Rents expected to jump- this is the time to invest!

Hi all,

Just wanted to share with you this article quoted by the Chicago Tribune.

We've been seeing this upward trend in the Phoenix Metro area where properties are rented as soon as they go in the market.

This is the time to invest- if cashflow is around 9% net. now- it will get even better when this trend gets stronger!

http://http://chicagobreakingbusiness.com/2011/03/rents-could-jump-double-digits-as-vacancies-drop.html

Join our tour to AZ April 9th-10th and see it yourself!

Yours,

Naomi.

If I buy a house- will it be rented?

Hello friends!

I've been presenting the advantages of investing in AZ for quite a few months now and the same question comes up again again: "OK Naomi- we understand purchasing those houses is an excellent cashflow deal but how do I know I'll be able to rent the house after I buy it...?

So- this has been our experience in the last few months:

1. For the house the property in San Tan Valley that sold for $ 85.5K and rented for 2 years for $900 our property manager got 8 calls the same day he posted it and stopped accepting any others. He picked the family he liked the most. with the best employment and personal background and children- which guarantees they will be staying there for a while.

2. For another house in San tan Valley he got 11 (!) showings the same day he put it in the market and rented it right away.

3. For our client from Australia who bought a house the last day of his visit for $ 90k, it was rented out for $1000 while he was on the flight back home. When he arrived to Melbourne- he already had a tenant!

This has been going on for a while. There are around 5000(!) foreclosures per month in the Phoenix area which is very sad for the people living there- no doubt about it, but for us investors it means low purchase prices and more and more people needing rentals.

We are hearing hi-tech companies in the East Valley are hiring thousands of new employees. Probably some will be from the area but most likely new people will be relocating to AZ and will either buy or rent. This might create 2 results: purchase prices will start climbing up at the good neighborhoods and demand for rents will grow even more.

If you are considering to invest in AZ, don't wait- we have still good deals out there but I'm concerned they will start disappearing pretty soon...

Feel free to comment or ask by posting here or contacting me directly at: naomiesal@gmail.com.

Coming up- 2 great properties for sale- fixed and with tenant in. Keep checking this blog in the next few days...

Best,

Naomi.

Expanding to new neighborhoods...Chandler, AZ

Hi all,

Sorry for disappearing for so long- I just was really busy with marketing the houses I've posted and now they are almost all gone...

We started our investing project in the area of San Tan Valley, as houses there showed a unique delicate balance of affordability for purchasing, great rental market and very good demographics- all those guarantee reliable prospective tenants and high ROI.

As the house inventory in San Tan Valley is diminishing very fast and prices are going up and as many of Carelocations investors prefer areas closer to Phoenix (although more expensive)- we now expand our services to Chandler and Gilbert.

Why Chandler and Gilbert?

Those two towns are very centrally located and prices there are still affordable, between $110k- $ 160K.

Chandler is home to 4 Intel locations with 10,000 employees and expanding to 14,000! Motorola is located in Chandler too and so are other hi-tech companies that are expected to hire over 2000 additinal employees in the coming years.

That means....high salaried tenants and demand for nice rental homes. As those areas are close to PHX- Phoenix International Airport and downtown and relatively newer homes can be found there- those are projected to be winning investments both as rentals first and resales later.

Presentations of AZ investments and specific properties plannned for:

Sunday, March 6th at 7:30pm in Cupertino, CA.

Tuesday, March 22nd at 7:30pm in Hertzliah, Israel.

Next upcoming tour to AZ- April 8th-9th- you are all invited to join and tour the beautiful Phoenix area with us!

For additional information feel free to contact me at: naomiesal@gmail.com.

Yours,

Naomi.

Only one house left in the lower $70K's in AZ!

Hi all,

I just got new pics for the only house left for sale at $ 72,500 for Carelocations clients only!

This house is listed in the market at $ 78,900 and the market value is $ 98,500- so it will go fast!

Rents for : $ 850. Cash on cash return: 9.23%

Repairs are all done and included in the price as well as commissions for renting.
One year property management free!

533 E. Angeline, San Tan Valley- SOLD!

2738 W. Angel Way, San Tan Valley- SOLD!

3316 N. Roadrunner- San tan Valley- SOLD!

30681 N. Desert Star Dr.- San Tan Valley- SOLD!

4496 Meadowlark- San Tan Valley- SOLD!

900 E Payton - San Tan Valley - SOLD!

797 E. Desert Holly Cir, Queen Creek- SOLD!

2281E Meadow Chase Dr., San Tan Valley- SOLD!

16 N Terrace, Chandler - SOLD in 3 days!

For additional information contact me directly at: naomiesal@gmail.com .

What I just saw in AZ and the Wall Street Journal

Hello all,

Came back from our investors tour in AZ where we found great deals!

Amazingly enough- while summing up our visit at a local Starbucks in Chandler I saw this title in the Wall Street Journal on the rack- "Cash buyers lift housing- cash buyers boost prices in depressed cities" (see link for full article).

http://online.wsj.com/article/SB20001424052748704570104576124502975117950.html?KEYWORDS=house+market

And indeed this is exactly what we saw happening in the Phoenix Metro area: all the houses I've previously posted for sale on this blog were gone in a matter of days ( except one which is the only one we have available now in the $ 70k's range).

What we discovered- houses that are in "turn-key" condition are sold immediately IF at the right price. The ones that need repairs- obviously go much slower as cash buyers from out-of-state are reluctant to get into repairs and tenant search.

That's when we come into the picture- as you would buy with Carelocations a house already fixed and rented and UNDER market price!

This house has been completely remodeled and is ready to go!

