All Forum Posts by: Account Closed

@Keegan Darby how much do you know about the Phoenix market??

@Adam Zamboni obviously there are plenty of options out there when choosing a city to invest in. Personally I chose Scottsdale to begin my investing journey. 4 years ago prices here were very reasonable and I liked where we stacked up in terms of avg income vs. avg home value.

Everybody has heard about Phoenix by now so the supply is being squeezed. We are under 3 months supply right now so it’s a sellers market all the way. Bidding wars are a regular occurrence.

That said, the jobs and net migration metrics are in our favor. The market is hot for a reason, tho arguably less lucrative than 4 years ago with the appreciation we’ve experienced.

Personally I've turned to wholesalers, pocket listings, and preforeclosures for the best opportunities here. There are less than 5 HUD homes listed here at the moment which gives you an idea of the competitive atmosphere for investing. A good realtor is a critical tool to have here (and everywhere else)!

If you have specific questions, fire away!

@Frank Chin 🙄😎 I'm not asking anyone to take my word on anything posted here. I presented a scenario where Sub2 helps a family.

You haven’t poked hole in that scenario, you’ve only interjected politics into a conversation where it doesn’t belong.

I get it, someone, somewhere, once upon a time that you read about in an article did something wrong....you should definitely carry that around with you the rest of your life.

@Frank Chin I literally donate all my commission as a real estate agent to children’s charities. Connect with me on LI, you’ll see. Is there any other way you’d like falsely narrate my motivations today or are we good?

@Frank Chin helping people pay their medical bills and paying off pornstars draws no parallels my friend. The OP said there were ZERO scenarios where Sub2 deals weren't slimmy, and he is flat out wrong as I think I've done a good job of illustrating.

@James Wise first of all...anyone who deals in absolutes is typically not to be trusted.

As for a single scenario where subject to is not slimmy:

Seller owns a turnkey property worth $300k and has $200k left on their mortgage. Theyve lost their jobs because their son got sick and they had to take him to too many appointments for a specialist out of state. They’ve ignored the preforeclosure warnings because they had bigger priorities and have 12 hours to get current on $20,000 in arrears or they will lose their house, their credit, and their equity.

I as the buyer make a “subject to” offer of to assume the sellers mortgage. I give them $20k up front and pay of their $20k in arrears. All in I’m at $240k to own a house currently valued at $300k. I also issue the seller a performance deed which states that if I default on their mortgage payment by more than 29 days, the property is deeded back to the seller.

What have they gained:

Time (invaluable) - to find new jobs and a smaller house.

$20,000 cash - to use as a down payment toward the purchase of their next home or put toward medical bills.

Security - if I fail to make payments they get their house back without the $20k debt in arrears, a new clock, and $100k in equity that they could turn around and sell on the open market and have more than 12 hours to find a buyer.

Credit - they won’t take the credit hit of a foreclosure, and they’ll assume the benefit of my on time payments.

Pride - they’ll never have to answer the question of foreclosure with a “Yes”.

Knowledge - they’ll have the knowledge that they have options even when life gets tough.

Lesson- Stop trying to put people in a box. Life happens.

@Reid Ruckebeil Scottsdale is on fire at the moment! The jobs numbers and net migration figures are through the roof. You may have seen an article lately about 6% appreciation in the area last year. Personally I’ve bought into Grayhawk, Arcadia, Norterra, and Desert Ridge areas with my own investments, but as a Realtor I can tell you that there are ton of good options depending on the investors criteria.

@Kiera Underwood here goes. In 2016 I bought my first buy and hold in the Phoenix market. $295k purchase price with $15k down on a turnkey home built in 2012 for a PITI of $1586 plus $200 HOA. It was a pure appreciation play as market rents were only about $1750 so I barely broke even and was actually at a loss when you consider capex and vacancy (but I've had 0% vacancy to date). The house is a 3/2 patio home in Class A neighborhood surrounded by $500-$750k homes. I house hacked for the first 2 years bringing on a roommate to cut my out of pocket down to about $700/month. I've since turned it into a rental. As of today that house is worth $350k+ and market rents are $2100 which puts me at $100/ cash flow after vacancy and capex. All in with my rent payments I'm at about $30k invested over the course of those 2 years. I have $100k in equity and a cash flowing property. This doesn't fit any mold you'll find on BP, but I'll take this to the bank all day everyday. If I could have bought 5 of these I would have in retrospect.

@Thomas Lo ya lets connect. I’m happy to help people out. I’ve got to pay it all forward somehow! Send me a DM

@Eric Severson anytime brother.