All Forum Posts by: Francesca Zanzucchi

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $415,000
Cash invested: $45,000

Currently, there is just one single family home on the lot but it is zoned for multifamily. We set the home up for short and mid term rental and will be building a duplex on the back half of the lot this upcoming year.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $265,000
Cash invested: $20,000

I loved this home because it was perfect for house hacking. This property had two separate structures a 2bed/2 bath main house and a 1bed/1 bath casita in the backyard. There are a lot of things to consider when purchasing a home to house hack...parking, laundry, access. It can be difficult to find a space that is set up so you are not interfering with your guests space and vice versa, this one had it all.

What made you interested in investing in this type of deal?

When I was 24, I understood the value of real estate but I also understood that purchasing a home could be a liability. I wasn't will to purchase a house unless it was also producing some kind of income for me, so I started the search for the perfect house hack and found this gem. I ended up living in the guest house for three years and using the front house for a short term rental. Not only did it pay my mortgage but it allowed me to write off 2/3 of my household expenses, a great tax benefit.

How did you find this deal and how did you negotiate it?

I found this deal on the MLS. I love looking through the back on market section. This home had just gone back on market after the original buyers (boyfriend and girlfriend) had a fight, broke up, and called off the deal.

How did you finance this deal?

I was a first time home buyer and locked it up for 3.5% down using an FHA loan.

How did you add value to the deal?

The sellers had failed to mention they didn't pull permits so big upgrades, I ended up getting $14k in seller concessions for calling these out during the due diligence process

What was the outcome?

I got an amazing first home that continued to be a cash flowing asset for me long after I moved out.

Lessons learned? Challenges?

Be proactive about contract deadlines. Make sure every document is complete and signed at least 24 hours before the deadline.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $265,000
Cash invested: $20,000

I loved this home because it was perfect for house hacking. This property had two separate structures a 2bed/2 bath main house and a 1bed/1 bath casita in the backyard. There are a lot of things to consider when purchasing a home to house hack...parking, laundry, access. It can be difficult to find a space that is set up so you are not interfering with your guests space and vice versa. I ended up living in the guest house for three years and using the front house for a short term rental. Not only did it pay my mortgage but it allowed me to write off 2/3 of my household expenses creating an amazing tax benefit for me. This investment was my first stepping stone to financial freedom.

What made you interested in investing in this type of deal?

When I was 24, I understood the value of real estate but I also understood that purchasing a home could be a liability. I wasn't will to purchase a house unless it was also producing some kind of income for me, so I started the search for the perfect house hack and found this gem.

How did you find this deal and how did you negotiate it?

I found this deal on the MLS. I love looking through the back on market section. This home had just gone back on market after the original buyers (boyfriend and girlfriend) had a fight, broke up, and called off the deal.

How did you finance this deal?

I was a first time home buyer and locked it up for 3.5% down using an FHA loan.

How did you add value to the deal?

The sellers had failed to mention they didn't pull permits so big upgrades, I ended up getting $14k in seller concessions for calling these out during the due diligence process

What was the outcome?

I got an amazing first home that continued to be a cash flowing asset for me long after I moved out.

Lessons learned? Challenges?

Be proactive about contract deadlines. Make sure every document is complete and signed at least 24 hours before the deadline.

Investment Info:

Single-family residence wholesale investment in Scottsdale.

Purchase price: $460,000
Cash invested: $2,000
Sale price: $480,000

This wholesale deal was in the heart of Scottsdale, Arizona.
1,233 Livable SF
5,804 SF Lot
🛏 3 Bedrooms
🛁 2 Bathrooms
🏊‍♂️Large Pool & Great Backyard
Upgraded roof
Upgrade Kitchen
New interior doors (installed) and floors (uninstalled & come with sale)

Offer: $480k
Est. Repairs: $30k - 3 week hold
ARV: $6​10​k

What made you interested in investing in this type of deal?

This home was in a great neighborhood. I knew if I locked it up I could find an investor that would be interested in flipping it.

How did you find this deal and how did you negotiate it?

This deal was brought to be by another agent. I can't stress how important it is to make relationships with other agents, they are your eyes on the market. This agent knew I invested in distressed properties and called me before her client ever went to market.

How did you finance this deal?

Cash/Hard Money

How did you add value to the deal?

This was the first time the other agent had done an assignment on a deal. I walked her through the process showing her how easy it was to save a deal by replacing a buyer who is no longer interested with a new one who is ready to take the deal over the finish line.

