All Forum Posts by: Cara Lonsdale

 This is something that always makes me mad at lenders for.  They always think us deceitful!  It's infuriating.  

Some of this can be avoided by choosing the right lender.  Many of them won't have that kind of hang up, especially if the purchase price is higher than your original unit.  I have a good one that I work with in AZ....that also offers loans nationwide.  I could offer you their contact info if you PM me (the system won't let me post it).

Also, if the property has any updating or renovation done, you could argue that you are moving up and into a better fit for yourself.

The only other idea would be to start marketing your unit for rent, and secure a short term lease on your unit, making it necessary for you to find a new home. It would be hard to dispute the need for a new unit if your current one was rented out. Just be sure to check with your HOA to see if there is any minimum requirement for lease terms. Many of them require at least a 12 month lease initially.

If I think of anything else, I'll let you know.

If you want an honest, competent HVAC guy, call Damon Hopkins with Xtreme Services LLC. He is very competent, and works with integrity. He also offers fair pricing and completes the work as agreed in a timely fashion. PM me if you want his contact info.

Try the Chader Team.  They are in the Southeast Valley and are full service.  It's called TCT Property Management Services.  The forum will not allow me to post their contact info, but a google search will provide it.  If you have any trouble, just PM me and I will give it to you.

Hope that helps!  Best of luck to you!!

 I will reach out to him and send over a contact for you shortly.  Thanks!

 This is a smart strategy, and I wanted to offer you some encouragement for your decision.  It is always smart to diversify your portfolio, and choosing properties in different price ranges is just smart investing.

As a Realtor in Arizona for over 20 years, I have seen different strategies work, but yours is pretty solid.

Sue, to your situation, I would suggest looking in parts of North Scottsdale as well as Desert Ridge.  These areas offer good "bubbles" of social activity (not to be confused with a real estate bubble).  What I mean is that renters are attracted to these areas because they are in close proximity to where they will buy groceries, shop, eat out, and entertain themselves.  Kierland, as an example, is a popular community in North Scottsdale, and has a great bubble with both Kierland and Scottsdale quarter nearby.  The rental rates are solid, and there would be opportunities to do different things with the property down the road, if you like, like post it on airbnb and so forth (they have co-hosts that do all the work for you).  Additionally, this community has been sought after since it's inception in the 1995-1996 year range. 

As a side note to your 1031 exchange...make sure you check with your accountant about what 'like for like' means.  You mentioned different types of property, and not all of them would follow the rules of a 1031 exchange necessarily, so you would want to be clear on that.

Lastly, has either of you considered a property manager? This may eliminate your original problem of not having the time/energy to manage the properties yourself. Sure, they may take up to 10%, but it sounds like you are leaving money on the table by short-changing your ROI. It's very possible that even with the expense of the property manager, you may still be better off. And remember, the property manager's fee is tax deductible. Just a thought.

I hope that helps.  Best of luck to both of you!

AHH WHAT?!!  I am totally surprised by the comments on this, especially by licensed agent, because with this, there IS an absolute answer when it comes to marketing materials soliciting real estate transactions by agents.

If you are a licensed real estate agent, you not only have the obligation to disclose, but you also are required to display your broker's name/logo on EVERYTHING you do in regards to marketing.

I have noticed that so many of these "I'll buy your house for cash" marketing pieces have NO brokerage info listed on their mailers.  This is a direct violation with pretty severe consequences.  

I suppose that if you were the principal, and mailing a letter to a specific property owner requesting their interest in selling, you may not have to list your brokerage firm or include your logo.  However, these mass mailings that have the intent to provide you real estate leads require the display of your broker's logo and/or info.  Remember, you practice real estate at the privilege of your broker.  Therefore, the Broker has to be present on everything you do.

Regarding the disclosure that you are an agent.....there is more of a gray area here as it relates to timing of the disclosure.  As a rule of thumb, I would disclose your agent status as soon as it feels appropriate, but preferably before contract time so that there is no feeling of dishonesty.  Make sure that you make the disclosure in writing as part of the contract so that you have a documented disclosure (and it's required).

My question to you is why WOULDN'T you want to tell people you hold a real estate license?  You have the ability to competently complete the transaction with them, and provide the resources and vendors to get the transaction closed smoothly.  In my experience, people appreciate the heads up sooner, rather than later.  In the beginning, it doesn't seem like a big deal.  However, the later you delay the disclosure, the more deceitful it feels to the other party.

Wow!  That IS a tricky-plex.  LOL.

Lowball offers are really tricky unless you just don't care what the outcome is, because the truth is, more Sellers will be insulted by a lowball offer than not.  So, if it is just a numbers game, and firing off multiple offers looking for something to stick is your strategy, then be prepared to write alot of offers.

In my experience, unless the Seller is desperate, an offer less than 10% will backfire on you, as the Buyer.  You are likely to offend the Seller.  

However, there are exceptions. 

If the property needs extensive rehab, the low ball offer can be justified by submitting an estimate of the rehab along with the offer.

If the property has been on the market for a significant amount of time, there is an opportunity to come in with a lowball offer that has a chance of getting accepted.

In terms of strengthening your offer, you can try increasing your Earnest Money deposit to let the Seller know you are serious and willing to put up the money to prove it.

You could also make your Earnest Money non-refundable after the inspection period.  This would also be a showing of strength, but still give you the ability to inspect without losing your funds.

I hope that helps.  Best of luck to you!!

First, please clarify.... Are you planning on living in the property? I ask because you mention house hacking and FHA (which indicate owner occupied buyer), however, you then state that the lender would have to be friendly with investors. So, I was confused.

FHA 203B or 203K programs are only offered to owner occupied borrowers. This is a GREAT program as it allows you to finance the rehab through an escrow hold back based on a bid from a contractor that you and FHA approve to complete the rehab for your property. Lenders have to be certified to offer these loans.

PrimeLending is certified and offers this program.  Also NOVA home Loans does.  I have good experience with both of these lenders in Phoenix/Scottsdale, AZ.  I know they both do loans all over the nation, so you may want to check out their websites to verify the area the property is located in is offered by the lender.

I hope that helps!  Best of luck to you!!

This is a VERY interesting post!

Your wheels are turning in the right direction.  Let me offer some more ideas along your same thread, and pose a few questions.

You may want to contact your attorney and/or accountant, but how about setting up an LLC for the property that you and your mom are co-managers for? After closing on the property, you quit deed the property to the LLC, so the LLC owns it. You could be the statutory agent, which means that you would handle the day to day operations and/or be the person to accept any correspondence on behalf of the property/LLC. In the event that she passes away, the LLC will still continue to run. You could even add your wife as a co-manager to replace your mom at that point.

Also, I am not sure that taking out a loan equates to ownership for tax purposes.  Again, you would need to consult an accountant.  However, it may be possible that you and your mother obtain a loan together, but you claim it on taxes.  There is a % that you can allocate toward ownership if necessary, but in reality, if you claim 100%, then the taxes would all be based on your ownership, not hers.

Security Title is awesome for it's ability to handle multiple types of transactions that you may encounter as an investor.  They provide title certs and insurance for trustee sales (which is HUGE because all hard money lenders require it, and with a 24 hour turnaround requirement, Security can get it done), They have a connection with IPX for 1031 exchanges, and they offer investors a discount when closing multiple properties.  There are locations all over the valley, but if you are in need of their assistance for a trustee sale, you have to use Melissa Flicker.  She is IN their foreclosure department, and is AWESOME!!!

If you need her contact info, just PM me.  They wouldn't let me post it here.

Best of Luck to you!