the benefits, how to navigate, participate and more importantly, how to get the most out of this amazing site.

So far, nothing has happened. Maybe in time though, we'll see. After this post, I might even be fired so who really knows what the future will hold :)

Next, lets move onto my current team leader. His name is Larry. Super super super nice guy and very knowledgeable! It takes a lot for me to like someone, especially a Realtor(some old habits die hard I guess). Larry is the type of guy I would personally use or recommend to my family if they were looking to buy a home, that's how much I think of this guy.

I've spoken to several of the active buyers here on BP. Some old relationships and some new. Since I have no ambition on being a buyers agent, I promised Larry that I would help him help my fellow investors as buyers. Since I have an understanding of what they want, what they're talking about and their strategis. It would have worked great, Larry would have gotten a handful of active buyers to keep commission flowing.

Josh and I've talked about trying to get through to some of these really really good agents that deserve a shot at working with and for us investors. We don't know how to convince them that all they need is a few active buyers and they don't have to spend 23 1/2 hours a day 'Prospecting'. Unfortunately, Larry, even after making a great introductory post, I don't think has been back since. He spends his time working his butt and watching webinars on how to generate more leads...

It simply boggles my mind is all I'm saying...

Now, Larry is planning on leaving the brokerage to go to another one. I approve his choice of brokerage because the brokerage he's going to is really great as well but he'll soon learn, the grass isn't always greener on the other side.....

Can you imagine if he spent a minimal percentage of time just networking here. Offering his help and knowledge as an experienced Realtor, learning from us investors...the list goes on. Now, I can never give him any more buyers leads, my friends & colleagues because I have a sense of loyalty. To my friends, my colleagues and my brokerage(employer). I will never willingly give away business to a competitor. Just won't do it.

These are just two very very recent situations that continue to happen. I'm constantly plugging BP almost as a dirty vacuum salesman, or at least I feel like that sometimes.

I realized today that the chase isn't worth it to me. If people don't want to hear my message, fine, I'll let them continue to chase while never realizing the prize. Reasoning is I have the prize already and I'm not sharing anymore. I'm keeping it all to myself and I'll give the same fake interest back when they want to know what I'm doing, have been doing and will continue to do that makes me so successful...

Good luck to those who won't listen I guess...

Very Effective Wholesaling in the Phoenix Market

I've been in contact with a lot of wholesalers and other investors in the valley as of recent.

Mostly, I'm trying to make sure I re-connect with some old friends as well as connect with new to take full advantage of now being a licensed Realtor as well as an active investor.

Its not a surprises that most wholesalers start there because of their lack of funds. Others wholesaler because they're unable to take a deal down due to a number of reasons like funds tied up on a current project, out of their desired area or even possibly out of their price range etc...

One strategy within wholesaling that I've always watched be more and more successful here in the valley(Phoenix metro area) involves a little more than your standard place a property under contract and then assign it for a fee.

Time and time again, the really successful 'Wholesalers' are actually taking down properties with personal funds/HML's ect... They're putting lipstick on a pig, placing a renter in the property and then re-selling as a 'Tenant Occupied' 'Turn-key' investment property.

While this does require a resource that most 'wholesalers' don't have.....$$$ it does provide the best and quite possibly the easiest exit strategy.

Most of the homes for sale in decent, rental desirable areas are newer homes without the need for major rehab. The lipstick on a pig statement means for the most part some clean up and little cosmetics to get it rental ready.

Having bought long term buy & holds myself as my long term strategy, I always keep up on the different areas of the valley, their rental rates, vacancies and purchase prices. While BiggerPockets lives and dies by the 50%. The Phoenix metro area can't always apply those rules but in many many places 1% can easily be done.

If you're interested in learning more about buy/hold properties in the Phoenix area or if you're a wholesaler with or without resources to fund this successful wholesaling strategy, connect with me here on BiggerPockets and I'll do what I can to help. If I can be hired as a Realtor on your team, all the better. I can provide certain insight that most others cannot.

Connect with me here, where you'll find my contact info including phone and email: http://www.biggerpockets.com/users/motiv8td

Phoenix Real Estate Uncensored

I really enjoy the brokerage I decided to hang my license at. They seem to really get the idea of getting out there and get your business in place and not sit around and wait for it to happen.