What was the outcome?

The seller walked away with the cash they wanted.
The buyer walked away with a profitable project.
The sellers agent walked away with a dual commission.
and I walked away with an $15k assignment fee.

Hey Cathy, great questions and congrats to you and your husband for embarking on this new investment journey. Please see my responses below: 

1) What long-term city would you invest in today?
I am local to Arizona and have witnessed the insane growth first hand over the past 10 years... and there is no sign of it slowing down. Phoenix, Scottsdale, Gilbert, Chandler and Glendale have seen massive appreciation over these last few years and it is difficult to Cash flow in these core central cities. I just sold one of my properties in Central Phoenix and I am looking to re-invest in the outskirts where population growth is expected to continue to boom because of large corporate investments (data centers, production studios, warehousing etc.). These cities include: Goodyear, Mesa, and Maricopa. Arizona is also a very investor and landlord friendly state, which is a must for me when looking for investment properties. 

 2) Are there any untapped markets left? Or is everything in all of the USA just too crazy and expensive to get into right now?

These markets I mentioned are in the earlier phases of mass population growth. Large developers are making their way into these markets meaning the market analysis has been done for us. While interest rates my be high, I always say, date the rate..marry the home (and purchase price).. Once rates start to decline you are going to be competing against every other investor who was holding off for rates to drop. 

3) Should we hold our cash and wait?

If the deal works, jump on it. Time in the market beats timing the market. 

If you need help analyzing a deal, please reach out. I have numerous deal calculators and underwriting tools I use to see if an investments makes sense for my goals. Hope this helps! 

Great place to buy, population growth is strong, wage growth is strong, the climate is easy on homes (no hurricanes, snow, etc.) and it's a fairly landlord friendly state. 

I am looking for distressed properties for myself and a few other cash buyers (please send me your deals!)... I keep coming across Section 18 houses listed by the City of Phoenix. Has anyone had experience purchasing one of these Section 18 listings? 

Good luck! Keep us updated on progress

I ended up purchasing the course. Here are my takeaways:

Pros

- Gives you every step from start to finish to successfully wholesale property.

- Training is in-depth and correctly sets expectations. What you put in, is what you get out.

- Connects you with a community of other trainees and gives you access to a discussion board with a couple of years worth of archived questions and responses.

- The deal calculator provided is super solid. I personally made some adjustments but overall it works well to analyze deals.

- The weekly calls are consistent and offer great support to getting deals locked up.

Cons

- There is only one approach covered in the training to making offers on property. Cash offers.

- There is not in-depth information on approaching deals with creative financing (seller carry, sub tos, ect.)

- The weekly calls are not always hosted by Alex, often it is various members of his team. They do a great job with basic questions but their knowledge, at times, can be limited.

Overall, I would say it's worth the money. If you follow the process you can make your investment back on one or two deals. For those of you who are familiar with how to open an entity in your state, how to stay self motivated, how to make effective phone calls, and just operate in a professional manner, the first half of the training may seem slow/repetitive. I am still considering buying Pace Morby's sub to training on top.

Hope this helps! Please reach out with any questions.

Best,

Francesca Zanzucchi

AZ REALTOR and Investor

I ended up purchasing the course. At the time I purchased, the course was $6,000. Here are my takeaways:

Pros

- Gives you every step from start to finish to successfully wholesale property.

- Training is in-depth and correctly sets expectations. What you put in, is what you get out.

- Connects you with a community of other trainees and gives you access to a discussion board with a couple of years worth of archived questions and responses.

- The deal calculator provided is super solid. I personally made some adjustments but overall it works well to analyze deals.

- The weekly calls are consistent and offer great support to getting deals locked up.

Cons

- There is only one approach covered in the training to making offers on property. Cash offers.

- There is not in-depth information on approaching deals with creative financing (seller carry, sub tos, ect.)

- The weekly calls are not always hosted by Alex, often it is various members of his team. They do a great job with basic questions but their knowledge, at times, can be limited.

Overall, I would say it's worth the money. If you follow the process you can make your investment back on one or two deals. For those of you who are familiar with how to open an entity in your state, how to stay self motivated, how to make effective phone calls, and just operate in a professional manner, the first half of the training may seem slow/repetitive. I am still considering buying Pace Morby's sub to training on top.

Hope this helps! Please reach out with any questions.

Best,

Francesca Zanzucchi

AZ REALTOR and Investor