All Forum Posts by: Bob Okenwa

@Ben Kirchner

Yes such a resource exists. Go to newhomesource.com. Or just mark the 'New construction' filter in Redfin or Zillow and go from there.

@James Robert

And this is why realtors have such a terrible reputation. This is fraud and could have been Googled in about 10 seconds. Mortgage fraud is a felonious crime in most cases and is punishable by time in prison. As a real estate professional, you should already know this.

It is very common to supply all appliances for tenants in the Phoenix area. For as much as properties rent for in Gilbert, it is very expected to have appliances furnished.

I feel a degree is very beneficial. Not necessarily for the education gained, but more so for the money earned. I have a degree in computer science and my W2 income allows me to save at a pretty good rate so I can invest and still have money left for other things.

Aside from that, if you have the capacity and discipline to focus, study, learn, and ask clear and concise questions, then you can learn real estate and do well. But ultimately, you'll need money. Be it your own or a partner of some sort, but you'll need a way to pay for property. 

1. You don't ask, you inform. You are the owner. You don't need permissions from you clientele to raise rates

2. I lived in a college town and rates are higher the closer you get to the university/college

3. Higher deposits, annual inspections.

@Archer Stone

You had an inspector verify that mold was present and still proceeded with the transaction. You had the opportunity to back out of the deal but chose to move forward. At any point in the transaction did you speak with the neighbors or HOA about known issues? How can you prove the agent or seller knew about the mold that was not visible and behind walls?

It sounds like you used the listing agent as your agent as well. The listing agent will always have priority to the seller and not the buyer, even if they say otherwise. You should have retained your own agent IMO.

I would not have let a random buyer cut into my walls either. It's not your house at that point so you either back out of the deal or proceed knowing that there may be an issue down the line.

 I'm not trying to be the bad guy, but I'd check with a local real estate attorney and talk to the brokerage about your options. 

@Mike Dymski

I think you're onto something with Avondale if they play ball. The area west of the I-10 and north of the 101 is great because of its freeway proximity (people coming in from California) and is about 5 minutes to Westgate and Camelback Ranch and Desert Diamond Casino and probably 10-15 minutes from the golf courses in Litchfield Park.

Glendale is proposing a new PAD across the freeway from the Cardinals Stadium that should be a big deal if it goes through. There is currently a lot of farm land there but they're trying to rezone it for commercial use.

https://www.abc15.com/news/bus...

@Mike Dymski

I don't want to speak for others and am by no means a know-it-all, but I feel as if we have much stronger fundamentals this time around with massive population AND job growth as underlying factors for the ridiculous appreciation. There are no natural disasters. there are two major universities, there's a good amount of things to do, taxes are low (I see newer houses with lower taxes than some 100 year old midwest homes), the area is easy to get to, and the laws here are pretty friendly to investment as the government has taken the gamble of giving major tax breaks to corporations and this in turn has helped fuel the job market.

As for the rental stock, the seasonal snowbirds seem to have enough money to either do long STR's or own second homes here. Not sure about these people buying in today's market, but I used to have neighbors that would move north for the summer to Flagstaff and come back in the fall.

People still come in the summer months but not in as great of numbers. People love to come here to golf and hang out in Scottsdale and Gilbert, so I'd lean towards those areas if possible. It's important to be closer to these desirable areas come summer time as these are where the bigger-drawing attractions (casinos, golf courses, clubs, bars, restaurants, etc) are located. Land in these areas won't come cheap, but that's the price to pay for being in these desirable locales.

Price is clearly the factor these days. I'm seeing nice homes built within the last 10-15 years in my immediate area that are sitting because they're overpriced. The model-looking ones are still going quickly though.

The fun and games are over for sellers naming their price. DOM is up price reductions are up, and intense bidding wars are down. The game of musical chairs is coming to an end and there are going to be a lot of sellers left without a seat if they don't take action and adjust with this softening market.

@Jack B.

Scared men don't win. There is a fine line between being a nice guy and getting taken advantage of. I'll let others here speak for where they stand on the issue, but absolutely have to consider the time value of money. That 6k you're losing is never coming back. You can raise the rent $1500 a month but that doesn't replace what is already lost to time. You may not want to raise it all the way to market rent at once, but you will have to decide if you're running a charity (and can absorb that loss of potential income) or a business. 

Any time you get a new tenant, you run the risk of that tenant being a headache. Strong vetting is extremely important to reduce the risk of leasing to such a tenant, but that's the name of the game and is an inherent risk. No risk, no reward.

As for the SWE's, we don't know what you're already charging them or what the market rate is. Point is, get close to market or at market rent to keep your cash flow under control. You can preface it with "My costs have gone up, yada yada yada" if you wish to justify the rent increase or explain that you'll be implementing a series of increases over time to help with your costs. Sometimes it's not what you say or do, but how you say or do it.