Maricopa County market update

When you are a real estate investor it is very important to know your market. I will provide market statistics based on the ARMLS (Arizona Regional MLS) so you can keep an eye on what is happening.

10/2/2016
20,198   Active listings
6,281     Pending listings
3,997     AWC 
3,596     Sold - September 2016

September was a fairly active month. We have been a very steady market, we've been in the 20,000 range for active listings for the last 8+ months. Pending have dipped slightly but AWC listings have maintained. It was a typical September for sold listings.
The Phoenix area market has remained very consistent and we are looking for a typical winter. Interest rates have not changed and it seems as if everything is on hold until the Presidential election. Many experts feel we will have interest rate changes in December or January. This remains to be seen.

6/28/2016

20,706 Active listings

7,874 Pending listings
4,154 Pending and accepting back up offers

3,785 Sold listings in last 30 days
*2,064 under $250k (54%)
*1,345 between $250-$500k (35%)
* 379 over $500k (10%)

                        

These numbers show that we are solidly in a seller's market. With over 12,000 pending properties, we have less than 2 months inventory. In a traditional market we have between 30,000 and 40,000 listings. So our inventory is very low. 

We should have an increased amount of closings next month, which is typical for Maricopa County, as many people are trying to get settled prior to the start of the new school year. 

The under 250k market is still very strong while the luxury market over 500k is not very active. If you are looking for a new fix and flip it is best to stay under $250k. 


Kris Ontiveros 
US Preferred Realty
602-292-5747
krisonti@gmail.com


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Flip tip - Building your team

Flip tip - Building your team - Your Realtor

In this flip tip, Kris discusses the importance of having a great Realtor on your team. Your Realtor must be a pro. You need an experienced agent who is familiar with the needs of an investor, preferably an agent who is also a real estate investor.

A lot of investors try to save money by hiring newbie or discount brokers, this is a horrible mistake. You need a seasoned Realtor who can help you negotiate a great price and make sure you get the true value for your flip. Thousands can be lost with the wrong Realtor.

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Transcription
"Hey how's it going, it's Kris with Phoenix Cashflow Properties. I'm here today at one of my listings. This is a fix and flip that one of my clients sold, that's why I'm here today, because we sold this baby! We are picking up the lockbox and we are clearing out because we will be closing escrow today. My client was able to close this property and get paid all while being on the beach, he's on the beach right now as we speak. So how did he do that? He did it because he has a great Realtor, and that's what you have to have if you want to be a successful investor. A good Realtor will know how to properly price a property, market it, negotiate offers as they come in, and do the little things like meeting the appraiser when he comes out because those are some of the most important things to get your price when you are doing your flip. So, the moral of the story, have a good Realtor on your team, they are worth more than their weight in gold, they will save you way more money than they will cost you. Dont' go with a discount broker because they don't really care, they don't work hard, you need someone who is also an investor and knows what you need. So...if you want to make money while YOU are on the beach,  just like my client is right now, follow us. At facebook we're at Phoenix Cashflow Properties, on Twitter and Instagram @azhomerenovator."

Make every contact count

This morning I received a call from Portland, OR (one of my favorite cities). I've been getting advertisement robo calls from out of state numbers all week, so I was hesitant to pick up. In my opinion, it's quicker to just pick up the phone then have to listen to a message and call someone back. Anyways, it's a fellow real estate investor who lives in the Pacific Northwest. He called because my electrician listed me as a reference and he was doing his due diligence. I gave my guy (John LeBeau) a good reference and a few details he asked for.

It would have been easy to stop the conversation there, but I know this business is all about what you know and most importantly WHO you know. So I started to dig. It turns out he owns 24 houses in the Phoenix area. I found out what he likes, what he doesn't like. I know that he specifically wants houses built 2002 and newer, between 1800 and 2200sf, and that he is looking for a 7% ROI. A lot of people have assumptions that most investors want the cheapest deals out there, but most smart investors are looking for better tenants in better neighborhoods and are willing to pay for it.

I let him know how I work, that I bring off market deals with equity. His objection of "already having a real estate agent" goes out the window because his real estate agent doesn't know how to play this game. I'm not going to browse the MLS, I'm going to connect with my sphere and bring him a deal. It might not happen this week or next, but he is on my radar.

The more rental buyers you have the more you will make wholesaling.

So these are my lessons for today, 1. Make every contact count. 2. Your network is your net-worth. 3. Don't assume what other people want. 4. When you create value for people there is no such thing as competition.




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Flip tip - 10th st shower

Here is our latest shower remodel. This was part of a flip with a room addition.

We used 12x24 white subway tile, 3x6 grey glass tiles for design, and grey penny tile for the floor. we've attached a link for exact specifications.

We have a valve with 3 settings, showerhead, rain showerhead, or both.

Here are a few pics of the finished bathroom.






Follow me on Twitter: https://twitter.com/azhomerenovator
Follow me on Facebook: https://www.facebook.com/phxcashflow/
Follow me on Instagram: https://www.instagram.com/azhomerenovator/
Visit me on Youtube: https://www.youtube.com/channel/UCaHF4097oEBtelEQHK25WrQ