All Forum Posts by: Account Closed

I don’t know a single lender that wants to bear the expense of foreclosing on a performing asset. They aren’t losing money on those loans, their spread is still intact. What would be their motivation to risk driving someone into foreclosure that’s been paying their note like clockwork? Can you imagine the PR nightmare they’d face in this digital age? Just because it’s legal doesn’t make it popular in the court of public opinion. And believe me, banks care more about PR than a celebrity on at a movie premiere. 

 @Kevin Foster do you have a recommendation for an RMLO that has been involved in your transactions in AZ?

I'm not saying that the appreciation in Phoenix is done. I'm simply saying that from an investment standpoint in a highly irregular part of the cycle, the last thing I'm going to do is chase it to make my deals make sense.

First, I would contact the agent who helped you buy this place and ask them what kind of due diligence they did on the HOA. It was literally their job to guide your transaction…and at the very least that should have included contacting the HOA. Second, I would never use that agent again. These things don't just come up out of nowhere, especially not to the tune of $10k. Somebody likely knew. If you can prove that that seller knew and did not disclose it then you yourself can start a law suit. if you acted as your own agent…you learned a very hard lesson in hiring experienced professionals. Take that and run with it.

If you buy turn key your investment journey will be over before it starts. The last thing you want to do is buy turn key and lock up all your dollars on the first deal. You need to find a strategy that lets you recycle your liquidity. For me that was targeted buy and hold finding undervalued assets that cash flowed. I also got my license to recoup commissions. For you it might be forcing equity, driving for dollars, or creative finance. If I were in your shoes I would become an EXPERT in creative finance -think wraps, sub to, assumable loans. 

I am a cash buyer in AZ. What do you have laying around on the shelf?

Disagree. These markets are entirely appreciation based markets at this point…trouble is, the biggest chunk of appreciation already happened. If you want to invest in Phoenix you need to be chasing cash flow on the fringe of the MSA. You just will not find it in the heart of Scottsdale at 7.25% rates unless you are able to force it through sweat equity. You’d better know what you’re doing if you’re going to try and force equity in 2 decade high rate environment. 

Hey Carolyn. I’m an investor and realtor here in Phoenix as well. There are goals and then there are plans. You have to first choose a strategy and then block out the noise of everything else. If I were getting started right now in Phoenix I would be LASER focused on acquiring properties where you can assume or wrap a lower interest rate below 4%. This is the absolute best way to make a deal pencil right now unless you have a funnel of leads set up severely under market rate. Happy to talk shop!