Flips in West Valley, Phoenix

[Jared Carpenter]

Hello,

Would any of you be willing to provide some contacts/brokers, whom you have had positive experience with, that invest in or list properties in the West Valley of Phoenix, specifically Mesa, Apache Junction, Coolidge, and Casa Grande?

Thanks!!

[Shiloh Lundahl]

Our model doesn't depend on high appreciation. For instance, we are under contract to purchase a property there from a wholesaler at 88k. The ARV is 120k and the house only needs a little in work (about 5k). We will sell it on a 4-year lease option for 129k. The likelihood of the house appreciating 9k or 7% in 4 years is pretty high. Lets say the house goes down in value for some reason and is only worth 110k after 4 years. The tenant can decide not to exercise the option and buy somewhere else, or we could lower the purchase price, or the tenant could come in with a higher down if they really wanted the house. But if they didn't want to exercise the option then they could move and they wouldn't have to worry about selling the house and paying all of those closing costs or losing money as they would if they were to buy it today and then sell it in 4 years for a 10k loss plus closing costs.

We have not reached the 5 year term on any of our options yet.  We did 5 year options last year.  We are doing 4 year options this year, and 3 year options next year.  In 2022 we are planning on grouping the profits from the options that get exercised and doing a 1031 exchange into larger, higher cash flowing assets.