All Forum Posts by: Pamela Sandberg

Yes, investing is definitely a different strategy than finding a PR, and it's important to find an agent who knows the difference! It's also important to find an agent who understands the different investing strategies that work in different parts of town. Phoenix is huge and diverse and expanding - lots of potential here for those who understand the market.

Happy to answer any questions you might have!

In addition to Tempe, check out Chandler. Appreciation there has been insane over the past couple years! I also love the historical districts around central Phoenix. They require a lot of work, but the spreads on those flips are also insane. 

@Angel Nieves: Let me know if you have any trouble getting your LLCs set up!

Hi Marlon! I hope you and your girlfriend enjoy your time in Phoenix. The real estate market here is BANANAS, and there are lots of great opportunities for investors. Obviously for a PR you'll wand to be close to work in Glendale. There are some specific areas there (especially around the stadium) that are very desirable and should give you some nice appreciation over the next few years.  

For investment, there are some fantastic options all around the valley. I'm happy to answer any questions you have about different areas or investment strategies!

@Eric Black: could you PM me the name, too? I've also been looking for a CPA who knows REI. Thanks!

Your personal residence would be protected by the LLC. If you were sued, ONLY the LLC assets would be "up for grabs". So as long as your personal residence stays in your personal name, it doesn't matter if there is a HELOC on it, or if that was the source of funds for the LLC.

Happy to answer any other questions about this or the Phoenix market!

I'm sorry you had a lousy experience with the Realtor, but the accelerated loan payoff looks fantastic! Way to go!

There's been a lot of great discussion on the first part of your question, so I'll jump in on the second half: is the Phoenix market too overheated or are there still deals to be had?

The Phoenix market is hot, and the entry barrier is much higher than it was ten - or even five - years ago. That doesn't mean that you can't still find profitable deals! Appreciation is still reliable and continues to go up. This is fueled by some serious job growth all across the valley, so it's not necessarily a risky "bubble" as in days past. The trick is to manage your expectations. No, you probably won't find a lot of magic deals under $100k. Yes, you will be competing with a LOT of other investors.  These challenges are real. They are not, however, insurmountable. Plenty of people are still making good money in the Phoenix real estate market!

For you especially, it will be critical to have a good team. A Realtor who knows the area and can scout off-market deals, a dependable contractor, a property manager who doesn't need baby sitting ... etc. I have referrals in all these areas and am happy to help however I can!

Getting a local Realtor is important, but don't underestimate the asset of having a brother who knows the area! That could be a real help in understanding the market, having someone who can respond to emergencies, etc.  

Just reiterating what's been said: there are some eviction complications with an occupant who isn't on the lease. You will also have more security as a landlord (another guarantor, maybe another source of security deposit, etc.) In the future I would definitely recommend adding a clause to your lease that all occupants must be disclosed and adults must be added to the lease. 

For this particular situation: the cost-benefit analysis is really up to you. If there haven't been problems, maybe it's not worth it to you to upset this good tenant. But understand that there are potential risks to not adding this occupant to the lease. 

Hope this helps!