All Forum Posts by: Matt Shields

For investment property, the first thing I look at is where people are moving from and where they are moving to. Here are some statistics to consider:

Baltimore lost population last year as more than 5,300 people left the city, continuing a downward trend with a decline of about 6,000 people from 2015 to 2016. 

Baltimore 2017 - 611,648 population. -1.5% growth

Phoenix gained approximately 24,036 people last year, just behind San Antonio on the list of fastest-growing large cities, continuing decades of population growth.

Phoenix 2017 - 1,626,078 population. +1.5% growth

Also, while Phoenix has it's share of subpar construction I don't think it's unique to the city and I'm sure Baltimore has it's newer home construction issues. A lack of pride in work and craftsmanship is a nationwide problem. Phoenix also has block/brick homes. One thing Phoenix doesn't have is snow and ice. Growing up in the midwest, I saw the wear winters cause to homes.

Most of the things that you mentioned in the house that is "falling apart" are things that are usually at or near the end of their lifespan for a twenty-year-old house anywhere.

If the house was your primary residence for at least two of the last five years you may qualify for a tax exclusion up to $250,000 single/$500,000 couple. If not, you may be able to do a 1031 exchange. (Seek professional advice)

As far as what to do? I would need more information about you and your goals. Are you staying in Arizona?

Well, that's my two cents. I'm an Associate Broker at HomeSmart, and if I can help you just let me know. My resume is in my profile.

Good luck!

There are many fourplexes in the North Valley, some are currently for sale in ARMLS. If you BP private message me with what you are looking for and your email, I can set up with a search that will automatically send you listings which meet your criteria with price change updates, as soon as they are entered into the MLS. No obligation!

I'll throw my pitch in! I'm a longtime valley resident and Associate Broker with HomeSmart. I have been working full-time in real estate for 17 years with experience in residential, horse property, land, rental, distressed, and fix&flip's.

I agree with everyone that the eastside is great, but that can also be the problem, a lot of people chasing the same properties. Don't dismiss Phoenix and the West Valley. It may not be as glamorous, but it has opportunities that many people miss.

If you let me know what you are looking for I can set up a search in ARMLS that will automatically email you listings that meet your criteria, and any updates like price reductions, as soon as they are entered into the MLS. No obligation, you can still choose any agent you want. Just send me a BP private message with your email and requirements.

Good luck!

1. If you have a real estate attorney, ask them if they have a "Cash for Keys Agreement". My attorney gives them out free. The occupant agrees to: Move out date. Property moveout condition/cleanout. Final walkthrough date. Amount to be paid on completion of the agreement. Non-payment and eviction actions if the occupant fails to complete agreement. After the walkthrough, get a receipt for monies paid and the keys. Then change the locks immediately. 

2. Get it in writing (see above). I suppose they could write a bad check, maybe request certified funds or a wire on moveout day? Also, be aware, she may get a 1099. 

As always, don't trust the internet, seek professional advice. Good luck!

I don't know the laws in your state but in many, you would need a real estate license. Also, will you be collecting rents? If so, where will they be deposited? Commingling funds is usually a serious offense. Can a "friend" arrange notices/actions? Even if it's legal, is it worth the risk of a friendship or personal liability if something goes south on the property?

As always, don't trust the internet, seek professional advice. Good luck!

Be careful what Section 8 advertises. I wasted a lot of time/money on my first and last Section 8. They promised me above market rent, which I thought would make up for the government hoops I had to jump through, but when my potential tenant applied with her voucher I was given a low-ball below market rent rate. I easily rented the house for 15% more to a "normal" tenant and no hoops, but it cost me several weeks.

Also, use "extreme vetting" on Section 8 applicants. You are not going to believe the dregs of society that will show up. Most have a story and an excuse why it's not their fault. 

As always, don't trust the internet, seek professional advice. Good luck!

I'm almost afraid to ask, but did you do any due diligence on the property before purchasing? There are so many things that can affect the value of land.  Does it have legal and physical access? Floodplains/floodways? Water/water rights? Zoning? Electric distance? Deed restrictions? Easements? Pase 1/2? Perk? I'm probably forgetting a few. 

There are many ways to make money (and lose money) on land. You can buy in the path of progress and wait for civilization to come to you. Some investors buy on a dip and then sell when the market goes up. (We are long past the dip) Bottom feeders who purchased crap land for almost nothing in a down market will unload it for a profit in a boom. Many people farm the land outside a growing city until values rise, then they sell, buy land further out, and repeat. My favorite is to buy wholesale and sell retail by splitting a larger piece into smaller lots, usually build ready with utilities, a well share, and a road agreement. If your property is in the middle of nowhere with nothing going for it, one idea is to split it into smaller pieces and market it to hunters/preppers and offer seller carry. Mark them up, get a small down payment, and charge interest. 

Some of these ideas could get you into serious legal trouble if done incorrectly, seek professional advice. Good luck!

The trend is going the other way with fewer homeowners. I think the bigger concern, especially with rising rental rates, is will the local/federal government continue to introduce further regulations like rent control and reduced tenant screening.

I don't "steer" any client away from a FSBO. Of course, if buyer's want me to work for them and represent them as their agent, they or the seller must pay my brokerage. Besides, most FSBO's eventually become listings because the seller's find out that they are doing a lot of work to save a little money. This is why FSBO's are usually concentrated in the lower part of the market. Wealthy people know their time is better spent making money doing what they know and hiring professionals for everything else. FSBO's also usually net less in proceeds than a property represented by an agent.

FSBO's soon find out that most buyers are working with a buyers agent. Why not? The seller usually pays the broker fees. If a FSBO doesn't work with agents then they have a very small pool of buyers, and fewer buyers equal a lower sales price, so they usually end up offering a commission to agents. Now the 6% savings has dropped to 3%.

From that 3% begin deducting signs, advertising, contracts/disclosures, attorney fees, and time off work. I recently spoke with a seller considering a FSBO and asked how he would show the home while he was at work. He said, "My wife will be at home while I'm at work." I asked "Your wife is going to show the house to strangers walking in off the street?" and there was a very long pause before he said, "I never thought about that."

So let's say the FSBO seller is a work from home attorney who owns an adverting agency and saves the full 6% commission. The FSBO/attorney/ad agency owner finds a willing buyer not working with an agent. There is a reason this buyer is not working with an agent and doing all of the work themselves. They know that the FSBO seller is not paying any commissions on this deal, and guess what they want?

So the short answer is I welcome FSBO's, they often end up being good clients!