All Forum Posts by: Andrew Warner

@Paul Janerico When Brandon uses the term "forced appreciation" he is talking about a forced increase in value of the property caused by your (the investor) buying at a discount (20% less than the value) and/or adding value to the property through improvements.

Every situation is unique and there is always more than one way to make money on a deal. There is no one right way to do something. It sounds like you don't really have a set strategy. I recommend reading the beginner's guide on BP.

You didn't offer much info on the property but they are going to want to know a few things depending on your situation.

What property type is it?

The vacancy?

The average rent in the area

The Cap rate

Sometimes, investors will want to know the traffic count on the major cross streets.

The number of Units

Hello BP!

Seems like a mini bubble in Phoenix for multifamily. I was hoping for an expert opinion on the current market. The prices seem high but at the same time the interest rates are low. Is it a good time to buy?

I would look for sale comps in the area for recently sold land in that area. That way you will be able to get a better idea of how much your land is actually worth (who knows it may be worth more than the 35k). The bank stands to gain a good profit if they buy your land from assemblage of the properties. This means they are motivated and may pay much more for the land than the market price.

I have been looking at Senior Assisted Living Properties in Arizona. Does anyone have any information on hiring a property management company for assisted living? I know property management companies normally charge around 10% for rentals, what do they charge for assisted living? I'm assuming it would be more since seniors need special care. Any advice is greatly appreciated.

@Corey Skelton

Welcome Corey!

You probably already know this but just in case: one huge advantage that you will have over us "civilians" is the option of a VA loan which will allows you to buy a home/duplex/triplex/4plex with 0% down. It is definatly something worth looking into and taking advantage of.

Everyone on this thread has made some great insights for getting referrals. It's always great to learn from other agents. One thing I noticed wasn't mentioned is specialization. It works great in commercial real estate and may be useful in residential as well. When you specialize, for example, as an apartment broker and learn everything there is about apartments other agents will recognize you as the apartment guy and send you apartment referrals. You can also specialize on a certain area of town and learn everything about the market in that particular area. When you become an expert and know an area better than any other agent, other brokers will send you referrals for properties from your area. I think its important to also give referrals to other brokers for properties outside your area of specialization as well for this to work. After a while you will be getting referrals on a consistent basis.

I have had this conversation with some older more experienced brokers at my firm regarding real estate and wanted to hear some opinions from expierenced investors. A lot of them believed that timing in the right market was everything and that buying value added properties and flipping them didn't really matter that much when it came to making a profit. It seemed like almost everyone lost money who owned real estate in 2007 and many of these guys have lived through more than one down turn. I want to know what everyone thinks when it comes to market timing VS adding value in real estate. What do you feel is the greatest determining factor in profiting (or losing) in real estate?

Kian,

Phoenix is a great place for investing in real estate for cash flow or even flips. That being said you can be successful in any of those markets. Some will just be more difficult. I recommend Phoenix as a safe bet for real estate since it is one of the fastest growing cities here in the US and doesn't have as much red tape as in California.

Good luck!