Price for Carelocations clients only: $ 72,500

Listed price: $ 78,900

Rent: $ 850.

Cash on cash return: 9.23%

Contact me for a complete investment analysis- before this one is gone too: naomiesal@gmail.com.

For new investors- back to basics 2

Hello friends,

Some of you might be experienced in "the art of investing in real estate" - some of you are "beginners" living in the US and overseas- so I'll try to explain some more as to how the purchasing process works and how we can make it easier for you.

1. First step- you usually contact and contract with a realtor. Hopefully you'll have a recommendation about a trustworthy professional. From my 12 years experience- having a good local real estate expert that cares about YOUR needs is critical to closing a successful deal.

2. Second step-you start searching for a property with your realtor. The question is- how many properties will you see till you find THE one? If you are like me- looking for the perfect investment (good condition so there's a minimum need for repairs, good neighborhood so you get the best possible tenants and rent and good appreciation chances in the future) you will probably drive your realtor crazy, see an everage to 30-50 houses and submit 5 offers (if you are lucky to find 5 that match your criteria). Hopefully- you'll get one accepted and can move one step forward.

3. Third step- Make the offer and start the negotiation process: your written offer to the seller/bank would be the signed and dated purchase contract and "earnest money"- usually $ 1000 in Phoenix. The seller will probably come back with an answer to your offer- reject (you went too low), accept (probably you went too high) or present you with a counter-offer. and there you go- back and forth, till the final price is agreed on. this can take between 2-10 days.

4. Fourth step- Wait till the closing date arrives. Usually 2-4 weeks from the date the contract was signed. This is the time to conduct the inspections- to make sure everything is OK with the property and to change your mind if you discover anything is wrong with it.If you get a loan for this purchase this is the time for your lender to take care of all the paperwork needed, till the loan is approved. That takes time and lots of documents to provide!

5. One or two days before the closing date you'll get the final estimated expenses from the title company that will distribute your money to whoever you are paying: the seller, the realtors (the seller's and yours), HOA, insurance and the title company itself for its services (including registering you as the house owner in the County offices). You'll need to transfer your downpayment ( 25%-50%) and your lender will transfer their share. if it's a cash purchase- you'll need to transfer the exact amount provided by the title company.

Congratulations- you are now the proud owner of a property in the US!

6. Once you get your house's keys- it's time for repairs: replacing/cleaning carpets, painting, buying appliances. Maybe your realtor can recommend a contractor to do the work, you'll find a property manager that will do the work for you ( "time is money" so that will cost-of course) or you'll need to take care of it yourself...:-(.

7. Renting time has arrived and you are probably 2-3 months down the road from the day the purchase contract has been signed. Your property manager/realtor will post the house for rent, get the calls, schedule the showings, check the potential tenants financial standing and finally prepare a lease for them to sign. This will incur commissions for your realtor and for the tenant's realtor and will take anytime from 1-2 weeks to 7-8 months? (Yes- we've heard that kind of horror stories...).

8. Finally- you get the one month deposit and first month rent (most of it goes to the commissions) and congratulations again- you've got yourself a tenant!

Complicated, expensive and long process? Definitely!!!

Would you like to make it simpler and start getting rent immediately as you transfer the money to the title company?

That's what Carelocations is here for!

We will skip all those steps and start paying you rent as the house become yours!

Would like to hear how we do it?

Contact me for additional information: naomiesal@gmail.com. or ask me about an upcoming presentation in your area.

Coming up soon- new properties in the market. Most of those listed in this blog in the last month have been sold!

Yours- as usual,

Naomi.

Different strokes for different folks...?

Guess and let me know what do you think: which is which?

1. San Tan Valley, AZ - $ 69,900K 2. Scottsdale, AZ- $ 434,900K 3. Chandler ,AZ- 139,000K

I've been hearing requests from our potential investors and there's one thing that we all need to have clear first when we plan to purchase investment properties:

What are we buying these properties for?:

1. Maximum cashflow?

2. Maximum appreciation?

3. An optional second home for vacation?

4. Retiring there?

Each one of those purposes will dictate a different investment strategy:

1. For maximum cashflow we buy the most affordable property with the best rent- probably inpopular and further out areas that combine a good balance of both (like Queen Creek, San Tan Valley or Maricopa in the Phoenix Metro Area). at those neighborhoods we can buy for an average price of $ 75k with long term tenants already-in, paying an average of $850 per month.

See featured property in the picture - price for Carelocations' clients only:

$ 69,900, rents for $ 850.

2. For maximum appreciation we should buy closer to town and employers but then the purchase price would be higher and the rent not significantly better than in the other areas. For example: in Chandler (Intel location), Mesa, and Gilbert- purchase prices would start at $ 120K and rents would be around $ 1000 per month. See property on the picture in Chandler-

Purchase price- $ 139,900, will rent after repairs for $ 1200 max.

3. Second home for vacationing or retirement? Buy in the best areas- Scottsdale and N. Phoenix starting at $ 200k minimum for single family homes and renting at $1200- $1300.

See property in Scottsdale in the picture:

Purchase price: $ 434,900, rents for $ 2500.

Since most investors that would like to take advantage of the very low purchase prices in the Phoenix area are searching for one of the 2 first options- cashflow or appreciation, we will be adding more expensive properties to our investments areas in order to satisfy the expectations of those who would prefer the appreciation option with higher purchase prices.

During our upcoming tour on February 8th we will be viewing homes in the East Valley- good neighborhoods and affordable prices in Chandler, Gilbert, Queen Creek and San Tan Valley- starting at $ 70K to $ 120-130K.

Feel free to contact me for additional information: naomiesal@gmail.com.

Yours,

Naomi.