Here is my brokers weekly video series they do. If you skip to 5:35 you'll see why I personally like this particular video

Wholesalers in Phoenix Have Options

I showed up this morning about 9am to Starbucks on Scottsdale Rd & Indian School. One of my regular spots as Old Town Scottsdale isn't very far from me at all.

This morning though, I was there to meet a fellow BP member. This member is new to Investing as a whole and was smart enough to reach out and network with others here in the Phoenix market.

I was glad to meet to him. Nice guy and certainly has the ambition needed to eventually succeed. He had a gameplan, had already made some great contacts and knew where he wanted to go. He sought me out because I recently obtained my RE license here in Arizona.

He was interested in knowing how or what I may be able to do for him and vice versa.

Now, normally, agents are not willing to work with wholesalers because if the investor isn't willing to pay cash today for an overpriced property, they're not interested. Of course, that's fine with me. I'd rather work with a small select few active investors as an agent than spending countless hours and dollars marketing to retail sellers/buyers etc...

I know where this guy is coming from. I've been there before myself. I know its hard to have someone be willing to just help out. Willing to give that extra motivational push needed when its crunch time and the butterflies are going crazy. Sometimes, new wholesalers just need some guidance.

I take that as I took it with this gentleman today, in stride.

The way I see it. Wholesalers are an amazing asset and resource for all active investors and EVEN Realtors. Take this as an example. This gentleman will be working his but off marketing to sellers. Not all sellers are going to be willing to sell at a deep discount, or one low enough for him as a wholesaler to make any profit.

Instead of losing that potential seller, this wholesaler will now have access to me so that he may refer this seller to me. I can work this lead as a Realtor and assist them in getting their property sold.

In return, he'll receive some pretty valuable things from me as an Agent/Investor as well. He'll receive help in getting things he needs done, connections to people that he can add to his network, NOT direct access to the MLS but certainly can have comps pulled for him, daily lists compiled and sent to him. The list goes on.

Most Realtors pay out a pretty penny for their lead generation only to have dismal results. Working with wholesalers, it drastically reduces your marketing dollars and the leads are brought to you on a silver platter. In return, the wholesaler drastically increases his ability to earn referral dollars and utilize the abilities of an experienced investor turned agent/investor.

Want To Become a Realtor?

I'm going to 'try' to make this short & sweet! Its been a long time since my blog fingers got any work so its about time to warm them back up.

A lot of investors toss the idea around of getting their license. I was one of them. Mostly, I see a lot of new investors without much knowledge and or financial resources to successfully navigate their first deal also take the route of getting their RE license.

Most of the time, you never hear from these people again as they get trained for traditional resale transactions. Its unfortunate but it is what it is.

I wanted to make those aware who might be considering the idea of getting their RE license, while it may seem like a great idea, you really need to be ready for a few things. These things I can speak of from experience as I recently added the RE license to my investing career resume.

First and foremost, congratulations! You just became licensed to get sued! That's right, when something goes wrong, who's going to get sued? You are! If you're aware of this fact, a lot of things in your beginning licensed career will make sense. You will spend a lot of time going through classes training you to be a professional. This, while it is helpful, is the very same reason why you are automatically at fault!

Don't let it completely scare you away from considering getting your license. Just be aware of the higher standard you will be held accountable at. If anything, it certainly will keep you honest :)

One other quick topic to discuss is the surprise fee's that spring up out of nowhere. If you thought you just needed to pay for a class to get your license, please be aware, its not that easy. Here in Arizona, where I received my license. I literally had no idea what nickel and dime fees awaited me.

Once you pay for tuition, expect some things like 3rd party testing fees, state licensing fee's. I even had to pay $20 to the state just because I got hired onto a brokerage and in effect activated my license. Hence the $20.... I know, it seems silly but true.

You'll also need to be aware of possible association fee's lockbox code fees, brokerage office fees, MLS acces fees. This list literally seems like it goes on and on!

We haven't gotten to the point where you're are paying for marketing yourself as a Realtor yet and you're damnear fee'd out aren't ya? I understand your upcoming frustration.

There are some silver lining among the dark clouds and some helpful things I'll bring to you readers considering taking the plunge in the coming weeks. These will cover some effective tools that you will hopefully have at your disposal whether you're a investor or a Realtor, even both for that matter.

Thanks for taking the time to read this! You can friend me on facebook.com/motiv8td and if you have any interest in chatting about the Phoenix market, by all means, connect with me.